ROI, Not Price, the Selling Proposition of RFID
By George Anderson
Dennis Gaughan of AMR Research thinks vendors in the Radio Frequency Identification (RFID) technology space have a marketing and sales communication problem. They keep getting caught up in conversations about cost when they should be focusing on return on investment (ROI).
He writes, “There have been a few examples, but not enough empirical evidence to meet the strict Return on Investment (ROI) requirements that form the basis of most companies’ IT investment strategies. Demonstrate the value of a new technology, and people will buy. Focus exclusively on cost, and people will perceive little or no value.”
Mr. Gaughan understands that cost is part of the discussion when companies are looking at deploying RFID technology but that most are not making decisions based on that. What they want to know is why they should make the investment in RFID.
There are three key questions that organizations considering RFID are looking to have answered, he writes:
- What does RFID give me that I can’t currently do with existing technology today?
- What process changes will be required to take advantage of RFID’s capabilities?
- Are there other organizations that are using RFID successfully?
Moderator’s Comment: What does RFID give companies that they do not already have with existing technology? What process changes are required of companies
adopting RFID? Are there clear examples of retailers/suppliers achieving a significant ROI with RFID? –
George Anderson – Moderator