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RFID Middlewareand Web Services

Frontline Expo

Peter WinerBig Chief Partners, IncSeptember 14, 2004

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RFID Infrastructure:Two Panels at Frontline Expo

Yesterday:

RFID NetworksPanelists from GlobeRanger, ConnecTerra, Blue Vector Systems, Oat Systems

Today:

RFID Middleware and Web Services

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About Big Chief Partners

• Strategic consulting and technology development company

• Focused on RFID infrastructure since early 2001

• Clients include vendors, investors and RFID users

• Publishers of quarterly newsletter

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October: Spotlights on RFID End Users

• Proctor and Gamble• Home Depot• ExxonMobil• Marine Terminal Corporation

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Subscribing toBig Chief Partners Newsletter

• Give me your business card today• Email to info@bigchief.com• Register at www.bigchief.com

• Read our Weblog at www.bigchief.com/weblog

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RFID Infrastructure

RFID Infrastructure

Readers Network Middleware Applications

• Raw information collected by Readers• ROI delivered by Applications and

Business Processes

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RFID Infrastructure:The Two Panels

RFID Infrastructure

TodayYesterday

Readers Network Middleware Applications

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RFID NetworksPanelists

Jeff Flammer, Director Manufacturing and Retail Solutions, BEA SystemsAndrew Savitz, Director RFID Solutions and Industry Alliances, webMethodsVijay Sarathy, Group Marketing Manager RFID Infrastructure Solutions, Sun MicrosystemsDushyant Pandya, Director Strategic Alliances, TIBCO

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Background

• In the past two years, many companies have staked claims in the RFID infrastructure space

• These include pure-play startups focusing exclusively on RFID and opportunistic companies moving in from adjacent areas.

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Pure Play Companies

• Focus on distributed networks connecting heterogeneous RFID readers and other collection devices

• Collect, correct, filter, aggregate large volumes of information

• Deliver upstream to middleware, applications and business processes

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Opportunistic Companies

• Established Middleware and Enterprise Application Integration (EAI) companies viewing RFID as a future engine of growth

• Focused on server-based middleware • Enhance, transform and translate• Apply business rules, provide message

broker• Portal solutions, development tools

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Yesterday’s Panelists

• Pure play RFID companies focusing on networks

• At least one claims to also be in the middleware space

• They offer different approaches to providing network infrastructure solutions for RFID

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Today’s Panelists

• Middleware and EAI vendors• Established companies• New focus on RFID applications

Frontline SolutionsFrontline SolutionsRFID Middleware and Web ServicesRFID Middleware and Web Services

Andrew Savitz, Andrew Savitz, Director, RFID SolutionsDirector, RFID Solutions

webMethods at a GlancewebMethods at a Glance

The Business Integration Infrastructure companyThe Business Integration Infrastructure company1,100+ blue chip customers worldwide1,100+ blue chip customers worldwideOver 50 new customers per quarterOver 50 new customers per quarter9 of the Fortune 209 of the Fortune 20150+ successful projects/qtr150+ successful projects/qtrOver $2 Billion of customer value created last yearOver $2 Billion of customer value created last year

Financial StrengthFinancial StrengthApproximately $200M in annual revenueApproximately $200M in annual revenueOver $160M in the bankOver $160M in the bank

Market StrengthMarket StrengthNearly 100% market share growth since 1999Nearly 100% market share growth since 1999Consistently cited as a market leader by the Consistently cited as a market leader by the analyst groupsanalyst groups

The RFID Maturity Spectrum: Conceptual ViewThe RFID Maturity Spectrum: Conceptual View

Key Vendors

Object NamingObject NamingService (ONS)Service (ONS)

Tag/SensorTag/Sensor

ReaderReader

EPC Info SvcEPC Info Svc(EPC IS)(EPC IS)

MandatesMandatesSlap & ShipSlap & Ship

Closed LoopClosed LoopInventory Inventory

MgmtMgmt

OpenOpen--LoopLoopSupplySupply--chain chain

visibilityvisibility

Enterprise AppsEPC Standards Stack Value Addition

Edge ServerEdge Server

Integration Is Key To SuccessIntegration Is Key To Success

Key Vendors

Object NamingObject NamingService (ONS)Service (ONS)

