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An Encyclopedia of RFID Development & Middleware
Gordon Cook

For the past 12 years, Gordon Cook has written about every aspect of the commercial Internet. Detailed interviews with the leaders of the field have given him a body of knowledge of unique breadth and depth. Gordon has used that broad knowledge and contact base to develop a complete analysis of the commercial, political, business, system and technical issues surrounding the broad introduction of RFID technology into the Global Economy. You can read an expanded summary and extracts and obtain his book through his web-site at $450 per copy - please mention RFID Exchange on your order form - it helps to fund the ongoing development of this site!

Here is an introduction to the approach and some of the issues covered - the full index of contents is further down this page.

When we began this exploration last December, our only under standing of RF-ID was that these tags would be extraordinarily privacy invasive and that It would somehow have some extraordinary impacts of supply chains by enabling the rooting out of all manner of inefficiencies. In beginning our conversations with Mission Assurance we had no idea how unusual and atypical its approach was. We had simply asked a VC subscriber for assistance in finding out more about RF-ID. His response was to introduce us to Mission Assurance.

By January we were discovering that the field was in far more flux and far more complex than we suspected. Chapter 4 on Supply Chains examines the players and users in more depth. It examines the gamble taken by EPC Global and its alliance with VeriSign which looks to us like a misguided step - "EPC Global in the Midst of "Mithra versus Godzilla""

Under Stratton Sclavos VeriSign's goal has been to link up with Microsoft and cash in on every means of central control that it can grab from its NTIA granted monopoly over .com and .net. ZD Net on February 25, 2004 captured very nicely on of the jewels handed Verisign as a result of EPG Global's falling for the sales press described in detail in Chapter 4.

Imagine a directory service and data bank that manages and routes domain name traffic, RFID tag information, voice calls, and digital authentication services. VeriSign is on a mission to become the Internet infrastructure utility that everyone else plugs into. By 2010, VeriSign Chairman and CEO Stratton Sclavos hopes to have at least half of all voice and data network interactions passing through his company's services.

The company recently announced a pact with Microsoft to integrate its security services into Windows, and is making deals with major telecom carriers for its communications services. VeriSign also was hired by EPCglobal to run a new RFID-based directory, and the company just introduced the Open Authentication Reference Architecture (OATH), a proposed open framework for authenticating users and controlling access to corporate networks.

But, VeriSign's path to become a dominant Internet utility is not without significant roadblocks. Sclavos is at odds many of the Internet pioneers and governing bodies in pushing for a more commercialized Internet infrastructure. "A transition needs to occur, going from purely academic and public sector funded to something that is now a mix in between," Sclavos said in our interview. "The statistics are saying it's going commercial in a big way. It is the foundation for our economy in the next couple of decades. We are at that incredible pivotal point where we have to make a transition to commercial entities running this and having the ability to create innovative new products and get paid for them."

One of the disasters waiting to happen from Sclavos' actions is that a company that purports to be all about security and trust is aligning with the least secure operating system in existence under the guise of keeping the user happy. Users want convenience above security so that is what we will give them. Amazingly this came in the context of Sclavos warning that the bad guys are out there and going to harm the commercial Internet! Surely you jest, you are thinking.

Bringing things back to the subject at hand, what is sad is that EPC Global fell for VeriSign salesmanship. We point out in detail some of the alternatives that were not pursued and some of the possible consequences of the path chosen. While we refuse to predict with confidence, there is certainly the possibility that the Verisign embrace into which EPC Global wandered could become a major set back to the adoption of RF-ID technology.

How Does One Understand the Market for RF-ID in Supply chains and the Architectural Implications of Solutions Being Offered?

While as readers will see we have talked in great detail with Mission Assurance we tested their view of the world in interviews with Keith Dierkx and Brough Turner. Keith explains their use in transportation management. Dierkx points out some significant findings: He asks is RF-ID about the ability to acquire, secure, distribute and share information more effectively? But even before you make your judgment about architectural approaches to RF-ID you have to ask whether the corporate systems exist to use RF-ID information intelligently. And then management must ask: when I have all this data, how much of it is useful information that will actually allow me to improve my business processes. Brough Turner explains the difficulty of integrating RF-ID into supply chain software with existing ERP and web services based supply chain management systems for many companies built on bar code based technology and functioning well enough so that adding radio tags produces insufficient return on the investment to justify taking the step. Finally in Chapter Seven, after having considered Mission Assurance in great detail in Chapter Six, we interview Terry Retter of PricewaterhouseCoopers. We ask Terry's over all assessment of the field and solicit his comments in particular on what Mission Assurance is proposing to do. Can it be done? What is the market for it? We conclude by feeding back comments on Retter's assessment from Mission Assurance and offer a detailed tour of its architecture.

