RFID Architecture Strategy

– Shashi Shekhar Vempati

Executive Summary
Early Adopters of RFID are beginning to look beyond proof of concept
pilots and field trials. Enterprise scale Solution Design and
Integration are emerging as key focus areas. Key to success in both of
them is the architecture for integrating data from the RFID hardware
layer with a multitude of Enterprise Systems. A Large Enterprise
piloting RFID in multiple global sites is recognizing the limitations of a
traditional Enterprise scale Application Server in performing RFID
Middleware functions. A European Specialty Retailer seeking to adopt
RFID is grappling with the cost of ownership implications of Point
Solutions for RFID integration. Both of these Enterprises are
recognizing the need for a RFID Architecture Strategy.

This document presents Infosys views on a optimal RFID Architecture

Strategy Approach for Enterprises based on lessons learnt from Early
Adopters and Infosys experience in providing Real Time Control and
Data Acquisition Solutions in the Telecom and Process Control
Industries.
December 2004
Pitfalls and Lessons Learnt from Early Adopter Pilots
A common refrain across Early Adopter Pilots is that RFID Applications are quite unlike I.T.
Applications that have been traditionally implemented within Enterprises. The contact-less
communication between the tags and readers and its sensitivity to the physical environment
together adds a new dimension. Enterprises are evolving implementation strategies mindful of the
many challenges posed by RFID across layers.

Business Process Transformation

Early Adopters are recognizing that the value of RFID lies in operational efficiencies resulting
from changes in business processes. These Enterprises continue to be challenged however in
determining how processes can be improved in a RFID enabled enterprise.

RFID Business Comments

Characteristic Process
Impact
Readability May require object substrate or packaging material
√
modifications
Range X
Rate √ Could influence throughput assumptions
Accuracy √ Could require process interventions
Duplicates √ Could require process interventions
Could require process changes subject to source of
Interference /
interference
Could add steps to existing processes or result in new
Programmability √
processes
Memory √ Could influence processes changes

Data Collection

Early Adopters especially those with Global Deployments are grappling with the question of which
Technology/Vendor to bet on. They are recognizing that choosing of RFID Tags and Readers is
dependent on multiple variables. These Enterprises recognize the strategic nature of the
technology and design decisions to be made in this layer and are evolving vendor selection
strategies balancing the below considerations:
• Geographic spectrum and power regulations
• Multiplicity of air interface protocols
• Standards based Interoperability across vendors
• 3rd party certifications for standards compliance
• Maturity and failure rates of vendor specific products
• Protocol performance benchmarks for vendor specific products
• Packaging material modification challenges and costs
• Security and Privacy Policies and Commitments
• Financial viability of vendors

Early Adopters are also recognizing that vendor selection needs to factor how business
processes will be changed to leverage the technology.

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 Activity Dependencies
RFID Tag Selection Country of Origin, Object/Packaging Material, Programmability,
EPC Considerations, Readability, Trading Partner and strategic
considerations discussed above

RFID Reader Selection Tag Type(s), Programmability, Readability, Network and other
Infrastructure limitations

Networking Infrastructure

Early Adopters are waking up to the heterogeneity in Reader Networking and the manageability
and administration challenges associated with it.

Most Readers do not have out of the box Ethernet or wireless interfaces but instead rely on serial
interfaces which terminate in an additional piece of hardware called a Controller. This
heterogeneity in the network layer poses challenges ranging from mundane cabling issues to
complex security and network management issues.

Element Dependencies
Wireless • Availability of wireless interfaces on RFID Readers/Controllers
Networking • RFID Frequency Interference issues, especially with legacy RF
networks like Symbol/Telxon Spectrum-One
• Wireless security and network performance considerations
• Current infrastructure, coverage and cabling limitations
Ethernet based • Availability of Ethernet interfaces on RFID Readers/Controllers
Wired Networking • Security and network performance considerations
• Current infrastructure and cabling limitations
Serial Networking • Security and Manageability considerations

Network Security, • Skill-sets availability

Administration & • Administration and Management overheads
Management

Integration and Management

As Early Adopters of RFID look beyond proof of concept pilots and field trials, they are finding
enterprise scale solution design and integration to be unanticipated roadblocks.

For instance, a large US-based Enterprise piloting RFID in multiple global sites is recognizing
the limitations of a traditional Enterprise scale Application Server in performing RFID
Middleware functions. An early challenge faced by this Enterprise was to address the issue of
software integration with RFID Readers for data acquisition. Faced with an immature and
evolving RFID Software Integration market, this Enterprise adopted a more cautious
approach by relying on a traditional Enterprise Application Server and Database based
solution for RFID Integration. However, during the course of Pilots and Field Trials, the
Enterprise discovered the limitations of the RFID Integration Solution based on a traditional
approach. Specifically, it found that the traditional solution did not effectively address the

