Business Technology Management - Essay Example

Radio Frequency Identification Radio frequency identification (RFID) is a communication technology, whichis, wireless and organizations use it for identifying objects and people tagged. Various organizations apply it widely in different areas. Department of Defense with their suppliers used it in supplying chain crate and in pallet tracking application. It helps in accessing control system, for example, the keyless entry and devices for employee identification. Exxon Mobil’s speed pass uses it in point of sale applications.

It is used in automatic toll collections and especially the ones found in entrances of tunnels and bridges. Other RFID applications include animals and vehicles tracking, wrist and ankle band to provide security for the infants. Many RFID applications are yet to be discovered. In the future, RFID will benefit most industries and government agencies (Hunt et.al, 2007)Is the technology (RFID) good or not?RFID is the most efficient technology in which many industries have benefited from. It is cost effective, and Wal-mart and Department of Defense has incorporated it into their supply chains.

The reason why it is used variedly is due to motivation from shipping, receiving and stocking efficiency, which is increasing. RFID decrease cost of labor and storage. It also reduces the product loss that can be offered by pallet level inventory of visibility. RFID is beneficial though a number of issues have hindered its growth. Failure to organize the RIFD into common standard of technology, lack of hard schedule rollout and economy of scale for RIFD tags has hindered the growth in the industryIs it necessary for companies to use RFID?

RFID was perceived very expensive. However, an increase in usage has made it effective in terms of cost. RFID have several advantages, which benefit most companies. It can code every individual RIFD uniquely. Adding data is possible. It also possesses reading possibilities, which are advanced. The companies should use RFID since it can increase distribution and sale productivity. RFID can reduce out of stock, counterfeiting, shrinkage, errors in supply chain. It improves promotional execution and management of inventories.

It helps in tracking and managing capital asset and make receiving of accounts very efficient. RFID increase visibility and information sharing within the company and among members of supply of supply chain. It also increases access to real time information, which facilitates fast growth in the companies (Botha et.al, 2008)What will the situation be like if companies use RFID? There is a need for companies to use the RFID. It yields very many benefits though companies might face some disadvantages.

Continuous use of RFID may lead to extensive deployment of tags, which are electronics. This must force people to have sizable memory resources to store large data in homes, cities and cars. It might lead to deployment of platoon’s supermarkets. This will lead some companies to remain competitive, regain customers and hence growth. On the other hand, some companies might collapse terribly due to high competition. In this case, employees may lose their jobs (Botha et.al, 2008)ConclusionRFID benefits companies in a big way.

Although organizations perceive it to be extremely expensive, an increase in usage has made it effective in terms of cost. There are predictions that, in the next few years, more industries and companies will be using it. This will lead to high competitions in companies in which, others may collapse. The most competitive companies will survive and grow fast.ReferencesBotha, J. A. R., Bothma, C. H., & Geldenhuys, P. (2008). Managing e-commerce in business. Cape Town, South Africa: Juta. Hunt, V. D., Puglia, M.

, & Puglia, A. (2007). A guide to radio frequency identification. New York: J. Wiley.