Crossing the Chasm : exploring RFID adoption characteristics in South African industries

Radio Frequency Identification or RFID has sprung into prominence in the last five years with the promise of providing a relatively low cost means for connecting non electronic objects to an information network. In particular, the retail supply chain has been established as a key sector for a major deployment of this technology. RFID is a technology used to track assets throughout the supply chain. Very small RFID transponders or tags containing a unique identifier are placed on assets (pallets, cases, or individual items), and these tags communicate with RFID readers. The RFID readers then associate this unique identifier with information about the product to which the tag is attached. The next generation of inventory management technology and supply chain efficiency hinges on broader adoption of RFID technology for tracking and tracing. RFID has the potential to materially change how inventory is managed in the supply chain, in warehouses, in transit, in distribution centers, and on store shelves and check out counters, by improving visibility of that inventory in near real time and, importantly, at an economically feasible cost. Although the relative advantages of RFID have been seen by industries the innovation is seen as complex, which resulted in hesitation, South Africa is no exception. In order to initiate mass adoption, a transition is necessary to cross the chasm from the early adopters towards the early majority. This leads to the following problem formulation: Which adoption characteristics influence RFID in South African industries?