Saturday | 6 September, 2008
CIO
Kimberly-Clark's Secrets to RFID Success
The man in charge of keeping store shelves across the US stocked with Kleenex and Huggies reveals the company’s best practice for making RFID work
Thomas Wailgum 29 October, 2007 13:24:18

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SIDEBAR: Your RFID Battle Plan

Electronic tags still don't top CIO strategy lists. But as a tactical weapon, RFID can be used to fight old problems in new ways

By Galen Gruman

Tracking chemicals through the manufacturing and distribution process is a critical requirement for Dow Chemical, to ensure safety and operational efficiency. In 2004, identification technologies such as RFID tags had gained significant buzz due to initiatives by the US Defence Department and Wal-Mart to mandate their use in supply chain and inventory management applications. So CIO Dave Kepler periodically asked his IT staff whether Dow could take advantage of these technologies. The repeated answer: RFID was not mature enough.

But Kepler wasn't sure the scepticism was warranted. So in late 2005, he asked his staff to think about RFID differently. His request: Define the problems first, then see which technologies might be useful to address them - viewing RFID technology as a possible tactic in the larger product tracking strategy. "He didn't want technology for technology's sake, but he did want tight alignment to the corporate strategy," recalls Dave Asiala, a shared services IT director at Dow, who served as a member of the strategy development committee and assumed leadership of the implementation efforts.

Today, Dow has several pilot projects in place to test RFID and other location-oriented technologies such as GPS, two-way radios and traditional bar codes. Early projects have shown that sometimes - such as when it's paired with a sensor log to transmit environmental readings during shipments - the use of RFID makes sense. But at other times bar codes still prove cheaper and easier.

Dow's not alone: Despite years of discussion and "here's what you could do" stories from vendors, RFID remains in the pilot stage at many firms, especially outside the established retail warehouse and distribution use on pallets and shipping containers. Both the RFID technology and marketplace are fragmented and slow-moving, analysts say, and costs remain high. A Computing Technology Industry Association (CompTIA) study earlier this year showed that while 84 percent of providers expect to offer RFID technology in the next three years, 66 percent say their customers have yet to implement RFID. That doesn't mean you should ignore RFID.

Dow's "keep your eyes open" approach is the right one, says Colin Masson, a research director at AMR Research. By itself, he says, RFID is still not a strategic technology that CIOs should have high on their agendas. But it can be useful in service of those strategies.

Market Place
 

2008 CIO Summit

19th August, 2008 Four Seasons Hotel, Sydney Developed in partnership with CIO Magazine, IDC, INTEP and the CIO Executive Council.

The world of the CIO is extremely complex and diverse. Multiple priorities demand attention and decisions are needed instantly. Individual teams need to be driven towards common goals, and businesses strive to become more mobile, agile and responsive. For CIOs, the challenge never ends.

Every year the CIO Summit identifies what is top of mind for CIOs across Australia and New Zealand, and offers insight for CIO benchmarking and vendor strategic planning alike.

Recent IDC research shows that over 59% of CIO's believe that 'to achieve their business strategies, technology should be used more aggressively than today.'

Join us on August 19th to discover how this is possible with the latest technologies including Virtualisation, Web 2.0, IP Surveillance and Software as a Service (Saas).

Click here for registration.

Click here for more information.

Please email Denyse_Robertson@idg.com.au for further information.

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CIO Webcast Innovation #8 - What are the biggest roadblocks to IT's involvement in innovation at your company?
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Listen to the podcast
Sign up to the CIO Live email
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With help from the CIO Executive Council, we tap into research about successful executives. Read on to learn more about the competencies CIOs need to develop to take the corner office, where CIOs fall short and what CEOs expect from CIOs.

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