RAIN RFID, UHF RFID, EPC RFID, … – Confused by the Different Names?

Aug 11, 2016

About the author

I am Sales Director at Voyantic. I have over 15 years of experience from the RFID industry in Europe and the USA. I have two master's degrees: in industrial engineering and in marketing, and two patents in auto-ID technology. I am actively participating in RAIN RFID alliance activities.

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I am frequently lecturing to RFID users and technology providers about quality and performance in RFID. Every now and then a question about the terminology comes up. RFID technology has developed through several paths and as a result there are a lot of names and definitions for RFID. A beloved child has many names, says a Finnish proverb. Understanding the different points of view in naming and the origins of the terminology help to understand the many names.

RFID and Frequency

RFID – Radio Frequency IDentification – is the umbrella term covering a wide variety of technologies: frequencies, communication protocols, and device types. One common way to refer to the different technologies is with the names of the frequency bands:

LF RFID (Low Frequency RFID)
125 kHz – 134.2 kHz, 125 kHz RFID, 134 kHz RFID
HF RFID (High Frequency RFID)
13.553 MHz – 13.567 MHz, 13.56 MHz RFID
UHF RFID (Ultra High Frequency RFID)
433 MHz: 433 MHz RFID
858 MHz – 960 MHz: UHF RFID *)
Microwave RFID
2.4 GHz – 2.454 GHz: 2.4 GHz RFID
5.725 GHz – 5.875 GHz: 5.8 GHz RFID

*) Includes local bands ETSI RFID (865 MHz – 868 MHz) and FCC RFID or 915 MHz RFID (902 MHz -928 MHz)

Passive and Active RFID

Different RFID technologies feature different ways to power up the tags and to communicate between the reader and the tag. The base technology is used as one way to classify RFID:

Passive RFID: technology where the tag powers up from the radio frequency energy sent by the reader, and communicates back by modulating the reader signal
Battery assisted passive RFID, BAP RFID, Semi-passive RFID: technology where the tag gets its operating power from a battery but communicates back by modulating the reader signal
Active RFID: technology where the RFID tag is powered from a battery and communicates by active transmission
RFID sensor, sensor tag: a sensor (temperature, pressure, humidity – or anything else) is integrated into the RFID tag – can be passive, active or BAP
Chipless RFID: tags without a silicon microchip based on time-domain reflectometry or frequency signature techniques are called chipless RFID tags.

RFID Names from Standards

Another approach for RFID naming comes from the radio transmission protocols. They are described in radio protocol standards, and are often referred to by the standard names: ISO 15693, ISO 14443-A, ISO 14443-B, ISO 18000-62, ISO 18000-63, GB T/29768…

The alphanumeric standard names are not that good for marketing use, so many of the standards are more widely known by commercial brand names, such as

Mifare: NXP’s trademark for 13.56 MHz, ISO 14443-A
FeliCa: Sony’s trademark for 13.56 MHz, JIS X 6319-4
EPC RFID: Electronic Product Code, GS1’s standard family for data content in RFID, standard family includes also protocol standards and frequency standards – also standardized as ISO 18000-63 (formerly ISO 18000-6C)
SINIAV: (Sistema de Identificação Automática de Veículos) Brasilian department of transportation’s system for identifying cars. The system includes also RFID protocol standard at UHF RFID frequency

Many of the standards have also been published by various organizations with no or with small adjustments. For example, it is common that a standard is published as a national standard (JIS, DIN,…) , or industry specific standard (IEC for example) and afterwards as a global ISO standard.

Marketing Names and Industry Organizations Aiming for Clarification

In order to fully describe a specific technology, several of the above names can (and sometimes must) be used together. For example: Passive 13.56MHz sensor tag with ISO 15693 protocol. Also several names are interrelated – for example ISO14443-A is in practice always also 13.56 MHz (HF RFID), and passive.

Using these technology derived names and standard names for describing the technology can be complicated, confusing, and in many cases drives the focus to the wrong direction. Industry organizations have recognized this problem and they have launched marketing names for most common technology combinations. Their focus is on the use cases instead of technical details and their goal is that these names would become the everyday names for RFID technologies – just like e.g. Bluetooth has become a common name for radio communication between electronics devices using 2.4 GHz frequency and ISO 802.15 standard protocol.

NFC: Near Field Communication is a term/brand by an industry organization (link: http://nfc-forum.org/ text: NFC Forum popup:yes). The term describes a main stream combination of HF RFID technologies, and is used extensively in e.g. smart phones. The technology uses 13.56 MHz frequency and several protocols, such as ISO14443A, ISO14443B, and FeliCa (Japan Standard JIS X 6319-4).

