Nowadays, business and technology are closely related. It is impossible to perform any business operation without organizing and connecting all its components well. Computers and Internet help to manage all company operations. Sometimes, high revenues of the company require constant improvements and implementation of more technological achievements that just computers. One of such latest solutions is radio frequency identification (RFID). Today, numerous studies are concentrated on the investigation of the ability of RFID to improve operation of the company as well as the quality of provided service. The deep analysis of RFID helped to identify a great range of advantages proposed by the technology that significantly reduce the expenses of the business and raise its income.
The Disney Company
Disney Company is one of the most prosperous companies that keeps leading position because of the constant development and implementation of various innovations and new technologies. The paper presents the analysis of Disney Company, its products, and specific strategies that imply using RFID with the aim of raising productivity, profits along with forming a specific structure that will positively contribute to the further development by outlining the specific plan for the new technology implementation.
The Disney Company is one of the world’s leading providers and producers of the information and entertainment. The management team uses the portfolio of brands in order to differentiate the content, customer products, and services. It also searches the ways of developing the most innovative, profitable, and creative experiences in order to be a strong competitor in the world market (Carillo, Crumley, Thieringer, & Harrison, 2012). The establishers of the company, Walt and Roy, believed that it should stay one step ahead the competition and be the most original animator of all times. Consequently, they created the unmatchable empire. The company always hired people with the richest imagination, the best actors, and used the most progressive technologies (Carillo, Crumley, Thieringer, & Harrison, 2012). The main objective of the brothers Walt and Roy was to satisfy the needs of the consumers and make them happy. At first, the main segment of the company were children under the age of twelve. Only in several years the management team understood that it would be more effective to orient not only on the young children but also to attract the decision-makers, that is parents, because they provide financial support to their kids (Carillo, Crumley, Thieringer, & Harrison, 2012).
The recent decision of the company was to change the target market and concentrate on the usage of the hottest gimmicks in the media business – “advergaming” (Carillo, Crumley, Thieringer, & Harrison, 2012). Thus, the target customers also changed and started to comprise teenagers who preferred to play games. The desire to develop Disney Company applying the wireless network induced the growth of the interest of other segment of customer. The experts consider that the decision to launch wireless service led to the attraction of the customers which included not only pre-teen children but also their families (Carillo, Crumley, Thieringer, & Harrison, 2012).
Eisner, the COE of Disney, once said that making money is the main objective of the company. However, despite the desire to earn great profits they never forgot about the customers. Disney wanted to establish the happiest place on earth and strongly promoted the characters of Disney Studio Production (Carillo, Crumley, Thieringer, & Harrison, 2012). The purpose to earn big money was the foundation for constant development of the company as well as for provision of the wider choice of services for the customers. Specifically, the company invested its profits in the expansion of the market structure, creation of new lines, and development of different activities that attracted more and more customers (Carillo, Crumley, Thieringer, & Harrison, 2012). The placement of Disney images on schools suppliers, malls, and lunchboxes across the country is a kind of the daily advertisement of the cartoons that makes Mickey Mouse be always in the minds of numerous people (Carillo, Crumley, Thieringer, & Harrison, 2012).
Moreover, one more objective of the company is to become the leading producer and provider of entertainment in the world. The company effectively reached the goal by organizing studio entertainment and theatrical productions for children, teens, and their parents. To illustrate, the majority of kids prefer to watch Disney Channels; the whole families can be aware of the news in the world by turning on ESPN, ESPN 2, ESPNU, ESPNEWS; the parents who prefer to stay at home have such interesting proposals as SOAPnet (Carillo, Crumley, Thieringer, & Harrison, 2012). Besides, the parks of Disneyland and Disney World attract all the family members.
The analysis of the company’s profits and satisfaction of the customers proved that it is on the right way. Disney’s parks are placed in France, Japan, China, and all around the United States. In addition, Disney customer products are sold in their stores across the globe including the U.S. (Carillo, Crumley, Thieringer, & Harrison, 2012). The investigation of the company’s industry showed that it focuses on the creation of the items and toys which promote their theatrical production with unique design that is not only interesting, but also safe for the children.
