In this article, John Denslinger waves goodbye to the barcode, replaced by QR codes and RFID tags, and ponders whether AI will enhance and refresh both for another 50 years.
Hard to believe the humble barcode turned 50 this year. It all started in June 1974 with scanning an inauspicious pack of Juicy Fruit gum. Some say it ushered in an era of transactional automation, while others pointed to the benefits of inventory management. It did both, but more importantly it generated data, information useful to sales, marketing and operations.
IBM is credited with the linear barcode as we know it today: a 12-digit code identifying the product’s name and manufacturer. This standard ultimately became the Universal Product Code (UPC) allowing countless businesses to efficiently digitize and catalog billions of items.
For a half-century, the barcode has been the identification workhorse, but that was yesterday. In the coming age of AI, the linear barcode does not fit the needs of many applications. It simply does not offer enough data storage. While the barcode’s use will endure in some areas, innovative technology is already replacing it.
At the top of the technology list is a two-dimensional QR code on track for widespread adoption by 2027 according to GS1, the non-profit administrator of national barcodes. The 2D format offers a significant increase in data density. A single QR code can hold 7,089 numeric characters or 4,296 alphanumeric characters whereas the typical barcode holds less than 100 alphanumeric characters. Additionally, the QR code offers more versatility. Besides product information and manufacturer’s ID, QR codes allow individualized options for product tracking, advertising, images, place of origin, expiration dates, ingredients and website access. Furthermore, the QR code is easily scanned with smartphones. That feature alone opens a huge data link between business-to-business and particularly business-to-consumers. The user can instantly navigate from a physical product to an infinite digital world.
Next is a completely different technology, RFID (radio frequency identification). RFID is not a direct replacement for QR codes. It’s better suited to specific applications. For example, RFID tags do not require line of sight recognition which solves hard-to-scan or need-to-scan from a distance as in many retail and supply chain environments. RFID tags also store more data. Passive tags store a kilobyte of data, while some passive UHF tags can store up to 8kB. The benefit is real-time tracking ideal for logistics, inventory management and security applications. On the other hand, the QR code is inexpensive to deploy and easily scanned via smartphone. That makes the QR code an enormously powerful tool for product marketing and customer engagement.
Last is an AI powered QR code that facilitates advanced customization. AI offers faster scan rates, ability to store and update dynamic content and, when integrated with other AI technologies, delivers in-depth data analysis and personalized marketing. Early tests indicate customer engagement rates could improve by 25 per cent and lead generation by 30 per cent. That’s a win by any measure.