WEBVTT 1 00:00:00.080 --> 00:00:04.240 You've probably encountered it today, maybe without even realizing. That 2 00:00:04.440 --> 00:00:08.640 quick tap of your credit card perhaps, or the keyfob 3 00:00:08.800 --> 00:00:11.880 unlocking your car, or maybe even a security tag you 4 00:00:11.919 --> 00:00:15.119 saw in a store. We're talking about this well invisible 5 00:00:15.160 --> 00:00:19.559 technology that's constantly identifying and tracking things around us. 6 00:00:19.800 --> 00:00:21.079 It's everywhere, really. 7 00:00:20.960 --> 00:00:25.879 Exactly, So today we're taking a deep dive into radio 8 00:00:25.879 --> 00:00:31.359 frequency identification or RFID. RFID it's a technology that's you know, 9 00:00:31.600 --> 00:00:34.759 quietly been evolving for decades, but now it seems like 10 00:00:34.840 --> 00:00:39.920 it's really becoming a cornerstone businesses, logistics, even security. 11 00:00:40.039 --> 00:00:41.759 It's hitting critical mass, you could say. 12 00:00:41.880 --> 00:00:45.399 Our mission today then, is to unpack the sources you've provided. 13 00:00:45.960 --> 00:00:49.439 We want to reveal the frankly fascinating history of RFID, 14 00:00:49.920 --> 00:00:53.399 explore some applications you might not expect. Oh, definitely confront 15 00:00:53.399 --> 00:00:56.399 some of the controversies, because there are controversies. 16 00:00:55.719 --> 00:00:58.039 There always are with tracking tech and peer. 17 00:00:57.880 --> 00:01:00.000 Into a future where well, it sounds like nearly every 18 00:01:00.079 --> 00:01:02.679 thing could be talking to each other. So yeah, get 19 00:01:02.679 --> 00:01:05.319 ready for some surprising facts, maybe a few aha moments 20 00:01:05.319 --> 00:01:09.200 along the way. Sounds good, Okay, So RFID for our 21 00:01:09.200 --> 00:01:12.439 listeners who know the basics, what's maybe a core concept 22 00:01:12.439 --> 00:01:15.920 that might still surprise them. And why now, why is 23 00:01:15.959 --> 00:01:18.799 it gaining so much traction after wealth decades? 24 00:01:19.280 --> 00:01:24.519 Right? Well, at its heart, RFID uses radio waves, simple enough, 25 00:01:25.000 --> 00:01:28.799 but it's about automatically identifying individual. 26 00:01:28.200 --> 00:01:30.200 Items individual Okay, yeah, think of it. 27 00:01:30.239 --> 00:01:33.439 Like giving every single object its own unique digital fingerprint. 28 00:01:33.560 --> 00:01:34.879 Huh, a digital fingerprint. 29 00:01:34.879 --> 00:01:38.920 I like that exactly. And this fingerprint it's broadcast wirelessly 30 00:01:39.000 --> 00:01:42.159 from a tiny chip attached to an antenna. That whole package, 31 00:01:42.319 --> 00:01:45.680 that's your RFID tag. Right now, the concept itself isn't new, 32 00:01:45.760 --> 00:01:48.200 as you said, but what is new, relatively speaking, is 33 00:01:48.200 --> 00:01:51.120 our ability to make these tags incredibly small, incredibly cheap. 34 00:01:51.239 --> 00:01:55.200 Ah the cost fact, the cost exactly, and you combine 35 00:01:55.239 --> 00:01:59.000 that with the sheer scale and complexity of modern supply chains. Well, 36 00:01:59.079 --> 00:02:00.799 that's what's really held it forward. 37 00:02:00.840 --> 00:02:03.480 Now, it's interesting that idea of a digital fingerprint, So 38 00:02:03.519 --> 00:02:05.280 this tech has been around a while. Then, it's not 39 00:02:05.319 --> 00:02:07.400 some brand new invention, oh not at all. 40 00:02:07.480 --> 00:02:10.159 And that's one of the striking things. It's longevity. The 41 00:02:11.120 --> 00:02:13.719 earliest practical application it actually dates way back to the 42 00:02:13.840 --> 00:02:14.680 end of World War two. 43 00:02:14.759 --> 00:02:15.800 Really World War two. 44 00:02:16.039 --> 00:02:19.000 Yeah, the British used a well rudimentary form of it 45 00:02:19.520 --> 00:02:23.560 to distinguish friendly aircraft from enemy ones. You know, the 46 00:02:23.639 --> 00:02:27.639 classic iff identify friend or faux system wow okay named 47 00:02:27.639 --> 00:02:31.599 Harry Stockman even predicted its potential back in nineteen forty eight, 48 00:02:32.080 --> 00:02:34.400 but it took a good thirty years or so for 49 00:02:34.639 --> 00:02:39.879 practical commercial uses to really emerge. Things like tagging livestock 50 00:02:40.080 --> 00:02:43.560 right for the early toll road passes, security access cards. 