Posted on 03/11/2005 8:32:33 PM PST by Pro-Bush
SAP, Intel Join Forces on RFID
Fri Mar 11, 5:07 PM ET
Jay Wrolstad, www.bpm-today.com
Business software specialist SAP (NYSE: SAP - news) hopes to take RFID technology to the next level through a partnership with chip giant Intel. The partnership combines the expertise of each company to streamline the deployments of emerging wireless tracking systems.
The collaboration will help companies integrate RFID data directly into backend systems through Intel-based servers, desktop machines, notebooks and RFID readers. Intel also will supply technology enabling RFID device management via the SAP NetWeaver platform.
Middleware Plus Hardware
SAP has a strong selection of supply-chain offerings and a product strategy in the RFID middleware arena, but the ERP software giant has yet to define a business intelligence RFID strategy clearly. SAP, for the most part, remains focused on operational processes.
In the retail field -- the sector taking up RFID most quickly -- even those companies putting RFID mandates in place, and their suppliers, are still very much in the exploration phase, Yankee Group's Michael Dominy told BPM Today.
"SAP brings to the table a huge customer base in the consumer goods industry, as well as auto ID middleware to manage the flow of RFID data from the devices to the ERP applications," Dominy said.
At the same time, he added, Intel provides its expertise in mobile infrastructure and device management. "They have the chips needed for mobile devices to access wireless LANs, which are critical components of RFID systems," said Dominy.
Intelligent Tracking Systems
RFID currently represents a small part of SAP's business, but down the road it could push the company's business customers to use the NetWeaver architecture for network integration, the analyst said.
The approach by SAP and Intel lets businesses instruct the RFID reader from the business application, such as warehouse management. The idea is to provide more intelligence as part of the reader hardware.
RFID technology is gaining momentum, enabling businesses to track assets and view supply-chain information from data transmitted via radio waves from antennas on chips affixed to pallets and cartons of packaged food, pharmaceuticals or equipment. As tagged goods leaving factories or distribution centers are identified by RFID readers, data is collected wirelessly and shared with computer systems.
Retail giants like Wal-Mart (NYSE: WMT - news) and Target are moving RFID into the supply chain, while other deployments are being conducted by the transportation industry and the Department of Defense (news - web sites) for tracking large assets.
Recent mandates from the Department of Defense and the implementation of the Transportation Recall Enhancement, Accountability and Documentation (TREAD) Act have spurred growth in the adoption of RFID systems outside of the retail industry as well.
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