Silent Commerce and Data Management
Silent Commerce implementations and related analytic capabilities will require enterprises to anticipate and accommodate a range of data management issues.
Standards: Companies will need a standard, universal way to identify and describe products regardless of which manufacturer tags them. Leading the development and adoption of several standards which promise to solidify the Silent Commerce landscape are the not-for-profit EPCglobal and its predecessor, the Auto-ID Centre, an academic research project headquartered at the Massachusetts Institute of Technology. Electronic Product Codes (EPC) are expected to supersede the familiar Universal Product Code and give companies a globally standardized, integrated, automatic way to track products in real time along the entire supply chain.
Standards for data interchange are also being established in the form of Physical Markup Language (PML). As an instantiation of XML developed to describe real-world objects, Physical Markup Language is becoming the lingua franca of Silent Commerce data and analytics. Furthermore, the advent of the Object Naming Service (ONS) supports the widespread distribution of Electronic Product identification Codes data by making Physical Markup Language services addressable and easily found over the Internet.
Distribution and ownership: Currently, most RFID pilots exist in a closed system environment. The ultimate goal, however, is to track items through the entire supply chain. Many companies may initially be hesitant or unwilling to share their data with trading partners. Accenture believes that as companies see the revenue gains or cost savings that early adopters are realizing - even from closed systems - they will be more inclined to share information.
The Uniform Code Council, through its UCCnet not-for-profit organization, is facilitating the creation of contractual obligations regarding data sharing amongst trading partners and trading exchanges. A related issue is who "owns" the massive amounts of event information associated with, and added to an object, as it passes through a supply chain? Enterprises must examine the value of data ownership throughout the life cycle of the product and understand the value trade-offs between sharing data versus remaining in a closed system.
Privacy and security: Tied to data ownership is the issue of privacy for consumers and businesses. Understanding technology limitations will help ameliorate many concerns, such as those surrounding RFID tags in clothing. The Auto-ID Centre is organizing a Privacy and Security Special Interest Group to address RFID-related privacy issues, but there will not be one "silver bullet" answer. Companies should start by communicating what they intend to do with the data they collect. Wherever personal or proprietary data is concerned, enterprises need to build trust with the owners of that data, and understand their unique concerns and motivations. With that understanding, organizations can develop and publish guidelines that protect their customers' personal information while differentiating themselves in the marketplace.
Accenture recommends that companies interested in using Silent Commerce to generate new business insights begin pilot applications in a specific area of operation. Pilots help companies identify processes that need improvement, as well as requirements for integrating Silent Commerce technologies with legacy applications and processes. To delineate data needs and ensure a focused approach to solving data management issues, companies should identify what questions they want to answer about specific processes and understand how the answers will help improve their business.
When inexpensive sensors and tags are used throughout the extended enterprise supply chain, businesses will have access to the kind of granular data traditionally associated with customer relationship management. Just as enterprises know the individual details (name, age) and aggregate attributes (segment, life cycle) of their customer base, Silent Commerce enables the tracking of the micro and macro attributes and behaviours of the physical objects which make up a business.
Unlike customer relationship management, however, supply chain analysts, for example, do not yet have the option to purchase third-party demographic information for their products. The data we analyze will be limited to the data we choose to collect. It is for this very reason that Accenture encourages companies to start tagging now, so they can later ask questions that offer actionable insight and an edge on the competition.
Sanjay Mathur is a senior manager and Michael Bechtel a senior consultant with Accenture Technology Labs, Accenture's research and development group. For information about Accenture Technology Labs' research into Silent Commerce and Information Insight, visit www.accenture.com/accenturetechlabs
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