Communications of the Association for Information Systems


Radio Frequency Identification (RFID) is an enabling technology that can provide organizations with unprecedented improved visibility and traceability of items throughout their journey in the value chain. This paper explores how RFID can impact traditional business models or create new ones. In particular, we propose an RFID business model framework and use it to show how value can be created for organizations, suppliers, customers, and business partners. We also identify the major dynamic phases of RFID and their corresponding impact on RFID business models. A taxonomy of 12 specific RFID business models is also presented, reflecting the wide spectrum of potential directions and applications of the technology. Finally, we present a case study to test the practical and theoretical relevance of our conceptual models. The paper outlines the need for technology managers to take a holistic approach to RFID business model innovation, taking into account the interrelated technical, strategic, organizational, and external environmental factors.





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