But after four years of operation, the firm is now one of the leading RFID solution developers in the country.

"We knew nothing much about this technology on the first day," recalls Wirote Ngamsukkasamesri, co-founder and general manager. "Before we set up the company, we just realised that RFID was an emerging technology and it would offer opportunities for us to jump into this business."

As RFID was expected to be a new rising star, Wirote, a marketing researcher who had no background at all in information technology or RFID, decided to pour his pocket money into Identify after his friend Dr Smith Suksmith, a doctor turned RFID developer, invited him to join in setting up the new company.

"Before returning Thailand, Smith worked on RFID development in the United States. So with his expertise, I believed that we could go into the RFID business, establishing Identify in 2003," Wirote says.

Wirote admits that in the first two years of operation, Identify - with only five staff - struggled to do business. Since RFID was something very new to the market, it was difficult for the start-up company to get customers.

"So we had to start educating the market about the new technology and its benefits," he says.

Meanwhile, Wirote and his team also had to acquire more knowledge about RFID technology.

"We read and learned everything related to RFID in order to make the company stronger. Our team had to understand the technology well so that we could help customers to adapt it to serve their requirements," he says.

Since RFID technology was new for everyone, sometimes it was difficult to answer all the questions posed by clients.

So, if Wirote was unable to give them an answer, he would do more homework. This was actually a crucial step for him in learning more about the technology and customers' requirements.

However, it was a hard time before the company snagged it first customer by the end of its second year.

"For two long years, which we spent learning, we rarely had income, so we had to use our own money to run the entire operation," he says.

Identify started business by developing RFID tag- and reader-based passive technology. However, the technology operates by using power from the RFID transceiver and does not have a good range. So, after seven months of development, Wirote says the team realised this path was not a worthwhile one to follow.

"We found that passive RFID tag- and reader-based technology had a low margin and we could not compete with those produced in China, which offer a lower price. So we shifted our strategy to produce active tag- and reader-based technology, which offers a much better identification range, while we also put more focus on becoming a system integrator."

As Wirote spent more time talking to customers, he also found that what they wanted was not hardware, but a technology solution that addressed their problems. And this led to the company changing strategy to provide RFID solutions.

Identify finally landed its first large project to implement RFID solutions for Cement Thai Logistics (CTL), a logistics company under the Siam Cement Group. The solution was to adopt RFID technology to track the company's 1,000-strong fleet of trucks.

"CTL was our first site reference to provide RFID solutions for logistics and supply chain systems. And from this, we were able to further develop RFID solutions to serve other customers. We would say that our key strength is in logistics and supply chains," he says.

After struggling during the first two years, Identify in its third year came up with a better cash flow. Its status was much improved, with more customers and more income.

In 2005, the company generated around Bt5 million in revenue, which increased to Bt10 million last year. Wirote expects revenue will grow by 20 per cent this year.

Identify is now recognised as a leading local RFID solution provider. The company also became involved in the large pilot project to develop a so-called electronic port, which will turn all custom processes at Laem Chabang into a paperless system.

Identify's role was to develop an electronic seal. The technology is to use RFID to transfer freight information to the Internet, facilitate inspections and monitor commercial vehicles - both their drivers and cargo.

An e-seal comes in the form of an additional seal to be used with a conventional lock to increase the security of containerised cargo movements. The technology allows exporters to follow their shipments each step of the way without fear of tampering.

"We developed the e-seal in a pilot test and the results came out fine. Currently, the project - which finished the trial process in the middle of last year - is in the process of developing a real model for further implementation," he says.

Wirote says that in four years of RFID business, there has been much to learn and a lot to do. Even though the market currently understands more about RFID technology, people still feel RFID is far from their reach. His goal now is to make RFID more attainable for businesses.

The next step, Wirote says, is to make RFID solutions a standard package, which can be sold like other software products off the shelf.

"We want to distribute our RFID solutions like a software package that users can buy from retail stores. Just buy our package, and use the CDs inside for installation, and you can start using RFID solutions to serve your business demands," he says.

To get under way, the company started developing a RFID Mobile Workforce solution as a standard that can fit all customer requirements. The solution will facilitate the deployment of RFID in a factory with several machines in order to improve the efficiency of the plant's maintenance plan. This will allow each machine to report its status - including an ID number, job description, maintenance record, and manufacturer information - to the factory manager.

"The product is designed to fit for cross-industrial design. It's our first step to move from customised software development to mass standard product development," Wirote says.

The solution is Currently being implemented in a manufacturing plant. The company plans to develop it and sell it as a mass package this year.

"We believe that in the long run, an RFID package for mass use will be a key strategy for the company, as it will generate more revenue than customised projects and will be a way to push local RFID businesses to grow," he adds.

Pongpen Sutharoj

The Nation