51 00:02:43.560 --> 00:02:46.919 Those are the early days. Then the nineteen seventies saw 52 00:02:47.080 --> 00:02:50.879 some important groundwork with the European Article numbering, the Ean collaboration, 53 00:02:51.439 --> 00:02:54.560 But the real sort of paradigm shift the moment it 54 00:02:54.599 --> 00:02:57.400 started looking like today's Internet of Things. That was really 55 00:02:57.479 --> 00:02:59.919 nineteen ninety nine, Okay, what happened then? That's when our 56 00:03:00.120 --> 00:03:03.400 FID advocates formed the Autoid Center. Their vision wasn't just 57 00:03:03.479 --> 00:03:06.360 tracking boxes. It was a global network where every single 58 00:03:06.439 --> 00:03:09.879 item could wirelessly communicate. And the goal was crucial developing 59 00:03:10.000 --> 00:03:11.840 very low cost disposable. 60 00:03:11.360 --> 00:03:13.960 Tax disposable right, so you could put it on anything 61 00:03:14.080 --> 00:03:14.639 pretty much. 62 00:03:14.840 --> 00:03:17.280 And the first really big field test of this whole 63 00:03:17.360 --> 00:03:21.560 vision that was at a Sam's Club in Tulsa, Oklahoma, 64 00:03:21.840 --> 00:03:22.680 back in two thousand and one. 65 00:03:22.800 --> 00:03:27.360 Elsa, Okay, and with that autoid center pushing this Internet 66 00:03:27.439 --> 00:03:31.919 of things vision, which big players jumped on board first? 67 00:03:31.960 --> 00:03:33.400 What made them take that leap? 68 00:03:33.520 --> 00:03:36.159 Yeah, you're right to ask about the big players, because 69 00:03:36.199 --> 00:03:38.759 those results from the Tulsa pilot in two thousand and one, 70 00:03:39.400 --> 00:03:42.960 they got noticed quickly by whom by the real prime movers. 71 00:03:42.960 --> 00:03:45.879 We're talking Walmarts and the US Department Defense the DoD, 72 00:03:46.280 --> 00:03:50.560 huge organizations both announced they intended to adopt RFID in 73 00:03:50.599 --> 00:03:52.800 a big way. Wow. And by two thousand and three 74 00:03:52.879 --> 00:03:56.199 you had EPC Global established. Their whole purpose was to 75 00:03:56.240 --> 00:04:00.280 support this Electronic Product Code or EPC network, basically aiming 76 00:04:00.319 --> 00:04:03.199 for a global standard so items could be identified automatically 77 00:04:03.240 --> 00:04:04.439 anywhere in the supply chain. 78 00:04:04.599 --> 00:04:07.919 So these mandates from giants like Walmart and the DoD 79 00:04:08.039 --> 00:04:10.120 they must have just forced the issue right, created a 80 00:04:10.199 --> 00:04:11.879 huge pressure for suppliers to it all. 81 00:04:11.680 --> 00:04:14.560 So absolutely, it definitely created a flurry of activity. Yeah, 82 00:04:14.639 --> 00:04:18.079 and yeah, a lot of friction too. I can imagine Walmart. 83 00:04:18.160 --> 00:04:20.920 I mean, think about it, they process over six billion 84 00:04:20.959 --> 00:04:24.439 cases a year. They mandated their top one hundred suppliers 85 00:04:24.439 --> 00:04:27.680 had to be RFID enabled the case and palette level 86 00:04:27.839 --> 00:04:29.199 by January two thousand and five. 87 00:04:29.399 --> 00:04:31.920 That's a tight deadline for such a big shift. 88 00:04:32.079 --> 00:04:35.399 It was, and the do defaullowed suit. They needed tags 89 00:04:35.399 --> 00:04:38.680 for their what eighty billion dollars supply system. Their focus 90 00:04:38.800 --> 00:04:43.519 was asset visibility, life cycle management. They desperately wanted to 91 00:04:43.560 --> 00:04:46.800 avoid repeating situations like Operation Desert Storm. 92 00:04:47.000 --> 00:04:47.720 What happened there? 93 00:04:47.839 --> 00:04:50.800 Apparently something like sixty percent of their shipping containers couldn't 94 00:04:50.800 --> 00:04:54.360 even be identified when they arrived. Huge caches of supplies 95 00:04:54.439 --> 00:04:57.680 just vanished into the system. RFID was seen as the solution. 96 00:04:57.920 --> 00:05:00.680 Okay, so these mandates are rolling out. Emiplayers must have 97 00:05:00.720 --> 00:05:04.160 been thrilled about this extra cost and complexity being forced 98 00:05:04.199 --> 00:05:04.519 on them. 99 00:05:04.839 --> 00:05:07.519 Uh, thrilled is probably not the word most would have used. 100 00:05:07.639 --> 00:05:08.800 Yeah, I figured now. 101 00:05:08.839 --> 00:05:11.399 The pushback initially was pretty significant. I mean, you had 102 00:05:11.439 --> 00:05:14.319 the proponents painting this picture of widespread adoption, but on 103 00:05:14.360 --> 00:05:15.879 the ground, companies. 