RAIN RFID: RAIN RFID is a name coined by the RAIN RFID Alliance – a global cooperation organization of companies offering or utilizing passive UHF RFID. The RAIN RFID covers RFID technologies using frequencies from 860 MHz to 960 MHz and the EPC RFID Gen2 protocol, also known as ISO 18000-63 air interface, regardless of the used numbering system.

Which Names Should Be Used?

I am not ready to trash any of the current terminology. However, I have my own preferences.
I prefer the NFC and RAIN RFID terms in case studies and similar documents aimed for a wider audience when not focusing on nitty-gritty technical details but describing benefits of the technology.

When the focus is on certain technical viewpoints: protocol, frequency, technology type etc., I prefer the narrow technical terms. “Computer accessory for reading battery assisted UHF RFID EPC temperature sensor tags” sounds horrible, but actually describes quite well the technology solutions used. For a consumer the monster-term is not as easy as having a RAIN RFID enabled laptop.

Voyantic is a quality and performance test system provider for the RFID industry. The test systems can be used for testing tags and readers at UHF and HF RFID frequencies – or if you prefer – within RAIN RFID and NFC.

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RFID Triumph at Macy’s: More Sales with Higher Margins – GS1 Connect 2016 Recap

Jun 07, 2016

About the author

Juho Partanen

I enjoy seeing both the Voyantic employees and our customers thrive. The grand majority of my time goes into projects and initiatives that grow the RAIN RFID market in the long term. My remote office is on a boat on the archipelago of Finland.

Content

中文版 Chinese version

It was my third time to attend the GS1 Connect event; this time in Washington, DC from May 31st through June 3rd. The event was loaded with an impressive conference menu and a larger exhibition area than in the Austin event last year, although with less exhibiting companies than previously. RFID was well presented – read on to see what I am taking home from that perspective.

Utopia Comes with Transparency and Traceability that Protects Both Business and Consumers

Standardsville is a picturesque city where everything is clean, convenient, traceable and safe. Business blooms because information and goods flow without obstacles, and The Consumer is protected from harm. Actually I thought GS1 had done a really nice job on creating this Standardsville utopia as the theme of the event.

Standardsville comes with plenty of convenience and color. Picture Copyright GS1 2016.

In his keynote speech Mr. Bob Carpenter, the President and CEO of GS1 US, highlighted RFID as one of the transformational technologies that is currently reshaping retail. In a conference session the same message came through the presentation of Dr. Bill Hardgrave of Auburn University. Dr. Hardgrave listed the “Big Four” Foundational Use Cases of RFID together with the additional current driver: the omni-channel retail.

Retail use cases of RFID according to Dr. Bill Hardgrave, University of Auburn

For the most effective RFID execution Dr. Hardgrave again gave the ultimate guidance: “Move to 0HIO“.

RFID Is a Strategic Enabler for Macy’s

In the Macy’s HTDBW session Mr. Bill Connell, Senior VP of Logistics at Macy’s, explained the reasons why Macy’s is so committed to RFID – sales uplift is naturally the ultimate reward, but all the other benefits of accurate inventory also add enormous efficiencies to store operations. The consumer sees all this as improved shopping experience, whether she is online or in-store.

Supplier Source Tagging Is Happening Already

Mr. Connell also made it clear that supplier source tagging is the only way to do this right so that benefits are spread thorough the supply chain. Today tagging coverage among Macy’s suppliers is 56%, and Mr. Connell expressed his wish that the rest would start tagging tomorrow.

In a separate session Rich Haig, the CIO of Herman Kay, one of Macy’s suppliers, presented their experiences around RFID. The added visibility that RFID has brought to their own processes has dramatically affected shipping routines and raised accuracy to a whole new level. All this has made Herman Kay a better supplier for all their customers.

Many Retailers Put Emphasis on Product Attributes and Rich Content

As omni-channel retail marches forward, it seems that most retailers have their focus on getting the content right on their webstores. As an example, Walmart is focused on getting every single item online, including those that they are not currently even selling! As an engineer I am struggling to follow this logic, but I suppose that’s just me.

I understand rich content and romancing the product is essential to fight the online competition. However, behind the curtains many are following what the spearhead retailers are doing around RFID. For the latecomers implementing RFID is going to be a smoother ride because supplier source tagging is already happening, standards are emerging to make communication easier between stakeholders, and successful tagging solutions have become a common knowledge in many product categories.

