RFID Middleware and Web Services

Frontline Expo Peter Winer Big Chief Partners, Inc September 14, 2004

1

RFID Infrastructure: Two Panels at Frontline Expo Yesterday:

RFID Networks Panelists from GlobeRanger, ConnecTerra, Blue Vector Systems, Oat Systems Today:

RFID Middleware and Web Services

2

About Big Chief Partners • Strategic consulting and technology development company • Focused on RFID infrastructure since early 2001 • Clients include vendors, investors and RFID users • Publishers of quarterly newsletter

3

October: Spotlights on RFID End Users • Proctor and Gamble • Home Depot • ExxonMobil • Marine Terminal Corporation

4

Subscribing to Big Chief Partners Newsletter • Give me your business card today • Email to [email protected] • Register at www.bigchief.com • Read our Weblog at www.bigchief.com/weblog

5

RFID Infrastructure

Readers

Network

Middleware

Applications

RFID Infrastructure

• Raw information collected by Readers • ROI delivered by Applications and Business Processes

6

RFID Infrastructure: The Two Panels

Readers

Yesterday

Today

Network

Middleware

Applications

RFID Infrastructure

7

RFID Networks Panelists Jeff Flammer, Director Manufacturing and Retail Solutions, BEA Systems Andrew Savitz, Director RFID Solutions and Industry Alliances, webMethods Vijay Sarathy, Group Marketing Manager RFID Infrastructure Solutions, Sun Microsystems Dushyant Pandya, Director Strategic Alliances, TIBCO 8

Background • In the past two years, many companies have staked claims in the RFID infrastructure space • These include pure-play startups focusing exclusively on RFID and opportunistic companies moving in from adjacent areas.

9

Pure Play Companies • Focus on distributed networks connecting heterogeneous RFID readers and other collection devices • Collect, correct, filter, aggregate large volumes of information • Deliver upstream to middleware, applications and business processes

10

Opportunistic Companies • Established Middleware and Enterprise Application Integration (EAI) companies viewing RFID as a future engine of growth • Focused on server-based middleware • Enhance, transform and translate • Apply business rules, provide message broker • Portal solutions, development tools

11

Yesterday’s Panelists • Pure play RFID companies focusing on networks • At least one claims to also be in the middleware space • They offer different approaches to providing network infrastructure solutions for RFID

12

Today’s Panelists • Middleware and EAI vendors • Established companies • New focus on RFID applications

13

Frontline Solutions

RFID Middleware and Web Services

Andrew Savitz, Director, RFID Solutions

webMethods at a Glance ƒ The Business Integration Infrastructure company ƒ 1,100+ blue chip customers worldwide ƒ Over 50 new customers per quarter ƒ 9 of the Fortune 20 ƒ 150+ successful projects/qtr ƒ Over $2 Billion of customer value created last year

ƒ Financial Strength ƒ Approximately $200M in annual revenue ƒ Over $160M in the bank

ƒ Market Strength ƒ Nearly 100% market share growth since 1999 ƒ Consistently cited as a market leader by the analyst groups

The RFID Maturity Spectrum: Conceptual View Key Vendors

EPC Standards Stack Object Naming Service (ONS) EPC Info Svc (EPC IS)

Edge Server

Reader

Tag/Sensor

Enterprise Apps

Value Addition

Open-Loop Supply-chain visibility

Closed Loop Inventory Mgmt

Mandates Slap & Ship

Integration Is Key To Success Key Vendors

EPC Standards Stack

Enterprise Apps

Object Naming Service (ONS)

Open-Loop Supply-chain visibility

EPC Info Svc (EPC IS)

Edge Server

Reader

Tag/Sensor

Value Addition

webMethods Enterprise Services Platform

Closed Loop Inventory Mgmt

Mandates Slap & Ship

Cross-Industry Blue Chip Customers

Used By Industry Leaders webMethods Selected for High Profile Defense Initiatives Monday July 19, 8:01 am ET

webMethods Chosen as Middleware Provider for Radio Frequency Identification Pilot at the Department of Defense and for the OSD's Weapon Systems Integration Project

ƒwebMethods was selected as the first middleware technology provider for the initial pilot project on passive radio frequency identification (RFID) at the Department of Defense (DoD). ƒ webMethods' integration capabilities will be leveraged as part of the RFID pilot project that will track assets as they leave the defense distribution center using passive RFID tags.

