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RFID hype has organisations scrambling for solutions

Driven by retail market leaders like Wal-Mart and public-sector models such as the US Department of Defense, many IT organisations are scrambling for budget and guidance to attain working RFID (radio frequency identification) solutions without understanding the technology's actual capabilities and limitations, warns META Group.

META Group believes RFID will enable an organisation to improve its sensing capabilities, but decision makers should not be enticed by the 'low-cost tag' hype, since RFID is not a one-size-fits-all approach with unlimited technical abilities. Even though the technology has proven effective in livestock tracking, toll collection, and premium product manufacturing, META Group encourages organisations to keep initial RFID projects at the case/pallet level, acting as bar code replacements, before moving to more complicated supply chain implementations.

"Many IT organisations do not immediately realise that even smaller RFID projects can significantly affect an entire IT infrastructure and application portfolio, so a readiness assessment must be performed early on," said Gene Alvarez, vice president with META Group's Technology Research Services. "Starting with small projects will assist enterprises in climbing the 'RFID learning curve' and establishing standards that support efficient future product movement."

META Group further encourages IT organisations to create a task force responsible for gaining an understanding of RFID's capabilities and limitations. This group should interweave RFID technology with existing IT infrastructure and application portfolios as part of an overall adaptive organisation strategy.

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