Investment in the successor to bar codes, radio frequency ID (RFID) will pay off for those manufacturers and retailers who remain patient, according to IDC.
In an annual report on manufacturing predictions, IDC notes that most companies continue to resist moving beyond RFID pilots for the lack of business justification.
The tech research and analysis firm said that RFID tag prices have fallen and new technology generations have improved effectiveness.
“There is little doubt that in 2007, and beyond, companies will find the need to improve their ability to capture data in a more timely, accurate, and complete way,” explained Bob Parker, vice-president of Manufacturing Insights at IDC.
“This requirement will dictate the development of a data acquisition platform that will incorporate many technologies, from bar codes to sensors to RFID tags.”
According to the report, the long-term nature of these investments will not bode well for smaller technology providers dedicated to a single RFID technology.
“We expect these small technology providers to position themselves for acquisition, which will be the only alternative to failure,” Parker added.
By John Kennedy