As the RFID community considers the growth of technology over the last few decades, one thing has become certain: memory capacity and computing power continue to grow while the physical size of the memory technology continues to shrink. That combination opens the door to amazing new possibilities, from consumer products like iPhones and laptop computers, to exciting opportunities in the world of Radio Frequency Identification (RFID). The possibilities are nearly endless with rugged, smaller RFID tags that can store a tremendous of data.

In recent weeks, all aviation eyes have been on aircraft manufacturer Airbus, who announced a plan to use large capacity RFID tags to track as much information possible on their parts inventory. This is different from most RFID tags that store only a unique ID number that is associated to a database. That is, the typical tag contains no real information, just a number. In the Airbus plan, increased storage capability means Airbus will be able to load most of the critical data directly to the tag. For their airline clients, the full history of a part is just a scan away.

In a struggling economy, it took courage for Airbus to risk money on a new way to do things. On the other hand, those with courage can emerge from the global recession in a much stronger position than their rivals. If successful, Airbus will be able to provide a service that others cannot. The money spent today will allow them to do more tomorrow with less effort, as well as attract new business. We applaud Airbus for their courage and vision.

What are the advantages to large capacity tags? First, more capacity means more information (such as manufacture date, batch numbers, serial numbers, and even inspector in the QC process) can be stored on the tag. Information is limited only by creativity.. A Generation 2 tag can be read by anyone with a Gen 2 reader, making it is easy for Airbus’ clients and partners to take advantage of the tags. There is a huge advantage to being able to discern immediately the lot number and ship date of a questionable part. Quality control can be protected and, in the case of Airbus, lives could be saved. Airbus also won’t unnecessarily ground planes that do not have the lot number in question, protecting their reputation to say nothing of their profits. For Airbus, a little money spent now can provide increased revenue in the future by providing parts information that is easily tracked.

When assessing the pros, you must inevitably assess the cons. There are disadvantages to having all your eggs in one basket with the first being failure rate. RFID tags have an acceptable reliability record and do not fail often. But as with anything electronic, they do fail occasionally. If all of the desired information is on the tag, retrieving that data is close to impossible if the tag fails. IPMAS clients tend to favor small data capacity tags that are paired with a robust, searchable database. If the inventory item has a serial number printed on it, the client can still retrieve the information by searching on the serial number since the database can reside on a mobile reader. Whether the data is collected from the tag or retrieved from the database is transparent to the end user

What is the bottom line? High capacity tags are costly but have the backing of an industry leader. Low capacity tags require a database storage system but are much less expensive and may be an appropriate solution. Whether the choice is database- or tag-centric storage, the advantages of an RFID asset management system outweigh the disadvantages of a bar code or manual system. The key is to find a good integrator that can help you make the proper business decision.

Technology is changing our world at an alarming rate. We can feel if we don’t “jump on the bandwagon” we will be left far behind. We only need to “jump” once or twice to become very cautious and skeptical of new technological ideas.

Our mind plays an important part in our hesitations. Two powerful rationales easily conflict with each other:

1. Our strong commitment to how much time we have put into our current situation. For instance, while driving, even though you think you are lost, you believe that if you stay on the road you are on, you will come to a major highway and find your way. If your stock price is going down, you keep it because you have had it for so long, and it will rise again … someday.

2. Our aversion to loss. In other words, we will take some pretty drastic actions to prevent losing more of what we have. This can be time, money, pride, material goods. If you are running late, you may risk running a yellow-turning-red light so you will not lose any additional time. You can spend hours surfing the internet for the best travel package to assure yourself that you found the best deal …. Yet you have lost hours in doing so, just to save a few bucks.

Both urges are strong by themselves. When combined, they wield an intense influence on our thinking and decision-making.

Example: In one experiment conducted with Harvard MBA’s, a professor auctions off a $20 bill using these three rules: The bids can be increased in dollars only; the winner, of course, receives the $20 bill; and the runner-up is required to make good on his bid, even though he would get nothing to show for his spending.

The start of the auction begins like any other auction, quickly getting to $16. Then two students vie for the $20 — when one bid $17, the other has to bid $18 or lose $16. Amazingly, the bidding continues to climb higher than $20.

Those of us sitting on the sidelines can see that the rational decision would be to stop bidding, even being the runner-up, and losing money. In the midst of the action, however, the students are magnetized by the energy of the auction [commitment] and how much they will lose if they call it quits [loss aversion]. The record stands at $204 … yes, one student paid $204 and got nothing in return.

Lesson Learned? Think, but Don’t Be Afraid to Act

In today’s economy, we don’t want to spend what might be considered unnecessary because we are committed to the way we’ve been for so long. We rationalize and make excuses that we can hold on just a little longer without making changes. We don’t want to feel we are losing money by spending money.

I challenge you to inspect your daily tasks and beliefs and identify what loss you are avoiding and what you are still committed to the point of merely tolerating it.

FOR IMMEDIATE RELEASE

HOUSTON (6/25/09) — Independent Professional Management, Inc., (IPM), is pleased to announce a contract with the Texas Department of Information Resources (DIR) to become a supplier to the GoDIRect program for RFID (Radio Frequency Identification) technology. Under the program, the state has negotiated a single contract for RFID services on behalf of any eligible organizations that receive state funding.

For example, any school district or a state agency employee who types “RFID” at the GoDIRect website will be directed to a special IPM website that provides details, pricing and contact information on RFID implementations. By utilizing this program, public organizations can avoid the costly and time consuming bid process while assuring its stakeholders of the best services at the best prices. IPM will work with its sister company, IPM Asset Solutions, Inc., to fulfill many of those services.

“We are excited to be a part of the GoDIRect program,” said Steve Young, COO of IPM. “Public institutions must become more efficient and save money in an economic climate where states are struggling to meet their constituents’ needs. IPM is ready to help those institutions meet their goals.”

RFID is a next generation technology utilized in asset tracking, file management, inventory tracking and child security, among other applications. RFID, developed in WWII but just now becoming commercially feasible, is a tagging system used to locate, track and manage any type of item — from tiny instruments to textbooks to computer equipment. The RFID system utilizes a small tag with a flat embedded antenna affixed to the items being tracked. When an RFID reader sends a signal, the RFID chip responds with the identification code embedded in the tag and provides tracking information about the item.

“Our proprietary ‘Roaming Moose™’ brand software connects front-end RFID data collection technology to our 24/7 web-based asset management system,” said Sheila McIlnay, CEO of IPM. “We are pleased to help the state improve service and save money by bringing this technology to the public sector through DIR.”

For more information, please contact Steve Young at (713) 973-7400 or steve.young@ipm-inc.com.