Jeff Irland October, 2006Director, Global Commercial Industries

Global Visible Commerce

Is Visibility the Next Big Thing?

Auto-ID TechnologiesAutomatic 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

What is New Here? …. Emphasis on Visibility

1. Location: Where, exactly, is the product at all times?

2. 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?

4. Compliance: Have all relevant regulatory, trade and documentation requirements been met?

5. Integrity: Has the product been breached or compromised in any way?

6. Authenticity: Is this exactly the product it is supposed to be?

Emphasis on location and business events, not just automated data entry

Is Visibility the Next Big Thing?

The World Is Flat: A Brief History of the Twenty-first Century by Thomas L. FriedmanFor Audio Discussion: http://www.npr.org/templates/story/story.php?storyId=4600258

"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.

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 livesI believe in the not too distant future, we will be able to inexpensively track and status nearly anything we care about. We will have near real-time answer to “Where is my stuff” … “Is my stuff OK”. We’ll not only be able to locate our car, pet or cell phone, but our pizza delivery or the power tool we loaned to the neighbor. This will come about because of convergence of emerging location technologies, low power wireless devices, ubiquitous networks, web-based services and standards.

Today we have service providers, service like voice & data from telecos, that are critical enablers. In the near future we will have “visibility Service Providers” who understand that visibility isn’t just data but an assurance to their customer to answer the questions “Where is my stuff” … “Is my stuff OK”.

Jeff Irland

A Typical Visibility SolutionEnterprise Applications

Enterprise systems for coordinated decision making

Local Site Coordination

Distribution CenterWarehouseManufacturer Store

Web Browser AlertsEnterprise Software

Other Enterprises

Reader Zones

Tagged AssetsCarton Pallet

ContainerPallet Container Carton Pallet

ContainerPallet

ItemPallet

Item

A Typical Visibility Solution

…. and the Embedded NetworksEnterprise Applications

Enterprise systems for coordinated decision making

Local Site Coordination

Distribution CenterWarehouseManufacturer Store

Web Browser AlertsEnterprise Software

Other Enterprises

Reader Zones

Tagged AssetsCarton Pallet

ContainerPallet Container Carton Pallet

ContainerPallet

ItemPallet

Item

A Typical Visibility Solution

…. and the Embedded NetworksEnterprise Applications

Enterprise systems for coordinated decision making

Local Site Coordination

Distribution CenterWarehouseManufacturer Store

Web Browser AlertsEnterprise Software

Other Enterprises

Reader Zones

Tagged Assets

CartonPallet

ContainerPallet Container Carton

Pallet

Container

Pallet

ItemPallet Item

Extensive RF network that could be shared across multiple enterprises

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

Device Enabling Location and Status Information

Network and Operations Infrastructure

Value-Added Information

End User

“Pure Play” Visibility Provider

“Enhanced Services” Visibility Provider

Emerging Visibility Providers

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

Barriers for Visibility ProviderVisibility 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

Alignment with TelcoVisibility 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

The Technology OptionsGlobal WAN MAN LAN PAN

Global National Regional Local Vicinity Proximity

GPS

Cellular Location Services

Real Time Location Services (Time of Arrival)

Active RFID (Antenna Zones) Passive RFID (Antenna Zones)

High-Sensitivity GPS (e.g. Rosum)

Fleet VisibilityCargo Visibility Yard Visibility Asset Visibility Product Visibility• Geo Location• Telemetry• Remote Diagnostics• Remote Monitoring &

Control• Asset Management• Power provided

• Real Time Tracking• Event Based Tracking• Cargo Status: Sensor Interfaces• Remote Monitoring• Long Battery Life

• Presence• In/Out Gate Status• XY Location• Real Time Tracking• Event Based Tracking• Long Battery Life

• Parts Replenishment• Remote Status• Equipment Location• Equipment Status• Long Battery Life

• Inventory Status• In/Out Gate Status• XY Location• Event Based Tracking• Inexpensive / No power

WiFi Proximity Sensing (e.g. Skyhook Wireless)

RTLS on Steroids (e.g. S5 Wireless)

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Main advantage is that they have similar precision and ubiquity as GPS but can work in-doors.

Evolutionary Path

Mobile Handheld Readers

Dedicated RFID Infrastructure Services Arrangement

Shared RFID Infrastructure Services Arrangement

Roaming Agreements Between Providers

Wide Area Coverage

Chock Point Coverage

Strategic Vision for Visibility Provider

NOC Servers

- Location- Status- Network Management- Provisioning- Billing

Franchise or Partner

Internet

Company or Individual

- Truck Dispatch- Pizza Delivery- Pet Tracking- Package Delivery- etc.

Enhanced Service Providers

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)

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)

Wide Area Solution

Local Area Solution

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?

Where is your stuff?

Is your stuff OK?