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Summary
November 11, 2005 - Even though radio frequency identification (RFID) can deliver
tangible benefits, choosing to deploy the technology has inherent risks. RFID
standards and the systems that support them are still evolving. Pilot programs
are progressing to meet compliance requirements for "big box" retailers and
the U.S. Department of Defense. But wholesale adoption of any technology needs
guidance, and any organization should understand the limits of a technology
before investing in it. Ventana Research recommends constructing a practical
roadmap built on a performance management foundation that will help maximize
the benefit of current and future investments.
The buzz surrounding radio frequency identification (RFID) is getting louder. Last week Wal-Mart announced that its initial use of radio-transmitting inventory tags has reduced out-of-stock merchandise by 16 percent at the company''s stores where those tags are in use. According to Linda Dillman, Wal-Mart''s chief information officer, the company is able to restock RFID-tagged items three times as fast as untagged items.
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