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The E-Business Research Center

ATHENS UNIVERSITY OF ECONOMICS & BUSINESSDEPARTMENT OF MANAGEMENT SCIENCE & TECHNOLOGY

Trends and Investment Opportunities for RFID in Europe

European Survey Results

Assist. Prof. Katerina Pramatari, Andriana Dimakopoulou

Scientific Coordinator ELTRUN/SCORE Research GroupAthens University of Economics & Business

k.pramatari@aueb.gr

A developing market ...?

SCM Asset Mgmt.

Security & Control

0

500

1000

1500

2000

2500

2007

2009

2011

2007 2009 2011

Solution spend forecast for RFID and sensorbased applications (Source: Forrester)

2

What do European managers believe?

3

European Survey on RFID

PHASE 1: Greek Survey

• November 2010• 96 Respondents

PHASE 2: European Survey

• Feb-March 2011• 63 Respondents

PHASE 1: Greek Survey PHASE 2: European Survey

159 responses in total

4

Survey in Greece, Nov 2010

5

25%

11%

2%11%

51%

Size of organizationAnnual Turnover (mil. €)

<2 2-5 5-1010-50 >50

Respondents – Greek Survey

• 56% CEO/ Senior management• Various industries• N = 96

Directors20%

Logistics-Supply chain53%

IT18%

Marketing, Sales and Services

7% Other3%

Department Involved

5%

19%

35%

40%

Size of organizationNumber of employees

<10 10-50 51-250 >250

6

European Survey, Feb – Mar 2011

16

4

7

31

76

11

5

41

1

Other, NA=6

7

25%

11%

2%11%

51%

Size of organizationAnnual Turnover (mil. €)

<2 2-5 5-1010-50 >50

Respondents – European Survey

21%

21%

8%

51%

Size of organizationNumber of employees

<10 10-50 51-250 >250

• 54% CEO/ Senior management• Various industries• N = 63

Directors29%

Logistics-Supply chain

22%IT

15%

Marketing, Sales and Services

19%

R&D10% Other

5%

Department Involved

8

Intention to invest in RFID

Do you plan to invest in an RFID project?

Does this RFID project add value to your organisation ?

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

NoNeutralYes

YES

9

When do you plan to invest in RFID?

After many years

In the near future (less

than one year)

0%

5%

10%

15%

20%

25%

30%

35%

40%

Greek StudyEuropean Study

35%: In less than one

year

10

Expected Benefits

Variance of returns

Intanglible Benefits

Quantifiable returns

Returns-Payoffs

3 3.5 4 4.5 5 5.5 6

Informational (N=10)Transactional (N=21)Strategic (N=27)

HighRather low

Type of RFID Project

11

Expand Knowledge and skills

Through the deployment of this RFID project my organisation will expand its knowledge and skills and acquire the ability to utilize them in other do-

mains

NoNeutralYes

12

Current Projects

• Has your company deployed or considered to deploy an RFID project?

In-bound / Out-bound Logistics

0 5 10 15 20 25 30 35 40 45

Under consideration Pilot Rollout

14

• Has your company deployed or considered to deploy an RFID project?

Asset Tracking

0 5 10 15 20 25 30 35 40 45

Under consideration Pilot Rollout

15

0 5 10 15 20 25 30 35 40 45

Under consideration Pilot Rollout

• Has your company deployed or considered to deploy an RFID project?

Traceability

16

Has your company deployed or considered to deploy an RFID project?

In-out logistics

Asset tracking

Traceability

Inventory audit/count

Anti-theft control / Security

Personnel managementOther

05

1015202530354045

Under consideration Pilot Rollout

17

Differences between Regions

Familiarity with RFID technology

Greek Survey European Survey0%

10%

20%

30%

40%

50%

60%

How familiar are you with RFID technology?

Not familiarNeutralFamiliar

18

RFID vs. other Auto-ID Technologies

Greek Study European Study0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

RFID technology is likely to achieve a dominant position over other Auto-ID technologies

NoNeutralYes

19

Burden of organizational learning and technical knowledge

Greek Study European Study-10%

0%

10%

20%

30%

40%

50%

60%

The burden of the required organizational learning and technical knowledge to implement an RFID project is:

LowMediumHigh

20

Cost of RFID Implementation

Greek Study European Study0%

10%

20%

30%

40%

50%

60%

70%The cost of this RFID project for my organization

is:

LowMediumHigh

21

Pressure from competitors and trading partners

My organisation ’s competitors already utilize RFID technology

My organisation has received pressure by its trading partners

My organisation ’s business partners already exploit RFID technology

My business partners are ready to adopt RFID when my organisation is ready to do so

0% 10% 20% 30% 40% 50%

European studyGreek study

22

23

Outlook

Network Effect

Yes =

The value of RFID technology will increase as more companies adopt

it

NoNeutralYes

YES

N=15824

RFID Market Uncertainty

Not Fam

iliar w

ith RFID

Rather

Familia

r

Quite Knowled

geab

le in RFID

0

0.1

0.2

0.3

0.4

0.5

0.6

0.7

The uncertainty regarding RFID market adoption is:

LowNeither low nor highHigh

25

Potential long-term market demand for RFID

26

The potential long-term market demand for RFID technology is:

LowMediumHigh

In summary…

There is a high investment potential in RFID technology

The European market is there

Less developed markets are also positive but move slower and

anticipate lower costsSupply-chain applications (in-out bound logistics, asset tracking, traceability) show the higher

adoptionA high long-term market potential is

anticipated

27

For more information:

k.pramatari@aueb.gr

www.race-networkrfid.orgwww.rfidportal.grwww.eltrun.gr

28