RFID in the Context of Customer Services - Research Paper Example

RFID in the Context Services by here) A Paper Submitted to Dr. Fred Westfall in Partial Fulfillment of the Requirements for (IS 3300) Term X Troy University – eCampus (Date of submission), 2011 Table of Contents Abstract…………………………………………………………………………..………………..3 Introduction………………………………………………………………………………………..4 The relevance of RFID technology in the business world………………………………………..5 Drawbacks of RFID technology………………………………………………..…………………6 Creating a realistic plan for business implementation of RFID……………………………….….8 Conclusion……………………….………………………………………………………………..9 Works cited………………...…………………………………………………………………….10 Abstract The paper deals with RFID as a company’s means to track its products. As a result, it is the best means to improve the customer’s services and the company’s performance, where some vulnerability occurs. Such benefits as the company efficient interaction with consulting firms, consumers, retailers and other parties involved in the business process is facilitated by implementation of RFID. We will focus on benefits of RFID with regards to consumers through the reduction of customer’s costs and saving money from supply chain of the stores. It is further claimed that RFID is positioned in the modern business world as a tool facilitating business performance, cost reducing policy and an appropriate client-centered approach. Introduction In the modern business world, there is a need for companies and firms to increase quality of services they provide their customers or quality of goods and products they produce or manufacture. It is very hard for any company or a firm to regain popularity among their lost customers or improve their position in the market. To make a profit very often means to provide customers with better services. At the same time, a chosen marketing strategy of customers’ services improvement should be developed in compliance with the needs of the company; their assets, potential, set goals and many other internal and external factors. Moreover, with regards to a wide-spread nature of technological innovations, companies implement innovative technologies in customer services. In accordance with research conducted by…: “Technology does more than enable creation of new or improved services. It may also improve consistent service standards of the company, and, what is more important is to involve the customers in operations through self-service technology” (Angeles 2005, p. 51). Therefore, the modern business world needs innovations. To keep pace with the globalized world every firm or company should meet new requirements and follow the developments of technologies. In order to appropriately introduce valuable innovative assets, it is relevant to assess their advantages and disadvantages. An individual-centered approach is high on the agenda in the modern business world. A customer is of crucial importance. The more customers the company has, the greater success comes. The relevance of RFID technology in the business world Taking into account the abovementioned issues of the modern business world, an innovative vision in the field of customer services can be illustrated by a high popularity of Radio Frequency Identification services. It is necessary to answer to the question: “whether RFID technology is the best customers’ services implemented by the company to increase its sales?”In order to answer to this question, it is relevant to consider modern researches and studies on RFID technology, its advantages and disadvantages, its importance for the company and the customers. RFID is a company’s means to track its products. Moreover, the company efficiently interacts with consulting firms, consumers, retailers and other parties involved in the business process. We will focus on benefits of RFID with regards to consumers, the company would benefit from reduction of customer’s costs and saving money from supply chain of the stores. Consumers should be the ultimate winner with RFID being implemented throughout a companys supply chain. Consequently, the retailers will save money throughout their supply chain, thus decreasing costs for the consumers. Moreover, more informative services provided to customers by the companies with RFID are also guaranteed. For example, availability of out-of-stock items would occur for the customers. The technology’s benefits for the customers are the following: contactless payment (using Visa or Master Card, Mobil and Exxon providing “Speedpass” for the customers etc) (Business Benefits from Radio Frequency Identification, 2007). Basically, RFID reduces human labor, decreases a number of human errors, and reduces theft in stores and warehouses. As far as we can see, there are many advantages of RFID technology. Unfortunately, very often this technology is considered in relation to company’s benefits and very rare in relation to customer’s services. We would claim that it is of crucial importance to focus on individual’s concerns, because this kind of approach is of high relevance in the modern business world. Both, the customers and employees are valuable assets of any company. Nevertheless, in our research it is more appropriate to consider benefits of RFID in relation to customers’ services. A level of customer’s satisfaction is a potential guarantee of the company’s success and the growth of the company’s sales. Still, there are also disadvantages of RFID technology for customers. Drawbacks of RFID technology The issues of privacy are often intimidated by RFID technologies and for the companies it can be one of the major drawbacks. For example, the company does not know exactly the names of the customers; they can only follow their buying habits. Moreover, there are organizations protecting privacy issues of the customers, which may be intimidated by the policies of supermarkets. The Consumers against Supermarket Privacy Invasion (CASPIAN) has antagonistic moods against supermarkets using RFID to analyze buying habits of customers and their buying behavior. A public in the USA showed that 78% of them did not want to be tracked by companies on their privacy issues and buying habits (Business Benefits from Radio Frequency Identification, 2007). Therefore, in order RFID could reach appraisal in America, it is relevant for the technology to track consumer behavior and at the same time not to violate issues of privacy. There are also many drawbacks for customers, which may occur in the result of RFID