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 question of how to filter data to identify and process only RFID “events” of business
significance- something that is crucial to preventing a deluge of irrelevant data. As a result of
this shortcoming, this Enterprise was unable to interpret the data from the Field Trials
accurately and hence was limited in its ability to meaningfully use the data for business
advantage. Further, it adversely impacted the Enterprise’s efforts to develop the business
case for RFID

Similarly, a European specialty retailer seeking to adopt RFID is grappling with the cost of
ownership implications of Point Solutions for RFID integration. Being Europe–based, this
Retailer had a different set of challenges to deal with, ranging from proprietary RFID reader
interfaces to country-specific data exchange standards. Having recently enhanced its
Warehouse Management System with event driven workflow capabilities, this Retailer was
keen to integrate RFID with the enhanced WMS rather than deploy a point solution. This
Retailer wanted an RFID Integration Solution that performed minimal filtering and formatting
to forward RFID data encoded in events well understood by the Warehouse Management
System, thus fully leveraging its investment in the WMS while ensuring a minimal impact on
its business users. With this objective, the Retailer scouted the nascent RFID middleware
market for an RFID integration solution that would fully integrate with its WMS and ensure a
low TCO. The Retailer soon discovered, though, that most RFID middleware products adopt
a point solution approach that forces replication of information between the WMS and the
RFID middleware. Not only did this increase management overheads and the potential for
discrepancies and inconsistencies, it also did not deliver the lower TCO expected.

Both these Enterprises now recognize the need for an RFID Architecture Strategy that will enable
flexibility while not compromising on performance. Key to success in both of them is the
architecture for integrating data from the RFID hardware layer with a multitude of Enterprise
Systems.

Limitations and constraints in control of Readers and other Automation Systems are also
preventing Early Adopters from gaining process improvements while throwing into question
assumptions behind achieving those potential improvements. Given the lack of standards and the
proliferation of vendor and system-specific APIs, Enterprises are only now waking up to the
complexity and heterogeneity across vendors in providing these capabilities. Manageability
issues are likely to result in high operational costs. Specifically the lack of synergies in the way
Enterprises have traditionally managed hardware and network infrastructure is resulting in a
increase in total cost of ownership for these Enterprises in the form of new skills-sets and
management tools.

There is a consensus in the industry that unlike Wireless Local Area Networking, RF planning for
the Reader Network requires an understanding of the physics of RFID, interference issues, anti-
collision issues and vendor product strategies for overcoming them. Building in-house
competencies to plan, monitor and manage the Reader Network from a RF Performance
standpoint is an area where most early adopters are under-prepared.

The Case for RFID Architecture Strategy

The need for a RFID Architecture Strategy

RFID is clearly a disruptive technology. But to ensure that enterprises realize its potential optimally, it is
important that they understand the multi-dimensional impact that such disruptive technologies have on the
enterprise. A critical element of this is to have an RFID Architecture strategy.

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 Business Impact
New
Business
Models
Processes
efficiencies

Application Impact
Infrastructure Smart
RFID
Increase Automation Sensors
Innovative Applications
Add Complexity to Obsolescence of existing
Administration and Applications
Distributed
Management Data
Networks

Organizational
Impact
New skill-sets
Cross –
functional
collaboration
and multi-
functional
roles

Different layers within the Enterprise are likely to be impacted differently. It is important for all parts of the
Enterprise to develop a common understanding of what this impact is and what it means to existing
investments. It is also important to help identify what new investments will be required to be made within the
Enterprise. A key area of concern for Enterprises adopting disruptive technologies is the Total Cost of
Ownership. By clearly understanding the impact on existing investments and by evolving a holistic view of
new investments, Enterprises will be able to better manage the TCO by future proofing investments and
putting in place the right architecture for new investments. A key element of any RFID Architecture Strategy
ought to be an enterprise-wide Reference Model. Any RFID Architecture Strategy must also address the
issue of how RFID Business Vision will be translated into RFID Applications and an Integration Architecture
for implementing these Applications.

Infosys Views on RFID Architecture Strategy

Infosys believes that current approaches to RFID Integration generally suffer from many deficiencies,
ranging from a point solution approach to confusing RFID with EAI. Adopting traditional enterprise
architecture design approaches to RFID run the risk of failure on account of not recognizing the true nature
of RFID Integration. RFID Integration is about Real Time Asynchronous Event Handling and Real Time
State-based decision making. RFID Integration calls for an architecture design paradigm that reflects this.
As illustrated earlier, extending traditional EAI Products to support RFID or building Point Solution
extensions to traditional Enterprise applications like Warehouse Management Systems will simply not
achieve the desired results.

The RFID Architecture Strategy should enable Enterprises to take a holistic view of the impact of the RFID
Business Vision on their Enterprise. The RFID Architecture Strategy should enable Enterprises to create a
platform that will help realize the RFID Business Vision through Value Creating RFID Applications deployed
in a Low Total Cost of Ownership Environment that is flexible, extensible and future proof.

