Challenges for RFID Cross-Industry Standardization in the Light of Diverging Industry Requirements

As in the case of the barcode, worldwide and cross-industry standardization is key for a successful radio frequency identification (RFID) adoption and, therefore, crucial for its widespread use. EPCglobal, an international and cross-industry standard-setting body for RFID technology, intends to take different and partially conflicting industry requirements into account. We illustrate an area of conflict resulting from diverging requirements of four major industries regarding RFID technology. We propose that the early considerations of user requirements, communication, as well as cooperative development are crucial for the success or failure of cross-industry standardization. We deduce managerial implications from our considerations both for the adopter side and the standard-setting side.