IndustryWeek just reported that China alone is plunking down nearly $2 billion on RFID technology in 2007 — out of a global $5 billion spent on RFID. This is significant in that economy of scale kicks in, where more business equals lower prices as the technology becomes commoditized. The big barrier for widespread RFID usage up until this point has been cost (and reliability, to some degree — another issue that tends to be worked out as business picks up). China’s RFID ambitions may not drive the price of passive chips all the way down to the magic 5-cent barrier, but it’ll certainly help.

Indeed, as a technology in itself, RFID has performed well and has definite business value. Unfortunately, it also comes with a certain stigma, especially when the discussion moves from tagging shipping containers and onto tagging people. You’ve probably heard the benefits of human tagging — hospitals can get immediate medical information from an unconscious patient etc. — but several customer advocates and interest groups have taken offense at the invasion of privacy and potential for abuse.

There is currently a bill underway making California the third state to ban involuntary RFID tagging of humans. The word “involuntary” sounds pretty reassuring, right? However, as digital media law expert Jonathan Handel noted:

The bill only applies to employers and employees. That leaves open a host of other scenarios. One day soon, no doubt, prisoners will be required to be chipped as a condition of parole, probation or house arrest [...] registered sex offenders, [then] illegal aliens, welfare recipients, parents concerned with their kids’ safety…

Granted, it’s quite a leap from China’s Olympic Games preparation to parents implanting their kids with RFID tags, but let’s face it: The rise of RFID in commercial settings will inevitably lead to increased options for usage in non-commercial settings. And the baggage that comes with that side of RFID, inevitably impacts the other side as politics, fear and confusion around a new technology tends to muddle the water for all players involved. Let’s hope the market is wise enough to play it safe, ethically and otherwise, in the years ahead.

Matt Danielsson
Editor

Let SearchSAP.com be your main source for everything RFID. Our RFID Learning Guide provides in-depth analysis of RFID in supply chain management with a focus on SAP. I just finished updating the Learning Guide and will continue to add relevant news and information as they become available.

Here's a sample of some of the new additions to the guide:

• Article: An Introduction to RFID
• Trend Overview: RFID for SAP
• Checklist: How to build a business case for RFID

Check out the RFID Learning Guide and all other SearchSAP.com Learning Guides for your on-the-spot information resource.

And while I have your attention, I would like to take this opportunity to introduce myself.  My name is Juli Austin and I am the new assistant editor for SearchSAP.com. I am excited to be a part of the site and enthusiastic about working with the audience. My goal here is to make SearchSAP.com the number one site for SAP users. I can't do it without you so I am extending my permanent offer for your advice. Please email me anytime with tips, checklists and any other subject matter you want to see on our site. Anything to help the SAP user to do his/her job is what I am all about. Thanks for reading my very first blog post ever!

– Juli Austin

The result is SAP compliance: the complete guide, a type of one-stop-shop for every conceivable area of compliance with subcategories for tips, white papers, expert advice and anything else that pertains to that particular topic. Since it's a new format we're eager to hear what you think of it. Does the guide help you find what you're looking for? Does the layout make sense? What could we do better? Please share your opinion — one random reader who responds gets a free copy of this month's featured book: SAP Security and Authorizations

*** UPDATE: congratulations to Dempsey Villanueva who won the book.

Matt Danielsson
Editor

The first article, An introduction to RFID, by SAP Industry Standards Architect Steve Winkler, is also the final piece of the RFID theme month we've run throughout the month of May here on SearchSAP.com. For a round-up of all recent RFID content, check out Special Report: RFID for SAP.

Next up is an in-depth discussion about xApps between Business Process expert Helen Sunderland and xApp Analytics implementation expert Greg Root. Watch for it on Monday, June 5.

Matt Danielsson
Editor

Download the IT skills and certifications ranking podcast with David Foote here: This week we also discuss the latest SAP news including SAP and Microsoft unveiling its new Duet software and Forrester Research ranking SAP and Oracle on supporting the order hub management cycle.

(4:00) Employers are putting less value on certifications: Are certifications worth it anymore?

(6:05) What certifications have remained market stalwarts?

(8:43) If we do head into a recession or there is a blip in the market, would IT personnel with certifications fare better than personnel going on experience and skills alone?

(9:49) How often do you produce reports? What is your background and methodology?

(14:08) What non-certified technical skills are seeing the most growth, according to your latest research?

(18:00) SAP ABAP developers and other SAP skills are hot, according to Foote.

(18:48) Are Oracle skills growing in value as quickly as SAP skills?

(19:15) Are Web services and service oriented architecture projects driving the need for IT personnel with these skills?

(20:47) Operating systems: Linux skills are in big demand, Foote said.

(21:35) Messaging and project management skills are in demand, Foote said.

(26:25) What are the highest paying certifications identified in your research?

(27:39) Any good news for database administrators?

(30:21) What are the highest paying non-certified skills?

We’ve appeared to enter into a bit of a lull in the RFID space. Gartner analyst Jeff Woods, recently told SearchOracle that both Oracle and SAP appear to take a back seat in the innovation department – at least for now.

"We don't think that SAP and Oracle are particularly good at delivering [RFID] process innovation at this point … What they are good at is commoditizing processes," Woods said.

Perhaps we’ll hear more from SAP at its annual Sapphire conference later this month about its initial research and strategic planning around the technology down the road. For now SAP has split up its RFID and Auto-ID infrastructure initiatives at its Web site. Auto-ID can be found here and RFID can be found wrapped into the supply chain management module here.

SAP’s Claus Heinrich, has been a big believer in RFID and even wrote a book on the subject (“RFID and Beyond”) last year that outlined some of the ways RFID could be used to transform supply chains and improve the global economy. SAP has been pouring money into the technology and has a research lab dedicated to its Auto-ID products.

But if Jeff Woods is right, it’s possible that SAP and Oracle are waiting on the sidelines for more innovation from the smaller niche vendors. Vendors and industry experts are currently developing standards and assuage privacy concerns among the public. Then SAP and Oracle can move in with an acquisition or partnership when the market for the technology matures. Large ERP vendors are primed to focus on how business applications and systems infrastructure can handle the mountains of data that result from heavy RFID and sensor technology usage. By cleaning and analyzing that data, companies will improve visibility in the supply chain and glean real ROI from RFID and sensor based initiatives.

Read about Oracle’s latest RFID announcement and more of analyst Jeff Woods’ comments here.
-Rob Westervelt