Slide 2: Is Visibility the Next Big Thing?
Jeff Irland October, 2006
Director, Global Commercial Industries Global Visible Commerce
Slide 3: Auto-ID Technologies
Automatic identification encompasses a wide range of technologies which have as their purpose the automation of the data entry process. These technologies include:
Wireless Auto-ID
Slide 4: Emphasis on location and business events, not just automated data entry
1. Location: Where, exactly, is the product at all times? 1. Specificity: What is the product exactly? What is its color, size, expiration date, etc.? 3. State: Has the product been in the proper environment? Is it in a safe/good condition? 1. Compliance: Have all relevant regulatory, trade and documentation requirements been met? 1. Integrity: Has the product been breached or compromised in any way? 6. Authenticity: Is this exactly the product it is supposed to be?
What is New Here? …. Emphasis on Visibility
Slide 5: Is Visibility the Next Big Thing?
"Visibility into the movement of goods is vital to our customers' success … Our technology integration efforts are focused on enabling our customers to know, with a simple mouse click, if their shipment left Europe on a plane, or on a ship crossing the Pacific and when it was delivered by truck in Tianjin." Dave Barnes, UPS's CIO, Sept 6th, 2006 at the fourth annual UPS Technology Summit
"Enterprises who are proactive and develop a Global Supply Visibility and Performance Program have had fewer disruptions, reduce inventory and have increased quality over companies that do not have such a program,“ Sudy Bharadwaj, Sept 5th, Vice President of Aberdeen Group.
The World Is Flat: A Brief History of the Twenty-first Century by Thomas L. Friedman For Audio Discussion: http://www.npr.org/templates/story/story.php?storyId=4600258
Slide 6: Where is my stuff? … Is my stuff OK?
• Visibility is highly valued by all the major industrial verticals because of their complex business operations • Visibility can help a small business behave “big” • Visibility provides individual consumers a greater security in there personal lives
I believe in the n ot too distant fu tur e, we will be able to in expe nsiv ely tr ack and status nearly anythin g we c are abou t. We will hav e near r eal-time answer to “Wher e is my stuf f” … “Is my s tuff OK”. We’ ll not on ly be able to locate our car , p et or ce ll p hone , bu t ou r p izza d eliver y or the p ower tool we loan ed to the neighbor . T his will c ome abou t becau se of conver genc e of emer ging location tec hnologie s, low power wireles s dev ic es, u biqu itou s ne tworks, web-base d se rvic es and standar ds. Today we have s ervic e p r ovider s, serv ic e like voic e & data from te lec os, that are c ritic al enable rs. I n the near fu tu re we will hav e “ vis ibility Ser vic e Pr ovide rs” who unde rstand th at vis ibility is n’t ju st d ata bu t an assu ranc e to their c ustomer to an swer the qu es tions “ Wher e is my stu ff” Jeff“I s my … Irland stuff OK ”.
Slide 7: A Typical Visibility Solution
Enterprise Applications
Enterprise Software Web Browser Alerts
Enterprise systems for coordinated decision making
Other Enterprises
Local Site Coordination
Reader Zones
Manufacturer
Warehouse
Distribution Center
Store
Tagged Assets
Item
Carton
Pallet
Container
Pallet
Container
Pallet
Carton
Pallet
Container
Pallet
Item
Slide 8: A Typical Visibility Solution
…. and the Embedded Networks
Enterprise Applications
Enterprise Software Web Browser Alerts
Enterprise systems for coordinated decision making
Other Enterprises
Local Site Coordination
Reader Zones
Manufacturer
Warehouse
Distribution Center
Store
Tagged Assets
Item
Carton
Pallet
Container
Pallet
Container
Pallet
Carton
Pallet
Container
Pallet
Item
Slide 9: A Typical Visibility Solution
…. and the Embedded Networks
Enterprise Applications
Enterprise Software Web Browser Alerts
Extensive RF network that could be shared across multiple enterprises Other Enterprises
Enterprise systems for coordinated decision making
Local Site Coordination
Reader Zones
Manufacturer
Warehouse
Distribution Center
Store
Tagged Assets
Item Carton
Pallet
Container
Pallet
Container Pallet
Carton
Container Pallet
Pallet
Item
Slide 10: A Definition for “Visibility Provider”
• A visibility service provider is a commercial business entity that:
• Provides dynamic location and status information concerning people, vehicles, or assets. • Provides location and status information directly to end-user or to 3rd party value added service entities. • Usually provides subscription or metered service • Services are delivered over a shared network infrastructure
End User Value-Added Information
“Enhanced Services” Visibility Provider “Pure Play” Visibility Provider
Network and Operations Infrastructure
Device Enabling Location and Status Information
