R-SMART RFID Technology Solutions Requirements Analysis Report

1 Introduction

Radio Frequency Identification is defined as an identification system that consists of information being passed through a network that allows for better tracking. 

There are three components to an RFID System: "an RFID tag, which is a small piece of material comprising a chip with some degree of memory to store data, and a radio wave antenna to transmit it; an RFID reader, a device that communicates with the RFID tag and transforms data transmitted from the tag into digital information that can be stored and used by a computer; and software / databases that analyze and act on the information, and convert tag data into usable business inputs, such as inventory tracking or product identification" ("RFID Technologies and Consumers in The Retail Marketplace," such as how Samsung tracks inventory (2012, para. 5-7). These three components operate within all RFID technology systems across all sectors where the technology is currently being considered or utilized.

The use of Radio Frequency Identification continues to increase. Many different RFID applications are being implemented across a variety of sectors and are used for a myriad of diverse purposes. RFID technology is now at a particular phase where the benefits outweigh any potential barriers. RFID technology allows for an enabling of data collection by readers via electronic tags attached to or assembled within objects. This is solely for identification and other purposes. RFID systems involve database, network and software configurations and components that allow the information to flow successfully from the tags to a specified infrastructure. This infrastructure is application-specific. Some RFID system uses low-cost tags with short read ranges, while others use sophisticated, high-performance tagging capabilities that allow for high data capacity and read ranges. In doing so, there can be considerable amounts of data present on the tags without being connected to the network ("RFID Radio Frequency Identification," 2008). The implications of the amount of data capacity available on an RFID tag are one of the advantages that will ensure R-SMART is a success. 

RFID technology application networks have been in use for a number of years within the transportation industry, in government access control and in event marketing. Industry sectors diverge broadly in RFID operation with many automotive and medical companies relying solely on RFID, while consumer goods and retail swiftly moving towards the shifting paradigm. The benefits of RFID are sector-specific and commonly include method optimization, more proficient supply chain inventory organization and an increase in control parameters. Extensive societal benefits have also been expected from RFID in a multiplicity of areas such as food safety, product recall, drug recognition, public health, and medical applications as well as improvements in the stocking. Technological developments are focusing on increasing real-time information applications within the RFID systems. Combined with other technologies, this is an important factor when assessing the long term ramifications of this type of system. Many of the impending communal challenges have raised by RFID relate to its central feature being invisible electromagnetic communications that make the assortment of information by RFID devices not noticeable to the person carrying the tagged product or item ("RFID Radio Frequency Identification," 2008).  As with any other type of technology, RFID systems are subject to security risks, although minimal.

RFID technologies and applications are highly diverse and ever-evolving. RFID technologies vary ‘in terms of the frequency range, battery and memory capacity, size in addition to other capabilities. Individual RFID applications involve a wide range of operations within industry sectors. Participants in the RFID technology should adopt a comprehensive approach in the way they develop their strategy for the system. All RFID systems require the development of a security management strategy which considers each stage of the system's life (i.e. planning, deployment, operation, processing of data, and end of life) as well as each component of the system (tags, readers, portals, etc.).’ Not all RFID technology requires a strategy, however, it is recommended by many industry sectors that have used such technology that a strategy is in place ("RFID Radio Frequency Identification," 2008).  By having a strategy in place, each step of the RFID lifecycle can be assessed and considered within the applicable industry.

As it currently stands, the higher capability tags remain nominal visibility within the commercial retail arena as a result of cost; however decreasing are becoming part of a wider, sensor-based system. RFID applications have been in use for many years as a means of transport, access, and management of data. Various industry sectors engage in different types of RFID deployment ("RFID Radio Frequency Identification," 2008). Radio Frequency Identification has a plethora of capabilities that can be beneficial to the retail industry. 

RFID tags, a technology once used to track cattle, is a system used to track consumer products worldwide. Many manufacturers use the tags to track the location of each product they create from the time it is manufactured until it pulled off the shelf and tossed into a shopping cart. RFID tags are system-oriented bar codes that speak to a database system to track every product that is put into a consumer's cart. RFID tags are an enhancement over the current bar codes because the tags have read and write capabilities. Data stored on RFID tags can be changed significantly, updated on an immediate basis or locked. Some stores that have started using RFID tags have found that technology offers an enhanced way to track stock. Through RFID tags, stores quickly receive the crucial tidbits of information (Bonsor & Fenlon, 2013). Once the RFID industry is able to lower the price of tags, it will lead to a ubiquitous network of smart packages that track each and every phase of the supply chain. Store shelves will be full of smart-labeled products that can be tracked from purchase to trash can. The shelves themselves will be able to communicate wirelessly with the network. The tags will be just one component of this large product-tracking network ("RFID Adoption in the Retail Industry," 2005). There are currently two types of RFID tags.

