SubscribeSales have been concentrated in the three main areas that we actively target via our partners in the market. These are vehicle access control, public transport and logistical systems. The single biggest project in 2002 was the implementation of the Motorola project, which involved the development, certification, manufacture and delivery of a specially modified reader to be fitted to trains in the London Underground system.
The London Underground network is equipped with TagMaster’s positioning system
TagMaster’s role in this area is mainly as a subcontractor to larger suppliers of parking systems, and in this respect we have less opportunities to influence the end customer, i.e. the operator of the parking facility. We have instead global exposure via a large network of resellers and systems integrators, with agreements with many of the largest systems providers in the world. During the year we obtained a large number of big orders in this area, enabling us to maintain our position.
As well as vehicle access control for parking, vehicle access control to restricted areas (e.g. industrial, harbour, airport and military areas) represents an expanding market for TagMaster. This area is expected to enjoy increased growth in due course, and may involve all situations in which the simple, safe passage of vehicles must be facilitated.
In these applications both private cars and trucks are the objects that must be identified. We have a suitable product, as we have the longest reading range on the market, an ID-tag that can be fitted directly to the vehicle and at the same time a very low radio emission power, which means that we satisfy all of the requirements of customers and authorities.
Product Development
TagMaster’s RFID system with its long reading range is based on advanced technology in a number of areas. Microwave expertise is required to design antennas, transmitters and receivers.
In order to be able to supply ID-tags with a long service life and other unique properties, TagMaster has developed its own advanced, integrated circuits. In vehicle applications identification might need to take place at high speeds, which means that processor systems and software must satisfy strict requirements in terms of real time processing.
TagMaster’s systems are often used in physically demanding environments with temperature changes, vibration, moisture and chemicals. The products therefore have an advanced mechanical design that has been produced on the basis of many years’ experience.
In order to achieve short development times, external resources are also used. This is helped by the geographical location in Kista, which is one of Europe’s and maybe the world’s most important centres for radio system development for mobile telephony and for other standards, such as Bluetooth. With its proximity to the Royal Institute of Technology (KTH) and a network of designers, TagMaster is well equipped to move quickly to produce modifications and new designs to satisfy unique customer needs and new requirements from the market.
The development of Bluetooth and wireless LAN is being monitored with great interest, as the frequency used is the same as for TagMaster’s RFID system. This will mean lower manufacturing costs in future, as some components that are manufactured in large batches for these other systems can also be used for RFID.
Standardisation opens up the way for the even faster expansion of RFID technology. TagMaster is therefore involved in work on producing an ISO standard for RFID.
TagMaster has several patents that are approved for both Europe and the USA, and is working actively on applying for patents regarding solutions including RFID products.
Manufacturing
Manufacturing of TagMaster’s products is undertaken by subcontractors, most of which are certified in accordance with ISO 9000. The production of readers has been moved from Japan to Sweden to reduce the time from order to delivery to our warehouse. Our planning method means that this time has been reduced from 14weeks to 4 weeks, and that the number of units per order can also be reduced. The capital tied up in stock is now therefore of a significantly lower value.
Production capacity can increase rapidly with surface mounting in SMD machines.
Each electronic card is quality-controlled in several stages.
New test routines for readers have been introduced into production, providing totally objective measurement values for important performance functions, e.g. reading range. For each unit manufactured a test log is created and entered in a database.
Our main warehouse (for both readers and ID tags) and the logistics and dispatch function have been moved to Ronneby, Sweden. This reduces internal transport costs and provides increased flexibility for quick deliveries to customers.
Our ID-tags are produced in Malaysia, which has proven to be cost-efficient for TagMaster. A long relationship with our manufacturer ensures high quality at a low cost, with local subcontractors being used for etching, bonding and plastics manufacture. TagMaster procures strategic components after which manufacturing, assembly and testing take place. Finished products are delivered to our main warehouse.
Products
The main products in TagMaster’s range consist of readers and ID-tags, together with software to manage them. There are also a number of supplementary products for purposes such as fitting the readers and ID-tags, as well as development tools to adapt the reader’s integrated software to suit specific customer preferences. RFID reader and ID-tag
Important performance functions of RFID systems are reading range, reading speed, service life, the capability to read different ID tags simultaneously and the possibility to easily integrate with other systems.
