The Hindu : Business : IT firms back technology amid fears of privacy invasion

Online edition of India's National Newspaper
Tuesday, May 11, 2004

Business

Business

IT firms back technology amid fears of privacy invasion

By Harichandan A. A.

BANGALORE, MAY 10. In February, German retail chain Metro Group announced it would pull `smart-tag' chips from customer identification cards, after protests by the public that the cards could allow the chain to secretly track consumers as they shop. If the company stuck to its word, it would mean taking some 10,000 cards back.

The Düsseldorf headquartered company has two `cash and carry' outlets here and plans more in the neighbouring capital, Chennai. With the Central Government already talking about allowing 26 per cent foreign direct investment in retail, chains such as Metro and its Indian competitors such as Food World and Shoppers' Stop may consider it worth their while to implement Radio Frequency Identification (RFID) technology in their supply chains.

IT firms such as PeopleSoft, HP and closer home Infosys have been investing money in building software applications to handle data generated from the use of applications that will result from the marriage of RFID and the Internet. Infosys says it started work on RFID in March 2003, and wants to "jump start the adoption of RFID technology'' in the country.

"We have made excellent progress in defining the solution and framework for technology adoption as well as in creation of thought papers. We have been attending industry forums and running workshops for key clients. Infosys has also joined EPC Global as a founding member. There are very few players with defined solutions in this space,'' Infosys told The Hindu.

EPC global Inc. is a joint venture company set up by EAN International and the Uniform Code Council, Inc., which are driving global, multi-industry adoption of the Electronic Product Code (EPC) Network, a linking of radio frequency identification (RFID) and Internet technologies, enabling "real time'' supply chain management.

EAN International itself has its roots in an ad-hoc council formed by 12 European nations in 1977, to build the European Article Numbering system, aimed at improving the supply chain management of large businesses. Its supporters today include large multinational firms which make and/or retail products, including Gillette, Procter & Gamble, Metro, Johnson & Johnson and of course Wal-Mart.

Infosys has "architected a solution specifically for RFID adoption.'' It is actively networking with "enterprises intending to evaluate RFID technology to develop a business case and a roadmap for rapid implementation in sectors such as retail, distribution and transportation,'' it said.

The technology

EPC uses RFID to capture information and link it to a network enabling real time identification and sharing of information. In an agreement with Auto-ID Centre, a research project in Massachusetts Institute of Technology, "EPC global will oversee the development of open, global standards for the EPC Network to facilitate worldwide, multi-sector industry adoption,'' EAN's website says.

"EAN International and UCC will leverage their global user base of over one million member companies to drive adoption of EPC technology through the development of universally supported standards,'' it says. So, Gillette could track every shaving blade or canister of cream and Procter & Gamble, every bottle of shampoo. And, a company such as Infosys could manage the back end.

Meanwhile, EAN says its "goal is to expand use to any and all industries seeking to apply this technology.'' So, any IT firm which has a robust software application to manage the huge amount of real time data the network will throw up, could get multi-million dollar contracts. Underestimating the fears of privacy invasion could however be a mistake.

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