The Failure of RFID

Yesterday’s Wall Street Journal has an article that Zara was going to begin using RFID tags in clothing in order to better track inventory and demand. It reminded me how much of a disappointment RFID has been.

10 years ago, RFID was going to be the saviour for the supply chain. RFID warehouses, being able to track products electronically along the entire supply chain…the benefits were endless. The problem was that so were the costs and the integration issues.

RFID is another example of organizations leading with technology and not thinking about why they need the technology or how it can be used effectively. Why did it take retail organizations so long to figure out the the RFID tags were interfering with the security systems in the stores? RFID actually caused theft to increase.

We still see lots of organizations implementing giant ERP systems or other major technologies, only to find out 18 months and millions of dollars later, that the technology is not doing what it was supposed to do.

Why does every organization think it will be different when it embarks on the implementation the same way?


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