Safety is a crucial issue for the industry (Carillo, Crumley, Thieringer, & Harrison, 2012). The previous negative experience of the Mattel Toy manufacturing company connected with the identification of dangerous ingredients in the paints used for toy made people become more attentive to the safety of the products intended for kids. Furthermore, the history and name of the company is very important for its further prosperity. That is why it has to remain in the minds of the customers as a producer of qualitative goods. The effective strategy of Disney Company also involves such special offers for families as free of charge room in the hotel or discounts on flights, which people gratefully use because they are sure that the company provides only safe services and products.
The S.W.O.T. analysis of the Disney Company helped to study its work environment as well as the popularity of its services and products. According to the investigation of Forbes, the company has numerous ideas that assisted it in becoming the second largest media and entertainment organization in the world after Time Warner. Its brand name is the most powerful in the entertainment industry (Carillo, Crumley, Thieringer, & Harrison, 2012). Nevertheless, despite numerous positive aspects, the business also has some weaknesses. The first one is connected with too big number of workers, which can cause the increase of bureaucracy. The other problem is that according to the investigation of Hong Kong Polytechnic University, 70% of the local residents have a negative opinion about the Hong Kong Disneyland Resort; this negatively influences the reputation of the business (Carillo, Crumley, Thieringer, & Harrison, 2012).
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Today, markets often become more versatile due to globalization. The trends concerning the globalization are not immune to the entertainment business. Consequently, the Disney Company strongly concentrates on expanding its business outside the U.S., and thus, develops theme parks in China, France, and Japan. The analysis performed by Data monitoring proved that more than 25% of income comes from outside of U.S. and Canada (Carillo, Crumley, Thieringer, & Harrison, 2012). Despite the fact that the company is very profitable, it also faces some difficulties that concern the regulations and laws valid in the other countries. Therefore, it is important to emphasize on the constant monitoring of various laws during the organization of outsourcing. Thus, the theme parks should meet the safety regulations of the countries where they operate with the aim of maintaining its brand, respect, and supporting the international status.
The competition is the other threat that requires implementation of various new technologies in order to stay unique (Carillo, Crumley, Thieringer, & Harrison, 2012). For example, the main competitors of Walt Disney Company are Paramount Park, Six Flags Theme Parks, and Universal Studio. The smaller competitors are great number of water parks and entertainment complexes that are cheaper, which attracts numerous customers (Carillo, Crumley, Thieringer, & Harrison, 2012). Thus, in order to reduce the competition, the company uses the specific marketing strategy based on the mixing of services and products that attracts clients of different ages. However, even such approach demands constant fight for the leading place in the market. In order to attain this, the corporation tries to regulate price depending on the season and offer specific packages like “kids for free”, “round trip airfare for cheap”, “hotel packages”, which often becomes a derivative factor that induces the clients to make their choice for the business’s profitability (Carillo, Crumley, Thieringer, & Harrison, 2012).
The deep analysis of the company, its products, and place in the market showed that despite numerous positive aspect and beneficial issues, it needs constant development and implementation of new technologies such as RFID. The economic impact of RFID is based on the general assumptions (Laudon & Laudon, 2009). The first assumption is focused on the ability of the new technology to achieve improvements in a short time with the help of automatic inventory or the exclusion of manual scanning processes. The second assumption is the provided by the RFID opportunity to completely redesign the process, thus not only enhancing the single task, but also gaining more efficient improvements (Laudon & Laudon, 2009). The third assumption is that the connection of additional users to the network RFID will help generate greater network externalities. Notably, the usage of RFID positively influences both factor and layout productivity. In case an individual employee demonstrates higher productivity, hence increasing the efficiency of the performed work by elimination of the manual scanning processor, it is not necessary to separate the non-single-origin pallets according to the automatic identification with RFID (Laudon & Laudon, 2009). The transparency supported by RFID provides the management team and researchers of the company with the opportunity to make a right decision that can induce factor productivity (Laudon & Laudon, 2009).
It would be also effective to outline significant advantages of RFID. The first one concerns the qualitative tracking of the goods transfer with the help of the supply chain analysis. RFID tags consist of the receiver and transmitter that can catch and respond to the great number of tags (Laudon & Laudon, 2009). Such approach can significantly improve a business operation. Consequently, the labor costs spent for entering the necessary data and tracking of stocks, will be saved. Besides, the RFID reader is more efficient than the human labor because it provides faster identification of products’ transportation from suppliers to customers (Miles, Sarma, & Williams, 2008). The other significant factor is the ability of RFID to save such additional information as expiry dates, which in turn, helps to avoid the presence of the expired product in the inventory (Laudon & Laudon, 2009). The third crucial aspect is the low price of RFID and its support of the safety measures.
