Monday, 29 April 2013

Brief 1/6 Use of RFID tags/chips in retail

Chips seem relatively new to Retail, this has been due to costs however this will definitely be a growth area in the future.

History
RFID systems have gained popularity, and notoriety, in recent years. A driving force behind the rapid development of RFID technology has been the rise of pervasive commerce, sometimes dubbed the quiet revolution. Pervasive commerce uses technologies such as tracking devices and smart labels embedded with transmitting sensors and intelligent readers to convey information about key areas where consumers live and work to data processing systems. To gather this data, retailers can choose from a range of options.
 RFID systems may be roughly grouped into four categories:

EAS (Electronic Article Surveillance) systems: Generally used in retail stores to sense the presence or absence of an item. Products are tagged and large antenna readers are placed at each exit of the store to detect unauthorized removal of the item.

Portable Data Capture systems: Characterized by the use of portable RFID readers, which enables this system to be used in variable settings.
Networked systems: Characterized by fixed position readers which are connected directly to a centralized information management system, while transponders are positioned on people or moveable items.

Positioning systems: Used for automated location identification of tagged items or vehicles.

These RFID systems enable business owners to have real-time access to inventory information, as well as a broader, clearer picture of consumers' buying habits. RFID technology also enables retailers and corporations to peek into the lives of consumers in ways that were, until recently, off limits. Products embedded with RFID tags can continuously transmit information ranging from an electronic product code (EPC) identifier, to information about the item itself, such as consumption status or product freshness. Data processing systems read and compile this information, and can even link the product information with a specific consumer. 

This composite information is vastly superior-and more invasive-than any data that could be obtained from scanning bar codes, or even loyalty cards. Frequent shopper cards link consumers to their purchases, but this limited information gives retailers only a narrow view of a consumers' in-store purchasing trends. In contrast, RFID systems enable tagged objects to speak to electronic readers over the course of a product's lifetime-from production to disposal-providing retailers with an unblinking, voyeuristic view of consumer attitudes and purchase behavior.

Privacy Risks

While corporate giants tout the merits of RFID technology, civil liberties advocates point out that the ability to track people, products, vehicles, and even currency would create an Orwellian world where law enforcement officials and nosy retailers could read the contents of a handbag-perhaps without a person's knowledge-simply by installing RFID readers nearby. Such a fear is not unfounded. Currently, some RFID readers have the capacity to read data transmitted by many different RFID tag. This means that if a person enters a store carrying several RFID tags-for example, in articles of clothing or cards carried in a wallet-one RFID reader can read the data emitted by all of the tags, and not simply the signal relayed by in-store products. This capacity enables retailers with RFID readers to compile a more complete profile of shoppers than would be possible by simply scanning the bar codes of products a consumer purchases.

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