1. RFID TECHNOLOGY
Tools like Porter’sfive forcesetc. can be used for better management
and control. But at this era automation, analysisand optimization is the
Indiviual coursework for Hi-tech Entrepreneurship module
JUNE 1, 2014
Today with increasing globalisation, the world has come closer. This has
made the market a very dynamic scenario. The advancements in the fields of
science and technology have turned many industries into a fierce competition.
We live in the era of automation, wherein, everything we do has been or is
being automated for the benefit of humans. Today, world without cell phones,
laptops, tablets etc. almost seems impossible. Few will argue with the
premise that the development of new, advanced technology products—from
advanced commercial aircraft, to computer software, to high-tech razors and
blades—has a major impact on society and is a major factor in the success of
many companies as well as a primary basis for their competitiveness. For a
particular technology company, to continue to enhance its competitive position
requires that the processes of advanced-technology product development and
introduction continue to be improved. (Scott, 2001)
This competitive environment has led to the development of new products at a
very rapid pace. New technology and products are introduced into the market
almost every fortnight.
Today, the requirement is “save time”, various products and services have
been developed or are under constant pressure to develop various
techniques, devices to save time and deliver products at accurate place, date
and time. Many organisations like amazon, e-bay etc. strive every day to
achieve perfect delivery statistics. This has led to develop various concepts
like product and employee monitoring products.
A product was traditionally tracked via barcodes and reader systems. Now a
days, RFID’s have been catching up. RFID stands for Radio Frequency
Identification, it works on a simple principle of electromagnetic waves and is a
non-contact technology. RFID can be used to find the real time location of a
product or employee or vehicles. In comparison to the traditional bar code,
RFID is compact and easy to function. Also, unlike barcode, RFID has no
issues with the proximity between the transmitter and receiver.
This technology will be extremely beneficial in many ways. RFID has a wide
range of applications in many fields, where a product or any object needs to
be tracked in real time.
Figure 1 RFID working
The discovery of RFID has saved a lot of time and effort and made it possible
to have a real time location of a product. Its applications range from a variety
of applications like:
2. Airport luggage logistics.
3. Contact less bill payments/ toll collections.
4. Machine readable travel documents like passports.
5. Employee tracking devices.
6. People/animal tracking.
7. Access management.
8. Tracking of goods.
9. Inventory management.
In the advanced world of technology, like today, real time tracking has
become extensively important which proves to be the ultimate competitive
advantage element of an organisation.
Therefore, providing RFID’s is the future for most of the industries today. it will
be a profit making business, as the potential of RFID still remains untapped
for a major part of industries today. Investing in R&D to further development of
RFID will prove extremely advantageous to profit making.
2. HI-GROWTH BUSINESS & ECONOMY:
Not every business can contribute to the overall prosperity of a country’s
economy. Very few businesses can generate the required revenue to help
with the GDP (Gross Domestic Product) of a country.
High- growth businesses are given the prime importance in any economy by
the government as a whole. These businesses contribute to the overall
economy of a country by creating jobs, providing resources for new ventures
etc. High-growth firms contribute to economic performance in several ways.
Their wider effects on social and economic outcomes go beyond their own
productivity, employment and innovation growth. High-growth firms generate
spillovers in their regions, creating jobs over and above their direct effect on
employment. They are also major innovators, and innovation drives growth.
(Mason, Bishop, & Robinson, 2009)
In many countries, business sector constitutes the major part of the economy
of that country.
2.1 COMMERCE FOR RFID:
In the past few years, RFID and has its applications have shot up extensively.
Many experts forecast the RFID market to rise further more in the near future
and develop a multi-billion market size over the next 10 years. IDTechEx find
that in 2014, the total RFID market is worth $9.2 billion, up from $7.88 billion
in 2013 and $6.98 billion in 2012. This includes tags, readers and
software/services for RFID cards, labels, fobs and all other form factors.
IDTechEx forecast that to rise to $30.24 billion in 2024. (Das & Harrop, 2014)
As we can see, the estimated potential size of the market triples within the
next 10 years. RFID markets are growing with great intensity.
We can clearly conclude that the world statistics for RFID makes up to huge
multi billion market which can obviously be considered as a support to the
overall economy of a country. The potential of RFID in the market is still quite
untapped and remains as an attraction to explore.
The wide range of applications in almost all fields makes RFID very versatile.
Especially, companies involved in supply chain management have a very
important place for inventions like the RFID. By 2024, moreover, the business
will have grown another 29 percent, to $30.24 billion. RFID is clearly a
technology that will play a major role in almost every industry, including
procurement and supply chain visibility. (Toensmiere, 2013)
RFID gives the advantage of tracking the real time location of an object. In the
future, almost all the industries will have a requirement of tracking orders,
people, materials etc. in a real time system. Using new, unique information
researched globally by IDTechEx technical experts, we analyze the RFID
market in many different ways. Full analysis by each market is given in great
detail including in-depth historic data by application type from 2005 year by
year to 2020 and with a 2024 outlook. For passive RFID, forecasts are
provided separately for the following application areas. For each we provide
the number of tags, average sales price and total value of tags. (Das &
Harrop, RFID: Forecasts, players & opportunities 2014-2024, 2014) the list
below shows some of the projected applications of RFID over the next 10
Table 1 Applications for RFID
3. MARKET FRIENDLYRFID:
RFID being compact and easy to operate, works on a simple logic and is a
non-contact technology. However, the manufacturing plant for the same could
be an expensive affair. But, comparing the outcome RFID to the input of
resources, in terms of sales is extremely high. As stated above, RFID has
numerous applications and can be put into mass production. This small and
compact technology has the ability to change the face of the market in the
emerging countries like the BRICS.
