The Value of RFID: Benefits vs. Costs

RFID technology presents a great potential for creating competitive advantage. By automating and simplifying data collection, it lets users more accurately track assets and monitor key indicators, which in turn gives greater visibility to the operations. However, the benefits received from this technology will be determined by how well it is integrated with the business processes and overall information flow. Because of the fact that the decision to deploy RFID technology in an enterprise is a business decision instead of a technology decision, cost-benefit analysis is a key component of this decision. If an RFID deployment cannot be justified in terms of its economic value to the company, it is not likely to help the company; and consequently, it is not likely to remain a viable deployment over the long term. The Value of RFID describes the business value of RFID and explains the costs and benefits of this technology comprehensively. Different investment evaluation models are proposed to use in various application areas. Techniques to guide the selection of appropriate implementation levels and to handle uncertainty and risk in RFID are explained. Written for researchers, undergraduate and graduate students, and lecturers working in the field of RFID and supply chain management, evaluation practices for RFID investment for different application areas are discussed in detail. The book also guides managers in making accurate decisions on RFID investment in order to maximize the return.

About the Editor

Dr Alp Ustundag was born in 1977. He graduated from Industrial Engineering Department of Istanbul Technical University (ITU) in 2000. He got his MBA degree from Bogazici University in 2002 and his doctoral degree from ITU in 2008. He conducted research studies at Logistics Department of Dortmund University, Germany in 2007. He became Associate Professor in 2011 in ITU. He is currently the head of RFID Research and Test Lab in Istanbul Technical University and also a lecturer at Industrial Engineering Department of ITU. He has also been responsible for establishment of Technology Transfer and Commercialization Office of ITU as an advisor to the Rector. He worked in IT and the finance industry from 2000 to 2004. He has conducted a lot of research and consulting projects in reengineering, logistics and supply chain management for major Turkish companies. His current research interests include RFID, supply chain and logistics management, innovation and technology management, risk management, IT/IS systems, soft computing and optimization. He has published many papers in international journals and presented various studies at national and international conferences.