Despite the fact that the company has some experience with the RFID, the technology constantly develops, thus increasing the ability to use new opportunities as well as specific variants that can raise the profitability of the company and attract numerous clients (Laudon & Laudon, 2009). Before implementation of new technology, the company should deeply analyze the positive moments that the new technology can provide; elaborate the process of evaluation; identify which documents are needed for the preferred flow of procedure; perform survey of site for its setting; study the aspects connected with hiring the right specialists; and efficiently test the system (Laudon & Laudon, 2009).
An effective method of implementing RFID for Disney Company and its centers should include the stages described below.
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Step 3. Paper Downloading
Administration of the company should determine the reasons why the RFID technology is the best for the corporation (1 month). Disney Company must choose RFID as the solution that offers an immediate or projected future advantage, which makes it more efficient than other technologies (Poulsen, 2010). First, Disney Company must assess their business expectations and study what the new RFID system may offer. They must be critical of anything they read about the technology because some sources of information can be inaccurate and misleading. Therefore, the business representatives must understand the firm’s perception of the RFID’s capabilities and compare their expectations with the plans and ideas grounded solidly in reality (Poulsen, 2010).
Besides, it would be important to study the increase of the supply chain’s transparency analyzing the new sensing and tracking capabilities, which will further support the quality of the process, one of the company’s most important goals. The newly implemented IT technologies will help to allocate products more productively. In the increased worldwide market, RFID will raise the efficiency of distribution, monitoring, and tracking of goods (Poulsen, 2010). The customer needs information that will help to make the right choice as a result of getting additional data stored on a RFID transponder attached to the products which may be accessible with the mobile device.
“Always look at RFID implementation as the process-improvement project” (Poulsen, 2010). There are many processes in Disney Company, which can be better controlled and include better-integrating business information, use of different attractions, laundry at the hotels and others (a month and a half). Understanding the primary processes and place of RFID within the equation is a significant aspect of successful implementation (Poulsen, 2010). As a result, Disney Company must look at the RFID implementation procedure and improvement of the project. Hence, when choosing whether to use the technology, it is imperative to analyze the present and upcoming business practices cautiously and decide which features may be improved through implementing the RFID-based solution. It entails collecting data from the numerous stakeholders, usually IT staff members, end users, maintenance personnel, and business management (Poulsen, 2010).
Disney experiences frequent changes in the top management and a large number of employees, which causes numerous problems. Today, the Disney Company comprises more than 130 000 people. The expanding of the product portfolio provides many images. However, the analysis showed the high possibility of increase of the number of workers that can lead to the miscommunication and spread of bureaucracy in the company (Poulsen, 2010). Before the RFID implementation, the management team should strongly analyze the positive factors of the technology. However, the investigation proved that the substitution of the manual labor according to the RFID’s automatic identification may significantly reduce the need for this type of work, which in turn, can induce shortening of labor force that further will help to prevent bureaucracy. In the short term, the supervisor can try to lay off employees and analyze the significant measurable results of the RFID projects (Poulsen, 2010). However, it would be important to notice that adoption of RFID will induce creation of new work places because that will require employment of more qualified labor and will improve the efficiency of the company. The new employees should emphasize on the processing the information that is generated at different resources and tools. Besides, RFID and Internet of Things propose a great potential of new ideas for innovations concerning the new business and new products (Poulsen, 2010). For example, it will provide an opportunity to set censorship network or anti-counterfeiting solutions.
During the first stage, Disney Company must find the reason of selecting this technology. Consequently, the new technology must meet the needs and coincide with the plans of the company. The second step concerns collecting data for creating the procedure-improvement project that will improve some processing features within the company (Poulsen, 2010). During the third stage, the administration of the company must create the requirement documents. It usually includes the procedure flow and special rules of implementing the technology. The fourth stage needs the research of the place where RFID will be located. Certainly, in this process must be involved different specialists who will be able to provide reasonable advice based on the personal experience that will make the work successful (Poulsen, 2010). During the fifth stage, the management must understand that the process of managing the company should go in the same way as before implementing the new technology. Without any doubt, the process of designing the system is a very important step. Further, the sixth step needs the involvement of different specialists who are hired for this matter (Poulsen, 2010). The last stage describes the necessity of testing of the RFID system. It means that before the new technology starts operating the administration of the company must have the time for its controlling, assessing, troubleshooting, and testing (Poulsen, 2010).