Why All the Emphasis on Mission Assurance?

In 12 years of publication we have never even come close to going into as much detail on a single company or technology as we do here with Mission Assurance. We have burrowed into them for several reasons. What they are offering is very very different from everyone else. We hate to trot out the tired old cliché of paradigm change but don't know how else to describe it. The majority of the text in this report is not the interviews but rather taken from eleven weeks of discussion in a private mail list of nearly 60 people. More than 30 actually wrote comments to the list. We used this forum to problem Mission Assurance's ideas that we put out for scrutiny to a panel of bright people. When we probed deeper, we got more detail and solid answers not brush offs. We have been probing for 8 weeks and have not run out of substantive answers from them. At the very end we put our conclusions in front of Terry Retter and asked him to judge.

What Wedge Greene and his comrades are proposing is an amazing and very complex distributed service grid based on underlying technologies of Java and Jini. It is a technology that not only passes data between corporations but also enables a highly tailorable form of distributed policy. It is very complex. Therefore the extreme detail we have gone into show what it does and how. It encompasses flows of information, that as far as we can ascertain, no one else is attempting to deal with. A major reason for this is that standard industry observers correctly say that corporations won't play with processes that force them to reveal and make really transparent to everyone their here-to-fore private business processes. This position has been predominant in the face of technology that if fully implemented could have major economic consequences. Mission Assurance is suggesting that its service grid is so highly tailorable that users can control who can see what information. The suggestion is that thus reassured users will adopt the system.

Sensing that there is a huge economic payoff lurking here, if the claims of Mission Assurance hold up, we have honed in on the subject more than ever before. We end this summary with the following assertions. Mission Assurance currently is a mainly a set of well thought out ideas arranged into an elaborate design for which funding is being sought. Currently we have no financial relationship whatsoever with Mission Assurance. They are not even subscribers. If in the future they offered us money in return for a license to use this March-May issue in the marketing education efforts, we would accept. However, we have not been for sale before and are not for sale now. And so far they have not offered anything for licensing rights.

They may fail to get funded. They may fail to build a working system. They may fail to come up with a viable business model. Because they have to be interested in their own success, we have made a point of seeking independent opinions. In addition to subjecting their claims to the scrutiny of our mail list, we have talked individually and at length with several of the people on the list. Can this be done? Are these folk full of hot air?

These people tell us that they think what Mission Assurance is proposing to do, can indeed be done. Therefore we conclude that they are proposing to do, as far as we have been able to ascertain, is feasible. We have concluded that it has been worth while to discuss their concepts at such length, because, no matter what the eventual outcome, it offers a very intriguing glimpse into what Moore's law and advances in radio technology make possible. If Mission Assurance doesn't succeed, it probably won't be too long before someone else does succeed with something similar. Finally these concepts appear to be highly useful in understanding how the use of RF-ID in supply chains could have consequences far beyond the more mundane issues of inventory taking and shipment tracking that mark the more simplistic discussion of the trade and national press.

Keith Dierkx expressed the issues very well: Is this monumental stampede about RF-ID really about RF-ID? Or is it about the ability to acquire, secure, distribute and share information more effectively? But even before you make your judgment about architectural approaches to RF-ID you have to ask whether the corporate systems exist to use RF-ID information intelligently. And then you must ask when you have all this data, how much of it is useful information that will actually allow yourself to improve your business processes? I would suggest that with RF-ID we may get re-leveraging of supply chain software solutions.

Mission Assurance shows one interesting way. We are sure it is not the only way.