Tag/SensorTag/Sensor

ReaderReader

EPC Info SvcEPC Info Svc(EPC IS)(EPC IS)

MandatesMandatesSlap & ShipSlap & Ship

Closed LoopClosed LoopInventory Inventory

MgmtMgmt

Enterprise AppsEPC Standards Stack Value Addition

Edge ServerEdge Server

webMethodswebMethodsEnterpriseEnterpriseServicesServicesPlatformPlatform

OpenOpen--LoopLoopSupplySupply--chain chain

visibilityvisibility

CrossCross--Industry Blue Chip CustomersIndustry Blue Chip Customers

Used By Industry LeadersUsed By Industry Leaders

webMethods Selected for High Profile Defense InitiativesMonday July 19, 8:01 am ETMonday July 19, 8:01 am ET

webMethods Chosen as Middleware Provider for Radio Frequency Identification Pilot at the Department of Defense and for the OSD's Weapon Systems Integration Project

webMethods was selected as the first middleware technology provider for the initial pilot project on passive radio frequency identification (RFID) at the Department of Defense (DoD).

webMethods' integration capabilities will be leveraged as part of the RFID pilot project that will track assets as they leave the defense distribution center using passive RFID tags.

BEA on RFID

Middleware & Web Services

Frontline Conference & Expo

- September 14, 2004 –

Jeff Flammer

Director, Manufacturing & Retail Solutions

©2003 BEA Systems, Inc. | 21

BEA Systems, Inc.Corporate Overview

World's 6th largest independentsoftware company

Over 15,000 customers globally,including the majority of the Fortune 500.

4,000+ employees

Financials:$1.1 Billion+ Annual Revenue run-rate29 consecutive quarters of profitability$1.6 Billion+ in cash assets on Balance Sheet~$500M in R&D over last 3 years

BEA’s flagship product, WebLogic PlatformTM,helps companies create competitive advantageby quickly and efficiently automating newprocesses with enterprise class applications

- Example Customers -

©2003 BEA Systems, Inc. | 22

Pace of Changein Supply Chain Solutions

‘70 ‘80 ‘90 ‘00

TechnologyInnovation

BusinessInnovation

ContainerShipping

BarCode

RDMS

MRP

Fax

POSMRP II /

ERP

B2B / XML

E-mail

Outsource

CRM

J2EEArch

ClientServer

SupplyChain

PLM

RFID

SelfCheck

out

ScanBased

Trading

WebServices

Pace of change is picking up dramatically

Market leaders are capitalizing on these trends (especially if they impact the customer)

“Single-instance ERP strategy” likely not be flexible enough

A new approach is necessary to get out in front

- Implications forSolutions -- Pace of Change in Supply Chain -

©2003 BEA Systems, Inc. | 23

Using PlatformTM to Acceleratethe ROI in RFID

RFID Specific MiddlewareRFIDMiddleware

WarehouseMgmt

(WMS)Applications

Reader

Tag &EPC F127.C238.DF1B.17CC

- Tag - - EPC -

TransMgmt(TMS)

EPCNetwork ERP

OM

S

IntegrationSoftware

Enterprise IntegrationBPMEAI

NewBusinessProcesses

BEA HelpsYouAcceleratethe ROIon YourRFIDInvestments!

EPC Commissioning Device Management

We believe:ReliabilityAvailabilityScalabilityPerformance

are essential ingredients in a long-term RFID Middlewarestrategy.

©2003 BEA Systems, Inc. | 24

New RFID-Enabled Business Processes

Retail-Predictive Out-of-StocksTheft & ObsolescenceAlerting

CPG-Cold Chain ManagementClaims DisputeAutomation

Pharmaceuticals-Pedigree TrackingDiversion

TransportationAsset TrackingPredictiveMaintenance RFID

StoreManager Portal

Store AssociatePortal

SupplierPortal

Portal

Web Services

BPM

EAI

Store-Level Promotions Composite Application

POSPromotions

Planning Pricing

Service OrientedArchitectures (SOA)

enabled by

Application PlatformSuites (APS)