Therefore, the Disney Company must implement RFID, and all the steps described above are important for making this operation easy and successful. Only following these common rules will help Disney Company improve the work of its staff and attract more visitors who will enjoy the results of the Disney Company’s activity (Poulsen, 2010).
Even while implementing the small-scale project, it is essential to develop the requirements document that must describe the Disney Company’s preferred procedure flow and special rules crucial to implementation of the process (Poulsen, 2010). The significant considerations involve hardware, regulatory concerns, RFID tags, reliability, and maintenance.
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Perform Site Survey
First of all, RFID survey must be conducted for a planned installation location. The study must involve the RF-spectrum analysis to look for any competing or interfering signals in the area (Poulsen, 2010). Moreover, the physical survey will help to create a plan for the area and install any antennas and readers.
At the very beginning, a company should think what processes will be controlled as before because the RFID does not have sense for them (2 weeks). It may also be used in the parts of the process where only the bar codes and readable content serve as the security element when the RFID chip or reader fails. It might be a part of the process where some form of individual interaction can be still applied (Poulsen, 2010).
Hiring RFID Specialists
RFID engineers need to be involved in order to design the system (onboard data, tag connection, and other issues) and locate cables for RFID (2 months). Since RFID tags come in hundreds of various configurations, choosing the proper tag for the particular applications is crucial. There are easy labels, which may be printed, embedded in plastic card formats, tags, tie wrap tags, and different hard mountable tags (Poulsen, 2010). The analysis showed that Disney constructs the team by hiring qualified experts and engineers, which will significantly facilitate the establishment of RFID.
The process of constant development of technologies in the company is called Disney Imagineering (Wilson, 2016). People who work in this sphere develop various sections of Disney products and implement new technologies. The goal of Disney Imagineering section is a constant design and implementation of the new and interesting products and services, for example, the construction of new and faster rides in the parks, the development of new movie technologies proposing the cutting edge visual effects and others (Wilson, 2016). Thus, the effective and productive team will cope with the establishment of the new RFID technologies taking into account the previous efficient experience.
Testing of the RFID System (2 months)
Though all these stages will take seven months only, there will be breaks between them with the purpose to allocate financial resources for each stage. The entire process will take one year. The RFID system for Disney Company is not finished until it is tested and integrated with any of the software application (Poulsen, 2010). Disney Company must involve ample time to troubleshoot and test before using will start. Lastly, one must engage every stakeholder and everyday users of the software (Poulsen, 2010).
The Current Strategies of the Company Basing on the RFID
The analysis of the Disney Company showed that taking the decision to apply the RFID technology attracted attention of numerous clients and improved financial aspects of the business. The company created Magic Bands that looked like a stylish rubber wristbands of different colours. Each of them contains the RFID chip and radio similar to 2.4-GHz cordless phone (Wilson, 2016). The battery of wristband can last for two years. The band connects the owner to a powerful or vast system of sensor within the park. The futuristic intentions of the band make it invisible. The company used such technology with the aim of tracking the clients and identifying how they are using the park (Kuang, 2015). The tracking begins with the moment the client buys the ticket and lasts during all his/her presence on the territory of the park. In a week before the trip, the wristband with the name of the client comes by post (Wilson, 2016).
The kids accept such item as a Christmas present, which increases the desire to apply the new proposal more and more. The parents regard such technology as superpower that opens an access to the park. Arthur C. Clarke told that any sufficiently advanced technology is indistinguishable from magic (Wilson, 2016). The analysis of the new technology showed that previously, it was difficult to track more than one ride. Besides, the family also had problems with visiting the park because of the long lines. One of the family members had to transfer fast from kiosk to kiosk in order to buy the tickets for the other family members, when they are finished (Kuang, 2015). Today, the band provides an opportunity to survey the park in detail and to feel the advantages of all proposals. Besides, spending less time in lines gives a chance to visit all rides they want, and this, in its turn, brings high revenues to the company (Wilson, 2016).