104 00:05:15.560 --> 00:05:17.120 Were struggling with what specifically. 105 00:05:17.240 --> 00:05:20.279 Well, first, just the physics of RFID radio waves, right, 106 00:05:20.319 --> 00:05:22.279 they don't always play nice with things like heavy metal 107 00:05:22.319 --> 00:05:25.800 or liquids water right, interference big time. Then there was 108 00:05:25.839 --> 00:05:28.959 a whole challenge of integrating this completely new stream of 109 00:05:28.959 --> 00:05:34.040 information into their existing, often very old, legacy it system. 110 00:05:34.199 --> 00:05:35.519 Yeah, that sounds like a nightmare. 111 00:05:35.639 --> 00:05:40.120 And crucially the cost who pays tags were maybe twenty 112 00:05:40.199 --> 00:05:42.519 to thirty five cents back then, which sounds cheap, but 113 00:05:42.959 --> 00:05:45.759 multiply that by millions or billions of items adds up 114 00:05:45.800 --> 00:05:50.079 fast exactly. Plus the readers, the software, the installation, you 115 00:05:50.120 --> 00:05:52.199 could be looking at fifty thousand to two hundred and 116 00:05:52.199 --> 00:05:55.959 fifty thousand dollars per cit. It just didn't seem feasible 117 00:05:55.959 --> 00:05:58.439 for tagging, you know, a single two of toothpaste. 118 00:05:58.480 --> 00:05:59.959 So what happened? Did people just ignore it? 119 00:06:00.800 --> 00:06:02.720 Not if they wanted to keep supplying Walmart or the 120 00:06:02.759 --> 00:06:05.959 DoD A lot of suppliers initially just adopted what became 121 00:06:06.000 --> 00:06:08.360 known as a slap and ship approach slap in two, yeah, 122 00:06:08.560 --> 00:06:10.800 basically doing the bare minimum, just take a tag on 123 00:06:10.839 --> 00:06:13.240 the pallet or case to meet the mandate, ship it out, 124 00:06:13.720 --> 00:06:16.759 but without really investing in using the data or changing 125 00:06:16.800 --> 00:06:19.839 their internal processes, which you know, raises the really important 126 00:06:19.920 --> 00:06:22.759 question for the companies that did stick with it, what 127 00:06:22.920 --> 00:06:26.319 actually incentivized them beyond just ticking a compliance box? 128 00:06:26.639 --> 00:06:29.360 Right, So it's clearly not just about meeting mandates. Then 129 00:06:29.480 --> 00:06:31.839 if you get past that initial slap and ship. What's 130 00:06:31.920 --> 00:06:35.800 the real strategic value. How does RFID actually help businesses 131 00:06:35.920 --> 00:06:38.879 beyond just you know, keeping the big customers happy. 132 00:06:38.680 --> 00:06:41.360 The ultimate value proposition. It really comes down to the knowledge. 133 00:06:41.360 --> 00:06:44.920 It provides actionable knowledge. Ok It's not just knowing where 134 00:06:44.959 --> 00:06:47.199 your products are at any given moment, although that's part 135 00:06:47.199 --> 00:06:49.959 of it. It's about understanding how you can use that 136 00:06:50.079 --> 00:06:55.000 knowledge to fundamentally improve how your business runs, processing orders, 137 00:06:55.160 --> 00:07:00.279 managing inventory, forecasting demand, and ultimately selling more stuff. The 138 00:07:00.319 --> 00:07:03.560 real deep benefit comes when RFAD is integrated into a 139 00:07:03.600 --> 00:07:07.319 bigger strategy, a drive for optimizing the entire supply chain 140 00:07:07.519 --> 00:07:08.120 and to end. 141 00:07:08.319 --> 00:07:10.720 Okay, let's unpack that a bit. Our sources talk about 142 00:07:10.720 --> 00:07:14.560 supply chains transforming from these linear things into collaborative networks. 143 00:07:15.120 --> 00:07:17.360 How does RFID enable that shift? 144 00:07:17.839 --> 00:07:21.399 Well, think about traditional supply chains. Yeah, pretty linear, right, 145 00:07:21.519 --> 00:07:23.720 Raw materials come in one end, finish goods go out 146 00:07:23.720 --> 00:07:28.519 the other. But today it's way more complex. It's a network. 147 00:07:28.680 --> 00:07:33.439 You've got raw material suppliers, maybe contract manufacturers, design partners involved, 148 00:07:33.759 --> 00:07:38.360 multiple logistics providers, maybe third party warehouses, all scattered across 149 00:07:38.399 --> 00:07:41.800 the globe. It's a web, exactly, a complex web. RFID 150 00:07:41.920 --> 00:07:45.399 helps manage that complexity. By providing direct access and visibility 151 00:07:45.399 --> 00:07:49.240 into that whole interconnected linkage, the goods themselves can literally 152 00:07:49.279 --> 00:07:52.959 talk their status and location to anyone or any system 153 00:07:53.040 --> 00:07:55.720 that needs to know, no need for manual scanning or 154 00:07:55.800 --> 00:07:56.879 data entry at every step. 155 00:07:56.879 --> 00:07:57.759 Can you give an example. 