• Application Server• BPM

• Integration• Portal

- Other New Processes -

©2003 BEA Systems, Inc. | 25

GARTNER VALIDATES BEA AS THE PLATFORM LEADER

Application Platform SuiteMagic Quadrant

IBM

Oracle

Sun MS

Novell

PeopleSoftSybase Fujitsu SAP

SeeBeyond

Fujitsu Siemens

BEA

“By 2007, more than 75 percent of all application software infrastructure licenses will be sold by application platform suite vendors” A

bilit

y to

Exe

cute

Niche Players VisionariesCompleteness of Vision

Source: Gartner Research, May 2003

©2003 BEA Systems, Inc. | 26

COST SAVINGS ONTHE INTEGRATED APS

Total Cost Across Application Lifecycle

Source: Application Platform Suite Architectural Cost Analysis, Gartner, October 2003Note: Graph represents figures in $K

(US $000s)

• 24% lower costs

• 22% time to market advantages

• Improved utilization of senior developers and architects by up to 50%

• 40% savings in post-deployment maintenance and enhancements

Gartner Validates the Cost Savings of a Unified Platform

©2003 BEA Systems, Inc. | 27

Standards Based Approach toService Oriented Architectures (SOA)

Service Enablement

DB, EJB, JMSWeb Services, XML

Specialty AppsMQ, File, Email

Packaged Apps

Legacy,MF

Transactions Clustering & Caching

Load Balancing

Web Services

Stack

J2EE ContainerMessaging Security

Server Foundation Workshop

Framework

Process Definitions

Service Orchestration

Data Mapping Optimized process

execution

Composite Services

Portal Framework

Service Consumption

Web Applications Personalization

Content Management

Man

agem

ent

Co

nfi

gu

rati

on

Mo

nit

ori

ng

Serv

ice

Lif

ecy

cle

Serv

ice

Dir

ect

ory

Co

nte

nt,

P

ers

on

aliza

tio

n

Secu

rity

P

olicy

Tra

nsf

orm

ati

on

Secu

rity

Co

ord

inati

on

Ro

uti

ng

Mes

sagi

ng

Reliab

le

Delivery

Vis

ual D

ata

M

ap

pin

g

Dev

elop

men

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eb

Ap

p

Desi

gn

er

Serv

ice

Desi

gn

er

Po

rtal

Desi

gn

er

Pro

cess

D

esi

gn

er

J2EE

Develo

pm

en

t

JDBC, J2CA, JMS, WSDL, JSR181

BPEL, BPEL-J,XQuery, XMLBeans

Struts, JSP, Taglibs, WSRP, JSR168, XML

J2EE, XML, JTA, JAAS, HTTP, SOAP, WSDL, IIOP, Beehive, Servlet, JMS, UDDI, WS-Security, WS-Reliability

WS-Addressing

XQueryWS-

SecurityWS-

TransactionWS-

Reliable Mess.

JMXSNMPUDDIWSIF

JSR168 WSRPStruts JSP

BPEL BPEL-JWSDL

JSR175

•Leading standards-based Platform•Leadership in driving standards

Sun RFID Solutions

Vijay Sarathy, Group Marketing Manager, RFID

Sun Microsystems, Inc.

Sun RFID Offering● Sun's systems approach to RFID

includes:– Software– Hardware– Systems Architecture– Services and Test Centers– Best-of-Breed Partnerships– Word-class support

● Sun is not just a Server HW provider

Sun RFID Software Components

● Sun Java System RFID Software– Java RFID Event Manager– Java RFID Information Server

● Generally available as of July 19th

Global RFID CentersDallas Test Center– 17,000 Sq. Ft Warehouse– Dock Doors for Receiving and Shipping – High Speed (600ft/min) Conveyor

System– Pallet Conveyor and Forklift– Multi Reader and Tag testing– Fully Operational

Benefits to Customers– Off premise testing, lower risk– Real-world simulations– “One stop” technology shop– Other locations planned

worldwide

Coles-Myer(Retail Asset Tracking)

Pilot Profile● Company:

– Australia's largest retailer

● Objective:– Track roll cages between distribution centers and

retail outlets– Produce better accountability of roll cages in

distribution

● Scope:– Up to 2,000 roll cages to be tagged and provisioned– Custom design directional reader gates– On premise (DC, RC) in Melbourne, Australia

Roll Cages

Metal wire framecage on wheels formoving inventorybetween DistributionCenter and Stores.

