QR Codes: Uses and Future Trends

This assignment delves into the various applications of QR codes across different industries. It examines how QR codes are used for marketing purposes, tracking products in supply chains, and enhancing user experiences. Additionally, the assignment discusses emerging trends and potential future developments in QR code technology, including integration with wearable devices and NFC.

Technology Report
ASSESSMENT TWO
[Pick the date]
INSTITUTIONAL AFFILIATION(S)
STUDENT NAME

TECHNOLOGY REPORT: QUICK RESPONSE CODE
Table of Contents
INTRODUCTION......................................................................................................................3
QUICK RESPONSE CODE TECHNOLOGY EVOLUTION..................................................4
QR CODE AS TECHNOLOGICAL INNOVATION IN SUPPLY CHAIN MANAGEMENT
....................................................................................................................................................7
IMPLEMENTING QR CODE TECHNOLOGY IN SUPPLY CHAIN MANAGEMENT......8
ADVANTAGES OF QR CODE................................................................................................9
DISADVANTAGES OF QR CODE.......................................................................................10
EXAMPLE OF SUCCESSFUL QR CODE IMPLEMENTATION IN FIRMS.....................11
FUTURE DIRECTIONS OF THE QR TECHNOLOGY........................................................11
CONCLUSION........................................................................................................................13
REFERENCES.........................................................................................................................14
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INTRODUCTION
QR Code or ‘Quick Response Code’ is one of the most reliable technologies used in supply
chain management system in many organisations. The technology provides with a two
dimensional barcode system that can be easily read via smart phones or special code detector
machines and can also be linked with emails or websites. One can easily scan the code from
posters or printed documents and get relevant information within few seconds. This Japanese
designed technology can perform various tasks in supply management (SM) like document
managing, product identification, tracking of products, and store other related information’s
(Monk, 2013).
Figure: Process of managing supply chain in relation to B2B
Source: (Iron Systems, 2017)
Traditional barcodes also had many features in it but the present market scenario where
internet and digitalisation is what demanded, QR codes are becoming more significant. QR
codes have been considered as an innovative element that has been able to influence the
present market and encouraged many organisations and suppliers to apply it strategically in
their chain management process (Buchowiecki, 2011). By enabling universal coding system,
QR codes have become the most visible technology and can be utilised in SC networks
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during many stages while carrying the process as shown in Figure 1. Increase in speed of
performance is what demanded in today’s globalised world of industry in order to sustain the
competition in the market. Digitalisation and innovation is the only way that can help
organisations to overcome competitions and procure sustainable success. In this report the
technological innovation of QR codes will be discussed which can help in giving assistance
to the supply chain management. While supporting the thesis with the application of
technology in present business scenarios, this report will identify the pros and cons of QR
code application along with making hypothesis of its utilisation in future.
QUICK RESPONSE CODE TECHNOLOGY EVOLUTION
The most commonly used technology for personal and commercial purposes is QR code
which is a form of two dimensional matrix codes. The technology was developed by Denso
Waive in Toyota, Japan based subsidiary, in the year 1990 (DENSO WAVE
INCORPORATED, 2017). QR codes can be encoded through various types of scans like
images, texts, URL’s, Maps, mobile phone or buy now links which helps the users to get to
the desired product and its information quickly and accurately. The technology was
introduced in order to provide assistance to the managers of organisations and suppliers in the
process of supply chain and while the QR code possess quality of holding large amount of
information’s, it is spreading worldwide with positive reception. In countries like United
States, Korea and Japan, the use of QR codes is growing in popular way while other countries
like Australia and UK have also started to rely on this innovatory coding system in order to
stimulate their marketing efforts. The following figure depicts the percentage in which it has
been adopted by several countries (Iron Systems, 2017).
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Figure: Countries that have adopted QR technology
Source: (QUENTIN, 2014)
Although the patents are rightfully owned by Denso Waive Company, the QR technology is
free to use by everyone which is also one reason for its popularity. The QR codes
characteristically consist of white background in which black or any other specific colour
square modules are arranged. It can hold up to four thousand symbols of data and can be used
without maintaining a regular updating of information, as per anticipated application, and
hence is manageable easily. Since the information is stored in both vertical and horizontal
manner, huge amount of information is stored as compared to traditional coding systems in
small locations. As shown in the image below the data in QR codes are organised into array
of cells. The 2 dimensional matrixes is the place where information is encoded in vertical and
horizontal manner. The amount of information stored can be shown in the alignment pattern
as the number of patterns depends on amount of information stored (Nyelv, 2017).
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Figure: Enlarged figure of QR Code
Source: (Sprague, n.d.)
Thus, it can be utilised by big organisations that has many different products and with QR
codes, the need for changing the information’s regularly is not required. QR codes can be
easily scanned and interpret from prints, projection screens or computer page with the help of
scanning devices that are available in the market. Nowadays many mobile phones also has
inbuilt function developed to read the codes and are equipped with CCD imagers. Most of the
