Companies are having a variety of concerns that, in turn, mean investments in RFID technology are falling short. Most software and hardware vendors are rallying around the UHF Generation 2 specification, validated by EPC Global, the organization charged with commercializing the Electronic Product Code, (EPC). So far, there isn't enough adoption of high frequency tags to make much of a difference, Woods said. There are still a couple of different standards being used, he said. While RFID tag prices were once considered a factor in holding up adoption, tag prices are always coming down and there are tag vendors who sell inexpensive tags, Woods said. Companies are currently paying between 25- and 50-cents per tag, he said.
"The real issue is whether a vendor can sell inexpensive and sustainable tags that a company can rely on. So far that hasn't happened yet," Woods said.
While privacy issues are concerning, RFID security issues are more important, Woods said.
"We are currently looking at a lot of deployments that don't take enterprise class security seriously," Woods said. "Security should be the primary concern. If deployments are not secured initially and security is not built in, then an RFID project could fail."
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HOW TO BUILD A BUSINESS CASE FOR RFID
Getting started: What is RFID?
Getting started: RFID evaluation: Can RFID technology work for you?
Getting started: Determining the benefits of RFID for your business
Getting started: Selecting the right RFID software vendor for your business needs
Building the case: SAP and RFID: Incorporating RFID in ERP software
Building the case: What other companies are implementing RFID technology?
Building the case: What factors are holding up RFID adoption?
Building the case: How do I calculate ROI for RFID?