Evaluation of RFID applications for logistics: a framework for identifying, forecasting and assessing benefits

• Published in: European journal of information systems Vol. 18; no. 6; pp. 578 - 591
• Main Authors: Baars, Henning, Gille, Daniel, Strüker, Jens
• Format: Journal Article
• Language: English
• Published: London Taylor & Francis 01.12.2009; Palgrave Macmillan UK; Taylor & Francis Ltd
• Subjects: Business and Management; Business Information Systems; Capital budgeting; Classification; Cost benefit analysis; Decision making; Information Systems and Communication Service; Innovation/Technology Management; Logistics; Operations Research/Decision Theory; Radio frequency identification; RFID; Studies; cost–benefit analysis; RFID; logistics
• ISSN: 0960-085X; 1476-9344
• DOI: 10.1057/ejis.2009.32

As with all information technologies, there is a necessity to determine the profitability of investments in Radio Frequency Identification (RFID) ex ante. A particularly important aspect is the challenging task of evaluating the multi-faceted benefits of RFID deployments. While a large body of research on RFID benefits exists, our literature review indicates the absence of a comprehensive approach. We introduce a framework that combines the benefit evaluation steps of identification, forecasting and assessment. Based on insights gained in a 3-year research project with case studies in logistics, we refine a process-based IT-benefits classification and subsequently derive six types of RFID benefits that support the systematic identification of benefits, as well as the selection of forecast and assessment methods. We discuss how our framework can facilitate and enhance RFID investment decisions and guide future research activities.