IBM hits back at RFID critics

A leading IBM executive has described critics of radio-frequency identification technologies as confused and described their push against the technology as masking an "anti-retail" thrust.

Dr Cheryl Shearer, Big Blue's global leader, business development for emerging markets, told ZDNet Australia   in an interview this week "I think the RFID privacy movement is primarily an anti-retail movement, because no one is discussing this at all in manufacturing process control or its use in libraries".

Shearer added that much of the confusion was generated because individuals mistook the capabilities of RFID for those of location-based services.

"The crux of the argument about privacy is that it's all very well to have an item marked and to be able to read it but it's quite another thing to be able to do some push-based marketing on the basis of it," said Shearer, arguing "that's what people are afraid of, location-based services, but that's not RFID."

RFID systems combine microchips and wireless gadgetry to provide tiny tracking devices for products, with the resulting set-ups expected to streamline supply chains and help retailers keep better records of their inventory.

Shearer characterised Katherine Albrecht, RFID privacy activist and founder and director of lobby group Consumers Against Supermarket Privacy Invasion and Numbering, as being "confused" about the technologies she is campaigning against. RFID tags used in retail stores, Shearer said, "[could] only measure a short distance".

"Katherine Albrecht has some sort of weird thing in her mind that helicopters might descend and follow you, I mean how low are these things going to fly?" said Shearer. "I don't understand it basically. She has a particular view, that she's doing God's work and is going to protect us from the globalisation of retailing."

This is not the first time proponents of RFID technologies have come out against Albrecht -- in January this year, the Grocery Manufacturers' Association of America, whose members include RFID-active companies such as Gillette and Procter & Gamble -- was forced to apologise to the activist after inadvertently sending her an e-mail indicating the organisation was looking to run a personal campaign against her.

Shearer's comments come amidst claims from the Australian Privacy Foundation yesterday that RFID could pose a huge threat to the privacy of consumers.

Shearer also said IBM was trialling the use of RFID tags in US schools for mentally disabled children in a move she claimed had full support from most parents.

"These children are primarily kept indoors at the moment because they escape otherwise and might get hurt. So what we are going to do is with two of these huge schools, is to give the children an RFID bracelet that they take off at the end of the day so that we know where they are, and if they walk out the gate then we would know," said Shearer.

Ian Adair, manager for e-business and wireless solutions for IBM Asia Pacific, says it's this type of application that makes the most of the technology.

"Retail has little value for RFID in terms of barcode alternatives. It's not the simple use of this technology it's the more complex processes that really start to make sense of it," he said.

Shearer claims IBM currently has several trials running in Australia using the technology, saying there is a "huge propensity for our customers to experiment".

"One of the Australian processes that's interesting me very much is the concept of paddock to plate, where they want to be able to label sheep and pigs and track them all the way through from the paddock to the rasher of bacon on your plate," said Shearer.

According to Shearer, a major Australian produce company is currently interested in applying the technology in this manner.

"We could not only label them so you knew if was a rasher of bacon from a specific pig in that paddock, we could know if it has ever been stored below a certain temperature or if anything has happen to it that has made it less palatable etc," she said.

Shearer says benefits of using the technology in this manner could be a reduction of supply returns and even back-tracking products in cases of poisoning, or finding them if there is a product recall.

"If you can reduce the number of product returns that have been paid for then you have cash flow benefit," said Shearer.

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Talkback 5 comments

  1. The RFID chips are fine to use in tracking & inventory for business purposes but not for tracking of people. It is the "MARK OF THE BEAST" is inserted into humans or animals!!!!! Anonymous -- 30/04/04

    The RFID chips are fine to use in tracking & inventory for business purposes but not for tracking of people. It is the "MARK OF THE BEAST" is inserted into humans or animals!!!!!

  2. The tracking issue is a real one, and tags do not need to be readable at long range for it to be an issue. A local reader at a store entrance can tell the store more about you than you'd prefer them to know - especially if they share data with other compa Anonymous -- 30/04/04

    The tracking issue is a real one, and tags do not need to be readable at long range for it to be an issue. A local reader at a store entrance can tell the store more about you than you'd prefer them to know - especially if they share data with other companies.

    I don't know about you, but I'm not thrilled about the potential for a company to know my name and buying habits by associating me with a profile after noting that I bought the jacket I'm wearing from a partner company. This is a small and simple extension of the customer profiling companies already do - the difference is that they can identify you without needing a "loyalty card" etc, simply by matching tagged items to their IDs in your purchasing history.

    There are a number of other issues as well, but it can all be solved quite simply. Provide a (possibly optional) mechanism for tags to be deactivated as people pay for the item. If the tags are to facilitate efficient retail operations, they're not needed after the item is sold ... right?

  3. Personally this new technology scares me to death. I can see Revelations Chapter 13 being fulfilled the more I hear about RFID especially the Veri Chip. Technology like this is bound to be abused. What horrors are in store for us? Anonymous -- 06/05/04

    Personally this new technology scares me to death. I can see Revelations Chapter 13 being fulfilled the more I hear about RFID especially the Veri Chip. Technology like this is bound to be abused. What horrors are in store for us?

  4. As an IBM employee I thought it was a nice spin. However the reality is, privacy issues exist wherever there are readers. You don't need helicopters following you - just go into a retail location that has readers and they immediately know if you have pro Anonymous -- 06/05/04

    As an IBM employee I thought it was a nice spin. However the reality is, privacy issues exist wherever there are readers. You don't need helicopters following you - just go into a retail location that has readers and they immediately know if you have products they stock (jeans, jacket, bags, phones, MP3 player or CDs) and can then start using that information for agressive hard sell.

    If this is really only a retail tracking issue for inventory management, put the tags on objects (tags on clothes, shrink wrap on CDs etc) so when they are purhcased, the buyer can dispose of the tag. But of course the large organisations don't want to do that, because that defeats the

  5. R.F.I.D WORLD AUSTRALASIA 16-18 August 2005, Sydney Convention and Exhibition Centre, Darling Harbour, Sydney, Australia Australasia's leading independent RFID event I refer to to the upcoming R.F.I.D. World Australasia Confe Anonymous -- 16/05/05

    R.F.I.D WORLD AUSTRALASIA

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    I refer to to the upcoming R.F.I.D. World Australasia Conference. Please email me for further information.

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