RFID tags can either be passive or active. A passive tag is powered by the RFID reader, which activates the tag, while an active tag is powered by its own battery. An active tag is usually larger in size and offers a longer read range ("RFID Technologies and Consumers in The Retail Marketplace," 2012). Costs are assessed by industries and because of the fact that active tags are typically more costly, the majority of industries use passive tags.

2 Purpose of Report

This Requirements Analysis Report combines the requirements collected from the concept paper. This report will include:

o Concept of Operations depicting how the system functions in its environment.  

o List of top-level and derived requirements including the source of each requirement. 

o Verification method to be used for each requirement.

3 Mission Statement

RFID technology can improve the retail industry significantly. The benefits can be realized immediately as a result of the concept. RFID in the retail system is an item-level proposition and the place to start is in the store. With an assortment of benefits to item tagging, the impact of RFID on the retail front has been limited. This is a result of a variety of misperceptions about the costs and capabilities of RFID tags. Yet, evolving retail industry technology is allowing for this to be corrected. The benefits associated with RFID at the item level do not allow for growth at the carton level. The reason for this is because if an item is not tagged, the store has no idea of whether/where it has been moved. The only type of chains where the carton level is of value is within major outlets such as Target and Wal-Mart. Even with the carton level capability, those retail stores need item-level visibility (Kay, 2006). RFID makes sense to many companies and corporations because of its integrated approach. 

RFID allows retailers to obtain real-time inventory information that can support them in preventing stock-outs, shrinkage issues and permit them to use more useful pricing strategies ("RFID Adoption in the Retail Industry," 2005). Retail chains have found that RFID technology will benefit them in both the short and long term.

The use of real-time inventory information to track stock will allow retailers to present exceptional service and sales support. Sales associates will be able to see when and where a stock will be delivered to a certain store, thereby avoiding the persistent request that customers 'checkback' to see if/when an item will be obtainable and has been brought into the store. RFID provides the expertise that virtually eliminates the need for human checking of stock. Industry reductions will be realized in the following areas of retail operations: receiving, stocking, checkout, cycle counting, and physical counting. RFID also aids in the capability of shrink. Shrink is an expression used in the retail industry that describes erroneous supply counts as a consequence of customer theft, employee shoplifting, incorrect inventory counts due to items being omitted or stock reordered due to them being on a display shelf in another area of the store. RFID technology has the know-how to alert personnel when items are being removed unlawfully, or when they have been mislaid ("RFID Adoption in the Retail Industry," 2005). Many retailers have been able to benefit from RFID and thus will benefit tremendously from R-SMART.

Contrasting consumer packaged goods, the apparel, and footwear chain has the potential to take in considerable benefits from RFID tagging. Retailers and suppliers must work in partnership, in the early piloting stages of RFID technology to make certain that smart tags, fundamental equipment, and software are together. The store location offers retailers the capacity to carefully test RFID with the nominal threat or substantial outlay. The most frequently cited development prospect is that retailers can deal with floor-level out-of-stocks through enhanced monitoring of both floor and backroom account ("Moving Forward With Item-Level Radio Frequency Identification in Apparel/Footwear," 2005). With their focal point being on out of stock, retailers are able to authenticate the importance of RFID while achieving a pivotal level of testing and learning. 

As the retail industry is expected to substitute barcode technology completely at some point, the benefits for the future with RFID technology enable noteworthy improvements within the retail sector. It is important to note that RFID tag in-store information is generated based on an event that happens within a store. The tag readers should be positioned in a shelf, which in turn will be accountable for reading the tags of items on the shelf. Items read by the tag at the checkout produce messages for the host system. After processing these messages, the host network will inform other areas within the RFID system. Since retailers have restricted shelf space accessible in most cases, the selection of items to stock and the insufficient allotment are pertinent issues for the retailer. For individual SKUS, the decisions are important determinants in marketing and sales efficiency. Finding the profit-maximizing shelf display (like Home Depot's marketing strategy) while at the same time, meeting the manufacturers’ requirements is far from a straightforward task for RFID to undertake. Within the store, which has been tagged with RFID transponders, which are hand-held readers that tell employees which items are in stock, this is an enormous advantage in addition to the shelf readers positioned on the shelves (Bayraktar, Yilmaz, & Erdem, 2011). It is suggested that before any optimization of shelves takes place, those proper measurements are made of shelf layout to ensure that once RFID technology is executed that it will be an effective investment.

