Over the course of the next several months, we will be providing an in-depth look at the exciting technology of RFID (Radio Frequency Identification) and its application in the automotive world. Whether you realize it or not, you are very likely already a user of RFID and enjoy the benefits it provides in everyday life.

Not everyone is familiar with RFID, so we thought we would start this series of articles with a basic introduction to the technology. In subsequent articles, we will cover various applications of the technology in the retail automotive world. We will also cover important points such as privacy and help provide an insight into the different RFID technologies in play and how the automotive market is starting to mature with greater adoption of the technology.

So let’s start by getting back to how you are very likely already using this RFID in everyday life. If you have a ‘toll pass’ or ‘speed pass’ which allows you to zoom by the tool booth, you are already a user. If you walk up to your high end car with the key in your pocket and the doors unlock automatically, you are already a user. Even your dog or cat might use RFID. If they have a chip implanted to help identify your pet if either lost or stolen, then your pet is also a user of RFID. Get the picture?

The basics of RFID revolve around the concept of one “machine” talking to another “machine” without physical contact. In the case of RFID, the first “machine” is the reader coupled with an antenna. While the second “machine” is an RFID tag designed to wake-up when it comes within certain proximity of the antenna. These two machines are designed to talk to one another over air and without any real human interaction. The capture of this information can be done automatically, with tag to antenna distances of 30 feet or more and a very minimal time exposure between the reader and the tag, as in the highway toll pass example.

Let’s take something we are all very familiar with—bar codes—and quickly contrast it with RFID. Bar codes have been around forever and they’re a staple in everyday life, but here is the thing about bar codes: They typically require a person to scan an item at very close proximity or the bar code can’t be read. Also, bar code reading can fail if the bar code is not printed properly, been smudged, or damaged in some other way. RFID, however, operates in a completely different manner that eliminates traditional operational and personal productivity issues associated with bar codes. That is what makes this technology so exciting and in the field of automotive we have only begun to scratch the surface of the benefits that can be realized. More to come…

George A. Cresto is the founder and president of MyDealerLot™.