Crossing the Chasm Gerhard Schedler President CEO IDENTEC

Crossing the Chasm Gerhard Schedler President & CEO IDENTEC SOLUTIONS Crossing the Chasm: Exploring the adoption of (active) RFID in different industries

Crossing the Chasm The Chasm Crisis. AIDC Strategic RFID Workshop 2009 / © IDENTEC SOLUTIONS AG 2 Chasm Crisis (Moore, 1999) Organized by Visibility Delivered.

Crossing the Chasm The Problem. “The chasm is crossed when a technology becomes “mainstream. ” A technology is “mainstream” when it is “everywhere”. Visibility Delivered. AIDC Strategic RFID Workshop 2009 / © IDENTEC SOLUTIONS AG 3

Crossing the Chasm RFID - The bottom line. SOFTWARE READER TRANSPONDER RFID Systems deliver reliable, real time data that enable successful planning and control in many industries. Visibility Delivered. 4 AIDC Strategic RFID Workshop 2009 / © IDENTEC SOLUTIONS AG Typical OFFERING RFID You can only manage, what you can measure.

Crossing the Chasm The Bowling Alley. AIDC Strategic RFID Workshop 2009 / © IDENTEC SOLUTIONS AG 5 Visibility Delivered.

GOVERNMENT Toll Collection Systems 6 Toll Collection Systems AIDC Strategic RFID Workshop 2009 / © IDENTEC SOLUTIONS AG Initial Situation § RFID-based tag and reader systems provide reliable and accurate wireless automatic vehicle identification Implementation § more than 10 Mio. RFID tags § more than 10. 000 readers operate on toll roads across the world § in use since around 20 years Customer BENEFITS § Increases customer convenience and safety with nonstop payment § Improves traffic flow § Reduces customer commute time § Reduces traffic congestion § Reduces need for new roads § Provides proven reliability and unparalleled accuracy Visibility Delivered.

GOVERNMENT DOD In Transit Visibility Network 7 Tracking and identification of supplier parts AIDC Strategic RFID Workshop 2009 / © IDENTEC SOLUTIONS AG Initial Situation § need for system that provides actionable information to commanders and logisticians across the armed forces § need of integration into DOD supply chain Implementation § more than 6 Mio. active tags § more than 2. 700 read/write sites across the world § in use since 1991 Customer BENEFITS § § § Find the last location of a specific asset Track movement of unit’s equipment Verify arrival of what was sent to the destination Forecast workloads based on inbound shipments Monitor container and air pallet shipments Determine shipment contents Visibility Delivered.

AUTOMOTIVE Work in Progress 8 Tracking Cars during Production and Finishing Process AIDC Strategic RFID Workshop 2009 / © IDENTEC SOLUTIONS AG Initial Situation § Cars get “lost” in the process § Cars are not delivered on time Implementation § Cars are temporarily equipped with tags § 1000’s of readers at the Production Lines, Finishing and Distribution Areas Customer BENEFITS § Online availability of the status of each car § Avoidance of bottlenecks in the process § Increased process throughput § Improved process quality § Elimination of late deliveries § Elimination of delivery errors Visibility Delivered.

TRANSPORTATION Gate Access Solutions 9 Tracking and Tracing of Vehicles/Containers AIDC Strategic RFID Workshop 2009 / © IDENTEC SOLUTIONS AG Initial Situation § Large area with several gates, scale and inspection areas § Labor intensive access control § Lengthy procedures during check-in Implementation § 100. 000’s of Tags mounted at trucks and containers § 1. 000’s of Readers at the entry gates of ports, production plants and industrial parks Customer BENEFITS § Automated Access Control and registration § Automated Routing in FC § Fast processing of Priority Orders § Reduction of delivery errors § Better and faster process visibility § Increased vehicle lead time, increased productivity Visibility Delivered.

Crossing the Chasm. Main (active) RFID Markets. VEHICLE TRACKING MILITARY LOGISTICS AUTOMOTIVE TRANSPORTATION PORTS COOL CHAIN SEMICONDUCTOR HEALTHCARE OIL, MINING CONSTRUCTION SPORTS NEXT? Visibility Delivered. AIDC Strategic RFID Workshop 2009 / © IDENTEC SOLUTIONS AG 10

Crossing the Chasm. RFID Adoption. “The chasm is crossed when a technology becomes mainstream. ” § ABI Research show worldwide sales will reach $5. 3 billion this year and that five high-profile segments of the industry - item-level tagging, contactless payments, asset tracking, RTLS and cargo tracking - will experience growth of at least 25 percent through next year. (ABI Research, 2008) A technology is “mainstream” when it is everywhere. § "RFID opportunities are broad in today's market. Virtually every economic sector and industry where data needs to be collected or objects need to be tracked holds the potential for RFID applications. " (ABI Research, 2008) NEXT MARKET? RFID has already crossed the chasm in a lot of industries – but will never be “everywhere”, as everywhere “gets redefined” every day! Visibility Delivered. AIDC Strategic RFID Workshop 2009 / © IDENTEC SOLUTIONS AG 11

Thank you. Visit us at booth #: 1702! Gerhard Schedler President & CEO IDENTEC SOLUTIONS AG Millennium Park 2 6890 Lustenau / Austria gschedler@identecsolutions. com www. identecsolutions. com AIDC Strategic RFID Workshop 2009 / © IDENTEC SOLUTIONS AG 12