Contents and Index:

Introduction - Supply Chain RFID Middleware, Offshoring, Real Time Global Corporation, Explorations in the Globalization of Everything
 
Chapter One - Management & Strategy
  Art Kleiner on Core Groups in Technology Companies and the Internet
8
  Finding New Tarnhelms
8
  Applying the Tarnhelms to Telecom, IT and the Real Time Corporation
10
  What the Core Group Wants
13
  Hernando DeSoto
14
  How Phillips Lost to Sony
16
  The Digital Revolution's Impact on the Core Group
21
  Conversations with Art Kleiner on Who Wins and Who Loses in the Age of the Real Time Corporation
23
  Number of Organizations Doubles Every 25 Years
23
  Looking for an Integrated Learning Base
24
  Engineers Who Understand What the Core Group Does Not
25
  Evidence for Organizational Growth
26
  Lavina Weismann Describes a Model of IT Leadership Based on Core Group Theory
27
   
Chapter Two - Offshoring, and Developments in India and China. An Entire Industry Grows Up Designed to Facilitate Export of Jobs -- Telecom Liberalization in India China and Elsewhere Creates Infrastructure that Enables Foreigners to Become US Telecommuters
   
  Technology Changes Enable Migration of Business Back Offices
30
  Commoditized Processes Lead the Way
31
  Comparing Countries
31
  Strategy for Making Off Shoring Decisions
32
  Understanding the Sources and the Risks
32
  To Do It Yourself or Not?
33
  But Where Does It Stop?
34
  Offshoring an Inevitable Part of a Globalized Economy Driven by Rapid Technology Change -- Ultimate Limits and Economic Impact Uncertain
35
  An Offshoring Operation in Tiblisi
37
  Entertaining Ourselves to Death
39
  China's Economic and Technology Strategy - Leveraging its Economy in a Attempt to Impose its Own Standards
43
  A New Chinese Strategy
43
  Could China Become Global Top Technology Producer by 2008?
44
  The Currency Issue and The Doormat Question
47
  The New Chinese Standards
48
   
Chapter Three - Can Microsoft Be Open Sourced and Off Shored?
   
  We Examine Microsoft's Continuing Woes
51
  Sun's Move into China a Big Factor
51
  The IT Industry Is Shifting away from Microsoft
52
  In Scotland Open Office and on The Internet Windows Source Code
57
     
Chapter Four - Supply Chains: Enterprises Investing at the Edges - Trend Necessitated by Increasing Importance of non Vertically Oriented Supply Chains
     
  Demands of Supplier and Customer Networks Create Shifts in IT Spending
59
  Employment and Demographics
60
  RF-ID as a Huge Data Source
60
  Further Comments on Wal*mart - Could it Lease its Stores Too?
61
  In Industry overview: We Find Three "Rivers" of the Industry Rushing Toward a Hoped for Confluence
65
  Auto-ID
65
  VeriSign and EPC Global
66
  The Three Rivers
67
  What Can and Can't the Tags Do? Why was DNS Chosen? How did VeriSign Win EPC Global?
68
  EPC Global and Verisign
69
  Why Use a DNS Registry? Single point of Failure and Critical Infrastructure Risk
72
  How VeriSign Won EPC Global
  Keith Dierkx on RF-ID issues in Transportation Management --Knowing Where Assets Are and Keeping Them in Motion Lead to Early Understanding of Supply Chain Systems Interoperability Issues
78
  Two Different Paths Toward Standards
78
  Asset Identification in a Closed Loop System
79
  Supply Chain Flexibility
80
  Scalability of Solutions in Search of Better Information about Use of Resources
81
  Need for Prompt Acquisition of Information into an Integrated Network
81
  RF-ID as a Tool that Must be Integrated into Other Processes
82
  Why Implement? Understanding Systemic Complexity
83
  Using the EPC Global Framework as a Crutch to Side Step Issues of Integration
83
  Complexity of Integration Will Slow Down Adoption
85
  Vertical Solutions?
85
  Economics and Technology of Supply Chain Management in a $100 Million a Year Telecom Hardware Company -- RF-ID Seen as Unnecessary
87
  Integration of Information Systems Capability via XML Using Internet Overlays
88
  RF-ID is But a Single Part of the Business Process Whole
88
  Economics of Telecom Supply Chains
89
  Who Needs RF-ID?
90
  RosettaNet, RF-ID and Serial Numbers
91
   