156 00:07:57.839 --> 00:08:00.920 Sure Procter and Gamble, for instance, then stelled an RFID 157 00:08:01.000 --> 00:08:03.800 system in one of their Spanish manufacturing facilities. Cost them 158 00:08:03.839 --> 00:08:06.480 less than one hundred thousand dollars, which sounds like a lot, 159 00:08:06.519 --> 00:08:09.199 but listen to this. They put readers on their forklists 160 00:08:09.199 --> 00:08:12.600 and tags on the pallets. The result they achieved one 161 00:08:12.639 --> 00:08:16.120 hundred percent order accuracy, They reduce the number of forklift 162 00:08:16.160 --> 00:08:19.360 drivers needed by one per shift, and they got a 163 00:08:19.399 --> 00:08:21.279 full return on their investment within one year. 164 00:08:21.360 --> 00:08:23.240 Wow, just from tracking pallets. 165 00:08:22.800 --> 00:08:24.879 Better, Just from that initial step. And then if you 166 00:08:24.879 --> 00:08:29.319 connect that to the bigger picture, retailers lose on average 167 00:08:29.439 --> 00:08:32.320 about four percent of sales every year just because items 168 00:08:32.320 --> 00:08:33.600 are out of stock on the shelf. 169 00:08:33.679 --> 00:08:36.559 Four percent. That's huge for a big retail. 170 00:08:36.279 --> 00:08:38.919 It's massive for company the size of Walmart. That could 171 00:08:38.960 --> 00:08:42.240 be what twelve billion dollars in additional revenue just gone. 172 00:08:43.240 --> 00:08:46.879 RFID helps eliminate that by providing real time data on 173 00:08:47.000 --> 00:08:49.960 product movement, you know exactly when something leaves the back room, 174 00:08:50.000 --> 00:08:52.120 when it hits the shelf, when it's sold, so you 175 00:08:52.159 --> 00:08:55.720 can replenish immediately based on actual consumption, not just estimates 176 00:08:55.799 --> 00:08:57.279 or you know, guessing. 177 00:08:58.000 --> 00:09:01.519 That level of real time data really is transformative. What 178 00:09:01.679 --> 00:09:03.559 stands up most to you about how that kind of 179 00:09:03.639 --> 00:09:06.200 visibility changes how companies operate day to day. 180 00:09:06.480 --> 00:09:08.919 I think it's the shift from being reactive to being 181 00:09:08.960 --> 00:09:12.200 proactive instead of scrambling when you realize you're out of stock, 182 00:09:12.600 --> 00:09:14.679 you see the trend happening, and you can react before 183 00:09:14.720 --> 00:09:17.559 the shelf is empty. It allows for much smarter, more 184 00:09:17.600 --> 00:09:21.159 efficient operations across the board, less waste, less manual effort, 185 00:09:21.440 --> 00:09:22.320 better decisions. 186 00:09:22.440 --> 00:09:26.440 Makes sense now beyond just tracking palettes and boxes and warehouses, 187 00:09:26.440 --> 00:09:29.480 which is sort of the classic example. Our sources show 188 00:09:29.639 --> 00:09:33.440 RFID popping up in some well pretty surprising places. Where 189 00:09:33.480 --> 00:09:35.159 else is this tech making a difference? 190 00:09:35.360 --> 00:09:39.480 Oh, the applications are incredibly diverse. Now it's really moved 191 00:09:39.519 --> 00:09:42.600 beyond just the supply chain. Think about security for instance, Okay, 192 00:09:42.639 --> 00:09:47.600 counterfeiting a massive global problem, right, billions, maybe trillions of 193 00:09:47.600 --> 00:09:50.679 dollars some estimates put it at five seven percent of 194 00:09:50.720 --> 00:09:52.440 all global merchandise trade. 195 00:09:52.480 --> 00:09:53.559 That's staggering. 196 00:09:53.679 --> 00:09:57.960 It is RFID offers what some call intelligent authenticity, a 197 00:09:58.000 --> 00:10:01.399 way to verify if for product is genuine, like Pfizer 198 00:10:01.480 --> 00:10:05.240 started using RFID tags on Viagra shipments to combat fakes 199 00:10:05.440 --> 00:10:06.639 and ensure patient safety. 200 00:10:06.720 --> 00:10:09.399 Smart protects the brand and the consumer exactly. 201 00:10:09.759 --> 00:10:12.360 And then think about the impact of nine to eleven. 202 00:10:13.039 --> 00:10:16.679 That dramatically heightened the focus on supply chain security, not 203 00:10:16.720 --> 00:10:17.679 just efficiency right. 