The need for sustaining competitive advantage while constantly creating added value is driving organizations to identify and adopt appropriate new and innovative technologies in order to endure and thrive in today’s dynamic marketplace. Of significance is Porter’s (1985) approach to value chain analysis which argues that organizations can achieve competitive advantage by effectively managing its core competencies and activities to create cost advantage and/or differentiation by leveraging Information technology (IT) as a major strategic tool. The latest revolutionary technological breakthrough is the emergence of the Radio Frequency Identification (RFID) system which has the demonstrated ability to identify, track, trace and collect information on almost any physical object wirelessly, using electronic tags and radio waves connected to local and international telecommunications networks. RFID therefore provides at least a viable alternative to and significant advantage over the use of barcodes by making use of internet technology and thus providing unlimited opportunities for added value creation and business expansion. While, admittedly, it is no magic elixir and has serious implementation challenges, its full business benefits can be achieved once careful strategic analysis identifying the specific needs of the organization is exercised.
RFID is part of the Automatic Identification (Auto-ID) technological grouping which includes barcodes and smart cards. A RFID system has three major components electronic tags (transponders) which stores data, reading devices (interrogators) to capture data and computer hardware and software infrastructure for data processing. Initially developed by the British in the 1940’s for aircraft identification during World War II, its use rapidly spread to other applications to effectively track and manage livestock, railroad cars and in