Slide 11: Emerging Visibility Providers
Slide 12: Characteristics of a Mature Visibility Provider
• • • • • • • • • Visibility Provider Visibility will require networks Visibility will be priced based on usage Visibility is an enabler of a solution Visibility providers will need to provide wide coverage Visibility will require “5 nines” uptime Visibility will require interoperability and roaming agreements Visibility networks will requires outside plant / right-of-way (e.g. antennas) Visibility providers ideally will have knowledge of wireless technology and spectrum management Visibility providers will initially roll-out within metropolitan areas and transportation corridors
Slide 13: Barriers for Visibility Provider
• • • • • • • • • Visibility Provider Visibility will require networks Visibility will be priced based on usage Visibility is an enabler of a solution Visibility providers will need to provide wide coverage Visibility will require “5 nines” uptime Visibility will require interoperability and roaming agreements Visibility networks will requires outside plant / right-of-way (e.g. antennas) Visibility providers ideally will have knowledge of wireless technology and spectrum management Visibility providers will initially roll-out within metropolitan areas and transportation corridors • • • Barriers Standards, Standards, Standards Niche Opportunities but Lack of Mass Market Technology • Continues to Evolve with a Confusing Set of Options • Lacking a Single Technology that Works in All Environments
Slide 14: Alignment with Telco
• • • • • • • • • Visibility Provider Visibility will require networks Visibility will be priced based on usage Visibility is an enabler of a solution Visibility providers will need to provide wide coverage Visibility will require “5 nines” uptime Visibility will require interoperability and roaming agreements Visibility networks will requires outside plant / right-of-way (e.g. antennas) Visibility providers ideally will have knowledge of wireless technology and spectrum management Visibility providers will initially roll-out within metropolitan areas and transportation corridors • • • • • • • • • Cellular / Telco Provider Operate Networks Usage based billing Partners with solution providers National networks High availability network provider Support interoperability and roaming today Has outside plant / right-of-way today Experts in wireless services and spectrum issues Cellular business initially roll-out within metropolitan areas and transportation corridors
Slide 15: The Technology Options
Global Global WAN National Regional MAN Local LAN Vicinity PAN Proximity
Cargo Visibility
• Real Time Tracking • Event Based Tracking • Cargo Status: Sensor Interfaces • Remote Monitoring • Long Battery Life
Fleet Visibility
• • • • Geo Location Telemetry Remote Diagnostics Remote Monitoring & Control • Asset Management • Power provided
Yard Visibility
• • • • • • Presence In/Out Gate Status XY Location Real Time Tracking Event Based Tracking Long Battery Life
Asset Visibility
• • • • • Parts Replenishment Remote Status Equipment Location Equipment Status Long Battery Life
Product Visibility
• • • • • Inventory Status In/Out Gate Status XY Location Event Based Tracking Inexpensive / No power
GPS
No w
Active RFID (Antenna Zones) Cellular Location Services
Passive RFID (Antenna Zones)
Av ai la
bl e
Real Time Location Services (Time of Arrival)
ay be
RTLS on Steroids (e.g. S5 Wireless) WiFi Proximity Sensing (e.g. Skyhook Wireless) High-Sensitivity GPS (e.g. Rosum)
Fu tu re
Main advantage is that they have similar precision and ubiquity as GPS but can work in-doors.
.. M
Slide 16: Evolutionary Path
Wide Area Coverage Roaming Agreements Between Providers Shared RFID Infrastructure Services Arrangement Dedicated RFID Infrastructure Services Arrangement Chock Point Coverage Mobile Handheld Readers
Slide 17: Strategic Vision for Visibility Provider
• • •
NOC Servers - Location - Status - Network Management - Provisioning - Billing
• •
Strategic Direction for Wide Area Solution Roll-out within metropolitan areas and transportation corridors Tag cost less than $10 Battery powered tag with a life time of 5+ years; typical beacon rate of 5 minutes One-way data transmission providing ID and status Positioning via triangulation over distances long distance (cellular tower distances)
Enhanced Service Providers - Truck Dispatch - Pizza Delivery - Pet Tracking - Package Delivery - etc.
Wide Area Solution
Franchise or Partner
Internet
Local Area Solution Company or Individual
Slide 18: Takeaways
• What companies have successfully achieved a next generation level of visibility? • Could the RFID-enabled supply chain be a first step? • What are barriers and stimulates for this business model to emerge?
Slide 19: Where is your stuff? Is your stuff