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To assess the complexity of implementing RFID and the impact on existing systems and infrastructure
Infosys has evolved a 7 Layer Reference Model for RFID that can be the basis for Business and IT to share
a common understanding and vision of a RFID enabled Enterprise. This model provides a layered view of
the technology, infrastructure and process elements that constitute a RFID implementation within an
enterprise. Drawing upon its experience in developing Real Time Asynchronous State Event Handling
Solutions in the Telecom and Networking world, Infosys has evolved a robust Functional Model and
Reference Architecture for designing and integrating Enterprise scale RFID Applications.

The 7 Layer Reference Model, together with the Functional Model and the Reference Architecture provide a
robust foundation for any RFID Architecture Strategy by:
• Deconstructing the complexity of RFID by providing a layered view
• Identifying the impact of RFID on existing layers within the Enterprise
• Identifying new layers to be implemented by the Enterprise
• Providing a framework to analyze RFID Business Requirements to articulate RFID Application
Requirements.
• Providing a framework to design RFID Application Scenarios within the Event Management Layer
• Providing a Reference Architecture to demonstrate how RFID Events of Business Significance are
integrated with Enterprise Systems

The above concepts are illustrated in the following 3 diagrams.

Infosys Model for a Pre-RFID Enterprise

Business Process Layer

Planning & Reverse
Manufacturing Transportation Distribution Retailing
Purchase Logistics

Application Layer
Warehouse Transportation
Asset Management Theft Prevention Supply Chain Visibility
Management Management

Integration Layer
Extranet Middleware Intranet Middleware
Process Automation Workflow
EDI/AS2, UCCNET HTTP, TIBCO, MQ, JMS, Vittria, Telnet

Network Layer
Wireless Network Security, Administration &
Wired Networking
Networking Management

Data Collection Layer

Barcode scanners on Mobile Handhelds, Desktops

Barcode scanning & label printing

Barcode labels

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Impact of RFID on the Enterprise

Need for Event Need for Product

Triggered Info. Mgmt across
Need Web Services EPC, GTIN, UPC and
Workflows
based Data other internal
Exchange over the identifiers
Internet

Process & Application Layer

Enterprise Integration Solutions

Need for Real Time

Networking & Infrastructure Management Solutions
Asynchronous
Event Handling
Data Collection Layer

• Need for Radio Frequency

Monitoring and Planning
Need for Software
Integration for Real • Hybrid Scanning – Optical and
Time Data RFID
Acquisition and
Control • Hardware Administration and
Management

The Infosys 7 Layer Model for an RFID-enabled enterprise

Business Process Layer

Planning & Reverse
Manufacturing Transportation Distribution Retailing
Purchase Logistics

Application Layer
Product Warehouse Transportation Asset
Theft Prevention
Supply Chain
Data Management Management Management Visibility
Layer
Integration Layer
EPCIS
Extranet Middleware Intranet Middleware Process Automation
EDI/AS2, UCCNET, PML HTTP, TIBCO, MQ, JMS, Vittria, Telnet Workflow
Data
Store
Event Management & Control Layer
Event Event Filtering & Reader Control, Administration &
Acquisition Routing Management

Network Layer
Wireless Network Security, Administration &
Wired Networking
Networking Management

Data Collection Layer

Static and Mobile RFID Readers, Antenna
RFID Scanning and other Data Collection Solutions

RFID Tags & other Sensors/Labels

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About the Author:

Shashi Shekhar Vempati is a Principal Architect at Infosys and is leading the RFID Solution
Strategy and Development. Shashi participates in EPCGlobal Inc. RFID/EPC Standards Working
Groups and other RFID bodies like UCLA’s WinMEC. He is one of the organization's leading
experts on RFID, Wireless and Pervasive Computing. As an RFID Thought Leader at Infosys,
Shashi has conducted over 20 one-day Executive workshops on RFID Value Assessment and an
Executive RFID Summit for North American Railroads. Shashi is also the author of the Infosys
Logical Reference Model for RFID Applications and the Infosys Logical Reference Architecture
for RFID. Shashi is also an expert on RFID Middleware Strategies and has presented on this
topic at the UCLA WINMEC 2004 Conference.

During his stint at Infosys, Shashi has brought leading edge technology strategies and solutions
to companies worldwide. He has worked with Hallmark Cards, Sysco Foods, Southern California
Edison, Nortel Networks, SES ASTRA Luxembourg, Proximus Mobile Belgium, Telstra Australia
and LVMH Japan. He is a frequent technology spokesperson and has presented at various
technology conferences like the Enterprise Wireless Forum Boston, The Catalyst - Burton Group
San Francisco and the Utility Forum's MobileExpo. Shashi was also responsible for incubating
OnMobile Systems Inc, a wireless technology spin-off from Infosys. Shashi attended the Indian
Institute of Technology (IIT) Bombay, India, where he studied Engineering.

Intended Audience

This document is intended for CIOs, VPs, Senior Directors, Technology Strategists seeking to
formulate a RFID Architecture Strategy

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© 2004 Infosys Technologies Limited.

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Copyright in the whole and part of this RFID Architecture Strategy belongs to Infosys Technologies Limited. This work may not be used,
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