TIPP Is Like the Air We Breathe

So, why are the retailers not implementing the Tagged Item Performance Protocol (TIPP) that was just recently developed for them? I’ve learned this actually is just an illusion. The way professional RFID tagging in retail is done today is solely based in TIPP-like methodology – some just call them ARC tests and others Voyantic tests. Common factors include tags applied on products/materials, organized to in-store like product stacks and then tested over a wide frequency band and across rotation angles.

TIPP grades will take their place as a communications method as tagging spreads to new product categories and new retailers. This is already happening, and I am sure the TIPP methodology will be discussed more at the GS1 Connect 2017.

GS1 Connect 2017 Taking Place in Las Vegas

As business moves forward the next GS1 Connect will be held in Las Vegas. Unfortunately the event is moved forward by a couple of weeks to 19th-22nd June, which will be right on top of the Finnish Midsummer’s Eve – the magical nightless night. Considering the night in Las Vegas may well be somewhat similar, I will be faced with a difficult decision between bonfires and casinos.

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Passive RFID Sensors and Tags with a 100m Read Range A Geeks Report from RFID Journal Live! 2016

May 20, 2016

About the author

Jukka Voutilainen

I am the CEO and co-founder of Voyantic, a company that specializes in RFID test and measurement solutions. Before starting Voyantic in 2004, I worked as a researcher at the Helsinki University of Technology focusing on passive RFID sensing for moisture in building structures.

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中文版 Chinese version

Two weeks ago was again the time of year when the RFID industry met at RFID Journal Live! in Orlando, Florida. The show is one of the main events of the year for Voyantic as well. But what were the hot topics this year?

As always, several new products were presented at the show. A significant trend for the last few years has been UHF RFID finding its way into mobile phones, first as add-on modules, but now also integrated into the phones. Another new product category was inventory robots that were seen roaming the aisles of the show. Mikel Choperena of Farsens writes about these trends in more detail in his trade show review.

Industry-wise, the airlines seem to be currently on the up in RFID adoption. Delta was one of the keynote speakers of the conference, and several companies were presenting SAE AS5678 certified tags meant to be used in airplanes. But other industries, such as manufacturing, healthcare RFID, and retail were also well represented.

Passive Sensors Steal the Spotlight

After last year’s show, I wrote that one of the hot topics was (link: http://voyantic.com/blog/posts/is-now-the-time-for-passive-rfid-sensing text: passive RFID sensing popup:yes), and noted that sensing occupied four of the ten Best New Product nominations.

It looks like sensing picked up where it left off last year.

This year’s award was shared between two innovative sensing products:

The first winner was SMARTRAC Technologies, for its Sensor Tadpole, a passive UHF sensor that can detect the presence of moisture. The sensor tag has been used by automobile manufacturers for ensuring that the cars leave the factory watertight.
The other winner was Phase IV Engineering for its RFID Sensor Reader, which is designed to collect accurate data from passive RFID sensor tags. Think of it as the missing piece that links passive RFID sensors to industrials PLCs, converting sensor readings from a tag’s memory to industry standard voltage or current levels. Keep your eye on this company!

Bubbling Under in the Academic Scene

RFID Journal Live! was co-located with several smaller conferences, one of them the IEEE International Conference on RFID, “the premier conference for exchanging all technical research in RFID”. My colleagues were kind enough to relieve me from booth duty, so I had a chance to attend the conference, and spend some time with my fellow geeks.

This year was the 10th occurrence of IEEE RFID, and I can proudly say that I have participated in pretty much all of them in some role: in the Technical Program Committee, as a session chair, or as an invited speaker. The conference covers different aspects of RFID research; this year the largest amount of presentations fell under the categories of

antennas & propagation
circuits
devices & readers
protocols & security and
energy harvesting & wireless power.

For me, the most interesting talk was given by Dr. Greg Durgin of Georgia Tech. He received the best paper award for his paper titled “RF Thermoelectric Generation for Passive RFID”. The paper proposes a new way to power passive tags based on thermoelectric generation instead of traditional diode rectification. To put it in perspective, Alien Technology presented their new Higgs-EC tag IC at the show, reported to have best in class read sensitivity of -22.5 dBm with a dipole antenna. Dr. Durgin’s proposal could bring sensitivity down to -34 dBm, allowing read ranges of up to 100 m.

Think about all the applications that a passive 100 m read range could allow.

RFID has definitely not seen its limits yet!

