SECTION 2: RFID TECHNOLOGY
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2. RFID Technology
This section provides an introduction to RFID technology. It begins with a discussion of the benefits of
RFID relative to other automatic identification and data capture (AIDC) technologies. It then reviews the
basic components of RFID systems and provides background information needed to understand later
material in the document. Readers who already have a strong understanding of RFID technology and
applications can skip this section and the discussion in Section 3 about RFID applications.
2.1 Automatic Identification and Data Capture (AIDC) Technology
Identification processes that rely on AIDC technologies
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are significantly more reliable and less
expensive than those that are not automated. The most common AIDC technology is bar code
technology, which uses optical scanners to read labels.
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Most people have direct experience with bar
codes because they have seen cashiers scan items at supermarkets and retail stores. Bar codes are an
enormous improvement over ordinary text labels because personnel are no longer required to read
numbers or letters on each label or manually enter data into an IT system; they just have to scan the label.
The innovation of bar codes greatly improved the speed and accuracy of the identification process and
facilitated better management of inventory and pricing when coupled with information systems.
RFID represents a technological advancement in AIDC because it offers advantages that are not available
in other AIDC systems such as bar codes. RFID offers these advantages because it relies on radio
frequencies to transmit information rather than light, which is required for optical AIDC technologies.
The use of radio frequencies means that RFID communication can occur:
Without optical line of sight, because radio waves can penetrate many materials,
At greater speeds, because many tags can be read quickly, whereas optical technology often requires
time to manually reposition objects to make their bar codes visible, and
Over greater distances, because many radio technologies can transmit and receive signals more
effectively than optical technology under most operating conditions.
The ability of RFID technology to communicate without optical line of sight and over greater distances
than other AIDC technology further reduces the need for human involvement in the identification process.
For example, several retail firms have pilot RFID programs to determine the contents of a shopping cart
without removing each item and placing it near a scanner, as is typical at most stores today. In this case,
the ability to scan a cart without removing its contents could speed up the checkout process, thereby
decreasing transaction costs for the retailers. This application of RFID also has the potential to
significantly decrease checkout time for consumers.
RFID products often support other features that bar codes and other AIDC technologies do not have, such
as rewritable memory, security features, and environmental sensors that enable the RFID technology to
record a history of events. The types of events that can be recorded include temperature changes, sudden
shocks, or high humidity. Today, people typically perceive the label identifying a particular object of
interest as static, but RFID technology can make this label dynamic or even “smart” by enabling the label
to acquire data about the object even when people are not present to handle it.
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AIDC technologies are also known as Automatic Identification Systems and Automatic Identification Technologies. The
terms “automated” and “automatic” are often used interchangeably.
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Other AIDCs include smart cards, optical memory cards, contact memory buttons, and satellite tracking systems.