Decision Analysis for Business to Adopt RFID

Decision Analysis for Business to Adopt RFID

Koong Lin (Tainan National University of the Arts, Taiwan), Chad Lin (Edith Cowan University, Australia) and Huei Leu (Industrial Technology Research Institute, Taiwan)
DOI: 10.4018/978-1-60566-960-1.ch076
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Abstract

The need for more and more flexibility (in terms of time and location) in business operations, context-based services, decentralization of business processes, and information processing and innovative services has introduced new ubiquitous environments, sensing technologies, and pervasive devices. This new category of devices, sensors, and ubiquitous environments, has the capabilities to observe the users all the time using sensors; provide timely information to service providers using communication channels; and offer accurate services to users anywhere and anytime through tiny mobile terminals. This chapter provides the users of the pervasive business technologies an overview of the basic infrastructure and protocols used to form these ubiquitous wireless environments and provide context-based comfort, while taking care of confidentiality, secrecy, integrity, and authenticity. Along with an introduction to the markup languages, protocols, and security threats, the chapter concludes with the discussion of a range of common biometric, cryptographic, and routing solutions. The spending for RFID (radio frequency identification) has been increasing rapidly in recent years. According to Gartner, global spending on RFID is likely to reach US$3 billion by 2010 (CNET, 2005). In addition, interests continue to grow for the adoption of this mobile computing and commerce device in many different types of applications (ABI, 2006). In 2005, Wal-Mart asked its top 100 suppliers to use RFID tags, and this had a profound effect on the projected growth of RFID technology as well as potential applications in the industrial, defense, and retails sectors (Albertsons, 2004). However, very few studies have examined and evaluated the adoption of RFID options by the organizations. Organizations face various risks and uncertainties when assessing the adopted mobile technologies. Different organizations are likely to encounter different challenges and problems. This research aims to develop a mechanism that can help organizations to specify their risks and choose a suitable adoption alternative. This research has adopted the AHP (analytic hierarchy process) methodology to analyze the data, as it is useful for analyzing different RFID adoption alternatives and can assist organizations in predicting the possible issues and challenges when adopting RFID. The objectives of this article are to: (1) describe basic components of a mobile computing and commerce device, RFID; and (2) explore the current practices, issues, and applications in this mobile technology.

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