204 00:10:17.720 --> 00:10:20.039 Cargo security became huge absolutely. 205 00:10:20.279 --> 00:10:24.600 The Department of Homeland Security DHS started using RSID pretty quickly, 206 00:10:25.000 --> 00:10:29.279 authenticating cargo containers coming into ports, testing border management systems 207 00:10:29.360 --> 00:10:32.039 like giving visitors RFID tags at ports of entry to 208 00:10:32.120 --> 00:10:35.080 track their movements, interesting and health facility of programs like 209 00:10:35.120 --> 00:10:40.679 CTPAT the Customs Trade Partnership against Terrorism. Companies who participated 210 00:10:40.720 --> 00:10:45.360 and improved their security, often using RFID, got benefits. Like Hasbro, 211 00:10:45.480 --> 00:10:48.639 the toy company. They managed to drastically reduce the number 212 00:10:48.679 --> 00:10:51.120 of times their shipments were held up by customs, went 213 00:10:51.159 --> 00:10:53.480 from over two hundred holes down to just forty five. 214 00:10:53.960 --> 00:10:55.360 That's a big deal for a business. 215 00:10:55.480 --> 00:10:58.600 Definitely saves time and money. What about other areas healthcare. 216 00:10:58.679 --> 00:11:02.159 Oh healthcare is a huge one and is literally saving lives. 217 00:11:02.440 --> 00:11:05.840 The US Navy implemented a system called tac MEDCs in Iraq. 218 00:11:06.399 --> 00:11:10.759 They used RFID enabled wristbands on wounded soldiers gave medics instant, 219 00:11:10.879 --> 00:11:13.080 real time access to their medical records right there in 220 00:11:13.080 --> 00:11:16.159 the field or in transit. Huge improvement in care. Wow. 221 00:11:16.240 --> 00:11:20.399 And in civilian hospitals too. Erlanger Medical Center uses it 222 00:11:20.440 --> 00:11:23.600 to track expensive equipment like IV pumps so they don't 223 00:11:23.639 --> 00:11:26.360 get lost or hoarded. They even used it to locate 224 00:11:26.440 --> 00:11:27.440 missing babies once. 225 00:11:27.679 --> 00:11:28.559 That's incredible. 226 00:11:28.759 --> 00:11:32.399 Yeah. And Jacoby Medical Center in New York they used 227 00:11:32.679 --> 00:11:37.720 RFID for patient identification at the bedside. Achieved one hundred 228 00:11:37.759 --> 00:11:41.960 percent accuracy eliminating errors in medication or procedures. 229 00:11:42.159 --> 00:11:44.759 That's critical. It seems like the applications are endless. I mean, 230 00:11:44.759 --> 00:11:47.399 our sources even mention it being used for security at 231 00:11:47.440 --> 00:11:48.720 the Academy Awards. 232 00:11:48.440 --> 00:11:52.120 YEP, tracking access making sure only authorized people are where 233 00:11:52.120 --> 00:11:54.480 they should be. It's surprisingly versatile. 234 00:11:54.559 --> 00:11:58.279 What other sort of everyday maybe unexpected uses are out there? 235 00:11:58.320 --> 00:12:01.919 Well, you mentioned toll passes earlier, that's RFID. Many modern 236 00:12:01.960 --> 00:12:05.360 car keys have RFID transponders in them. That actually helped 237 00:12:05.360 --> 00:12:08.440 cut carthiffs by something like fifty percent in Europe after 238 00:12:08.440 --> 00:12:10.120 it became widespread in the late nineties. 239 00:12:10.279 --> 00:12:11.200 Huh, didn't know that. 240 00:12:11.279 --> 00:12:13.799 Libraries use it to track books, makes check and check 241 00:12:13.840 --> 00:12:16.639 out way faster. Some elementary schools in Japan use it 242 00:12:16.639 --> 00:12:19.879 to track when kids arrive and leave school grounds for safety. 243 00:12:20.159 --> 00:12:24.840 Even Coca Cola put RFID readers on vending machines not 244 00:12:24.919 --> 00:12:27.960 just for inventory, but to get data on sales patterns. 245 00:12:28.399 --> 00:12:31.279 Apparently it gave them an eighteen to twenty three percent 246 00:12:31.399 --> 00:12:33.279 net profit lift on those. 247 00:12:33.039 --> 00:12:35.360 Machines just from better data, just from. 248 00:12:35.159 --> 00:12:39.480 Knowing what's selling when and keeping them stocked optimally. It's 249 00:12:39.519 --> 00:12:42.960 really adaptable. Ford tracks tires with it for recall management. 250 00:12:43.519 --> 00:12:46.960 General Motors uses it to optimize forklift roots in their plants, 251 00:12:47.200 --> 00:12:50.320 cutting hundreds of miles of unnecessary travel per shift in 252 00:12:50.360 --> 00:12:50.960 some cases. 