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Determining Justification for Rfid Technology

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Running Head: DETERMINING JUSTIFICATION FOR RFID TECHNOLOGY

Determining Justification for RFID Technology

Bahram Izadi, Master Student of Business Management, University of Isfahan, Isfahan, Iran and John Boyd, BASc, Computer Engineering, University of Ottawa, Ottawa, Canada

Abstract

"What are the benefits?" is a common question for any organization considering implementing a new technology. This is an especially important question for small or developing companies, where an error in investment could result in unrecoverable operating capital loss. As Radio Frequency Identification (RFID) systems are making deep and impressive improvements in manufacturing, distribution, and supply chain management and military logistics, it …show more content…

The most common applications are payment systems, toll collection systems, access control, track people, assets and products without the need for human intervention or direct line of site. [Internet, 5] All of the applications listed have been deployed because they haven proven ROI.

4. RFID Costs
When considering RFID costs a company must consider the total cost of ownership rather than just the initial RFID hardware and tags costs. A complete RFID system includes not only hardware infrastructure, but also service such as design, development, deployment, maintenance, ongoing support, and training. Also to consider are the future costs as the system is scaled beyond its initial pilot or trial phase. Costs should also be associated with restructuring or introducing new business practices.

5. Creating Justification for RFID

The potential applications and benefits of RFID are only constrained by a company’s level of innovation. However, before rushing to adopt RFID technology a company can ensure the greatest rate of return and success by having in place a comprehensive strategic plan which quantifies all encompassing aspects of RFID including technology and business processes in order to deliver its benefits for maximum value. In

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