Major players now and in the future in the various parts of the value chain are
identified and the big orders and milestones now and in the future are
analyzed. Those doing well in numbers sold are sometimes much less
impressive in dollars taken and vice versa. Of course, not everyone will want
to serve the severely price constrained, highest volume markets. For them, we
examine many niches of at least one billion dollars potential that are emerging
and many smaller opportunities where there is even less competition. (Das &
Harrop, RFID: Forecasts, players & opportunities 2014-2024, 2014)
Also considering its applications and other advantages like easy to handle
and compact size, RFID can be easily used in all almost the industries and
provide many supportive and main tasks. The extension of RFID, RLTS (Real
Time Location System), is a highly appreciated and advantageous element,
which can steady the economy of many sectors.
In addition, ten year forecasts are provided for battery assisted passive and
active RFID and RTLS in the following applications: Pharma/Healthcare Cold
retail supply chain Consumer goods Postal Manufacturing parts, tools
Archiving (samples) Military Retail CPG Pallet/case Shelf Edge Labels
Conveyances/Rollcages/ULD/Totes Vehicles People (excluding other sectors)
Car clickers Other tag applications Additionally, the report provides units, asp
and total value for RFID readers as follows: UHF Fixed portal UHF Embedded
and handheld HF and LF Hand held, fixed, embedded LF Vehicle NFC
Cellphone The research conducted by IDTechEx ultimately provides ten year
forecasts by application area including tags, readers, software and services
for the following markets: Retail Healthcare and medical Passenger
transport/automotive Land, sea logistics and post Animals and farming
Airlines and airports Financial, Security Manufacturing Leisure/sports
Consumer products. (Das & Harrop, idtechex, 2014)
The hi-tech industry needs to overcome the barrier of ineffective
commercialisation of their new products. In every hi-tech industry, a good
percentage of their annual revenue is kept aside for future investments in
research & developments of their product. The high-tech industry must get
better at the difficult process of commercializing new technology, that is, of
taking ideas or concepts into productization. In the typical high-tech company,
10-20% of the annual revenue is set aside for new development, and a
significant percentage of the company's market value is based on the
projected commercial success of new technologies. (Goyal, 2006)
Hi-tech industries should eliminate small low-value productization investments
and allocate resources to the more important and optimised ones. The over-
loading of projects can be controlled by focusing on few important projects at
a time and eliminating the low efficient and less important projects.
Risk mitigation & strategic execution of the selected portfolio of products is
also very important in terms of channelling the important towards output
oriented projects. This can be done by lowering inefficient production and
decoding early signals of failure. For eg: the early warnings from prototype
phase delay should activate the corrective actions which will in turn save time
in the final production phase. Hi-tech companies should also, eliminate too
many risk factors and organise less risky/ risk free options.
Moreover, products that fit the customer requirement is the most important
element in any industry that serves people. Products should serve the
purpose of the customer with high quality and adequate customer support.
Today, companies can consider using tools like Porter’s five forces etc. for
better management and control. The solution to the above issues can be done
with the help of three main elements like automation, analysis and
optimisation. Automation refers to automation of the unnecessary manual
processes which will in turn better and accurate data to analyse. If the
collected data is of high accuracy, the following analysis will be better and
which will in turn expand the space to optimise and fine tune the process that
in turn hamper the productivity of a company.
Defining goals, defining ways to achieve goals can be the way to
commercialise a new technology in the market which will facilitate the growth
of an organisation.
With short product life cycles and the economic instability, a company’s
growth can be facilitated by efficient new product development practices.
Aside from evaluating new concepts, a company may perform periodic
reviews of the portfolio of all projects (marketing, product development, IT
etc.). These reviews can also be ad-hoc based on critical business scenarios
that arise from time to time.
Examples include budget cuts, say by 20%, due to lack of demand, or focus
on optimizing short-term revenue. Such a portfolio review and optimization
exercise can be accomplished through four stages: (1) project scorecard, (2)
current plan of record review, (3) creation of scenarios and impact, and (4)
adjusted plan of record. Thus, this business flow optimizes the portfolio.
(Goyal, 2006) The best operating practices execution leads to efficient
production, mitigate risks and helps in optimum use of resources and also
reduce cost of production, thereby, helps in better commercialisation of
industry- specific products. These commercialising strategies are an
advanced way to new product development. Also, adoption of these strategies
gives a smooth running of a company.
Better flow of investments and information can be regulated with adopting
dynamic commercialising strategies like above. A business may start with an
idea or a business may start with resources, in both cases, operating
strategies is the backbone.