253 00:12:51.000 --> 00:12:54.240 Okay, So listening to all this, RFID sounds like a 254 00:12:54.279 --> 00:12:59.519 complete technological marvel. Right solves problems in logistics, security, healthcare, 255 00:12:59.679 --> 00:13:00.440 vending machines. 256 00:13:00.480 --> 00:13:01.679 It does offer a lot of solutions. 257 00:13:01.799 --> 00:13:04.480 Yeah, But and there's always a butt, isn't there, Especially 258 00:13:04.559 --> 00:13:09.399 with tracking technology, there's this inherent tension privacy concerns immediately 259 00:13:09.440 --> 00:13:12.159 spring to mind. What are some of those key challenges 260 00:13:12.200 --> 00:13:14.279 and well, the pushback that emerged. 261 00:13:14.000 --> 00:13:17.480 Absolutely, the privacy debate has been and continues to be 262 00:13:17.720 --> 00:13:21.360 a really significant hurdle is probably the biggest non technical. 263 00:13:21.000 --> 00:13:22.679 Challenge alongside the technical ones. 264 00:13:22.840 --> 00:13:26.320 Yeah, alongside the practical challenges. Like we mentioned, the physics 265 00:13:26.320 --> 00:13:29.879 of radio waves still cause issues, interference from metal liquids 266 00:13:29.879 --> 00:13:32.759 that hasn't completely gone away, right, And the complexity of 267 00:13:32.799 --> 00:13:36.840 integrating all this new data into existing often creaky old 268 00:13:36.840 --> 00:13:40.039 IT systems that's still a major effort for many companies, 269 00:13:40.639 --> 00:13:44.519 Plus the ongoing need for better global standardization. So tags 270 00:13:44.559 --> 00:13:46.159 work everywhere seamlessly. 271 00:13:45.799 --> 00:13:48.240 Okay, But the privacy side. 272 00:13:48.000 --> 00:13:51.120 Right, privacy, that's where things get really contentious. Probably the 273 00:13:51.159 --> 00:13:54.440 most famous early case involved Gillette. They did a pilot 274 00:13:54.440 --> 00:13:58.240 program putting RFID tags on mock three E razorblade packages 275 00:13:58.279 --> 00:13:58.799 at Walmart. 276 00:13:58.840 --> 00:14:00.399 I remember hearing something of that. 277 00:14:00.519 --> 00:14:03.919 It sparked a huge consumer boycott led by a group 278 00:14:03.960 --> 00:14:08.240 called Caspian Consumers against Supermarket Privacy Invasion in numbering catching 279 00:14:08.320 --> 00:14:12.000 name very Their concerns were pretty fundamental. Consumers might be 280 00:14:12.000 --> 00:14:14.360 buying products with tags and not even know it. The 281 00:14:14.360 --> 00:14:17.399 potential for those tags to be read remotely, maybe after 282 00:14:17.440 --> 00:14:20.639 you've bought the item without your consent, And the big one, 283 00:14:21.559 --> 00:14:24.519 the possibility of linking that unique item ID on the 284 00:14:24.559 --> 00:14:28.399 tag back to your credit card, your loyalty card, essentially 285 00:14:28.440 --> 00:14:30.159 linking the product to you, the. 286 00:14:30.120 --> 00:14:33.559 Buyer, creating a detailed profile of purchases exactly. 287 00:14:33.879 --> 00:14:38.399 And then some proposed uses really pushed buttons, like metroag 288 00:14:38.720 --> 00:14:42.720 in Germany testing readers inside dressing rooms ostensibly for inventory. 289 00:14:42.840 --> 00:14:45.639 But you can see why that raises serious privacy flex Yeah. 290 00:14:45.679 --> 00:14:49.360 Absolutely. Our sources even mentioned that the original technical term 291 00:14:49.440 --> 00:14:52.559 for an RFID reader was an interrogator. That just sounds 292 00:14:52.600 --> 00:14:53.799 a bit Orwellian, doesn't it. 293 00:14:53.799 --> 00:14:56.320 It really does evoke that kind of image. Yeah, The 294 00:14:56.360 --> 00:14:59.720 potential for some critics put it an Orwellian world of 295 00:14:59.720 --> 00:15:04.080 cont certainly exists conceptually, how so, well you hear about 296 00:15:04.080 --> 00:15:07.879 research into things like microscopic nanotags so small they're essentially invisible, 297 00:15:08.360 --> 00:15:10.759 or even you know, suggestions from years ago about doctors 298 00:15:10.759 --> 00:15:13.720 considering implanting chips and newborns to track them for life. 299 00:15:13.799 --> 00:15:17.159 Oh okay, that's unsettling, it is, and it forces a 300 00:15:17.159 --> 00:15:19.480 really important question, maybe the central question how do we 301 00:15:19.519 --> 00:15:23.440 balance the clear undeniable benefits of this technology, the efficiency, 302 00:15:23.519 --> 00:15:27.519 the safety, the security, with fundamental privacy rights. How do 303 00:15:27.559 --> 00:15:29.799 we make sure we harness its power responsibly? 