technology implementation: a secret distribution of tags; the identifiers for objects, which are unique worldwide; a large volume of data aggregation; the secret readers; an individual tracking and profiling (Business Benefits from Radio Frequency Identification, 2007). The first strategy employed by the companies is to place tags in a hidden manner in order to get information from the consumers easily. It would be more convenient for a consumer to buy an item of clothes or any other unit or goods without knowing an embedded RFID tag. Moreover, the companies using RFID technology can collect a huge amount of data about their customers, such as: “a product likes or dislikes, buying power or even prescription history. RFID makes it easy to amass this data and to designate correlations. If a corporation owns many stores they can combine data between companies and create new data on buying habits” (Angeles, 2005). As far as we can see, these drawbacks manly concern the consumers and not the companies, which benefit from this technology as a rule. The way out from this challenging situation is suggested by Gillette and Accenture. They embed their tags, but located these products in special locations, where consumers do not know about that fact. Moreover, existent technological imperfections of RFID technologies, high costs and many other external factors are unfavorable for RFID world wide spread. Therefore: “In order for RFID to be successful, companies must work with privacy advocate groups to develop a fair way to implement RFID without alienating their customers” (Asif & Mandviwalla). In case the company wants to increase its sales using RFID technology, there is a need to reduce drawbacks of the technology experienced by the customers. Creating a realistic plan for business implementation of RFID First and foremost issue to be considered by the company is to reduce costs. RFID program may be appropriate for this goal: RFID is helping to develop an innovative approach and gain tangible benefits, such as reduced out-of-stocks; improved order filled rates, inventory turns improvement, customer support enhancement (Business Benefits from Radio Frequency Identification, 2007). All these measures could help the companies to increase their sales. Moreover, with regards to the expanding global market, there are a lot of counterfeits manufacturers and in order to survive under these challenging conditions every company is focused on development of counterfeit products. Moreover, RFID technology implementation has indicated a possibility of theft and diversion identification. Therefore, in order to show benefits of RFID technology implementation, it is relevant to consider the most relevant strategic mechanism of RFID implementation. In accordance with modern case studies of well-known companies (Motorola, Gillette): “Currently, there is an emphasis on using RFID for applications that can track items from the manufacturing point all the way through to the store shelf. This process entails tagging pallets, cartons, reusable containers and individual items to track the movement of goods throughout the supply chain straight through to the sale of the item to the customer” (Bednarz, 2002). Thus, the policies of these companies are focused on finding the most appropriate ways to satisfy the customers’ needs. From the perspective of the company, it is relevant to introduce a cost-effective strategy, which is convenient for the customers and which is the most appropriate one for the business. RFID technology is appropriate both for the company and is beneficial for the customers. In spite of the fact, that there are numerous advantages and disadvantages of this technology, which have been discussed in previous sections, it is relevant to focus on key points of the technology (Business Benefits from Radio Frequency Identification, 2007). The company should first identify whether it wants to increase its number of sales or to satisfy the needs of the customers. On the basis of the company’s collected data about potential customers, to upgrade platforms for RFID technology, to manage large volumes of data, to use assistant applications directed on RFID implementation improvement etc. Motorola develops RFID technologies for the companies around the world. In accordance with one of the world’s largest developers of RFID technology Motorola: “manufacturing, transportation and logistics, wholesale distribution and healthcare can benefit from RFID solutions” (Asif & Mandviwalla, 2005). Therefore, for the modern companies it is possible to find an opportunity and to implement RFID technology not only in the name of the company’s sales increase, but also in the name of customers’ services advancement. Conclusion Therefore, RFID technology is a possible way to improve customer services. This method can be really beneficial in this improvement and it is proved to be the best means to advance the customer’s services and the organization’s performance. RFID technology can help eliminate serious problems the company may face on the way to customer services improvement. Moreover, the method is beneficial both for customers and organizations that is very important feature. There is a need to balance ratio of the company’s profits gaining goals and improvement of customers’ services. The sales improvement and further increase of the company’s sales is possible in case data collection obtained from RFID technology is properly analyzed and transferred across different levels of the company. RFID technology is implemented as the strategy directed on improvement of the goods and production improvement. On the basis of modern case studies of large corporations and firms, researches and studies of RFID, this strategy is positioned as an effective measure taken in favor of both customers and companies. Works cited Angeles, R. “RFID technologies: Supply-chain applications and implementation issues,” Information Systems Management, 22 (1), 2005: pp. 51–65. Asif & Mandviwalla. (2005). “Integrating the supply chain with RFID: a technical and business analysis.” Available from: http://ibit.temple.edu/programs/RFID/RFIDSupplyChain.pdf Bednarz, A. “Wireless technology reshapes retailers,” Network World (19) 32, August, 2002, p. 34+. Business Benefits from Radio Frequency Identification (RFID), 2007. Available from: http://www.motorola.com/web/Business/Products/RFID/RFID%20Reader%20Antennas/AN200/_Documents/Static%20Files/RFID_BBRFID_TB_0907_New.pdf Read More