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None of Our Business?




                    By-
                    PRAVEEN SIDOLA 1021026
SUMMARY
• The case revolves around the use of RFID technology in
  tracking customers, in order to enhance customer shopping
  experience
• Raydar Electronics – Raydar is a technology firm which is into
  making and integrating RFID and identification tags and
  readers
• CEO of Raydar – Dante Sorella
• There operations are mostly confined to manufacturers, and
  retailers in helping them to streamline supply chain
  operations
• Craig Davis CEO of KK stores, wants to implement RFID
  tracking systems in their front end operations, hence
  approaches Dante for advice
• The intention is to enhance customer satisfaction and
  experience
• Dante raises the question of risk and threats which can arise
  from both the customers and the Government
• On a recent visit to the newly opened KK store, which was few
  blocks away from the Raydar headquarters, Dante was
  impressed and hence convinced about the KK’s products
  popularity.
• On one hand Dante is tempted to except the offer as he is
  able to foray in to the retail sector
• But Dante is in a dilemma as his lawyer and the company’s
  chief of communication officer discouraged him from
  accepting the proposal
Identification of concepts in the
                case
Achieving Superior Innovation
     Incremental innovation

Positioning Strategy

A company must ensure cross functional integration among
R&D, production, and marketing.

Learn from experience

Research and development

Achieving superior responsiveness to customers
Problem Identification
Primary Problem
• Ethical use of RFID…???
• Invasion to privacy….!!!!
Secondary problems
• Not so equal ground for application of RFID on the global
   level due to different regulations in different countries.
• Thinking only locally & not globally when it comes to
   market expansion
Alternatives
1- Using alternatives other than RFID, like Biometric
   recognition at the shops.
   Merits:
• Lesser invasion to the privacy, and database is also
   maintained
• Access to customer information only at the stores when
   the customer enters the store.
   Demerits:
• Database is maintained, but it is not strong and detailed
   enough.
• May still remain a privacy invasion issue for some
   extremist.
Cont.
• 2- Continue tagging the products with RFID
  Merits:
• Better inventory control, avoiding stockouts.
• Faster billing system, as RFID tags can be scanned in bulk at
  given point of time.
• Better database, leading to customer satisfaction
  Demerits:
• Non-acceptances of customers in terms of invasion of privacy.
• With fast moving markets and rapid change in trends, the
  tagged product may become obsolete in short duration.
• Mismatch of data, as the customer may not be the end
  consumer.
Cont.
3- Connecting the RFID tagging process with the
   Government, making it more transparent.
References
• An RFID can be valuable for retailers because clerks do not
  have to directly scan the tag like they do a barcode, and the
  readers can scan up to 1,000 tags at any given time.
• It is used widely in the public and private sector to assist
  businesses with asset tracking and security.
• Hospitals use RFID equipped bracelets and patches to track
  newborn movements, prevent accidental switching of
  infants, reduce prescription medicine and surgical errors, and
  monitor the location of equipment
Cont.
• Public transportation systems worldwide use RFID equipped
  cards to track and bill use of the services, such as "EZ Pass"
  type equipment for toll roads or payment cards for mass transit
  systems.
 Ref:www.rfidjournal.com
     www.naturalnews.com
Concept screening
Advantage
• The movement of inventory can be tracked
   - Goods can be received and shipped faster
   - Ease of predicting product demand
   - Shoppers can save time
   - Out of stock situations can be avoided
   - Shoppers get a better deal as system
  becomes more efficient
   - The right products are available at the right
  stores at the right time
   - Boost sales
Limitation
• Cost of product increased at least by 25 to 20
  cents.
• Use ,Storage & Security of data a huge issue
• Ethical Issue
Demarcation
• There should be proper demarcation b/w
  Process & Customer

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RFID Tracking Raises Privacy Concerns

  • 1. None of Our Business? By- PRAVEEN SIDOLA 1021026
  • 2. SUMMARY • The case revolves around the use of RFID technology in tracking customers, in order to enhance customer shopping experience • Raydar Electronics – Raydar is a technology firm which is into making and integrating RFID and identification tags and readers • CEO of Raydar – Dante Sorella • There operations are mostly confined to manufacturers, and retailers in helping them to streamline supply chain operations • Craig Davis CEO of KK stores, wants to implement RFID tracking systems in their front end operations, hence approaches Dante for advice • The intention is to enhance customer satisfaction and experience
  • 3. • Dante raises the question of risk and threats which can arise from both the customers and the Government • On a recent visit to the newly opened KK store, which was few blocks away from the Raydar headquarters, Dante was impressed and hence convinced about the KK’s products popularity. • On one hand Dante is tempted to except the offer as he is able to foray in to the retail sector • But Dante is in a dilemma as his lawyer and the company’s chief of communication officer discouraged him from accepting the proposal
  • 4. Identification of concepts in the case Achieving Superior Innovation  Incremental innovation Positioning Strategy A company must ensure cross functional integration among R&D, production, and marketing. Learn from experience Research and development Achieving superior responsiveness to customers
  • 5. Problem Identification Primary Problem • Ethical use of RFID…??? • Invasion to privacy….!!!! Secondary problems • Not so equal ground for application of RFID on the global level due to different regulations in different countries. • Thinking only locally & not globally when it comes to market expansion
  • 6. Alternatives 1- Using alternatives other than RFID, like Biometric recognition at the shops. Merits: • Lesser invasion to the privacy, and database is also maintained • Access to customer information only at the stores when the customer enters the store. Demerits: • Database is maintained, but it is not strong and detailed enough. • May still remain a privacy invasion issue for some extremist.
  • 7. Cont. • 2- Continue tagging the products with RFID Merits: • Better inventory control, avoiding stockouts. • Faster billing system, as RFID tags can be scanned in bulk at given point of time. • Better database, leading to customer satisfaction Demerits: • Non-acceptances of customers in terms of invasion of privacy. • With fast moving markets and rapid change in trends, the tagged product may become obsolete in short duration. • Mismatch of data, as the customer may not be the end consumer.
  • 8. Cont. 3- Connecting the RFID tagging process with the Government, making it more transparent.
  • 9. References • An RFID can be valuable for retailers because clerks do not have to directly scan the tag like they do a barcode, and the readers can scan up to 1,000 tags at any given time. • It is used widely in the public and private sector to assist businesses with asset tracking and security. • Hospitals use RFID equipped bracelets and patches to track newborn movements, prevent accidental switching of infants, reduce prescription medicine and surgical errors, and monitor the location of equipment
  • 10. Cont. • Public transportation systems worldwide use RFID equipped cards to track and bill use of the services, such as "EZ Pass" type equipment for toll roads or payment cards for mass transit systems. Ref:www.rfidjournal.com www.naturalnews.com
  • 12. Advantage • The movement of inventory can be tracked - Goods can be received and shipped faster - Ease of predicting product demand - Shoppers can save time - Out of stock situations can be avoided - Shoppers get a better deal as system becomes more efficient - The right products are available at the right stores at the right time - Boost sales
  • 13. Limitation • Cost of product increased at least by 25 to 20 cents. • Use ,Storage & Security of data a huge issue • Ethical Issue
  • 14. Demarcation • There should be proper demarcation b/w Process & Customer