What is Automatic Identification (Auto-ID)?
Automatic identification (Auto-ID) is a technology used to help machines identify physical objects (for example: items passing through the various stages of an extended supply chain) and provide information about them through automatic data capture. This data must be converted into digital form to be used by computer systems. The aim of most Auto-ID systems is to increase efficiency, reduce data entry errors, and free up staff to perform more value-added functions. There are a host of technologies that fall under the Auto-ID umbrella. These include bar codes, smart cards, voice recognition, some biometric technologies (retinal scans, for instance), optical character recognition, radio frequency identification (RFID) and others.

RFID is a generic term for technologies that use radio waves to automatically identify individual items. There are several methods of identifying objects using RFID, but the most common is to store a serial number that identifies a product and perhaps other information, on a microchip that is attached to an antenna (the chip and the antenna together are called an RFID transponder or an RFID tag). The antenna enables the chip to transmit the identification information to a reader. The reader converts the radio waves returned from the RFID tag into a form that can then be passed on to computers that can make use of it. This is the technology that BT Auto-ID Services, together with its 'best of breed' middleware, uses to deliver improved business efficiency.