In case the person signs up for the “Magical Express”, the Magic Band relocates all details immediately after touching it to the other place. Users of Express can board a park-bound shuttle and register in the hotel. The clients should also provide information about the luggage because each piece of it will be tagged in the airport of the country the clients come from (Kuang, 2015). Consequently, it will follow the customer to the hotel and even to the room. In case a person has no ticket, he/she can tap the Magic Band at the gate and use the previously reserved ride. Thus, by using the RFID, the companies deprive the client of the necessity to rent the car and waste the time (Kuang, 2015). Besides, they should not take cash because Magic Band is directly connected with the credit card of the customer. Such approach let the customers feel like visitors and not worry about other things.
Moreover, Magic Band supports a great number of connected systems of the company, hence inducing creation of My Magic Plus that turns the park into the great computer which provides a real life data, gives the possibility to analyse the preferences of the clients, and develops the strategy predicting the desires of the customers (Kuang, 2015). The used system provides the company with the opportunity to understand deeper the business and identify the weak and strong points for the further development and implementation of the new RFID technologies (Kuang, 2015).
The system also lets control the number of clients, hence helping to simplify the supply chain of the product that are consumed by the visitors and its quantity. The RFID also gives the chance for the Disney Company to optimize the number of employees (Kuang, 2015). The main goal of the new technology implementation is the creation of the system that can significantly reduce the time that was previously spent on making payments and buying the tickets, the process which required a direct interaction of the client and employee.
Staggs states that the digital world fills the life of the customer with the expectation for the development of entertainment options (Kuang, 2015). The business becomes more affected by the variety of choice, better access to the data, and raised desire for personification. Thus, RFID provides the customer with numerous positive aspects and lets the visitor do the things that previously took one month. The clients also noticed that RFID supports a short-range communication at touch – park admition and room entry among others (Kuang, 2015). Magic Band also includes a long-range radio transceiver which aids to communicate with receivers that are located throughout the Disney properties (Wilson, 2016). Besides, these long-range readers are used for delivering personalized experience while additionally providing information that induces the improvement of the overall experience. The bands with the help of RFID can offer such unique benefit making the kids not use their smartphone constantly (Wilson, 2016).
The other significant innovation is using RFID for the low-cost interactive games. The company in collaboration with Carnegie Mellon University elaborated the strategy of RFID that helps to make interactive games and controllers cheaper (Heater, 2016). The system is called “RapID” and is used when the player moves or touches the objects that are attached to the chip. RFID reader takes nearly two seconds to identify tags on the luggage. The significant factor is that RapID can recognize movements in as little as 200 milliseconds (Heater, 2016).
The system was elaborated with the aim of creating interactive toys in order to demonstrate the capabilities of the system. These toys also include a tic-tac-toe board that displays the games on the plays sound effects and screen of the computer (Heater, 2016). The researcher also made a physical audio board that the player could use to mix toy spaceship, the movements of which were displayed on the screen. Besides, RFID tag can be used in order to create interactive storybooks (Heater, 2016).
The third significant factor concerns the usage of RFID for tracking transfer of costumes in the park. The company installed RFID in its parks worldwide, which lets them track $100 million worth costumes easier (Swedberg, 2016). Consequently, staff members can quicklier check their garments in and out. Such approach also helps improve the visibility of the costumes through the laundering or repair process, and this significantly reduces the time to perform the checking of inventory (Swedberg, 2016).
Company’s Strategy for the Future Three Years
The analysis of the new technology demonstrates that RFID provides significant advancements that encourage rapid growth in the retail, safety of food, and entertainment services (Roberti, 2015). The Research and Markets report with the help of forecast global sourcing of RFID tags noticed an annual growth rate by 23% in 2018. RFID has a great advancement in the printed electronics that can help to form new classes of the extremely flexible and thin tags that can be mixed with the printed sensors, batteries, and other technologies (Roberti, 2015).
The new conductive ink technologies and electronic printing will provide the company with the opportunity of conceivable printing of their own RFID tags on the site. The Disney Company often uses depiction of their personages on the different products using 3D printing technology (Roberti, 2015). Thus, such technology will provide an ability of direct printing of electronics in the products as they are rendered. The researchers of RFID are also working on the creation of new antennas with better design (Roberti, 2015). RFID will also have an increased memory that can be effectively used by the company because it results in lower expenditures and enables the application of smart assets (Roberti, 2015). RFID constantly improves concerning the ecosystem of sensors and communication technologies that is in the preferred objectives of the Disney Company not only because of its eco-direction but also because of the providence an opportunity to monitor assets better (Roberti, 2015).
