RFID in Dayton

March 2008

Radio Frequency IDentification (RFID) is considered an emerging technology, yet it's technological roots lay back in the 1940's.  It's an easy technology to understand; simply pass a tag close enough to a reader and it will send you a string of information.  The imaginative uses of such a simple concept was the main topic of December's CIO Council meeting, facilitated by Paul Moorman of the NewPage Corporation.

RFID is often compared to bar codes, but that's a very limiting view.  RFID offers many unique features such as individual item tracking, where a bar code simply serves up the generic identity of a product.  RFID requires no line of sight, making it suitable for embedding its tags inside a product and hence more suitable for handling by production machinery without human intervention.  A few common uses include reliable key-less entry systems, improved food safety via livestock tagging, reduced counterfeiting in the pharmaceutical industry, subcutaneous implants to identify pets and automated the timing in athletic events.‏

There are a number of facets about RFID that require careful study and planning to avoid an expensive failure.  The cost of investment, particularly if tags are not reusable, must be matched with demonstrable savings from one or multiple projects.  The tags and readers are not foolproof, and dealing with unreadable tags must be factored into the revamped business processes.  Privacy and data protection concerns, either real or perceived, must be understood and addressed.

An interesting example of RFID's capabilities comes from the Canadian Linen and Uniform Service, which has used embedded RFID tags for ten years to track the life cycle of the garments and linens it sources to its customers.  A recent upgrade to its laundering operation included an automatic sorting system based on the RFID tag, with different items being directed to different machine for washing.  Along with reducing labor costs by seventeen percent, it allowed the company to increase the capacity of its laundering system by 50 percent.  This type of RFID project overcomes two of the key current weakness of RFID tags. The cost of the tags becomes insignificant since they are reused many times. The not-perfect read success rate still requires a human to sort those items, but this becomes a part-time role for one person versus multiple full-time positions in the previous process.

Dayton and the surrounding sixty-minute market is currently home to at least thirty-six businesses involved in RFID.  Alien Technology's RFID Solutions Center, the most advanced facility devoted entirely to the application of RFID technology, is located across from the Wright Brothers Airport.  NCR provides end-to-end solutions, global scalability and support, and cross-industry expertise.  Paxar produces RFID printers that are specially designed to write to RFID chips embedded in labels.  Standard Register offers automatic identification and data capture solutions as a viable means of streamlining workflow and introducing greater efficiency, integrity and security to a wide range of applications.  In October 2007, Dayton City Commission committed $1.4 million to found the Dayton RFID Incubator Corp. (DRIC), an economic development project to attract and develop RFID-related businesses.  These are just a few of the area companies that have RFID offerings.  A quick search of GDITA's Tech Source service, located within www.daytonitalliance.org, can provide many others.

For more information on this topic or discuss your IT leadership joining the CIO Council, please contact Ann Gallaher, Chief Operating Officer, at 937.229.9072 or email This e-mail address is being protected from spambots. You need JavaScript enabled to view it .
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