304 00:15:30.360 --> 00:15:33.600 That's the million dollar question, isn't it? So moving from 305 00:15:33.600 --> 00:15:36.919 the concerns back to the practicalities, if a company does 306 00:15:36.960 --> 00:15:40.240 want to adopt our FID today, maybe moving beyond just 307 00:15:40.279 --> 00:15:44.080 that basic compliance, what's the smart way forward? How do 308 00:15:44.200 --> 00:15:47.240 I ensure they actually see those strategic benefits. 309 00:15:46.879 --> 00:15:48.679 We talked about. Oh, first and foremost, they need a 310 00:15:48.720 --> 00:15:51.799 clear business strategy. It can't just be about the technology 311 00:15:51.840 --> 00:15:54.559 for technology's sake, right, You have to carefully enumerate the 312 00:15:54.559 --> 00:15:58.440 potential costs, and they're still real. Tags might be cheaper, 313 00:15:58.440 --> 00:16:00.559 maybe a twenty dollars TEP for forty five sense Now 314 00:16:00.879 --> 00:16:03.960 printers can be five thousand, eight thousand dollars, readers five 315 00:16:04.000 --> 00:16:06.440 hundred and twenty five hundred dollars each, and the middleware, 316 00:16:06.440 --> 00:16:08.200 the software that makes sense of the data, that can 317 00:16:08.279 --> 00:16:10.759 run from fifteen thousand dollars to well over one hundred 318 00:16:10.799 --> 00:16:11.360 thousand dollars. 319 00:16:11.360 --> 00:16:13.279 So significant investments. 320 00:16:12.840 --> 00:16:16.639 Still, absolutely, But then you weigh that against the potential 321 00:16:16.679 --> 00:16:21.000 benefits reduced out of stocks, better inventory accuracy, lower labor costs, 322 00:16:21.080 --> 00:16:23.840 improve security. The key is to look for self funding 323 00:16:23.840 --> 00:16:27.879 opportunities projects that can generate quick short term paybacks to 324 00:16:28.080 --> 00:16:31.639 justify the initial outlay and build momentum. 325 00:16:31.120 --> 00:16:34.480 So pilot programs seem absolutely essential. Then to test the 326 00:16:34.519 --> 00:16:38.840 waters improve the value. What do our sources say makes 327 00:16:38.840 --> 00:16:40.159 for a successful pilot? 328 00:16:40.440 --> 00:16:42.639 Pilots are definitely critical. You don't want to go for 329 00:16:42.720 --> 00:16:46.440 a massive, big bang implementation right away. A good pilot 330 00:16:46.440 --> 00:16:49.240 should be really well defined in scope, keep it relatively short, 331 00:16:49.279 --> 00:16:52.240 ideally no longer than three months. Okay, it needs a 332 00:16:52.240 --> 00:16:55.120 strong project manager, someone who can really drive it. And 333 00:16:55.200 --> 00:16:58.360 crucially it needs cross functional support. You need buy in 334 00:16:58.399 --> 00:17:02.919 from it, operations, logistics, maybe even marketing. And you absolutely 335 00:17:03.000 --> 00:17:06.279 must have clear measurable goals from the outset. What are 336 00:17:06.319 --> 00:17:07.680 you do trying to prove or improve? 337 00:17:07.799 --> 00:17:09.359 Any examples of companies doing this well? 338 00:17:09.440 --> 00:17:12.240 Yeah, Marks and Spencer, the big British retailer. They started 339 00:17:12.240 --> 00:17:16.240 small tagging reusable plastic trays used for moving goods, that 340 00:17:16.319 --> 00:17:20.160 worked well, proved the concept, built confidence exactly. Then they 341 00:17:20.200 --> 00:17:22.640 moved on to tagging higher value items like suits and 342 00:17:22.680 --> 00:17:26.119 eventually even lingerie for item level tracking. In some stores. 343 00:17:26.319 --> 00:17:29.240 They found it drastically improved. Customer service staff could find 344 00:17:29.279 --> 00:17:32.519 sizes instantly, an inventory accuracy went way up. 345 00:17:32.640 --> 00:17:35.440 And Gillette, despite the earlier controversy. 346 00:17:34.880 --> 00:17:38.000 Celette, Yes, they undertook a broader initiative they called a 347 00:17:38.079 --> 00:17:42.440 Functional Excellence program focus on optimizing their supply chain processes first, 348 00:17:43.160 --> 00:17:46.680 then they integrated RFID where it made sense. The combination 349 00:17:46.759 --> 00:17:50.640 reportedly increased their service levels by ten percent, reduced inventories 350 00:17:50.640 --> 00:17:53.359 by a whopping twenty five percent, and cut overall costs 351 00:17:53.440 --> 00:17:54.240 by three percent. 352 00:17:54.519 --> 00:17:58.079 So the lesson there is fix the process first, then apply. 