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The deep analysis of the Disney Company’s operation showed that the Magic Band contains sensors that provide the guests with the opportunity to take the rides as well as allow the company to pinpoint their location. Such approach enables the radios in the table and ceiling to identify the location of the guest (Roberti, 2015). Thus, the new technology opens for Disney Company numerous opportunities that can be realized during the one-two years. For example, in case the company decides to install the sensors throughout the park, this will open the new world of data (Roberti, 2015). It can use the myriad of park’s cameras to capture candid moments of the guests that enjoy riding, meet with the Snow White and other heroes (Roberti, 2015). Besides, it would be possible to see when the client spends too much time in the line and propose him/her a free ice cream. Thus, the business can turn negative aspects into the positive ones. Such invisible but productive technologies can make the service matchless (Roberti, 2015).
The other possible innovation is connected with the implementation of RFID for making the controllers and interactive games cheaper. The development of new technology anticipates the development of battery-less RFID tags in the near future (Roberti, 2015). Providence of RFID during the coming year will let the sensor triangulate the client’s location anywhere in the venue. For example, a person will be able to order a pizza sitting on the branch near the ride, and in several minutes it will be delivered directly to the customer (Roberti, 2015).
Another important component in the company’s strategy is the emphasis on the current studies that are performed by the researchers of the Disney Company, of the innovative technologies connected with RFID implementation that can be realized during next three years. The researches have been performed in the labs that are located in Pittsburg, Zirich, and Los Angeles; there are 60 staff members and researchers involved. Four of the projects were completed due to the collaboration with Massachusetts Institute of Technologies, Carnegie Mellon University, and University of Washington (Swedberg, 2016). The researchers studied ID-Match and developed a hybrid system setting RFID in the computer vision technologies in order to enable the robots not only identify a person and their location, but also find an individual in the group of other people. The system utilizes the technique that is known as reverse synthetic aperture; it helps identify the motion oaths of RFID tags done by a person (Swedberg, 2016). That data correlates with the physical paths of the man and is measured through 3D depth camera. Such approach allows the robot to repeat naturally the human’s actions and discern one individual from another (Swedberg, 2016).
Additionally, the researchers tested ID-Match system in the offices where 40 participants passed the hallway full of set Kinect cameras and RFID readers. Sixteen people carried RFID tags linked to their identities and moved across the office during the day, with 302 instances of general movements (Swedberg, 2016). In the 129 instances when the RFID tags were carried, the system accurately recognized the 95 % of users (Swedberg, 2016). Consequently, the test identified that ID-Match system can detect people with sufficient speed and accurately determine their direction of travel with the help of the virtual portal scenario.
Another experiment is connected with testing of ID Sense set in the toys (Swedberg, 2016). The researchers tested system with the stuffed toy lion with the RFID in its collar, which transmitted a signal to the RFID reader that was built into the game console. When a child stroked the toy, the reader detected that moment, and ID Sense determined that the child petted the lion (Swedberg, 2016). Consequently, the animation on the screen responded accordingly and showed the lion taking a nap. In case of shaking the lion, the digital version would show dancing.
To summarize, RFID technology is the right solution for Disney Company. It will be very useful for controlling and managing all activities of the employees and visitors of the park. All the stages of the offered plan of implementation are equally important because the process of analyzing how useful RFID will be for the company takes not less time than solely physical implementation of the system. Besides, using of RFID not only simplifies the work process, but also attracts the clients due to the innovative and interesting proposals. RFID is highly recommended for Disney Company because constant development of the technology will induce formation of the strategies that will make the company more prosperous. Thus, the company will not only be able to control transfer of its products, but will also offer interesting services for the clients and make guests feel relaxed and enjoy visiting of the park without spending much time for standing in lines. Such approach significantly raises the interest of people because it gives them the chance to visit more rides than previously. Consequently, the usage of RFID provides the company with the opportunity to earn more profit and offer a qualitative service to the customers, which will help keep the leading position in the market.
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