Decision Analysis for Business to Adopt RFID

IntroductIon The spending for RFID (radio frequency identification) BLOCKINhas BLOCKINbeen BLOCKINincreasing BLOCKINrapidly BLOCKINin BLOCKINrecent years. According to Gartner, global spending on RFID is likely to reach US$3 billion by 2010 (CNET, 2005). In addition, interests continue to grow for the adoption of this mobile computing and commerce device in many different types of applications (ABI, 2006). In 2005, Wal-Mart asked its top 100 suppliers to use RFID tags, and this had a profound effect on the projected growth of RFID technology as well as potential applications in the industrial, defense, and retails sectors (Albertsons, 2004). However, very few studies have examined and evaluated the adoption of RFID options by the organizations. Organizations face various risks and uncertainties when assessing the adopted mobile technologies. Different organizations are likely to encounter different challenges and problems. This research aims to develop a mechanism that can help organizations to specify their risks and choose a suitable adoption alternative. This research has adopted the AHP (analytic hierarchy process) methodology to analyze the data, as it is useful for analyzing different RFID adoption alternatives and can assist organizations in predicting the possible issues and challenges when adopting RFID. The objectives of this article are to: (1) describe basic components of a mobile computing and commerce device, RFID; and (2) explore the current practices, issues, and applications in this mobile technology.