Radio Frequency Identification (RFID) adoption in the South African retail sector: an investigation of perceptions held by members of the retail sector regarding the adoption constraints

Abstract

Radio Frequency Identification (RFID) technology is a ethod of identifying unique items using radio waves that communicate between RFID tags and readers without line-of-sight readability. RFID technology provides great potential in many industries and a wide spectrum of possible uses. Areas of application include person identification, logistics, pharmaceutical, access control, security guard monitoring and asset management. One of the areas where RFID is being used and where it promises excellent results is the retail industry. While RFID systems have the potential to revolutionise the way products and goods are tracked and traced in the retail supply chain, barriers to its widespread adoption exist: for example; technical constraints, return on investment constraints, a lack of awareness and education and as well as privacy and security issues. The research aims to identify the barriers to the adoption of RFID and to investigate the perceptions of RFID held by members of the retail sector in South Africa (SA). Current research and available literature are used to identify RFID adoption barriers and a conceptual framework on this subject is proposed, which is then verified by SA retailers' perceptions, established by means of a survey. Initial barriers to widespread adoption include a shortage in skills, a lack of standards, high costs associated with RFID devices, the difficulty of integrating with current legacy systems, and a lack of familiarity with the system. Finally, an enhanced framework is proposed, describing RFID adoption barriers within the South African retail sector. In summary, the framework is an outline of the barriers impacting RFID adoption in the SA retail sector that need to be considered and addressed. The framework identifies six categories of RFID adoption barriers, with each category containing two or more barriers relating to that particular category. These categories are Technological, Cost and return on investment, Privacy and security, Implementation, Organisational factors and People.