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Epcglobal: a Universal Standard

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Epcglobal: a Universal Standard EPCglobal: A Universal Standard Juan Ignacio Aguirre Working Paper CISL#2007-01 February 2007 Composite Information System Laboratory (CISL) Sloan School of Management E53-320 Massachusetts Institute of Technology Cambridge, MA 02142 EPCglobal A Universal Standard by Juan Ignacio Aguirre B.S. Mechanical & Electrical Engineering, ITESM M.S. Solid Mechanics, Brown University Submitted to the System Design and Management Program in Partial Fulfillment of the Requirements for the Degree of Master of Science in Engineering and Management at the Massachusetts Institute of Technology June 2007 © 2007 Massachusetts Institute of Technology All rights reserved Signature of Author J. Ignacio Aguirre System Design and Management Program February 2007 Certified by Stuart E. Madnick John Norris Maguire Professor of Information Technology Sloan School of Management Professor of Engineering Systems School of Engineering Massachusetts Institute of Technology Thesis Supervisor Accepted by Patrick Hale Director System Design & Management Program, Massachusetts Institute of Technology EPCglobal A Universal Standard by Juan Ignacio Aguirre Submitted to the System Design and Management Program on February 2007 in partial fulfillment of the requirements for the degree of Master of Science in Engineering and Management Abstract: This thesis evaluates the likelihood of EPCglobal becoming the universal RFID standard by presenting a framework of ten factors used to analyze and determine if EPCglobal is moving in the right direction. The ten factors are: complexity of application (Supply Chain Management), mandates, privacy policy, member type, EPCglobal standard development process, membership size, intellectual property policy, benefits, system cost, and China. These factors have been used in various analyses and studies that explain the main reasons for the adoption of other technologies and/or standards. Therefore, this thesis not only presents an analysis for the adoption of EPCglobal as the universal standard but also presents the factors that could help EPCglobal achieve its goal. The results show that five of the ten factors that influence the establishment of EPCglobal as the universal standard have a positive effect for the universal adoption of EPCglobal, two are neutral, and three are negative. Thus, there is a strong likelihood that EPCglobal could successfully become the universal standard for RFID system in the retail supply chain management. Furthermore, if EPCglobal strives to have the two neutral rated factors join the other five positive factors and makes an effort to switch the three negative factors to positive, then EPCglobal would be on the right path to becoming the universal standard. Thesis Advisor: Stuart E. Madnick John Norris Maguire Professor of Information Technology Sloan School of Management Professor of Engineering Systems School of Engineering Massachusetts Institute of Technology TABLE OF CONTENTS TABLE OF CONTENTS ......................................................................................................................I LIST OF FIGURES ............................................................................................................................. II LIST OF TABLES ..............................................................................................................................III ACKNOWLEDGMENTS..................................................................................................................IV INTRODUCTION................................................................................................................................. 1 SECTION 1 RFID TECHNOLOGY .................................................................................................. 7 1.1. WHAT IS RFID? ...........................................................................................................................7 1.2. THE HISTORY OF RFID ................................................................................................................ 7 1.3. RFID ARCHITECTURE ................................................................................................................ 11 1.4. CURRENT APPLICATIONS OF RFID ............................................................................................ 14 SECTION 2 STANDARDS................................................................................................................ 18 2.1. WHAT IS A STANDARD? ............................................................................................................. 18 2.2. WHY ARE STANDARDS IMPORTANT?......................................................................................... 18 2.3. WHY CAN STANDARDS BE A PROBLEM?.................................................................................... 19 SECTION 3 RFID STANDARDS..................................................................................................... 21 3.1. WHAT ARE THE TYPES OF STANDARDS FOR RFID? ................................................................... 21 3.2. ORGANIZATIONS DEVELOPING STANDARDS FOR RFID ............................................................ 22 A. GS1.......................................................................................................................................... 23 I. BarCodes ..............................................................................................................................................24 II. eCom ...................................................................................................................................................27 III. GDSN ................................................................................................................................................28 IV. EPCglobal .........................................................................................................................................29 SECTION 4 RFID EPCGLOBAL - A UNIVERSAL STANDARD............................................. 43 4.1. ANALYSIS................................................................................................................................... 44 A. Complexity of application –Supply Chain Management ....................................................... 44 B. Mandates................................................................................................................................. 46 C. Privacy Policy......................................................................................................................... 47 D. Member Type.......................................................................................................................... 51 E. EPCglobal Standard Development Process........................................................................... 53 F. Membership Size..................................................................................................................... 55 G. Intellectual Property Policy ................................................................................................... 58 H. Benefits ................................................................................................................................... 61 I. System cost ............................................................................................................................... 62 J. China........................................................................................................................................ 65 SECTION 5 CONCLUSION ............................................................................................................. 69 APPENDIX 1 ....................................................................................................................................... 71 APPENDIX 2 ....................................................................................................................................... 72 GLOSSARY......................................................................................................................................... 80 LIST OF FIGURES Number Page Figure 1-1 ................................................................................................................................................... 11 Figure 1-2 ................................................................................................................................................... 12 Figure 1-3 ................................................................................................................................................... 12 Figure 3-1 ................................................................................................................................................... 23 Figure 3-2 ................................................................................................................................................... 25 Figure 3-3 ................................................................................................................................................... 28 Figure 3-4 ................................................................................................................................................... 29 Figure 3-5 ................................................................................................................................................... 30 Figure 3-6 ..................................................................................................................................................
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