Bringing Environmental Radio Frequency Identification (RFID) Tags to Market

Lead Research Organisation: University of Sussex
Department Name: University of Sussex Business School

Abstract

The Innovation Fellow will analyse the development and deployment of environmentally friendly RFID tags and nanobarcodes in large-scale consumer retailing in the UK and the USA. RFID tags are already used in a number of business sectors to provide a tracking system identifying items through the supply chain. The total RFID market was estimated to be worth US$11.0 Billion in 2018, and is expected to increase to US$13.4 Billion by 2022. The potential employment effects of this technology have not been extensively investigated. RFID tags significantly reduce inventory count time from hundreds to a handful of hours with implications for staffing needs in different parts of the supply chain. The innovative contribution of the research is to examine the learning process from product development to implementation and its impact on labour productivity and decisions for managers about their labour requirements.

The Innovation Fellow, based at the ESRC funded Digital Futures at Work Research Centre (Digit), will work in close collaboration with a Sussex based company, Advanced Material Development (AMD) (www.advmat.co.uk). AMD are developing these tags with the Material Physics Group at the University of Sussex led by Professor Alan Dalton and supported by Professor Peter Krüger's Quantum Systems and Devices group. These groups are part of the Sussex Programme in Quantum Research (SPQR) and the Data Intensive Science Centre in the Department of Physics and Astronomy.

Since 2016, the Materials Physics Group have developed a platform technology based on graphene (and related material) inks which can be used for a variety of applications as functional materials. A novel quantum magnetic microscope pioneered by the Quantum Systems and Devices group provides crucial characterisation of conductivity and current flow in these materials and devices based on them. In 2017 a new company called Advanced Materials Development (AMD) was founded, based on Sussex IP, to commercialise these inks and develop a range of applications in further partnership with end users. Sustained industry engagement with key strategic partners in the consumer, automotive, and chemical sectors, including government organisations, is leading to a wider awareness and adoption of this novel environmentally friendly technology.

Research questions: contributing to creating a zero-waste business and employment effects
Of particular interest, the inks have been developed as coatings for replacement of metals in RFID systems for a leading UK retailer (M&S) and US RFID leader (Avery Denison) - a development that could have far-reaching environmental benefits and very large markets. This has been driven by the launch of Marks & Spencer new roadmap for its Plan A sustainability programme, which includes targets to reduce emissions by 80% and turn the company into a zero-waste business. The developed antennas are competitive with the incumbent technology in both performance and cost; AMD are currently negotiating to supply graphene-based antenna for early 2020.

The problem being examined by the Innovation Fellow will be to understand how these RFID tags can contribute to creating a zero-waste business and its implications for the organisation of work. This problem will be examined around three core questions:
1. How does the company AMD commercialise the innovative environmentally friendly patents being developed by the Material Physics Group at Sussex?
2. What obstacles and opportunities do large-scale retailers face in seeking to adopt and implement new environmentally friendly technologies?
3. What are the consequences of these technologies for the organisation of employment in retail?

A mixed methods Participatory Action Research (PAR) approach will be used to address these questions. The PAR approach aims to enable action learning and is based on the premise that research participants should be actively involved in the research process.

Planned Impact

The business need, stakeholder engagement and impact is embedded in this proposal by the close links between the Material Physics and Quantum Groups at Sussex University and the firm AMD who are commercialising these technological innovations. In addition, the trials being run with M&S dovetail with the research being conducted at the Digit centre on the implications of new digital technologies for transforming working practices in the same organisation. The Innovation Fellowship would provide a significant contribution in bringing these different streams of knowledge together to sharpen our understanding of digital innovations and their effects on management staffing decisions.

The retail sector is one of the core sectors examined in the longitudinal sector cases studies in the Digit research programme. The retail sector has seen some of the most spectacular changes driven by disruptive technologies and changing consumer patterns. These factors have had a profound effect on the location of employment in this sector with jobs moving from the high street to warehouses and new delivery channels. Tracking devices have become key to these new business models. The Innovation Fellow would examine existing and future practices in the development of more environmentally friendly tags as part of supply chain management systems. The combined use of these kinds of technology is likely to have significant effects on the organisation of work in this sector as illustrated by the experiment with Amazon Go shops in the US. The implementation of these tags is being trialled by AMD in the UK with Marks and Spencer in 2020. In addition, there is potential to examine how tags are being used at Walmart in the US, as they have offered to host three Digit research interns to work at their US offices in the summer of 2020.

An Innovation Fellowship on this topic would provide a very significant interdisciplinary contribution to enhance the existing ESRC investment in the Digit centre contributing to analysis of the scientific, environmental, managerial and employment consequences of the development of these digital technologies.