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RFID, Love or Die

Apr 21, 2016

About the author

Voyantic

Content

Dear reader, my name is Lluis Bueno, and I love RFID. Do you? I belong to the Spanish company NextPoints, and in my work I have met hundreds of professionals and companies working in the RFID market without any passion for the technology… and most of them are not working in the RFID market anymore. So, why is love required for RFID business to survive? Let me share a few real stories with you.

Without any doubt, RFID is living its best moment: Internet of Things is more real than ever, RAIN RFID Alliance has more than 100 members, GS1 released TIPP guidelines for RFID tagging in retail, RFID inlays reached the lowest price ever without losing any quality… but perhaps, even with this friendly environment, the RFID company you created or joined some time ago is not alive anymore.

What was the reason for failure then? All of them had something in common: their lack of love towards the technology. Focusing on the product is of course important, but prioritizing price and forgetting collaboration with other players did kill them.

RFID is not just one more technology, it still needs your support to develop the market, and you need the market to be developed to make business.

RFID has its professional tools and methods of doing measurements, and this is something many of the professionals in the market are not aware of. There are only two ways to work with RFID: the right way or the wrong one, and there is no midway. Fortunately, I met Voyantic years ago and they showed the right way to me. Doesn’t it sound like some kind of religion? That was exactly what I felt the first time I met Mr. Juho Partanen: I had always thought I was doing things, if not the best way, then good enough for my RFID business. But I was doing wrong until he opened my eyes and he led me on the right track.

Most of the RFID companies ─ large end users, system integrators and even manufacturers of RFID readers or tags ─ are still using the same methods for testing their products and solutions which they used 5 years ago: conventional readers instead of professional testing systems, trial and error instead of real measurements, empirical reading distance instead of other key measured parameters. They think they are getting enough information from those old methods to understand how RFID works, but they really have no idea of what is happening. Why are they not taking their own business seriously? Is lack of budget the reason? No. Lack of love towards RFID is.

Most of the RFID companies think that purchasing RFID products at the best price will turn their company into a successful one. Forget it! Price just helps. Qualified partners, not only products but business providers, RFID alliances involvement, real RFID measurement tools…. You are missing much more aspects than just price. Are you aware of the changes in RFID ETSI frequencies, TIPP guidelines, RAIN RFID Alliance…? Information, commitment, involvement… definitely, love. Love is missing all along the supply chain, so we need to spread love since the beginning.

Please, you have chosen RFID as a driver technology for your projects, products and solutions. Love it and it will love you back with everlasting business. Take it seriously, or partner with companies who take it seriously for you, but do not ignore RFID and treat it as any other technology or it will die and make your business pass away.

In my work I have heard dozens of questions of RFID – why is it not performing as expected? What should be done differently to make my RFID business bloom? Download the “Questions of RFID – Loving Wisdom” document below to read the commonly asked questions with my answers.

Download Lluis Bueno’s RFID Q&A!

Download Lluis Bueno’s loving wisdom for frequently asked questions of RFID. You’ll find answers to many baffling RFID questions regarding tag and reader selection, system setups, link margins, and troubleshooting.
For your convenience, many of the answers come with pictures, too!

Download Now

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Leadership in the RFID Era

Mar 02, 2016

About the author

Jukka Voutilainen

Content

中文版 Chinese version

So you want to be a successful leader in the RFID industry. Well, many leadership principles that are widely accepted in the high tech space will apply to RFID as well. But there are some concepts that are specific in the RFID industry. Here is a short glossary of buzz words for leadership in the RFID era.

1. Factory programming: The most important decisions that you will make are related to who you hire. A good rule of thumb is to hire people that are smarter than you. But I would put even more emphasis on how well the new team member fits the company culture. After all, new skills can be taught but changing someone’s factory programming is a lot harder. A good way to find out who to hire is to let the other team members interview the candidate before making the final decision.

2. Downlink: Ignorance is bliss? Maybe. But if you share information with your team on a need-to-know basis, how do you expect them to come up with new ideas? The better they understand the higher level goals of the company, the better they are able to help you reach them. I guarantee that the time spent explaining “why” will be returned ten-fold in commitment and creativity.

3. Listen before talk (LBT): What do you do when you are making a business decision that potentially has a big impact on the future of the company? Remember that you already have people smarter than you working for you. Why not listen what they have to say? Make them a part of the decision making process. Of course, the final decision is your responsibility but your team will be more committed to the decision if they have had their say. And I guarantee that the decision will be better.

