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The two big mandates for 2005, set by Wal-Mart and the US Department of Defense (DoD), have certainly pushed RFID into the foreground and moved it from being thought of as an experiment to being a boardroom priority.
But goods suppliers are heading into an increasingly busy RFID market full of developing standards, new entrants, start-up developers, and numerous systems integrators and, despite some large players, success is still to be determined, according to technology research firm, ABI.
Texas Instruments, Symbol Technologies, NCR, Philips, Sun Microsystems are only a few of the major players that have entered the RFID arena so far, alongside systems integrators such as IBM, Accenture, BearingPoint, Unisys, RedPrairie, and Manhattan Associates.
Still developing
Process questions abound, such as where to store the data, what data should be stored, how to secure and maintain the data, and which is the best method of integrating data with existing business solutions. Some integrators, such as SAP, are developing enterprise-level RFID patches for their clients. Others, known as 'warehouse management systems' companies, include Manhattan Associates, RedPrairie, and Provia to name only a few. Long-time DoD integration partners such as Unisys, Lockheed Martin, and Accenture are also stepping up government-based RFID efforts.
"Due to the time constraints and the still-developing standards, prior relationships will drive RFID integration contracts even more than with previous rollouts, such as ERP or supply chain management systems," predicts ABI senior analyst, Erik Michielsen.
Anti-competition
But Michielsen warns that this is not necessarily good for the RFID business, as the process discourages competition and rewards relationships over capabilities. "The upside is that established relationships will better enable scalable, successful solutions due to better understanding of environments, staff, and business goals," added Michielsen.
ABI's report, entitled RFID: Emerging Applications Driving R&D Investment and End-User Demand, examines the technology for applications including asset management, supply chain management, and point-of-sale. The study details RFID standards, applications, and vertical markets, and provides marketplace forecasts through to 2008. Reader shipments and revenue figures are also provided, as well as data on RFID transponder and component markets.
Source: ABI Research
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