Friday, September 24, 2004

RFID market

Q) Why is RFID market so noisy on the vendor side and so quiet on the customer side?

A) I do not see anything wrong with that. At the end of the day, it is the user that determines what they can and will use within their system. What has been out there in terms of "RFID solutions" has mostly been building blocks of the technology like readers, tags and others. However not much has been said about the gradual approach to implement RFID and the problems of it. There needs to be mechanisms that would allow the user to take the gradual approach to RFID implementation and draw the big picture piece by piece.

Many IT departments have emerged from long and costly ERP implementation projects that have taken a huge bite out of their IT budgets. Right now every body is so concerned with demonstrating ROI from their existing investments, that there is very little appetite for huge investments in another bleeding edge technology unless there is light at the end of tunnel.

Current area of focus in many IT departments is mostly on application integration. People need to make the existing investments more efficient and "cohesive". RFID implementation adds to the load of the integration effort. From one perspective it is good, because since you have an integration budget and a team going, and RFID can appear as an item under the integration agenda. This however might be easier said than done in many occasions.