Harsh Reality for RFID & RTLS -- It's About the ROI

Just presented at RFID Journal's RFID in Harsh Environments event on the evolving business case and ROI metrics for RFID.   The definition of "Harsh Environments" is quite broad, but it generally applies to extreme temperatures/operating conditions, remote worksites and hazardous or highly-regulated materials.   Harsh Environments span multiple industries including Oil & Gas, Chemicals, Aerospace & Defense, Healthcare and Industrial Equipment -- as shown below:

RFID Application Areas in Harsh Environments

Once we get past the definition of a harsh environment, it's important to look at the value drivers for RFID and RTLS (we support all Auto-ID modalities, so we use the terms interchangeably).   The industries listed above, by nature, have complex asset management challenges that are well suited to RFID automation.   We see three primary drivers for RFID adoption in harsh environments:

1. Cost Pressure -- where 100s of millions of dollars/euros/pounds of capital equipment impacts working capital allocation -- a reduction in redundant equipment or write-off/repair of non-working assets can have an impact on operating profit.
2. New Programs -- with new exploration projects, aircraft programs, infrastructure projects comes revenue opportunity -- and customer scrutiny.  Customers are increasingly demanding transparency for programs in progress - not just at critical milestones.  RFID visibility can help provide this transparency, leading to stronger partnerships and minimizing the risk of contract breach.
3. Operational Risk -- the only way to address compliance, audit and safety issues is to build error proofing into the process automation.