4. Anti-collision: Every successful organization has people that don’t think alike, and that will cause some friction from time to time. But as long as all team members are acting in the best interest of the company, a healthy amount of conflict fosters growth. After all, if everyone is in complete harmony, some opportunities and ideas will be missed. So hold back with your anti-collision procedures, and resist your natural urges to act as a referee in every disagreement.

5. Error correction: The only way to avoid mistakes is not to do anything. And I believe in a corporate culture where people do not need to be afraid of making mistakes. Sometimes the mistakes may be visible to the customers as well: Maybe the new software release has a bug that was not caught in quality assurance, or maybe an item is accidentally left out of a delivery. The most important thing is to decisively make it right for the customer. The overall customer experience can still be positive if error correction is quick and professional.

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What Gen2v2 Security Offers for RAIN RFID Applications

Feb 12, 2016

About the author

Jukka Voutilainen

Content

中文版 Chinese version

In October 2013, the management board of GS1 ratified text: EPC Gen2v2. These new features ease the adoption of RFID especially in application areas where the tag carries more information than only its identification. Let’s have a more detailed look at one new key feature of Gen2v2: authentication.

What Does Authentication Mean?

So first of all, what is authentication? A quick Google search resulted with the following definition:

Authentication is the process of determining whether someone or something is, in fact, who or what it is declared to be.

In the RAIN RFID (UHF RFID) context, that something can be either a tag or a reader. In tag authentication, a reader asks a tag to encrypt a message using its stored secret key. If the reader is able to decrypt the tag response, the tag is genuine. This approach can be used to detect counterfeit tags, and as a result counterfeit items. Similarly, in reader authentication, access to a tag is limited to authentic readers. This approach can be used for example in electronic payment solutions. Ken Traub of Ken Traub Consulting wrote a very down-to-earth post about this topic.

Test setup for automatic vehicle identification

RAIN RFID tags that implement cryptographic security are expected to be more expensive than the simplest retail labels. As a result, they will only be used in application areas where authentication gives a significant advantage. Such fields include at least

Electronic road tolling
Vehicle registration
Access control
Asset tracking and brand protection
Parking and vehicle authentication

The First Secure Tags and Readers Already Available

In Spring 2015, NXP released the first Gen2v2 tag IC that provides cryptographic authentication, the UCODE DNA. Several tag manufacturers are already providing tags with this IC. On the reader side, upgrading to Gen2v2 requires a firmware update, and at least Nordic ID already has added Gen2v2 support to their readers. So, the technology is available and there seem to be several ongoing pilots that use Gen2v2.

Different Crypto Suites

Gen2v2 is not concerned with which authentication method is used. Instead, the different crypto suites are defined under the ISO/IEC 29167 standard family. For example, NXP UCODE DNA uses the AES (Advanced Encryption Standard, ISO/IEC 29167-10) crypto suite. Some crypto suites may be optimized for low power consumption and quick authentication, whereas others may provide more secure authentication. As new Gen2v2 tags appear to the market, we will most likely also see different approaches to authentication.

What Does Security Mean for RFID Testing?

Since Gen2v2 is backwards compatible with Gen2, all Gen2 test methods apply just as well to tags supporting the new standard. The most widely used performance test method for characterizing a tag is measuring its sensitivity as a function of frequency. This reveals both the tuning of the tag as well as the operating range that can be acquired. Typically, the same amount of power is required to identify a tag and to read its memory contents. However, writing to the tag usually takes more power, thus yielding to a shorter write range.

Voyantic Tagformance Pro RFID measurement system

The Gen2v2 security functions introduce a new sensitivity level. The tag’s crypto engine that is required for the authentication may need more power than simply identifying the tag. The figure below shows the sensitivity of a Smartrac Dogbone with the NXP UCODE DNA IC. As the figure shows, authentication needs more power than just identifying a tag, however the difference is only 1 to 2 dB whereas writing the tag memory requires significantly more power.

Sensitivity of a Smatrac Dogbone with NXP UCODE DNA IC

My company Voyantic delivers test and measurement systems for companies that either develop or use Gen2v2 tags. The Voyantic systems enable companies to reach excellence in tag design and to find the most suitable tag for each application.

If you are interested to learn more, please contact us and let’s talk more!

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RFID Companies Should Stand United to Defend the RFID ETSI Frequencies – We Are Not Out of the Woods Yet

Jan 27, 2016

About the author

Juho Partanen

Content

Listen up now Alien, Avery Dennison, GE, Honeywell, Intel, Impinj, NXP, Metro, Smartrac, SML, SATO, Tesco, and Zebra. You have a world of hurt coming in – the ETSI UHF RFID band might get cannibalized, and you cannot afford it. We are facing a serious situation where other technologies may cripple the already narrow RFID ETSI band. Read on to learn more about what you should do to defend your business.

