Insights from Early Adopter...
Transcript of Insights from Early Adopter...
Insights from Early Adopter Experiences
Jeff RichardsVice [email protected]
About VeriSign
Payments107K Merchants$9B Transactions/qtr30% N. American
E-commerce
DNS40M Names14B Queries per day
751M Internet users
Digital Certificates400K Websites150K Businesses
5M Individuals and Devices90% Secure
Communications
Managed Security Services
3500 Devices130M Events per day
5 SOCs on 4 Continents
Why VeriSign in the Supply Chain
Internet Mobile/Wireless Telecom/VoIP Supply Chain
HLR
MSC
1X Packet
GGSN
SGSN
DataNetwork
Access Device
+ >$400M invested in infrastructure
+ 15 data centers worldwide
+ 20B+ transactions per day
+ Secure, scalable infrastructure
Our Efforts in RFID
+ EPCglobal / ONS▪ Build / manage scalable infrastructure
+ End User Focus▪ 15% of WMT’s supplier base▪ 4 of the top 20 U.S. retailers▪ Item level initiatives in Electronics, Pharmaceutical, Retail and Apparel
industries
+ Supporting / Sponsoring Global Pilots▪ Industry pilots in U.S., China, Japan, Korea, Australia
Basic Themes (Early Adopter Insights)
+ Don’t recreate the wheel
+ Understand the core components▪ Strategy▪ Economics▪ Business Process▪ Architecture
+ Projects rapidly increase in scope and strategic importance
+ Rapid evolution in technology capability, functionality
+ The technology works!
The “Trail Map”
Receive STO Transaction in SAP
Are All Pallets Unloaded?No
Yes
Move to General Pick/Pack Area
Controlled Drugs?
No
Yes
Move Pallet Out of Shipping Dock Crossdock?
Move to Pick/Pack Area
Move to Storage Controlled Drugs? Move to Inventory
Move to Vault
Move to Controlled Pick/Pack Area
Yes
Yes
No
No$0
$1,000
$2,000
$3,000
$4,000
$5,000
$6,000
$7,000
$8,000
Tota
l Cos
t (0
00s)
Slap-n-Ship In-Line
329K csPilot
829Kcs
Add ATL2 DCs
3.1M cs
Add Calif.6 DCs
All Wal-Mart6.2M cs
Tag In-Line at 3 Locations
Add York3 DCs
4.3M cs
Add Rochelle4 DCs
5.6M cs
1.3Mcs
2.0Mcs
Dallas DC
Add Slap-n-Ship at York,
PA DC
Add Slap-n-Ship at
Rochelle DC
Add Slap-n-Ship at
Fontana and Stockton DCs
Add Slap-n-Ship at Atlanta
DC
$0
$1,000
$2,000
$3,000
$4,000
$5,000
$6,000
$7,000
$8,000
Tota
l Cos
t (0
00s)
Slap-n-Ship In-Line
329K csPilot
829Kcs
Add ATL2 DCs
3.1M cs
Add Calif.6 DCs
All Wal-Mart6.2M cs
Tag In-Line at 3 Locations
Add York3 DCs
4.3M cs
Add Rochelle4 DCs
5.6M cs
1.3Mcs
2.0Mcs
Dallas DC
Add Slap-n-Ship at York,
PA DC
Add Slap-n-Ship at
Rochelle DC
Add Slap-n-Ship at
Fontana and Stockton DCs
Add Slap-n-Ship at Atlanta
DC
Strategy
Process
East Hanover
IT Center
Pick/Pack AreaSAP
ServerOracle
Database
EH Shipping Area
Printer`
SAP Client
`
SAP Client
AccessPoint
EH Receiving Area
Printer`
SAP Client
`
SAP Client
AccessPoint
Barcode
Printer`
SAP Client
`
SAP Client
`
SAP ClientRFID
PrintersBarcodePrinters
AccessPointBarcodeBarcode
SwitchSwitch
Switch
Switch
Switch
Architecture
Technology
Retailer Business Case Example
+ “Business Case” and key cost/benefit models, implementation plans, etc. defined
+ Other drivers:▪ Competition
▪ Leadership
+ Set up monitoring process to evaluate “Confidence Factors” in 8 key areas
+ Provides confidence, framework for evaluation and decisions among senior management
-30%
0%
50%
100%
June, 2004 Confidence Level Recommendation
ROI Assessment
Front-EndModels
TagAvailability
TagApplication
PrivacyHealth, Labor &
Regulatory
30%25%
OperationalFeasibility
ISFeasibility
20%
15%
50% 45%
35%
TechnologyFeasibility
60%
-30%
0%
50%
100%
October, 2004 Confidence Level Recommendation - Projected
ROI Assessment
Front-EndModels
TagAvailability
TagApplication
PrivacyHealth, Labor &
Regulatory
30%
60%
OperationalFeasibility
ISFeasibility
20%
60% 60%
45%
35%
TechnologyFeasibility
60%
Evolutionary, Not Revolutionary
Enterprise
Data Aggregation
Cap
ture
Stor
eSh
are
EPC Data
Sharing
Information
Warehouse
SRM
App
licat
ions SCM
CRM
ERP
Enterprise
EPC Data
Store
Analytics
TradingPartners
ServiceProviders
Supply Chain Node Supply Chain Node Supply Chain Node
Network
EPC Middleware
Data Store
Reader
EPC Middleware
Reader
EPC Middleware
Reader
Data Store Data Store
EPC Enterprise Network Architecture 2005
ERP WMS TMS
EAI
Syst
ems
Envi
ronm
ent
Handheld Reader
RFIDPrinter
RFIDReader Photo-EyeBar Code
Reader
Device Control
DataSynch
EPC #Gen
Filtering & Collection
Edge LevelApps Event Handling
Rules
Configuration Management
Edge Applications & Middleware
Hardware Layer
Conveyor
Middleware
Enterprise Applications
Net
wor
k In
fras
truc
ture Discovery
Storage
Secure Access EPC Trust Services
EPC Information Services
Object Naming Service
EPC Discovery Services
The Technology Works!
+ Item-level applications are further along than widely advertised▪ Retail▪ Consumer Goods▪ Electronics▪ Aerospace▪ Pharmaceutical
+ Stringent testing and collaboration among customers, vendors has led to significant improvements
+ (Yes, we’re getting 100% reads)
Basic Lessons Learned
+ Micro-focused projects quickly evolve to incorporate macro thinking▪ Increases complexity▪ Requirement for long term planning
+ Don’t need to recreate the wheel▪ Leading integrators have dealt with the challenges, evaluated the
technologies
+ Understand the economics▪ Run the numbers, understand the logic▪ Evaluate in context of product lines, processes
+ It’s not just about technology▪ Strategy ▪ Process▪ Financial analysis
Hurdles to Overcome
+ Cost
+ Knowledge, expertise
+ Industry standards▪ International standards
+ Technical functionality▪ In-line capability
▪ Five nines performance
+ Privacy, health concerns
What You Can Do
+ As a potential end user▪ Educate▪ Analyze▪ Discuss▪ Trial
+ As a potential vendor▪ Get involved with EPCglobal / standards efforts▪ Seek to collaborate with others▪ Understand the markets you are focused on
+ As a collective organization▪ Foster collaboration▪ Break down vendor/end user barriers