353 00:17:57.839 --> 00:18:00.960 The tech often. Yes, it wasn't just about slapping tags 354 00:18:01.000 --> 00:18:04.200 on things. It was about optimizing the underlying business processes 355 00:18:04.400 --> 00:18:07.160 and using RFID to enable those improvements. And what this 356 00:18:07.240 --> 00:18:09.599 really highlights is that the companies who adopted early and 357 00:18:09.680 --> 00:18:14.240 strategically are finding real tangible bottom line benefits. And as 358 00:18:14.279 --> 00:18:17.079 the costs inevitably continue to decline, you're going to see 359 00:18:17.119 --> 00:18:19.559 more and more industries moving beyond just basic compliance towards 360 00:18:19.559 --> 00:18:21.200 strategic value driven applications. 361 00:18:21.359 --> 00:18:25.000 So, wrapping this all up, what does this mean for 362 00:18:25.079 --> 00:18:30.200 the future of RFID? Where is this technology ultimately heading? 363 00:18:30.359 --> 00:18:31.599 Is it just going to be everywhere. 364 00:18:31.880 --> 00:18:35.599 I think its widespread adoption is well pretty much inevitable. 365 00:18:35.599 --> 00:18:38.200 At this point. We're clearly moving towards what you could 366 00:18:38.200 --> 00:18:42.400 call a wireless business environment, and that concept of an 367 00:18:42.400 --> 00:18:46.720 internet of things is becoming an internet of artifacts, where 368 00:18:46.799 --> 00:18:50.240 everyday objects can communicate directly, not just be tracked, but 369 00:18:50.440 --> 00:18:55.720 actively communicate status, location, condition, enabling what enabling what some 370 00:18:55.799 --> 00:19:00.839 call ad hoc processing opportunities, basically systems reacting automatic and 371 00:19:00.880 --> 00:19:04.279 intelligently based on real time information from objects and giving 372 00:19:04.359 --> 00:19:07.599 us that true real time visibility across network. 373 00:19:07.680 --> 00:19:09.720 You mentioned mesh networking earlier. 374 00:19:09.400 --> 00:19:12.119 Right, that's a potentially huge development. Instead of every tag 375 00:19:12.200 --> 00:19:14.319 needing to talk directly back to a fixed reader or 376 00:19:14.359 --> 00:19:18.079 base station, devices could relay information to each other, creating 377 00:19:18.160 --> 00:19:21.640 a mesh. Imagine a massive warehouse or even a battlefield. 378 00:19:21.799 --> 00:19:23.759 A tag over here might not be able to reach 379 00:19:23.799 --> 00:19:26.440 the main reader, but it can talk to another tag 380 00:19:26.519 --> 00:19:29.759 or device closer to it, which then relays the message along. 381 00:19:30.119 --> 00:19:33.680 It creates a much more resilient, flexible, and potentially wider 382 00:19:33.720 --> 00:19:34.880 reaching network. 383 00:19:34.519 --> 00:19:36.640 That could be revolutionary for certain environments. 384 00:19:36.680 --> 00:19:41.079 Absolutely, But the future challenge I think won't actually be 385 00:19:41.160 --> 00:19:44.839 generating the data with RFID and other sensors. We're going 386 00:19:44.880 --> 00:19:49.079 to have an absolute avalanche of data, data overload. Precisely, 387 00:19:49.559 --> 00:19:51.680 the real challenge, the next frontier is going to be 388 00:19:51.759 --> 00:19:54.319 data reasoning. How do we build systems that can make 389 00:19:54.359 --> 00:19:58.160 sense of this flood of information, turn it into truly intelligent, 390 00:19:58.279 --> 00:20:00.319 actionable insights automatic. 391 00:20:00.279 --> 00:20:02.799 And RFID is a key piece of that puzzle. 392 00:20:02.880 --> 00:20:05.599 It's a crucial ingredient. It provides the raw, real time 393 00:20:05.680 --> 00:20:08.880 data about the physical world that these intelligence systems will 394 00:20:08.880 --> 00:20:12.160 need to interpret. It's foundational to building what could become 395 00:20:12.759 --> 00:20:15.160 a superior intelligent value network. 396 00:20:15.279 --> 00:20:19.160 So quite a journey. What began as essentially a wartime 397 00:20:19.240 --> 00:20:24.640 necessity identifying aircraft has evolved into this invisible force that's 398 00:20:24.680 --> 00:20:29.960 reshaping global commerce, security, logistics, even healthcare and our daily routines. 399 00:20:30.000 --> 00:20:33.559 It really has from tracking those critical military supplies like 400 00:20:33.599 --> 00:20:36.880 in desert storm to ensuring patient safety in hospitals. Today, 401 00:20:37.160 --> 00:20:41.240