TagMaster’s ID-tags are always active, and thus require no start time to be able to receive and confirm an identification attempt by a reader. This provides extraordinary speed performance, which is needed for functions such as reading the identity of passing trains. It is possible to read objects with a passing speed of 400 km/h. TagMaster’s ID-systems also have an anti-collision function that enable simultaneous reading of several ID-tags within the same reading zone.
The maximum reading range is between 6 and 10 metres, depending on the choice of reader and ID-tag. TagMaster’s systems are adapted so that they can very easily be integrated into existing environments, e.g. parking facilities. The integrated support for the most common interfaces means that a TagMaster system does not have to be modified to replace identification solutions based on magnetic cards or PIN codes.
TagMaster’s reader consists of an antenna, a transmitter, a receiver, a computer function to process and store information, and a physical interface for communication with other systems. As well as functions for reading ID-tags, there is a motion detector that can measure the speed of moving objects even if they do not have ID tags. In certain applications the reader has to work stand-alone. This places demands on storage and database functions, so that it can work independently to make decisions, e.g. to open a garage. The reader’s integrated input and output ports can then be used for control.
One of the properties of RFID technology is that readers can interfere one another if they are working on the same frequency. For this reason when TagMaster’s readers are mounted close to one another they are set to make sure that they are not using the same channel. There are approximately one hundred channels to choose from!
An ID-tag has the format of a credit card and is 3 mm thick. It contains an antenna for transmission and reception, a memory circuit and a battery.
There can be a need to write information on the card when used in the security sector and in logistical applications. TagMaster therefore supplies both ID-tags that can be read and ID-tags that can store information (read/write). Information programming requires no equipment other than the TagMaster reader and software.
ID-tag and reader in the Heavy Duty model.
As a new complement to vehicle access control, work has started on developing our position in the field of rail transport. Over the years we have implemented a number of installations, but not until 2002 did we make a major, systematic effort to establish ourselves as a supplier in this field. Our technology is ideal for these demanding environments, and we are exposed to far less competition than in the field of vehicle access control.
Developments within the European market indicate that most rail transport systems are undergoing changes in the form of privatisation and/or conversion into independent companies, and that there is an increase in interest in the use of trains for both passenger and goods traffic. TagMaster feels that these changes are positive, and notes that this constitutes an expanding, extremely attractive market.
As well as the usual long-distance rail traffic, local public transport systems (buses, underground, trams and local trains) are also a potentially attractive market for us. So far TagMaster’s products have been used to provide travellers with information, e.g. about trains due to arrive, with the aid of train identification.
Another application for which TagMaster’s products have been used is as an integrated element of a quality measurement system to enable the measurement of wear on train wheels and axles while they are in traffic.
Alongside vehicle access control and transport, the demand for RFID solutions for logistics is expected to grow quickly. Major product flows of various kinds usually have excellent potential for rationalisation if information processing can be improved. This might involve the transport of goods, automation of goods depots, improved routines for fleets of vehicles, rationalisation of data capture and control of product losses. TagMaster has participated in several projects aimed at improving the processing of transport by road, various rail applications and registration of containers. These often-global logistical systems require strong partners, which is why we have established collaborations with partners such as IBM and Motorola.
On the basis of a positive financial result, TagMaster has now continued to reinforce the organisation. The marketing department has been organised to enable it to manage more resellers in an efficient way and to further strengthen our direct involvement in the major strategic alliances into which we have entered. In addition to this we continue to attempt to make new customer contacts with whom we can take on the role of a pure OEM supplier.
Sales efforts have been concentrated on major contracts and strengthening our position in Europe and Asia. We are continuing our collaboration with IBM, and discussions are under way in both Europe and the USA on potential deals. The interest from IBM and the fact that TagMaster is the only RFID solution that IBM recommends show that our technology is competitive with the major systems integrators. Largely thanks to our system’s flexibility and global acceptance, IBM intends to use our products as key components in future information systems for mainly logistical applications.