AIM and RAIN are alert already, but more industry collaboration is needed to defend the ETSI RFID frequency band from other interested parties

RFID Is a Niche Technology Compared with WiFi

WiFi, NFC, and Bluetooth are all great technologies, with trustworthy standards and powerful industry alliances behind them. UHF RFID is a hobby in comparison. How many people on the planet have ever heard about RFID, or of the RAIN Alliance for that matter?

European RFID companies and potential end-users already lost one fight a long time ago. Just compare the ETSI 865 to 868 MHz band to the FCC 902-928 MHz ISM band. Some difference there – how many channels was that? Luckily we Europeans got away with 2 Watts ERP anyhow.

WiFi Stretching Down to Sub-gigahertz Area

Next up: the ETSI RFID band may be crippled by other technologies, at least if we ask the WiFi consortium. The WiFi consortium with its 600 member companies is completing its mission, doing the dance and WiFi HaLow is being lobbied for a sub-gigahertz band to operate in, potentially on top of ETSI RFID. To make the situation even more alarming, RFID companies are not presented well enough in the ETSI workgroups where the hard work is done. This is where industry collaboration would make a difference.

LBT Would Downgrade the Position of RFID

A simple resolution of sharing the band is to put Listen Before Talk (LBT) in place and use RFID only if there is an available channel. Well then, how would that modified sales pitch is going to sound like to your customers who are concerned about the RF reliability and availability? Do note there are only four ETSI RFID reader channels available!

“Yes, well, basically, there is no problem.”

In the worst case, the IoT of non-powered devices would be postponed in Europe by a few decades. All the previous pain related to Round Rock and the Japan 950 MHz band change are peanuts compared with this. The EU business covers a 30% share of the global RFID market – this would hurt us all bad. We may all be destined to walk the niche path unless we act and stand united.

RFID companies and associations cannot afford to bury their head in the sand when it comes to standardization

The New 915-921 MHz Band Is Needed and Proposed, but Not Approved Yet

The good news is that the new band 915-921 MHz in Europe may be opening up for RFID in the future. The proposal was already made in 2012 ETSI TR 102 649-2 V1.3.1 with an update ETSI EN 302 208-2 V2.1.1 in 2015. This is absolutely a positive issue with the work item REN/ERM-TG34-264 now in the “Final Draft for Approval” phase. How are You currently supporting this noble mission?

Get Proactive in Defending Your Business

AIM is alert already, and we have smart people engaged in this work. Still, more support is needed: join ETSI, join RAIN Alliance, support AIM, support GS1, and do assign your brightest to work on the ETSI ERM TG34. We are not out of the woods yet. Spare no Dollar, Euro, Yen, nor Yuan – Sharing the 866 MHz RFID band is not a concern of Europe alone; it could impact the global RFID business severely!

Do also make sure your representative is in the right room when it’s time to vote.

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Avoiding the Next RFID Hype Rounds by Learning from the Past

Oct 22, 2015

About the author

Juho Partanen

Content

Omni-channel retail, pharma serialization, internet of things, M2M, NFC – the world never runs out of buzz words that get us all worked up and excited. Then come to the budgeting rounds, and so many again overestimate the next year’s revenue growth, setting the sails towards the future disappointment. What is so tricky about it – how to see the forest from the trees?

I would keep my nose directed forward but also take care to learn from the past. Read on to grasp some of the past mistakes.

As we look back at the strange days of the tremendous RFID hype in 2004-2007, one can only shrug and shiver. Can you remember the factors that drove up the inflated expectations curve ten years ago? I was a rookie in the RFID business in 2004 and couldn’t tell which were major and minor industry drivers. Now the following themes become highlighted as I try to make sense of the past.

Royalty-free ISO Standard Makes Your Day

In 2004, the Class 1 Gen2 was ratified by EPCglobal. As no patent constraints had been found, the EPC Gen2 standard was also declared royalty-free by EPCglobal. The significance of Gen2 was manifested in 2006 as the International Standards Organization ISO approved it as a part of the 18000-6 standard. Class 1 Gen2 fixed many shortcomings of the original Class 1 and 18000-6B standards, and this global standard certainly paved the way for a smoother ride for the industry.

