Article as appeared in Sunday Mail - 13 April 2008
By Marios A Joannou
Manager
Business Advisory Services
RFID has been around for more than sixty (60) years when it was first introduced during WW II by the allied forces who needed to identify "friend or foe" aircraft by sending Radio Frequency "squawks." Now, we use Radio Frequency every day, on toll roads, using speed passes at the gas pumps and access passes in secure areas at work and in countless other ways.
Radio frequency identification (RFID) is a technology that allows automatic identification and data capture by using radio frequencies. The salient features of this technology are that they permit the attachment of a unique identifier and other information – using a micro-chip – to any object, animal or even a person, and to read this information through a wireless device. RFIDs are not just "electronic tags" or "electronic barcodes". When linked to databases and communications networks, such as the Internet, this technology provides a very powerful way of delivering new services and applications, in potentially any environment.
RFIDs are indeed seen as the gateway to a new phase of development of the Information Society, often referred to as the "internet of things" in which the internet does not only link computers and communications terminals, but potentially any of our daily surrounding objects, i.e. be the clothes or consumer goods.
Data Privacy & Security
RFID as an enabling technology is the basis for a large number of applications. Most of these applications do not store or use personal data. Rather, the chips contain number codes used to identify goods or inform about production processes. RFID tags often hold not more information than needed for an appropriate identification.
Extended information is located in other environments (i.e. enterprise systems) and when needed shared between actors with the use of specific technology and equipment.
The RFID tag identity often is only the "key" to the extended information. Cornerstone for data privacy issues arising with the increased use of RFID is with the existing privacy legal framework set out in the general Data Protection Directive (95/46/EC). This ensures the responsible use of personal data.
Strict compliance with this framework should limit possible concern over infringement of individuals’ privacy to the possibilities that RFID potentially allows the abuse of the data connected with the tag. There should be transparency about the use of RFIDs in order to build consumer confidence including appropriate notification of RFID use. The precise measures that are needed to achieve this transparency will depend on the nature of the information that can be collected or inferred from the specific RFID devices and the context of their use.
With the EU regulating the use of RFID tags, users have an option whether to give consent to the use of information acquired through RFID devices that require notice. For instance, consumers should, where possible, have the opportunity to choose whether the use of RFID technology is desired after the point of sale and whether the information can be used for customer loyalty programmes. The latter is already to date regulated clearly by the general Data Protection Directive (95/46/EC), giving the consumer a clear option whether to allow the use of his personal data or not.
With wider use, it becomes essential that the implementation of RFID takes place under a legal framework that affords citizens effective safeguards for fundamental values, health, data protection and privacy.
Moreover, further development of security technologies to support RFID applications will enhance technologies and techniques for RFID privacy improvement and security for upcoming applications, such as anti-counterfeiting measures i.e. for the pharmaceutical sector.
Why RFID Matters
RFID has the potential to benefit civilians in many ways: safety (e.g., food traceability, healthcare, anti-counterfeiting of drugs); convenience (e.g., shorter queues in supermarkets, more accurate and reliable handling of luggage at airports, automated payment); and accessibility and is already used in different sectors with an impact on the lives of Citizens.
In transport, RFID contributes to the overall improvement of efficiency and security, and provide new quality services for mobility of people and goods.
In healthcare, RFID has the potential to increase the quality of care and patient safety, and to improve medication compliance and logistics.
In retail, RFID helps reduce supply shortages, inventory levels, and theft. In many industries, including pharmaceuticals, medical devices, entertainment, consumer electronics, goods, car parts, or retail, where counterfeiting is a significant source of products of unacceptable quality, the use of RFID allows products to be recalled more efficiently to prevent illicit goods from entering the supply chain or spot where these actually entered it.
RFID tagging is expected in the future to improve sorting and recycling of product parts and materials. This may result in a better protection of the environment and an improvement in sustainable development.
Finally, development and widespread RFID deployment could further strengthen the role of information and communication technologies (ICT) in driving innovation and promoting economic growth.
How Can We Help?
We at PricewaterhouseCoopers Ltd, provide leading-edge research and analysis of technology trends and their effects on companies, industries and markets. As a group we have extensive experience in advanced applications of existing technologies and knowledge of potential use of emerging technologies. We provide expertise to our clients and assist them in gaining advantages with the use of technology with the aim to provide and enhance information access and boost business process efficiency.
Our services include strategic information systems planning, package selection, privacy and data security, system integration, business process reengineering and other services to sustain and provide operational resiliency. Our deep understanding of business and industry issues connected to meaningful solutions drives value for our clients.
PricewaterhouseCoopers Cyprus tap the knowledge and experience of their international network helping their clients to solve complicated business problems, improve their performance and manage risk in a hard competitive environment.
Our position is strengthened with more than 800 people and offices throughout Cyprus. Our team effort makes us efficient in preparing our clients for the needs of tomorrow.
Our advice to the market is; act quickly and gain competitive advantages through enhanced market power, traceability and innovation.
