July 18, 2007

Supply Chain Digest: Fingerprint Identification Moves Mainstream

SCDigest Editorial Staff

Through a special arrangement, what follows is an excerpt of a current article from Supply Chain Digest, presented here for discussion.

Long a staple of futuristic movies, Biometric identification of consumers has gone from Hollywood to mainstream in just a couple of years, as theme parks and grocery store payment systems sprout from California to Dayton, OH.

Biometrics are automated methods of recognizing a person based on a physiological or behavioral characteristic. Among the features measured are face, fingerprints, hand geometry, handwriting, iris, retinal, vein and voice.

In recent years, theme parks such as Disney World and Universal Studios in Orlando have rolled out fingerprint-based systems designed to eliminate the ability of visitors to sell or give away admission tickets to another consumer when their visit is over.

Guests have their fingerprint (generally, the right index finger) scanned when they first enter the park, and that image is tied to the serial number of the admission ticket. If fingerprints don’t match on subsequent admissions, admission is refused.

Meanwhile, a growing number of grocers, such as Jewel-Osco, Cub Foods, Piggly Wiggly and Harris Teeter, have rolled out pilot or production systems in at least some parts of their chains. Under a system from Pay by Touch, consumers pay for their groceries simply by having their fingerprint scanned at an in-store kiosk. No credit cards, check, cash or driver’s license are required.

Tom Jackson, president and chief executive officer of the Ohio Grocers Association, said the Pay by Touch or similar system is more secure than traditional payment methods.

“Our fingerprint, or our retina, it’s indigenous and unique to us, so therefore, that adds to the security that the person who’s supposed to be using this charge is in fact the person who should be,” he said.

Privacy concerns could throttle further development, but don’t appear to be a problem yet given the tens of thousands of attendees to Orlando theme parks providing fingerprints routinely, without any real knowledge of what is happening with that information.

With the growing use in consumer-oriented applications, is there any potential in the supply chain? There would actually seem to be endless possibilities. For example, fingerprints might someday be used to check in and off the job, eliminating “time clock fraud” that sometimes occurs when other workers punch in or out for an employee. Perhaps someday, a fingerprint scan will be part of the delivery process for a shipment to a home address, for example.

Discussion Questions: What is your take on the increased use of biometric identification in consumer markets? Do you expect any privacy backlash? What applications, if any, do you see in the supply chain as well as across retail?

Discussion Questions

Poll

8 Comments
Oldest
Newest Most Voted
Inline Feedbacks
View all comments
Mark Lilien
Mark Lilien

Biometrics (fingerprints, handprints, retina scans, etc.) will improve convenience tremendously. Why bother to carry credit cards and loyalty cards if you don’t have to? Data entry security (at all computers, laptops and otherwise) is also enhanced, since passwords aren’t needed. There will be at least 2 challenges: privacy and security. The same folks who don’t want to disclose their social security numbers won’t like having their fingerprints or other biometrics on file. And because biometric data will be collected, it will be stolen, just like social security numbers.

Liz Crawford
Liz Crawford

Millennials are more concerned about speed and convenience than privacy. This is a generation that has grown up with national wiretapping, personal netcasting on MySpace and a suspension of habeas corpus. Do they really expect privacy? A certain amount of data security (especially regarding financial data) is an expected price of entry, but nothing more.

Privacy is a Boomer issue. But the Boomers are on the way out. It is only a question of time before these metrics and systems are in place.

Camille P. Schuster, Ph.D.
Camille P. Schuster, Ph.D.

My students from Europe use biometrics already for security purposes. Comparisons between European and US undergrads reveals that European students face more security measures (both in numbers of steps and variety of measures) when using credit cards, banking, computers, etc. They are willing to trade off the time for increased security.

Mark H. Goldstein
Mark H. Goldstein

Biometrics…why bother?…. Instead, combine personal barcodes on cell phones and consumers would be much much better off. Biometrics is a ’90s solution that isn’t going to widely happen. I want real-time feedback and the computing power of my cellphone to help me make my best purchases.

Bernie Slome
Bernie Slome

Perhaps privacy is more of a concern for baby boomers than for younger generations. Gen X & Gen Y are more about convenience. Biometrics is more convenient and will help the government keep track at the same time. I call that a win-win. And we thought Orwell’s 1984 was pure fantasy. It was just 20+ years a little early.

Santhosh Jayakumar
Santhosh Jayakumar

There are several pharmacy retailers who use biometrics for user authentication for their applications. The need to maintain a log of employees who work on specific steps in the processing of a prescription is probably a big catalyst for this fairly quick adoption. And a leading pharmacy software vendor has released their new product embedded with fingerprint authentication.

John Lansdale
John Lansdale

I don’t think people care that much about their “biological” identity. Of course this depends on the amount of money someone with alternate systems is going to spend on PR.

Raja Peter
Raja Peter

If we are going to trust technology to handle this, then should it be a combination of both retina and fingerprint recognition? I would feel safer with both. It could be used in restrictive categories like liquor, medical supplies and the like.

8 Comments
Oldest
Newest Most Voted
Inline Feedbacks
View all comments
Mark Lilien
Mark Lilien

Biometrics (fingerprints, handprints, retina scans, etc.) will improve convenience tremendously. Why bother to carry credit cards and loyalty cards if you don’t have to? Data entry security (at all computers, laptops and otherwise) is also enhanced, since passwords aren’t needed. There will be at least 2 challenges: privacy and security. The same folks who don’t want to disclose their social security numbers won’t like having their fingerprints or other biometrics on file. And because biometric data will be collected, it will be stolen, just like social security numbers.

Liz Crawford
Liz Crawford

Millennials are more concerned about speed and convenience than privacy. This is a generation that has grown up with national wiretapping, personal netcasting on MySpace and a suspension of habeas corpus. Do they really expect privacy? A certain amount of data security (especially regarding financial data) is an expected price of entry, but nothing more.

Privacy is a Boomer issue. But the Boomers are on the way out. It is only a question of time before these metrics and systems are in place.

Camille P. Schuster, Ph.D.
Camille P. Schuster, Ph.D.

My students from Europe use biometrics already for security purposes. Comparisons between European and US undergrads reveals that European students face more security measures (both in numbers of steps and variety of measures) when using credit cards, banking, computers, etc. They are willing to trade off the time for increased security.

Mark H. Goldstein
Mark H. Goldstein

Biometrics…why bother?…. Instead, combine personal barcodes on cell phones and consumers would be much much better off. Biometrics is a ’90s solution that isn’t going to widely happen. I want real-time feedback and the computing power of my cellphone to help me make my best purchases.

Bernie Slome
Bernie Slome

Perhaps privacy is more of a concern for baby boomers than for younger generations. Gen X & Gen Y are more about convenience. Biometrics is more convenient and will help the government keep track at the same time. I call that a win-win. And we thought Orwell’s 1984 was pure fantasy. It was just 20+ years a little early.

Santhosh Jayakumar
Santhosh Jayakumar

There are several pharmacy retailers who use biometrics for user authentication for their applications. The need to maintain a log of employees who work on specific steps in the processing of a prescription is probably a big catalyst for this fairly quick adoption. And a leading pharmacy software vendor has released their new product embedded with fingerprint authentication.

John Lansdale
John Lansdale

I don’t think people care that much about their “biological” identity. Of course this depends on the amount of money someone with alternate systems is going to spend on PR.

Raja Peter
Raja Peter

If we are going to trust technology to handle this, then should it be a combination of both retina and fingerprint recognition? I would feel safer with both. It could be used in restrictive categories like liquor, medical supplies and the like.

More Discussions