Automatic Identification (Auto ID) Technologies in Our Daily Life


Automatic Identification (Auto ID) Technologies in Our Daily Life


Technology becomes more advanced and vast with time. In today`s highly competitive business world, where the time to market of products is short, disseminating information to clients, and online transactions through the Internet are becoming critical. IT plays a prominent role in helping business organisations to stay ahead of their competitors. The use of computers has increased many times and has become indispensable in every organisation. Today, the industry shift is towards Electronic Data Interchange (EDI), Enterprise Resource Planning (ERP), Enterprise Resource Management (ERM), inventory management, logistics and many other developments.


Business management is undergoing a paradigm shift with the growing importance of the Internet and the inception of e-commerce. Information generated in the organisation has to be judicially used for business benefits. The Speed and accuracy at which this information is gathered is of prime importance. Take the case of a manufacturing unit. The production schedules, production output for the day, spares and raw materials availability, inventory, sales, warehousing stock, dispatch of goods, etc. should be available timely for the management to take appropriate and correct decisions. The data should be accurate and in some cases in real- time. Collecting data through manual entry has many drawbacks and modern developments using automatic data collection have to be introduced to keep pace with the competitors in the industry.

The word “Automatic” means that a single entry event can result in the capture of a stream of data (from a single character to dozens of characters). Also a human operator may or may not be part of this event. Among the many automatic identification technologies, the most popular are OCR (Optical Character Recognition), Magnetic Stripe, RF identification (RF/ID), Smart Cards, Biometric ID, EDI, last but not the least, bar codes, the range of automatic data entry technologies is wide and their use ranges from the familiar retail outlets to manufacturing industry, banking sectors, health care, logistics, warehousing, access control, security, time and attendance, shipping and receiving, among others.

The most familiar is the Electronic Point of Sale (EPOS) systems used in supermarkets. A high proportion of food items carry the coded number represented by the bar code. The advantages of automated data entry in supermarkets are rapid. Accurate captures of detailed sales information and the ability to process the data by the computer system, resulting in saving time, not only of the customer but also of the management. A major benefit is the ability to control the inventory and automated ordering of items/products without the intervention of the stores- personnel. To realise the full benefit of the EPOS system, the automatic capture of the code for each of the product, and the computer establishing the product identification and the price of the items are essential. Bar codes have become indispensable part of the EPOS system throughout the retail business. The banking sector has developed the automatic identification technology known as the magnetic ink character recognition (MICR). This system can identify the account number, codes for sorting and other information directly from the cheques. Automated Teller Machines (ATMs) used in major banks facilitate customers with 24 hours banking. Customers can withdraw cash, deposit cash, have access to the statements and obtain new cheque books through ATMs. Another interesting technology that has combined the retail and banking sectors is the Electronic Funds Transfer at the Point of Sales (EFTPOS). Here, a customer uses his credit card to pay for the goods purchased at a retail store. In an online EFTPOS system, the appropriate sum is transferred from the customer`s account to that of the Store at the time the sales occur. The whole process from reading product codes on the goods being purchased to crediting the store`s bank account takes place automatically even while the customer is in the Store. In health care, these system results, better and efficient services to patients.

The use of automated data entry in a wide range of applications is indicative of the major benefits these techniques offer. By removing the need for the transcription of data from a source document into a machine readable form, the full benefits inherent in a computerised system can be realised. Bottlenecks in traditional data processing operations frequently occur at the data entry stage, so automatic data entry is a highly appropriate approach in the search for more efficient and cost-effective systems. In every industry the quest for increased efficiency, accuracy, cost containment and global competitiveness has become a major goal. Consequently, automated data input technologies will see continued and increasing use in helping business achieve these goals.

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