Radio Frequency Identification

RFID (radio frequency identification) is the wireless technologies using radio frequency electromagnetic fields to transfer data to automatically identify and track tags attacked to objects (en.wikipedia.org). Three main stakeholders can be identified in this case: Raydar Electronics, KK Incorporated and the public respectively. Several advantages and disadvantages occur when using RFID. As stated by Fasuro, Raydar can help clients to fulfil their preferences, which makes personal life more convenient and more transparent (2004, para. 4). Also, lower cost and a better relationship with customers can be realized (2004, para. 21). However, privacy issue comes into concern, especially no password or access control for tags which allows to connect with anyone having a reader acquiring the frequency (2004, para. 52).

Question4: Raydar Electronics, as top five manufacturers and integrators of RFID technology, is located in Manhattan, USA. The company has been successful in designing and implementing RFID products for customers in the government and private enterprises like U.S military or pharmaceutical companies, resolving one of the most popular digital identification problems these days .However, there is one typical issue raising objections from the public like politicians, consumer advocates and executives in companies about privacy problem when using tagging products; that increases concentration of Raydar's managers about this issue in long-term business strategy.

Currently, Raydar has been carrying on an important project with KK Inc, and provides RFID hardware equipment along with professional services in deploying this technology, especially in areas of detecting and preventing inventory piracy. Obviously, a positive result in reducing the number of theft in KK Inc. trading stock can be witnessed. As a result, KK tends to go with Raydar in a new order about inserting 'flat tags' into their products with the purpose of gathering customers' information. This new order puts Raydar in the position where several challenges like ethical issues, legal issues and publication occur.

Question5: KK Incorporated, established in Manhattan and initially known as Koolkids brand, has manufactured and retailed clothing products for teenager market, but the revenue was not impressive amongst clothing industry. However, since last year, by changing business strategy and outlet appearance, the company has achieved a great success in sales revenue soaring by 77% as well as the attention of publication. The success also illustrated some enormous problems in operation of KK Inc, especially in the inventory risk management showing a large number of thefts and miscounts. Therefore, a managerial decision to sign a contract with Raydar about detecting and preventing stock-out by equipping its warehouses with tags using RFID technology in New Jersey has been made. Consequently, there was a 3% drop in stock-outs and more accurate inventory counts.

The past success has not been satisfied the ambition of KK Inc. which aims to lead fashion industry and technology applied, so they imposed an order with Raydar, tagging its products and linking with customers' information, to recognize them for the next visiting and provide specialized customer service. One significant consideration that it could be legal obligations when tracing customers without their consent or the boycott of publication due to their privacy breached arises.

Question6: "Boundaries" and "sticking" literally mean a limitation or extent of something and putting a pointed object into something respectively. In this case, the sentence of "it would mean setting boundaries and sticking to them "represents inserting a tag, which is a chip inserted directly under the skin to children, will restrict children's freedom. More specific, even though Childcare wants to utilize RFID on the electronic ID tag to track children in order to protect them, the technology would erect barriers to freedom for children and be inconvenient. Also, it is quite doubtful whether parents are willing to buy and insert the tags for their children. On the other hand, some benefits can be seen for children associated with the new technology. For example, the police can use the collected information through ID tag to research children when they are lost. Cost for schools recording students' attendance will be reduced by RFID. Thus, from Dante's perspective, it is reasonable to believe that Raydar will figure out how to use the technology in more responsible way.

Question7: There are three ethical issues raised by the information contained in the case. They are privacy issue, accessibility issue and property issue. Firstly, according to Mason (1986, p.5) the privacy issue associates with the collection, storage, and dissemination of information about individual. From the case, the public are mainly concern about the personal information of children's will be misused by illegal person. Not only the children's preference will be shown though Raydar, but also the address. If he or she is failing the gym can also be recognized by others stated by Craig (cited in Fasuro 2004, para. 29).

Secondly, the accessibility issue is the right to access information and the payment of fees to access this information defined by Mason (1986, p. 5). In the case, there is no password requirement and the whole process is not encrypted; therefore, anyone can read car license plates without the owners' acknowledge and permission (Fasuro 2004, para. 44). Thirdly, the property issue is ownership and value of information (Mason 1986, p.5). From the case, we know someone can use Raydar to steal owner's rights. Someone may use the customer's name and password to destroy the user's information system.

Question8:

FRID technology itself has controversial benefits and drawbacks. It is therefore of crucial importance to conduct a serious risk assessment before determine whether to proceed with KK's offer.

In the event of accepting the