Interview: Tom Gibbs, Director of Worldwide Strategy and Planning, Intel Corporation. by mThink, September 12, 2005 Intels Tom Gibbs explains how Intel is integrating and supporting the emergence of sensor-based technology networks. ASCET: Why does Intel care about RFID? Tom Gibbs (TG): Lets begin by saying why we dont care: we are not making RFID tags. Our interest is really in all-autonomic sensor technology and its impact on IT architecture. RFID is an example of a device that can store information, and ultimately somewhere down the road, communicate without requiring a human in the loop. We think that this general class of technology offers tremendous opportunity to go the last few meters in particular business areas like supply chain or other aspects of the enterprise where complete coverage and understanding of the knowledge of where our assets are throughout the business day is important. We are working on understanding how RFID and autonomic sensor networks are going to be used, and how the new business processes will be executed, because thats going to govern how our next generation platforms need to be designed so that businesses can take full advantage of the new data sources. For Intel, its about RFID and autonomic sensor nets and what they bring to the rest of the technology in the enterprise and the platforms that Intel makes, starting with the reader and then going all the way back into the back-end database engine. ASCET: What are some of the autonomic data sources that youre looking at aside from RFID? Tom Gibbs (TG): Theres a whole host of new technologies in this class of autonomic sensors that are coming to market just now. RFID is seen as a relatively mature technology because its already being deployed in a number of business situations. The autonomic sensors are still in the innovation phase right now, but they can essentially sense vibration, temperature and motion. Weve done one demonstration with British Petroleum in applying sensor-based technology to engines in one of their ships in the North Sea, where they measure the vibrations on the engine 24/7. They collect that data and look at the vibration profile to determine if the engine is healthy. If its not functioning properly, they can start to either institute a repair or begin to order replacement parts. This is a key issue, because if one of those ships goes down, it severely affects their logistics chain. ASCET: What industry partners is Intel working with to accelerate RFID and sensor solutions? Tom Gibbs (TG): We work with a number of partners. One of the advantages that Intel brings to our ecosystem is the fact that we essentially can and do work with nearly everyone in the IT vendor community. In the case of RFID, there are some partners that have gone public in terms of working with us, including Oracle, SAP, Cap Gemini, IBM, Tyco and Cisco. ASCET: Are you piloting R&D projects together? Tom Gibbs (TG): Yes, we are involved in a number of projects in all of the major geographic regions. Some are in the R&D area, such as the British Petroleum autonomic sensor test or the Metro Store of the Future. We are working with a number of companies involved in the initial Wal-Mart rollout, where we have moved beyond piloting the proof of concept into pilot and early deployment. ASCET: What are some of the more interesting developments in RFID technology? Tom Gibbs (TG): The value proposition from RFID comes from its ability to improve collaboration and communications across vendors. Simply applying an RFID tag to the box and reading it and making that data available to one vendor can have incremental business value, because that vendor is going to have better insight into where the goods are. But whats really interesting is now that you have that information, two partners can work together to improve their fundamental operating efficiencies. So a pharmaceutical company, knowing that the goods are shipped and available and perhaps have been tampered with, can take action more immediately. A big retailer can share the data between the point of sale, the back office and the supplier, so the supplier can maintain a lower out-of-stock threshold. ASCET: What are some of the most interesting new technologies or processes on the horizon? Tom Gibbs (TG): As more intelligence becomes available in handheld, laptop or mobile devices, the capacity to begin coupling that mobility with autonomic sensors will offer some pretty dramatic improvements in fundamental operational inefficiencies that plague a number of businesses. Im sure youve gone to a consumer electronics store or a bookstore within the last year where an item you really wanted to buy wasnt on the shelf. And you might have thought, boy, I really need this today. I wonder if the goods are really here in the store somewhere, perhaps in the back office or storeroom. Right now, the folks on the floor dont know because they dont have the technology to know. However, if somebody in the back office were bar code reading everything as it comes through the door, the floor people would have that information. With new technology that has intelligence coupled with autonomic sensors, the floor salespeople could use a handheld device or a POS system integrated into the supply chain and sort out whether or not the goods are in the store. So its a triple-win situation: the consumer wins, the retailer wins and the supplier wins. Its not just RFID by itself; its RFID with the right kind of intelligence in the reader and the right kind of intelligence in the edge servers so that they can relay the information either as it happens, or on request, to the individuals that are at the point of sale, the point of care in a hospital or the point of presence in the field. ASCET: Is Intel expanding into new technology markets? Tom Gibbs (TG): There is some interest in what I call rich sensor technology. By rich I mean sensor technology that employs a lot of logic. But in general, we think theres a tremendous opportunity in our current product line to take advantage of the data sources that are generated, whether we happen to make the devices that are generating the data or not. We see the bulk of the opportunity in our traditional product lines. Whats new is using those traditional product lines differently with new platform technology. ASCET: Is Intel expanding the processor out to newer capabilities? Tom Gibbs (TG): Exactly. For example, think of the edge server versus the server that sits in a store. What is the server really doing in terms of its value proposition of the store? Now that RFID data is coming into the store, that edge server becomes a lot more valuable in terms of being able to solve some basic business problems. The point of sale system provides value in inventory and management and if its linked more completely with RFID data in the back office and collaborative supply chain data from the supplier, you can begin to envision a completely closed looped system. Some companies and analysts estimate that the safety stock is a multibillion-dollar issue for the consumer packaged goods industry. By using a closed loop solution, you can reduce safety stock by a factor of two. Im not sure that you could do that overnight, but lets say you could: thats a multibillion- dollar fix. Thats pretty exciting, and that system would use most of our current product lines with new data sources. ASCET: Beyond retail, what are some of the industries that can benefit most from RFID and other sensor-based solutions? Tom Gibbs (TG): To begin with there are a number of industries besides retail that are already taking advantage of RFID. If you travel up and down the East Coast corridor in the U.S., youre taking advantage of RFID by using Easy Pass. That same technology is used overseas to expedite transportation flow today. Discrete manufacturing, automotive and heavy industries such as aerospace are utilizing RFID. It is spreading in the healthcare industry. We just did a case study at major hospitals that are using RFID and mobility. Pharmaceutical companies are looking at RFID as one mechanism to improve clinical trials.The question really becomes, what industries wont be using RFID? Filed under: Article, ascet, Collaboration, Knowledge Tagged under: RFID/Sensor-Based Tools