RFID SYSTEM

RFID System

RFID System

This paper is based on a case study that involves a women's clothing store. The Chief Executive Officer (CEO) is duly concerned about implementing a wholly new technology within the clothing firm to boost production and finally increasing the capacity yield of the clothing firm per day.

Introduction

In most of today's modern companies, information technology (IT) forms the backbone on which information is circulated throughout and beyond the organization to inform employees, customers, trading partners, and other entities about the activities of the organization. For example, internal IT systems connect finance, marketing, manufacturing, human resources, and other parts of the clothing firm through enterprise resource planning (ERP) systems that track orders and production output.

Web-based Internet applications called extranets allow authorized external trading partners to enter protected parts of the organization's internal systems to view relevant production schedules. Customer relationship management (CRM) systems use data mining techniques that allow sales and marketing personnel to understand historical sales data and create more personalized experiences for customers. Powerful IT-based analytical and trading tools allow financial analysts to forecast stock trends and link directly into the market to engage in electronic trading.

Discussion

Occasionally, a new technology emerges that can result in major improvements in the cost-performance capabilities of the clothing firm's information systems (IS). Radio frequency identification (RFID) is a technology that has the potential to dramatically alter the ability of the organization to acquire data about the location and condition of any item that can be physically tagged and wirelessly scanned within certain technical limitations (Curtin, Kauffman, & Riggins, 2007).

When this type of new technology comes along, it is important to have frameworks that allow managers to judge the potential business value of the technology, which can help them build the business case for related investments. Further, these frameworks can help managers develop plans for organizational change that is often needed to take full advantage of the innovation.



Efficiency Benefits

Many processes can be done more quickly using RFID thereby creating efficiency benefits. When various items such as equipment, people, or materials are being routed through a process, their presence and/or condition can be automatically detected and logged into the system. Otherwise, they would need to be manually scanned, inspected, and logged one by one. This is a considerable time and labor savings. Further, by knowing the location and/or condition of these items, the system can predetermine optimal routing such that they can be directed to the appropriate place. Also, by using RFID systems to monitor the location and conditions of these items, the system or authorized personnel can reroute them to adjust to changing needs at various locations.

Effectiveness Benefits

RFID can generate effectiveness benefits by making data and information available to decision makers in a more timely fashion. With RFID, the system is able to reflect exact current inventory levels and status conditions since systems are constantly updated to reflect the movement of items into, within, and out of the facility. By knowing the exact location and condition of items, the ...