Professional Documents
Culture Documents
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Prof. E. Fleisch
Dr. F. Michahelles Dr. T. Staake A. Bereuter Dr. F. Thiesse
~15
15 research assistants
Retail
Manufacturers
Financial services
Telecommunications
Technology providers
10000 bio
6 5 bi
6.5 bio
2 bio
1 bio
What Is the Electronic Product Code Slide 6
Florian Michahelles © ETH / HSG
The Internet (of information) expands to the real world:
an Internet of Things emerges
10000 bio
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2 bio
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What Is the Electronic Product Code Slide 7
Florian Michahelles © ETH / HSG
Today’s computers have no eyes and ears and thus a rather blurred, low
resolution mapping of the physical world they are supposed to manage
01.23G3D00.8886A3.365000A03
01.23G3D00.8886A3.365000A03
01.23G3D00.8886A3.365000A04
01.23G3D00.8886A3.365000A03
01.23G3D00.8886A3.365000A04
01.23G3D00.8666A3.000000A04
01.23G3D00.8886A3.365000A04
01 23G3D00 8666A3 000000A04
01.23G3D00.8666A3.000000A04
01.23G3D00.8666A3.000000A05
01.23G3D00.8666A3.000000A04
01.23G3D00.8666A3.000000A05
01.23G3D00.8666A3.000000A05
01.23G3D00.0111A3.000000A05
01.00555A2.8666A3.000000A05
01 00555A2 8666A3 000000A05
01.23G3D00.8886A3.365000A03
01.23G3D00.8886A3.365000A03
01.23G3D00.8886A3.365000A04
01.23G3D00.8886A3.365000A04
01.23G3D00.8886A3.365000A03 01.23G3D00.8666A3.000000A04
01.23G3D00.8886A3.365000A04
01 23G3D00 8886A3 365000A04 01 23G3D00 8666A3 000000A04
01.23G3D00.8666A3.000000A04
01.23G3D00.8666A3.000000A05
01.00555A2.8346A3.000000A05
01.23G3D00.8666A3.000000A04 01.23G3D00.8666A3.000000A05
01.23G3D00.8666A3.000000A05
Tracking:
Tracing:
Product recall
New applications
Price Price
incl. VAT excl.
and VAT and
rebate rebate
Price?
13 99
13.99
Computer 1 Computer 2
Large consortium
– several of the world
world’s
s leading (Fortune 500) companies
– standardization organizations
– academic institutions
– systems integrators
– technology hardware & software providers
Gillette Sun
Wal-Mart Philips
P&G Intel • USPS
• UPS
Unilever ST Micro • DoD
Kraft Canon • UCC/EAN
• Accenture
Philip Morris Alien
• IBM
N tl
Nestle BT • Coca-Cola
Best Buy NTT • Pepsi
• Kodak
Target Metro
• NCR
Tesco Mitsui • SAP
Home Depot Pfizer • Symbol
Florian Michahelles
What Is the Electronic Product Code Slide 23
CVS
© ETH / HSG
Sara Lee
Benefits of Tag Data Standards
Global system:
y the structure of the EPC ((through
g the use of an
EPC manager number) ensures globally unique identification
numbers
Mission of EPCglobal
– Standards Development and Management
– Manage EPC Numbers
– Certification
C tifi ti and dC
Compliance
li T
Testing
ti
R.F.ID.
Radio
Frequency
IDentification
Components of a reader:
No line of
sight
q
required
Identification
Data Capture
Data Exchange
Exchange
EPCglobal
Architecture
Framework Capture
Identify
urn:epc:id:sgtin:0614141.100743.123456789
001100000111010000100101011110111111010001100010010111111000000000000111010110111100110100010101
Shared Service
Interactions
Exchange of data
about EPCs
A
Co
Co
B
ompany
ompany
1010101010101
Identify
Tag Data
Exchange of
Physical objects
withProduct
What Is the Electronic EPCsCode Slide 50
Florian Michahelles © ETH / HSG
The Representation of EPC
urn:epc:id:sgtin:0037000.112345.400
id ti 0037000 112345 400
Text Representation
p in Information
Systems
What Is the Electronic Product Code Slide 51
Florian Michahelles © ETH / HSG
The Representation of EPC
00110000011
10100001001010111101111110100011000100101111110000000000000
00000000000000000110010000
Bi
Binary Representation
R t ti on th
the T
Tag
Food traceability
Primary objectives:
High Value
Products
Healthcare
1966 – The National Association of Food Chains puts out a call to equipment
manufacturers for systems that would speed the checkout process
– 1967 – First installation of a RCA scanning system at a Kroger store in Cincinnati
– 1969 – Proposal for an industry-wide bar code system by NAFC and Logicon, Inc.
1977 – Foundation
F d ti off the
th European
E Article
A ti l Numbering
N b i (EAN) System
S t
Diffusion in Germany
– 1977 – First POS scanner in a supermarket in Augsburg
– 1979 – Nine installations in the entire country
– 1982 – 535 installations in 66 markets
– Approximately 100% saturation by 1990 (except hard discounters)
January 1st, 2005 – Fusion of UCC and EAN into GS1 ('Sunrise Date')
What Is the Electronic Product Code Slide 61
Florian Michahelles © ETH / HSG
Characteristics of adoption
Technology
gy and standards
– Drivers: Price decline and miniaturization of ICs and laser technology
– Barriers: Package redesign, Printing errors, Read rates, 'Golden Chicken' problem
– Competing technologies: Electronic cash registers, OCR
– C
Competing
ti standards:
t d d e.g. Code
C d 39 (A (Automotive,
t ti D
DoD)
D)
– Time until ISO standarization: 27 years (ISO 15420)
Business drivers
– Target ind
industry:
str Grocery
Grocer retail
– Expected benefits: Faster checkout process, Reduced labeling cost
– Cost factors: Printing, Scanners, Systems integration
– Object
j identification level: Sales units
Diffusion process
– Early adopters: Manufacturers
– Time until retailer mandates: ~10 years
y
– Cross-industry diffusion: ~10 years
External forces
– Positive: Nutrition labeling (FDA)
– Negative: Consumer concerns / Price indication legislation
Estimates of the business case for the barcode at different points in time
(in % of sales)
1975 1997 Factor
„Hard
Hard“ benefits
benefits* 3 13
3.13 3 45
3.45 x 1.1
11
„Soft“ benefits** 0.29 3.44 x 12
Cost 2.50 1.25 x 0.5
* Main benefits: Faster check-outs, reduced check-out errors / loss prevention, elimination of price marking
** Main benefits: Automatic reorder, shrink control, improved warehouse operations, improved DSD control,
inventory reduction and sales increase
Source: PwC, in: Haberman (1999)
RFID/EPC adoption
is about here!