Two single dipole ruggedized tags attached to each rollcage

Reader Gantry

Two rows of readersto detect movement and direction (in/out)

Reader gantry

Java visualization app shows reader detection and cage position in real time

Summary● Solution included:

– Sun RFID Technology– Customized applications– Sun Professional Client Services– Reader/Tag Partner – Business Consulting Partner– RF Consultants

● Successful realtime asset tracking pilot up and running by Sun in 2 months!

● Next steps involve testing at carton level

ASTREC/Tokyo Narita Airport(Passenger Luggage Tracking)

Pilot Profile● Company:

– Consortium for advanced airport systems technologies

● Objective:– Luggage tracking at airport terminal and airline– Also part of “Hands Free Travel” trial

● Scope:– Up to 200,000 pieces of luggage; largest pilot of its

kind– Cooperation between Airport, Airline, and Luggage

Delivery Company

Luggage Tag and Reader

Summary● Solution included:

– Sun RFID Technology– Sun Professional Client Services– Reader/Tag Partner– Local partner

● Even though a local pilot, affects international organizations such as TSA

● What are the next steps– Open interface to airlines and delivery companies– Global specifications for world wide interoperability

Goodyear Tires(CPG/Wal-Mart Mandate)

Pilot Profile● Company:

– World's largest tire company

● Objective:– Tag testing on tires; seek optimal tag placement– Determine effects of material (rubber, metal)– Prepare for Wal-Mart mandate and tire tread act but

also leverage for ROI

● Scope:– Single tire tagging and testing– Various orientations– At Sun's RFID Test Center in Dallas, Texas USA

Tire Orientation

1 2 3 4 5 6 7 8Conv ey or Rolling

through a threshold

Rolling through a threshold

Pallet (arranged) through a threshold

Pallet (arranged) through a threshold

Pallet (arranged)

Stacked on horizontal racks

Stacked stov epiped on f loor

Ov erhead mounted reader

Dock door reader - sides

Dock door reader -header

Dock door reader - sides

Dock door reader -header

Handheld reader

Handheld reader

Handheld reader

500 f eet per minute

500 f eet per minute

500 f eet per minute

500 f eet per minute

500 f eet per minute

Static Static Static

1 2 3 4 5 6 7 8Conv ey or Rolling

through a threshold

Rolling through a threshold

Pallet (arranged) through a threshold

Pallet (arranged) through a threshold

Pallet (arranged)

Stacked on horizontal racks

Stacked stov epiped on f loor

Ov erhead mounted reader

Dock door reader - sides

Dock door reader -header

Dock door reader - sides

Dock door reader -header

Handheld reader

Handheld reader

Handheld reader

500 f eet per minute

500 f eet per minute

500 f eet per minute

500 f eet per minute

500 f eet per minute

Static Static Static

Summary● Solution included:

– Sun RFID Technology– Sun Professional Client Services– Reader/Tag Partner (multiple)– Sun RFID Test Center (Dallas)

● Testing of different technologies and conditions is critical to getting best results

● Not enough to perform “ad-hoc, informal” testing in-house - need experienced partner

● Leverage for ROI

Sun Manufacturing Pilot(Inventory Management/Tracking)

Pilot Profile● Company:

– Sun Microsystems, Inc.

● Objective:– Improve Material Transfer Accuracy in manufacturing – Determine the ability to tag metal computer parts– Integrate data with back-end systems

● Scope:– Implement with single Tag Type in a pilot fashion– Data integration limited to one back-end system– At Sun's Manufacturing facility in Newark, CA

Sun Pilot - “Project Sun Beam”Antennae

Console

Boundary

Anatomy of Tagged Server 1 – DS (6800)

Chassis(P/N 540-4587-01, 540-4587-

02)

Alien I-Tag HERE

Alien I-Tag HEREon opposite side

Chassis

4 – I/O Boats(P/N 540-4616-03)

The Transaction Gate UI

Summary● Solution included:

– Extensive tag testing of metal parts in production environment

– Sun RFID Technology– Sun Professional Client Services– Integration to Oracle Back-End

● 100% read rates were achieved with metal parts● Material transfer accuracy improved by 7% ● Learned lessons re. training operators● NPV analysis indicated a positive ROI possible in a

year

Thank You!

Questions?

53

Questions

Frontline Expo

Peter WinerBig Chief Partners, IncSeptember 14, 2004