BEA on RFID Middleware & Web Services Frontline Conference & Expo - September 14, 2004 –

Jeff Flammer Director, Manufacturing & Retail Solutions

BEA Systems, Inc. Corporate Overview ƒ World's 6th largest independent software company

- Example Customers -

ƒ Over 15,000 customers globally, including the majority of the Fortune 500. ƒ 4,000+ employees ƒ Financials: ƒ ƒ ƒ ƒ

$1.1 Billion+ Annual Revenue run-rate 29 consecutive quarters of profitability $1.6 Billion+ in cash assets on Balance Sheet ~$500M in R&D over last 3 years

ƒ BEA’s flagship product, WebLogic PlatformTM, helps companies create competitive advantage by quickly and efficiently automating new processes with enterprise class applications ©2003 BEA Systems, Inc. |

21

Pace of Change in Supply Chain Solutions - Implications for Solutions -

- Pace of Change in Supply Chain Scan Based Trading Self Check Business out PLM Innovation CRM Supply MRP II / Container Chain POS ERP Outsource Shipping MRP ‘70

Bar Code

RDMS‘80

Technology Innovation

Fax

‘90

‘00

E-mail Client Server J2EE B2B / Arch XML Web Services RFID

ƒ Pace of change is picking up dramatically

ƒ Market leaders are capitalizing on these trends (especially if they impact the customer)

ƒ “Single-instance

ERP strategy” likely not be flexible enough

ƒ A new approach is necessary to 22 get out in front

©2003 BEA Systems, Inc. |

(WMS)

Trans Mgmt (TMS)

EPC Network

ERP

Applications

Warehouse Mgmt

OMS

Using PlatformTM to Accelerate the ROI in RFID New Business Processes

BEA Helps You Accelerate the ROI on Your RFID Investments!

We believe:

Reliability Integration Availability Software Scalability Performance are essential ingredients in a longRFID term RFID Middleware Middleware strategy.

Enterprise Integration ƒ BPM ƒ EAI

RFID Specific Middleware

EPC Commissioning

Device Management

Reader Tag & EPC

- Tag -

- EPC F127.C238.DF1B.17CC

©2003 BEA Systems, Inc. |

23

New RFID-Enabled Business Processes - Other New Processes ƒ Retailƒ Predictive Out-of-Stocks ƒ Theft & Obsolescence Alerting ƒ CPGƒ Cold Chain Management ƒ Claims Dispute Automation

Store Manager Portal

Supplier Portal

Service Oriented Architectures (SOA) enabled by

Portal

Application Platform Suites (APS)

Store-Level Promotions Composite Application

ƒ Pharmaceuticalsƒ Pedigree Tracking ƒ Diversion ƒ Transportation ƒ Asset Tracking ƒ Predictive Maintenance

Store Associate Portal

Web Services Server • Application • BPM • Integration • Portal Promotions Planning

RFID

EAI

Pricing ©2003 BEA Systems, Inc. |

BPM

POS 24

GARTNER VALIDATES BEA AS THE PLATFORM LEADER

“By 2007, more than 75 percent of all application software infrastructure licenses will be sold by application platform suite vendors”

Ability to Execute

Application Platform Suite Magic Quadrant

Oracle Novell Sybase Fujitsu PeopleSoft SeeBeyond Sun

BEA IBM SAP

MS

Fujitsu Siemens

Niche Players

Visionaries

Completeness of Vision Source: Gartner Research, May 2003 ©2003 BEA Systems, Inc. |

25

COST SAVINGS ON THE INTEGRATED APS Total Cost Across Application Lifecycle Gartner Validates the Cost Savings of a Unified Platform • 24% lower costs • 22% time to market advantages • Improved utilization of senior developers and architects by up to 50% • 40% savings in post-deployment maintenance and enhancements (US $000s) Source: Application Platform Suite Architectural Cost Analysis, Gartner, October 2003 Note: Graph represents figures in $K ©2003 BEA Systems, Inc. |

26

Standards Based Approach to Service Oriented Architectures (SOA)

J2EE Development

Visual Data Mapping

Web App Designer

Portal Designer Process Designer

JSR168 WSRP Struts JSP BPEL BPEL-J WSDL JSR175 Service Designer

Coordination

Reliable Delivery

Development

Routing

Transformation

Service Lifecycle Service Directory

Security

Configuration

JMX SNMP UDDI WSIF

WSAddressing XQuery WSSecurity WSTransaction WSReliable Mess.

Messaging

Security Policy

Service Consumption

Monitoring

Management

Content, Personalization

•Leading standards-based Platform •Leadership in driving standards Struts, JSP, Taglibs, WSRP, JSR168, XML Portal Framework

Web Applications

Content Management

Personalization

Service Orchestration

BPEL, BPEL-J,XQuery, XMLBeans Process Definitions

Data Mapping

Optimized process execution

Composite Services

Service Enablement JDBC, J2CA, JMS, WSDL, JSR181 Web Services, XML MQ, File, Email

Packaged Apps

DB, EJB, JMS Specialty Apps

Legacy,MF

Server Web Clustering J2EE WS-Reliability Load IIOP, Beehive, Servlet, JMS, UDDI, WS-Security, Workshop J2EE, XML, JTA, JAAS, HTTP, SOAP, WSDL, Transactions Messaging Services Security Foundation & Caching Container Balancing Framework Stack

©2003 BEA Systems, Inc. |

27

Sun RFID Solutions

Vijay Sarathy, Group Marketing Manager, RFID Sun Microsystems, Inc.

