• The case revolves around the use of RFID technology in
tracking customers, in order to enhance customer shopping
• Raydar Electronics – Raydar is a technology firm which is into
making and integrating RFID and identification tags and
• CEO of Raydar – Dante Sorella
• There operations are mostly confined to manufacturers, and
retailers in helping them to streamline supply chain
• Craig Davis CEO of KK stores, wants to implement RFID
tracking systems in their front end operations, hence
approaches Dante for advice
• The intention is to enhance customer satisfaction and
3. • Dante raises the question of risk and threats which can arise
from both the customers and the Government
• On a recent visit to the newly opened KK store, which was few
blocks away from the Raydar headquarters, Dante was
impressed and hence convinced about the KK’s products
• On one hand Dante is tempted to except the offer as he is
able to foray in to the retail sector
• But Dante is in a dilemma as his lawyer and the company’s
chief of communication officer discouraged him from
accepting the proposal
4. Identification of concepts in the
Achieving Superior Innovation
A company must ensure cross functional integration among
R&D, production, and marketing.
Learn from experience
Research and development
Achieving superior responsiveness to customers
5. Problem Identification
• Ethical use of RFID…???
• Invasion to privacy….!!!!
• Not so equal ground for application of RFID on the global
level due to different regulations in different countries.
• Thinking only locally & not globally when it comes to
1- Using alternatives other than RFID, like Biometric
recognition at the shops.
• Lesser invasion to the privacy, and database is also
• Access to customer information only at the stores when
the customer enters the store.
• Database is maintained, but it is not strong and detailed
• May still remain a privacy invasion issue for some
• 2- Continue tagging the products with RFID
• Better inventory control, avoiding stockouts.
• Faster billing system, as RFID tags can be scanned in bulk at
given point of time.
• Better database, leading to customer satisfaction
• Non-acceptances of customers in terms of invasion of privacy.
• With fast moving markets and rapid change in trends, the
tagged product may become obsolete in short duration.
• Mismatch of data, as the customer may not be the end
• An RFID can be valuable for retailers because clerks do not
have to directly scan the tag like they do a barcode, and the
readers can scan up to 1,000 tags at any given time.
• It is used widely in the public and private sector to assist
businesses with asset tracking and security.
• Hospitals use RFID equipped bracelets and patches to track
newborn movements, prevent accidental switching of
infants, reduce prescription medicine and surgical errors, and
monitor the location of equipment
• Public transportation systems worldwide use RFID equipped
cards to track and bill use of the services, such as "EZ Pass"
type equipment for toll roads or payment cards for mass transit
• The movement of inventory can be tracked
- Goods can be received and shipped faster
- Ease of predicting product demand
- Shoppers can save time
- Out of stock situations can be avoided
- Shoppers get a better deal as system
becomes more efficient
- The right products are available at the right
stores at the right time
- Boost sales
• Cost of product increased at least by 25 to 20
• Use ,Storage & Security of data a huge issue
• Ethical Issue