The RFID e-Valuation Framework Determining the Business Value from Radio Frequency Identification

In this paper, we develop the RFID e-valuation framework to help managers identify the value proposition from using RFID. The framework is based on three concepts. First, firms can apply RFID along five dimension of commerce. Specifically, by using various modes of interaction, firms compete over both time and distance in order to provide some product or service through a chain of relationships eventually ending with the end customer. Second, new investments in RFID are typically justified by generating efficiency, effectiveness, and/or strategic benefits. Third, RFID can be applied to four different structural settings across the value chain including inbound logistics, internal operations, outbound logistics, and marketing and sales. By mapping the five dimensions of commerce and the three types of justification, we have developed the RFID e-valuation Grid which can then be applied to the four structural settings to see where RFID can generate business value.