Checking out will be made easier with RFID systems. Today, the staff at the checkouts, scan the barcodes on items to gauge the total amount purchased and deactivate what is known as the electronic article surveillance, or EAS. When RFID technology comes into play within retail stores, during the payment process, data is removed from the RFID system that operates parallel to the merchandise management network (Bayraktar et al., 2011). By establishing R-SMART within the retail stores, the retail industry will benefit significantly as a result of lower costs and better able to understand the products that are being sold for profit opportunities.

In addition to making supply chain run smoother, the initiation of RFID technology will offer a remarkable quantity of marketing opportunities for retailers. Tracking customers' purchases before they depart the store allows retailers access to information that can instantly be used for the cross-selling of other items. In-store evocative selling allows retailers to correspond with shoppers while they are shopping in an effort to encourage them to buy additional or complimentary items. As it stands currently, consumers are not informed much about RFID technology and its abilities ("RFID Adoption in the Retail Industry," 2005). There are a number of consumer protection groups that operate websites that provide a wealth of information on what companies do with technology. 

4 Concept of Operations

Typical users: Customers, Employees

Transactions or events that occur within this system are multiple employees will be operating it in various areas of the retail industry (i.e. marketing departments, sales departments)

4.1 Concept of Operations Diagrams

The purpose of the diagrams is to illustrate:

o The traditional illustration of the RFID technology network.

o Why Companies Should Adopt RFID Technology

o Illustrate a basic depiction of R-SMART

(Figures 1-3  omitted for preview. Available via download).

6 Requirements Analysis Process

The requirements analysis approach for this project followed the Systems Engineering process, building from the user needs to top-level requirements. Information was collected on RFID system with an emphasis on retail and composed into a conceptualization proposal. Each requirement will be verified by Analysis or Test. Analysis indicates that the rationale has been decided based on the RFID technology. The test indicates that the functions of the particular part of the system were tested and compares to the set of conditions along the lines of a typical RFID technology system. Five key performance parameters were indicated and are noted in a separate table: R-SMART Database Server and Analytics Engine, Active Shelving/Racks Antenna, Anti-Theft/Tracking Portals, Checkout Portal and Transaction Center.

(7 Requirements table omitted for preview. Available via download)

References

Bayraktar, A., Yilmaz, E., & Erdem, S. (2011, June 15). Using RFID technology for simplification of retail processes. Retrieved from http://www.intechopen.com/books/designing-and-deploying-rfid-applications/using-rfid-technology-for-simplification-of-retail-processes

Bonsor, K., & Fenlon, W. (2013). How RFID works. Retrieved from HowStuffWorks, Inc website: http://electronics.howstuffworks.com/gadgets/high-tech-gadgets/rfid.htm

Kay, M. (2006). RFID well within reach [Supplemental Guide]. Retrieved from http://www.rfidsherpas.com/images/File/RFID-Well_Within_Reach.pdf

Moving Forward With Item-Level Radio Frequency Identification in Apparel/Footwear [Guide]. (2005). Kurt Salmon Associates. Retrieved from http://www.kurtsalmon.com/US/home/Transforming-businesses-to-measurably-improve-performance?language=en-us

RFID Adoption in the Retail Industry [Research Paper]. (2005, May). USA Strategies, Inc. Retrieved from http://usa-strategies.com/

RFID Diagram. (2013). Basic Commerce and Industries, Inc. Retrieved from http://www.bcisse.com/assets/images/RFID_Diagram.JPG

RFID Radio Frequency Identification [Policy Report]. (2008, June). Organisation for Economic Co-Operation and Development. Retrieved from http://www.oecd.org/sti/interneteconomy/40892347.pdf

RFID Technologies and Consumers in The Retail Marketplace. (2012, December 5). Industry Canada. Retrieved from http://www.ic.gc.ca/eic/site/oca-bc.nsf/eng/ca02287.html