Simply RFiD

RFID in 2007

SimplyRFID has two business tracks: RFID for Logistics and RFID for Asset Tracking (Nox). In 2007, we saw a massive increase in our Asset Tracking over our Logistics business groups.

We looked at 'what is the difference'? The simple answer: Need. But, the longer answer is below...

RFID Logistics:
RFID for logistics is in a holding pattern. The DoD officially cut Unit Pack RFID from their requirements. However, this is to be expected. We're in a marathon and we've only gone the first 25% of it. The DoD dropped Unit Pack requirements because they could experiment at a much lower cost by sticking to Pallet/Case requirements for their evaluation/test phase. The DoD will continue to refine their use of RFID through 2009 and in 2010 they will likely re-institute Unit Pack RFID.

When we consider the new product adoption cycle, it looks like this for RFID Logistics:
1. Desire: In 2002 we had desire to adopt RFID.
2. Reliability: In April 2006, the first reliable Gen2 equipment became available.
3. People: The world is still gathering the skills for RFID. There is no NEED so people are not rushing to gain the appropriate skill.
4. Integration: Most mainstream back-end shipping systems treat RFID as a barcode. This is only 1/2 the solution and not much more compelling than barcodes. This must change for RFID to work.
5. Need: Companies are grasping the 'need' for RFID. They have not found a true need -- they are still associating their DESIRE with need.
6. Corporate Adoption: Companies have not accepted RFID / no level of adoption has occurred. Pricing is still absurd vs. benefit and corporations must negotiate costs.
7. SOP (Standard Operating Procedure): RFID is by no-means an SOP.

Predictions:
RFID for logistics has succeeded at step 2, working on 3 / 4.

In 2007, we refined the reliability of the Gen2 RFID systems and solidified a base to train the experts and begin work on Integration.

I expect in 2008 and 2009, we will work on step 4 (integration). Once integration is complete, companies will be able to identify a need because the infrastructure / support is there. 'RFID' in itself can not be needed. It's the process of using RFID that is needed.

In 2010, we will see NEED develop for the integrated solutions and companies will rapidly adopt RFID. This will last 2 years.

In 2012, corporations will adopt RFID.

In 2018, RFID will be SOP and used by most corporations, like the barcode.

These are just my guesses. But, I think they'll be close.

RFID Asset Tracking:

Companies have moved to Step 5 in Asset tracking. They not only DESIRE it -- but, they have a NEED.

The SimplyRFID Nox system creates an integration between RFID and Video and truly meets that need. Many corporations are in Phase 6 (Corporate Adoption). While the volumes of tags are much lower in Asset Tracking (vs. Logistics), the technology is there and companies are able to find tangible benefits. This availability and a reasonable cost is driving rapid adoption.

We expect Corporate Adoption will happen during 2008 - 2010 and Nox will become SOP by 2014.

-c

Sell me...

Do we all want to be experts on everything? Some people do. I have a tendency, as a computer geek, to want to research and figure everything out. But, most people just want 'a toaster'. Something simple that looks pleasing, simple, makes them looks smart for making the choice and they can afford.

I noticed this the other day when I went to buy an HDTV. I walked in fairly uninformed. I knew I wanted 1080P and both an HD DVD and Blu-Ray. Then told the salesman, "Sell me the best TV for watching movies."

Rather than doing that, I was shown about 100 TV's playing low-rez broadcast images.

Had I been shown two TV's with super-high-definition, I'd now be the owner of an HDTV. But, alas, I am now "researching my purchase."

I noticed the other day at SimplyRFID, we were starting to get 'too complicated'. We started offering Intermec, Zebra, and Datamax printers. How is a customer to choose? Which one is better? Why do we sell three? Is this better for the customer?

Choice is always good. And, maybe each printer has strengths. But, in the case of highly-specialized applications, you need not 'choice' -- but, the right solution. Choice is about competition. I want someone else to do the competitive comparison and sell me the 'best choice'.

My HDTV shopping experience made me realize: More is not better if your goal is to solve problems. If we were a "distributor" we'd need to carry more because we add no value to the transaction. Perhaps Best Buy sees themselves as distributors?

And, so you'll see that SimplyRFID will be removing products from its list of items it sells and focusing on serving the customer with a simple choice. The best choice.

For the last two years, we have focused on Zebra printers as the premier printer. We also offered it in Desktop and Tabletops. What we found was: Desktop (small, inexpensive printer) buyers weren't typically happy with the performance of the printers. We have been working with Datamax for the last 5 months and find their new H-Series printers to be a better choice for all customers. Rather than now selling both -- we will drop the Zebra printers. Not that there is anything wrong with Zebra. But, we just want to give customers a single-choice and explain why it's the best choice.

I think this is part of the success of Costco. While I may not want Nathans Hot Dogs -- guess what -- it's the only brand they carry and they're really quite good...

-c

Delighting Customers: Amtrak?

In 30 years, I never took Amtrak or the train, in general. Lately, with all the issues around flying, it's faster to take the train.

Hesitantly, last month, I took a train from Washington, DC to New York. I was beyond surprised -- I was thrilled. This goes back to what Alice said in an earlier blog, "The solution has to be obvious."

It's not that Amtrak spent a penny on customer service. What they did was beyond that -- they made it obvious how to use the train.

1) Buy ticket.
2) Park in an indoor parking lot 5 minutes before departure.
3) Get on a train up to 1 second before the on-time departure.
4) Arrive at destination on time.

The first time I did it, I thought it was a fluke. So, I did it two more times in the last month and every time, it WORKED THE SAME! Brilliant...

Now, lets look at the Airlines:

1) Buy ticket.
2) Arrive 2 1/2 hours before flight.
3) Park in an uncovered lot 15 minutes from airport or pay triple to park in a covered lot 10 minutes from airport.
3) Stand in line for 45 minutes to check a bag.
4) Optionally, throw away toothpaste, shampoo, etc so you can carry on.
5) Stand in the TSA line for 30 to 60 minutes.
6) Load into plane 30 minutes before flight.
7) Discover you have a middle seat.
8) Wait on the tarmac for 45 minutes because of outgoing delays.
9) Wait for baggage 30 minutes
10) Buy new toothpaste.

On a cross country flight, the inconvenience of the airlines is within reason. Yet, I never feel like a beloved customer when I fly. With Amtrak, I don't have any 'touch points' -- I just GO! Airlines constantly prod me and herd me. How is it that Amtrak doesn't feel the need to do this?

Did Amtrak plan to make a great train service? Unfortunately, my curmudgeon-skill is honed and I have to say Amtrak accidentally made their service perfect.

But, maybe not... Maybe, somewhere, Dagny Taggart is working hard to keep the trains running. Lets hope she keeps that part of Amtrak perfect.

Why don't Airlines do this?