The impact of this knowledge exchange will be generated through
1. Consultative discussions with the key stakeholders on the progress of trials at M&S (UK)
2. Embedded participative research with AMD and Material Physics Labs over a period of two years
3. Embedded research internships with Walmart, USA over the summer of 2020 and 2021
4. A series of research working papers published on the Digit centre website (www.digit-research.org) (launched in January 2020).
5. Contribution to modules at the Digit summer school in 2021
6. Contributions to the development of an MSc in Business and People Analytics at the University of Sussex Business School being led by Professor Nachiappan Subramanian.
7. Supporting the Innovation Fellow with ECRs capacity building through a programme of training activities organised through the Digit Mid and Early Career Researchers Forum.

Publications

10 25 50
 
Description KEY OUTPUTS + FINDINGS

KEY OUTPUTS
1. Graphene-based RFID market context working paper:
This paper examines how the very latest graphene-based breakthroughs in the development of RFID technology could open new market opportunities in the adoption of green RFID tags in supply chain management. It examines the potential for graphene-based antennas to be a disruptor in the market -what problems are these technologies trying to address and what is the potential for application in retail supply chains. It reviews existing literature and market intelligence on the benefits and barriers to RFID adoption and future opportunities for growth across the industry, and its potential consequences for employment in the retail sector.

2. Automation, tracking and AI adoption working paper:
This working paper examines the experience of retail giant Walmart USwhois on a journey from traditional bricks-and-mortar retailer to a technology-driven supply chain operation. It draws on original empirical research with supply chain leaders at Walmart US and one of its partner organisations to explore examples of automation technologies it is adopting across its supply chain and why. It looks at how Walmart US makes decisions about what technologies to adopt, and the impact this is having on labour in terms of job creation and job displacement.

3.Advanced Material Development environmental, social and governance strategy:
As part of the collaborative relationship with investors and commercial partners at Advanced Material Development (AMD), I worked with the senior leadership team to develop a 2-year sustainability plan. This is driven by the desire to identify growth opportunities through a commitment to multistakeholder governance and by minimising material risks from the business. Paper links and coding reference:2-year strategy(WP3ESG), strategic framework (WP3ESGF)

KEY FINDINGS
1. Graphene-based RFID market context working paper:
Graphene is being dubbed the 'miracle material' of the future. With its unique set of properties, it could replace existing technologies and materials and open new market opportunities. Advanced Materials scientists at Sussex University and commercial investors, Advanced Material Development, are at the cutting edge of bringing new graphene-based applications to market.

When applied to RFID antennae, it offers the potential to bring about the same economic efficiency to supply chain management and business operations of traditional RFID applications. In addition to this, it claims to be a more sustainable material than traditional metal-based applications, which are not recyclable or biodegradable because they contain antennas made from copper, aluminium or silver, alongside a silicon integrated circuit, adhesives, plastics and paper. This is significant in a market that is forecast to significantly grow over the next decade.

Integrating emerging disruptive technologies into supply chain operations is about much more than the technology itself. To gain full value from the benefits of a technology like RFID requires companies to change at all levels - operationally, managerially, organisationally and strategically. The question of how it is implemented at the scale needed and at a price that is affordable remains. The biggest barrier to rapid traditional RFID adoption is the cost of the tag. Other barriers include the complexity of technical integration, data capabilities within organisations and a lack of global standardisation. Concerns about security and privacy risks are also present in the market.

2. Automation, tracking and AI adoption working paper:

Labour-enhancing and labour-replacing technologies will have a significant impact on the shape of employment in retail over the next decade. But this transformation is coming through a process of iterative change and experimentation to meet changing customer needs and expectations. This will create demand for new skill sets across the spectrum, from ICT skills to customer service and delivery skills.

The speed of adoption and diffusion of automation technologies is hampered by the cost and complexity of technological innovations and the legacy systems that these innovations need to integrate into or replace.

Changing labour models will need to be actively managed to ensure the right mix of talent. Importantly, responsible businesses will need to think about how they support those at most risk of job displacement - potentially looking at regional rollout plans to minimise impact on whole communities.

Advances in automation technologies have the potential to improve customer experience, grow revenue, lower costs and to remain competitive. Though not yet a lead factor in driving purchasing decisions in the US, environmental impact is emerging as an important trend in driving technological transformation.

To increase chances of a successful and scalable programme of automation, the right investment strategy, cross-functional governance and core capabilities (from inside and outside the business) are essential.

3. Advanced Material Development environmental, social and governance (ESG) strategy:

ESG is now highly visible for both companies and investor. ESG investing is bigger than ever and set to surge in coming years. Evidence is growing that strong ESG credentials play an important role in a company's success. Although demand for ESG data is exploding, there is no single ESG disclosure requirements or standards in place.