Wal-Mart flipped the hype boost to overdrive with its announcements in early 2004 for the top 100 suppliers to tag pallets and cases by January 2005. This drove the whole RFID industry, and those around it, practically insane. If Wal-Mart was doing this, wouldn’t this drag the other retailers to do the same? Also, venture capitalists woke up and became fully alarmed not to miss the train. Money started pouring in RFID companies that were set to make millions in the Wal-Mart ecosystem alone, had short or non-existent revenue history, a few patents perhaps, and a bullish burn rate. It was a roller-coaster ride during which marketing agencies, lawyers, and event organizers must have made big dollars.

Go Only with a Solid Standard

By 2007 nothing much had happened. One central cause for Wal-Mart not getting ROI in their RFID expedition was the timing related to standards – the transition from Class 1 to Class 1 Gen2 took a long time and effort for the technology vendors, which also had other worries to handle. As Wal-Mart gradually began to pull back on RFID and Nasdaq started to slide, it was clear that most RFID companies were firmly headed towards the biggest hangover of all times. RFID hype had peaked, and burst, too.

Healthy Competition, or Something Lurking Behind the Scenes

One thing the investor money managed to get done was to destroy the profit margins in UHF RFID. Even the few good looking companies in RFID were nearly pushed over the edge by their revenue-hungry-investor-backed competitors that sold their goods probably at a below-zero profit. As technology was still immature and quality standards non-existent, the door was open for low-quality and no-quality vendors that gradually ate off the left-over positive karma around RFID. End users learned to be cautious and consider quality aspects as well, which now at the later time has turned into a competitive advantage for companies that have quality processes well established.

2008 to 2010 were terrible times for everyone. I can imagine how so many sales funnels had steadily forward surfing high-rise edges. As the pressure eased off just slightly, then came December of 2011 and Round Rock. That horrid battle took long and was mostly fought behind the scenes. I feel lucky for not knowing all the details, but the dispute did plenty of harm! Among other casualties, the Impinj IPO was scrapped in 2012, but at the same time, Smartrac was awake and managed to execute some significant acquisitions. The one universal splendid outcome from Round Rock was the fact that RFID companies learned to co-operate in the name of a greater common good.

Less Hype, More Industry Collaboration

There may be a time to go solo – but not now

We arrive at the present day – RFID hype is long gone, technology has matured, and studies clearly show how the RFID adoption is streamlining processes, bringing ROI and making the world a better place. Omni-channel retail, lean manufacturing, passive sensors, and expanding industry collaboration, such as the RAIN Alliance and GS1, are some of the drivers that bring more and more business to the technology vendors and solution providers.

The future of the RFID market looks set to continue at double digits rate growth. I do not see any unjustified hype on the horizon as of now. If only the RFID industry would be able to avoid the next pitfalls, such as new patent disputes, proprietary national protocols, and especially the IoT hype. In general, I feel optimistic over all this; however, having been an entrepreneur for over ten years, I won’t be surprised.

Do let me know if your crystal ball reflects the future any differently, and with more clarity! Send me an email (juho.partanen@voyantic.com) and let’s talk more!

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Helping The Boss to Arrive at the Correct Decisions; In-house Selling of RAIN RFID Test Equipment

Jun 12, 2015

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Juho Partanen

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中文版 Chinese version

Selling is a noble form of art, which takes slightly different forms when selling to a customer (out-house) or a colleague (in-house). Luckily both the directions go by the same principles. The twist in general is whether that special someone is already looking for a solution and is therefore on the buying mode, or not looking and even in the I-have-other-priorities-such-as-protecting-the-cash mode.

As my company Voyantic operates in the relatively young technological field of RAIN RFID measurement and testing solutions, the latter mode is usually assumed, since the prospect companies are typically start-ups. Of course, we are not working on the sales case only from outside the prospect company, but together with an in-house sponsor that faces the same communications challenge: How to get the management to say yes to the investment proposal?

The Boss Takes the Most Heat in the Valley of Death

Our prospect start-ups are in the pre-launch phase, and cash flow vice is located firmly in the valley of death. I’ve been in that valley myself – it’s a horrid place, and only the brave go there.

Sales is all about getting to Yes. Let’s, therefore, focus on The Boss, because ultimately she/he says “Yes” or “No” to the investment proposal.

The Boss is a creature with three primary functions: stay as a boss, carry the grave responsibility, and make decisions when needed. One way to initiate a decision-making process is to spread a certain amount of fear powder over the responsibilities part. Some others prefer to play this card right the opposite direction: paint a fresco of stunning business performance and thus suggest the marvel of getting out of that valley sooner than later, and this way become a happier boss.

