The two technologies will coexist with users applying the right data collection technology for the right process situation.

"For the most part, bar codes are better at collecting data in highly structured and engineered processes, such as warehouses, and this will likely continue for the next five to seven years," Woods says.

"However, RFID tags will be used for data collection of mobile assets and in largely chaotic or unstructured business processes, ranging from retail environments to hospitals, enabling these environments that lack sophisticated process engineering or controls to be systematically managed."

"In many cases, RFID will be used in areas where the process is not controlled by an incumbent business application," Woods adds.

"Contrary to the notion that companies will need to 'integrate' RFID data into established transactional applications, companies will likely need to develop new business applications if they want to put RFID at the center of a process. In this, the opportunity for real process innovation exists."