Using ESG planning methodology developed by the US Center for Sustainable Excellence and relevant ISO standards and global guidance, we developed a ESG strategy for AMD that raises awareness of ESG across the business, engaged critical stakeholders and identified material goals and strategy.
Exploitation Route Further exploration of critical factors influencing commercialisation of early-stage technology (e.g. how to best understand needs of future customers)
Sectors Digital/Communication/Information Technologies (including Software),Retail

URL https://digit-research.org/publication/innovation-work-chains-in-us-retail/
 
Description Business impact: Advanced Material Development - A two-year multistakeholder governance and sustainability strategy will put AMD in a position for future business growth. Market and data insight that supports AMD's business development opportunities. Walmart US - insight reports shared with senior supply chain leadership team and positive collaborative experience between the University of Sussex and Walmart US. Industry impact: RAIN Alliance: Named contributor on the industry white paper from the RAIN Alliance on sustainability and good ongoing connections between the RAIN Alliance and AMD to raise awareness and promote new graphene-based application. Academic impact: Graphene-based RFID market context working paper - this paper is in the process of being turned into a journal article to be published in Materials Today, a prestigious peer-reviewed scientific journal with an impact factor of 31.041 (2020). It awaits the results of a Lifecycle Assessment on the impact of graphene-based RFID compared to traditional materials. This has been commissioned and will be delivered via a wider research collaboration. Lead for ongoing paper development is Professor Alan Dalton. Automation, tracking and AI adoption working papers - these two papers will be published on the Digital Futures at Work Research Centre website by the end of July 2021. To promote engagement, they will be trailed in the Digit newsletter in October, which goes out to over 900 subscribers, and in a blog post in the same month to promote engagement. There are on average 1,665 monthly users of Digit and an average 4,659 unique page views per month. Traffic to the articles will be reported on when data is available.
First Year Of Impact 2021
Sector Aerospace, Defence and Marine,Chemicals,Retail
Impact Types Societal,Economic

 
Description AMD 
Organisation Advanced Material Development
Country United Kingdom 
Sector Private 
PI Contribution Prof Jacqueline O'Reilly (Sussex) was successful in achieving a UKRI ESRC and the National Productivity Investment Fund (NPIF) Innovation Fellow award, in collaboration with other partners including AMD. This project will examine the employment consequences of the development, adoption and implementation of innovative environmentally friendly digital technologies such as RFID tags and nanobarcodes in the retail sector.
Collaborator Contribution AMD are dedicating time and knowledge and match-funding to this award.
Impact Reports are pending.
Start Year 2020
 
Description Walmart Research Internships 
Organisation Walmart
Country United States 
Sector Academic/University 
PI Contribution Wil Hunt (Digit Research Fellow) and Nikki Stopford (Innovation Fellow, funded with additional ESRC/NPIF funding, https://digit-research.org/research/related-projects/bringing-environmental-radio-frequency-identification-rfid-tags-to-market/), undertook 'Research Internships' as part of Walmart's formal programme. Hunt investigated rapid recruitment practices in retail during the Covid-19 Pandemic. Stopford (Innovation Fellow) investigated the adoption of environmentally friendly digital technology. Each conducted interviews with Walmart employees, and liaised with Walmart on findings.
Collaborator Contribution This is part of Walmart's 'Research Internship' programme. Each intern was hosted by an employee of Walmart (virtually) and interviews were undertaken with Walmart employees.
Impact Digit Working Paper Series articles: Innovation Work Chains in US Retail: Automation, Tracking and AI Adoption during the COVID-19 pandemic, https://digit-research.org/publication/innovation-work-chains-in-us-retail/ Rapid recruitment in retail: Leveraging AI in the hiring of hourly paid frontline associates during the Covid-19 Pandemic, https://digit-research.org/publication/rapid-recruitment-in-retail/ Blogs: 'Walsmart': when AI hits the shop floor, https://digit-research.org/blog_article/walsmart-when-ai-hits-the-shop-floor/ Retail employment and automation: good or bad for jobs?, https://digit-research.org/blog_article/retail-employment-and-automation-good-bad-jobs/
Start Year 2020
 
Description RAIN Alliance Sustainability Working Group 
Form Of Engagement Activity A formal working group, expert panel or dialogue
Part Of Official Scheme? No
Geographic Reach International
Primary Audience Industry/Business
Results and Impact Sat on the sustainability working group of this RFID industry organisation. Named contributor on the industry white paper from the RAIN Alliance on sustainability (which will be made available to all industry member organisations) and good ongoing connections between the RAIN Alliance and AMD to raise awareness and promote new graphene-based application.
Year(s) Of Engagement Activity 2020,2021