*One Boss in the Valley of Death, under wildlife attack, not enjoying the moment very much, and thus motivated to make decisions*

Facing RFID Sensor Tag Development Hurdles

To make a case of the latter, let me walk you through a hypothetical example of in-house sales: Assume you are an RF antenna engineer in Company Z that is developing a novel RAIN RFID tag with disruptive never-before-seen sensor features.

Cutting edge stuff, and riding high on the hype curves, too! So it gradually reveals to you that the antenna design is heavily restricted by the selected production process, which further seems to limit the tags reading performance. Unfortunately, you don’t quite have all the facts on the table to back decision making, because there is only a DIY RFID reader based test setup in the basement lab, right next to the janitor’s room. Additional discomfort arises from the fact that the latest tag sensor circuitry samples seem to have a set of “undocumented” properties that don’t go so well either with the reader in the lab.

The sensor tag launch date is set only ten months away to a RAIN RFID show taking place in Orlando (sometimes in San Diego), and the marketing lady with the scarf is making preparations already. Even the product brand name is already registered.

It Doesn’t Hurt to Find Out How Others Have Managed to Get the Antenna Design Right

Let’s face it – those are hugely expensive ten months for several reasons.

First of Company Z has only the slideware to sell, which means there is practically no revenue.

Secondly, there are you and both your buddies in the lab ordering materials, scissoring inlays, 3D printing prototype enclosures, cursing the air conditioning, and wishing all is going to be ok.

Thirdly, some other companies in the market are already launching their first sensor tag products, which is irritating because you know they are bluntly eating off the yours-to-be market share.

So, being a bright and open-minded engineer, you take a few hours on Tuesday to browse through a pile of academic publications on UHF RFID tag design. While your coffee mug gradually sinks below the refill level, you suddenly realize all those papers refer to this one RFID performance test system.

Switching over to Dr. Pepper and taking a few additional hours to complete the desk study, you find out that this stunning equipment shows how a UHF tag is tuned in about 30 seconds and also how the IC responds to different commands. On top of that, it dawns on you the system is available with two weeks lead time, and the supplier even has a tag production quality test solution, too! Tuesday well spent!

How to Present the Gathered Information with Maximal Impact

So what is it that you do? Well, first, you go home and sleep off the first wave of excitement. On Wednesday morning, you make a few calculations together with a fresh blueberry muffin, then rush to the corner office at 9:15 AM, take a deep breath, and…?

At this point it is important to remind yourself that The Boss is in heat and busy looking for a way out of the valley of death.* You are almost there, next reel it in with a correctly tuned message*:

JUNIOR MISTAKE: just ask The Boss to buy this one great tester worth 50k
MILD, BUT MIGHT WORK: explain how you found a way to raise RnD efficiency by up to 22%
MUCH BETTER: tell you found a way to get the tag design finished in time, AND troubleshoot the damned sensor circuitry while at it
A NO-BRAINER DEAL: report to The Boss that you found a way to cut time-to-market by 50%.

The lower on this list you are able to go, the smoother response there will be on your closing line about the investment.

In a Competitive Environment Time-to-Market Makes a Grand Difference

Essentially you should show that you can make this massive difference on the top line if this enabling 50k investment is carried out now, and sales would start sooner than later. Bring in a few of those academic publications with you as evidence, and ask the measurement system vendor for payback estimates and additional collateral, such as a few reliable customer references.

The Boss knows the painful cost and agony of those ten months, and if you claim you can save 5 out of those, he figures out it’s going to be three months saving with a reference customer as a cherry on top, and he is going to sign you those 50k pretty darned fast. All top bosses know that you need to spend money to make money, and just kindly remind that waiting is the most expensive alternative of all.

Wrapping It Up: Investment on Test Equipment Often Turns Out to Be an Investment on Sales

The payback on measurement and testing equipment investments are exceptionally fast when the impact hits the frontlines of the sales battlefield. “The cutting costs” story may work reasonably well in large companies. Still, when it comes to shortening time to market, fixing diverse quality issues, and creating positive aura on the customer front, it all quickly translates into getting additional revenue for the company, sooner than later.

All top bosses love the additional revenue. Cards well played, and you just got your first Voyantic Tagformance.

That’s my story for you today. These principles have worked out well for me many times, and I would love to hear about it if they work out for you as well. Please drop me a line at juho.partanen@voyantic.com, and let’s talk more.

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