Sun RFID Offering ●

Sun's systems approach to RFID includes: – – – – – –

●

Software Hardware Systems Architecture Services and Test Centers Best-of-Breed Partnerships Word-class support

Sun is not just a Server HW provider

Sun RFID Software Components

●

Sun Java System RFID Software – –

●

Java RFID Event Manager Java RFID Information Server

Generally available as of July 19th

Global RFID Centers Dallas Test Center – – – – – –

17,000 Sq. Ft Warehouse Dock Doors for Receiving and Shipping High Speed (600ft/min) Conveyor System Pallet Conveyor and Forklift Multi Reader and Tag testing Fully Operational

Benefits to Customers – – – –

Off premise testing, lower risk Real-world simulations “One stop” technology shop Other locations planned worldwide

Coles-Myer (Retail Asset Tracking)

Pilot Profile ●

Company: –

●

Objective: – –

●

Australia's largest retailer

Track roll cages between distribution centers and retail outlets Produce better accountability of roll cages in distribution

Scope: – – –

Up to 2,000 roll cages to be tagged and provisioned Custom design directional reader gates On premise (DC, RC) in Melbourne, Australia

Roll Cages Metal wire frame cage on wheels for moving inventory between Distribution Center and Stores. Two single dipole ruggedized tags attached to each rollcage

Reader Gantry

Two rows of readers to detect movement and direction (in/out)

Reader gantry

Java visualization app shows reader detection and cage position in real time

Summary ●

Solution included: – – – – – –

●

●

Sun RFID Technology Customized applications Sun Professional Client Services Reader/Tag Partner Business Consulting Partner RF Consultants

Successful realtime asset tracking pilot up and running by Sun in 2 months! Next steps involve testing at carton level

ASTREC/Tokyo Narita Airport (Passenger Luggage Tracking)

Pilot Profile ●

Company: –

●

Objective: – –

●

Consortium for advanced airport systems technologies

Luggage tracking at airport terminal and airline Also part of “Hands Free Travel” trial

Scope: – –

Up to 200,000 pieces of luggage; largest pilot of its kind Cooperation between Airport, Airline, and Luggage Delivery Company

Luggage Tag and Reader

Summary ●

Solution included: – – – –

●

●

Sun RFID Technology Sun Professional Client Services Reader/Tag Partner Local partner

Even though a local pilot, affects international organizations such as TSA What are the next steps – Open interface to airlines and delivery companies – Global specifications for world wide interoperability

Goodyear Tires (CPG/Wal-Mart Mandate)

Pilot Profile ●

Company: –

●

Objective: – – –

●

World's largest tire company

Tag testing on tires; seek optimal tag placement Determine effects of material (rubber, metal) Prepare for Wal-Mart mandate and tire tread act but also leverage for ROI

Scope: – – –

Single tire tagging and testing Various orientations At Sun's RFID Test Center in Dallas, Texas USA

Tire Orientation 1 Conv ey or

2 Rolling through a threshold

3 Rolling through a threshold

Ov erhead mounted reader 500 f eet per minute

Dock door Dock door reader - sides reader header 500 f eet per 500 f eet per minute minute

4 Pallet (arranged ) through a threshold

5 Pallet (arranged ) through a threshold

Dock door Dock door reader - sides reader header 500 f eet per 500 f eet per minute minute

6 Pallet (arranged )

7 Stacked on horizontal racks

8 Stacked stov epiped on f loor

Handheld reader

Handheld reader

Handheld reader

Static

Static

Static

Summary ●

Solution included: – – – –

●

●

●

Sun RFID Technology Sun Professional Client Services Reader/Tag Partner (multiple) Sun RFID Test Center (Dallas)

Testing of different technologies and conditions is critical to getting best results Not enough to perform “ad-hoc, informal” testing inhouse - need experienced partner Leverage for ROI

Sun Manufacturing Pilot (Inventory Management/Tracking)

Pilot Profile ●

Company: –

●

Objective: – – –

●

Sun Microsystems, Inc.

Improve Material Transfer Accuracy in manufacturing Determine the ability to tag metal computer parts Integrate data with back-end systems

Scope: – – –

Implement with single Tag Type in a pilot fashion Data integration limited to one back-end system At Sun's Manufacturing facility in Newark, CA

Sun Pilot - “Project Sun Beam” Antennae

Console

Boundary

Anatomy of Tagged Server Chassis 1 – DS (6800) Chassis

(P/N 540-4587-01, 540-4587Alien I-Tag HERE 02) on opposite side Alien I-Tag HERE

4 – I/O Boats (P/N 540-4616-03)

The Transaction Gate UI

Summary ●

Solution included: – – – –

● ● ● ●

Extensive tag testing of metal parts in production environment Sun RFID Technology Sun Professional Client Services Integration to Oracle Back-End

100% read rates were achieved with metal parts Material transfer accuracy improved by 7% Learned lessons re. training operators NPV analysis indicated a positive ROI possible in a year

Thank You! Questions?

Questions

Frontline Expo Peter Winer Big Chief Partners, Inc September 14, 2004

53