Chapter Five - Data Shared Across Corporate Boundaries Raises Issues of Trust -- How to Think Rigorously about What to Expect from Computer Based Information Systems
     
  Trust in Computer Networks, Supply Chains and Voting
92
  Can Trust Be Algorithmically Defined?
93
  Trust Is Used Without Understanding
95
  Tag Data Must be Homogeneous Across Environments, While Enterprise Data Cannot Be
96
  Policy Model for Trust Enforced via Service Utilities
98
  Trust -- qualified reliance on information, based on factors independent of that information
99
  Trust Requires Corroboration by Independent Channels
102
  But Where's the Edge? Delineating Any Agreement Proves Very Difficult Problem Because New Supply Chain Business Models Blur Edges
104
  Defining the Edge
104
  Is the Edge a Boundary of a System?
105
  Has the Edge versus Core Distinction Outlived its Usefulness?
106
  Edge as an Indefinable Term?
107
  The Edge as a Boundary Point for Regulation?
108
  An Introduction to the Technology & Economics of RF-ID Middleware in Supply Chains - as covered in the remainder of this report
110
     
Chapter Six - RF-ID Middleware - Some architectural and economic issues An Introduction to the architectural concepts, software supply Chain Virtualization and Organizational and infrastructural players
     
  Part One -- The Architectural Enablers
113
  Space-Based Computing and Service Oriented Architecture
113
  Microservices and Software System Flexibility
114
  Service Grids
115
  A Middleware Software System for RF-ID
117
  Part Two: Adopting RF-ID Technology
117
  Technical Issues, Standards and Adoption Moving in Parallel
117
  Relationship of EPC to UCC - Moving from EDI to Something Better
118
  Moving Data Across Corporate Boundaries: EDI-INT to Web Services
119
  Rosetta Net and Others Experiment with Intra Corporate Communication
119
  Where is EPC Global Going?
121
  Will Things Go Forward Even Though Trust Issues Exist?
121
  RF-ID Objectives
121
  Creation of a Software Based Virtualization of a Physical Item and Trust
122
  The EPC Product Registry
124
  Perishable Product History Supply Chain Scenario
125
  RF-ID Middleware Architectural Issues. A Service Grid Architecture Enables Product Information to Travel with Tagged Goods Throughout a Supply Chain
127
  The Architecture of RF-ID Middleware
127
  Delineating Market Boundaries
127
  The Intelligent Network
129
  Greene on Middleware Enabling Technologies
130
  Scaling of Services and Ambiguity of Language
130
  Auto-ID Proposed Standards
131
  Conclusion: Ellipsis Value Add
134
  Two Different RF-ID Business Models: Faster Inventory Management versus Tailorable Supply Chain Tracking With Edge Based "Action"
136
  Enabling Edge Based Decision Making
136
  The RF-ID Agent in Vertical Space
137
  Business Process Changes Are Coming - But How Fast Is the Question
137
  Management May Ignore Engineering's Answers
138
   
Chapter Seven - Whither the Future? Rapid Emergence of Single RF-ID Solution for Supply Chains Unlikely -- Systems integration Joined by Issues of Psychology and Customer Education -- Will Technology Push Outrun User Pull?
     
  Interview with Terry Retter
139
  When Do You Tag a Product?
139
  Where to Store the Data?
140
  Issues of Message Exchange between Supplier and Customer
141
  Future Direction Will Involve New Architectures
142
  Parallel Architectures Enable Shortening of Cycles
142
  Even Cash Cycle Motivation Was Unable to Create Consistent Taxonomy in the Auto Industry
143
  Technology Clashes with Behavioral Psychology
144
  Product Push or User Pull?
145
  Implementing Policy to Solve Issues of Trust - How an RF-ID Mobile Agent System Could Use a Service Grid to Create a Policy Overlay that Would Create "Rules of the Road" for its Mobile Agents
148
  Information Flow
149
  Some Further Detailed Illustrations and Explanations of Service Grid Mobile RF-ID Architecture
150
  Interview, Discussion and Article Highlights
157
     
Executive Summary
  Executive Summary, Part 1
189
  Executive Summary, Part 2 Editorial
194