McKinsey on RFIDAs a consumer, I want RFIDs to help me know where my stuff
is, what shape it's in, when
and where I bought it and how much I paid for it. I would pay a bit extra
for stuff that had that
capability.
If it makes its maker's ERP work better, that's nice too, but that's on the
other side of the transaction
and is kind of abstract. If it costs a large company a bunch to upgrade
their ERP, kind of too bad for
them.
In other words, a large company might finance an ERP upgrade by getting the
RFIDs to do something
valuable for the consumer after the sale and charging a bit more for the
item.
-----Original Message-----
From:
[hidden email] [mailto:
[hidden email]]On
Behalf Of Robert Holmes
Sent: Monday, September 15, 2003 12:39 PM
To: 'The Friday Morning Complexity Coffee Group'
Subject: [FRIAM] McKinsey on RFID
McKinsey on why claims about RFID should be taken with a pinch of salt:
http://www.mckinseyquarterly.com/links/7982 If you don't want to register, here's the core of their argument:
Companies should avoid fixating on the price of a tag lest they lose
sight of the costly upgrades in enterprise-resource-planning (ERP) software
that RFID technology requires. For relatively easy tasks, such as measuring
inventory levels, simple add-ons might suffice. But tackling more complex
applications, including tracking individual items throughout the supply
chain, would require ERP upgrades that might cost tens or hundreds of
millions of dollars for a large company. Server and network infrastructure
would also need fortifying to handle the thousands of additional data
transactions per product.
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