Best Buy must prove RFID benefits to consumers, says CIO

Computerworld - BOSTON -- Retailers can benefit from radio frequency identification (RFID) technology, but they must first convince consumers that the technology won't lead to the misuse of their personal information.

In a keynote speech today at the ERIexchange show for retailers, Bob Willett, CIO at Best Buy Co., called RFID the "single biggest opportunity" for the chain of retail stores.

At the same time, Willet conceded that the industry must work to convince consumers that use of the technology will not be expanded to gather and exploit their personal information. "We have to do a better job explaining it's not a nightmare," he said.

He said that Best Buy is focused on using the technology at the front end of the store rather than to improve the back-end supply chain. For instance, the company has already initiated pilot projects that use RFID technology to help customers more easily find items they are looking for in the stores. In one case, he credited the technology with boosting video game sales in a store.

Willett did note that the pilot programs used Generation 1 RFID technology, which isn't as robust as the newer Generation 2 systems.

Willett said that he has set a goal of using RFID technology to automate the payment process and thus eliminate checkout lines. He did not disclose specific plans, but he noted that he expects use of the technology to both eliminate checkout bottlenecks and free up employees to provide better service to customers.

"Before I'm carried away  in a box, I'd like to see checkouts gone from the store," Willet said. "The technology is there to do it today with RFID. The first major retailer that can do it will be remembered forever and a day as a champion  of the consumer."

Read more about mobile applications and rfid in Computerworld's Mobile Applications and RFID Knowledge Center.