technologies are free to download and are easily available on Android and Apple phones that
decode 2D patterns. It shows the future in possibility of equipping mobile phone owners with
latest technologies of creating and reading QR codes (Schneider, 2015). This technology is
also used in concurrence with social medias like LinkedIn, Face book, You Tube, Google+,
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etc. and smoothes the progress of the communication with customers and dealers in
discriminating products (Roberts, 2012).
QR CODE AS TECHNOLOGICAL INNOVATION IN SUPPLY CHAIN
MANAGEMENT
To facilitate and provide technical assistance to the organisation’s supply and logistic
network, QR coding can prove to be potential in benefitting the management by providing
stored information in convenient way. The paradigm of coding indicates the management to
modify strategically and combine with the facility to reconfigure business systems with its
present scenario. The information systems (IS) had observed the complex nature of
managements in organisations which has made difficult for them to manage the business
functions slickly. The demand for product mobility and variations had increased challenges
for managers. All the issues require an innovative application within supply chain in order to
attain sustainability whether it is B2B or B2C supply chain (Bhattachrya, 2016). In spite of
several advantages observed in technical communication systems like QR coding, technical
problems along with other issues like continuation in political impediment and cost
implementation can become obstructions in corresponding with the global integrated
networking system. QR coding in Social Media marketing can prove beneficial as it helps in
increasing the performance of the companies along with securing B2B and B2C relations
(IoSCM , 2017). Frequent upgrading and alteration of information’s can be made in order to
match with the present performance so that lack of confidence among customers and supply
agencies and dysfunctional divergence is avoided. While making strategy for supply
management, the managers must be sure of providing value added codes which are
significant while decoding. The inter organisational loyalty along with strong relationship and
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mutual benefits will be enhanced by applying latest technologies which gives factual
information’s in two way (up and down) networking of supply chain.
IMPLEMENTING QR CODE TECHNOLOGY IN SUPPLY CHAIN MANAGEMENT
To understand the consumer or supply agency needs is the prime objective of managers in
supply chain strategy. In order to achieve the ultimate objective of the organisation, the
strategy requires being competent enough to persuade flexibility and make planned
operational procedures. The innovations and acceptance of latest trends can influence
organisation’s core competencies from internal and external forces. QR codes are one of the
technological innovations that can make the concept authentic by applying it in logistic and
marketing operation of the firm. By placing QR labels on the finished goods (FG), goods
which are under process (WIP) and raw materials (RM), it can become easy to identify them
by giving QR coding that consists information like SKU number, traceable code, quantity,
date of expiry, etc. According to a recent survey made by a manufacturing company
Motorola, QR technology is fast growing popularly among manufacturing units and
recommends advancement in QR coding applications to gain future prominence
(Buchowiecki, 2011). The practical uses of QR codes nowadays are mostly seen in brochures
and marketing equipments, product tags, packaging, sales receipt, standard and incident
nametags, etc (Lane, 2016). One can easily track details by decoding much information like
installation instruction, manufacturing details and time, product specification, process of
handling the product, pricing detail, etc. While providing sufficient information to the end
users and middle men involved in chain supply process, it can also provide benefits tactically.
The strategic management can improvise their way of using QR codes in many ways in order
to make it more efficient and tactful. The management can explain its uses and benefits in
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other marketing and supply chain areas of the organisation to encourage them using
technological way of process to save time and energy (Nyelv, 2017). The presentation of QR
codes can also be experimented with various size, colour, and locations which can be
developed by IT sector in organisations (Korhan, 2011). Presently social Medias are growing
fast in marketing and sales and any change regarding product or service is easily visible
through it. QR codes have also been one of the reasons for their popularity as it enables
consumers who seek information about products and services while identifying promoted
brands. Thus QR works as the most reliable way for making connections of consumer with
fundamental area.
ADVANTAGES OF QR CODE
The most important advantage of QR technology is its flexibility which makes it usable for
many purposes. It provides benefits for both consumers and organisations. Secondly, it is free
to use and thus provides cost effective method in business. By enabling QR codes to
company websites, advertising and distribution of product information is made which saves
company’s expenditure. It can be easily read from distance, provided the print is sizeable, and
provides with 100% authentic data provided in it. The increased storage data as compared to
traditional coding systems is high in QR codes and thus provides with greater scope for
detailed information. The information gained can also be saved for future references by
storing QR codes. If any risk or failure in its implementation is recognised in early stage, the
company does have to bear any losses as it is no investment technology which makes it
devoid of virtual technological risk. The process of scanning codes is faster which makes the
possibility of synchronised logistics and marketing facility to provide faster and precise
supply chain. These are few easily recognisable advantages of QR coding which can provide
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supply chain management of organisations and suppliers gain leadership. If the advanced
technologies and innovative methods are planned in strategic and futuristic manner, the rate
of sustainability will also be increased in effective way (Charlton, 2011).
DISADVANTAGES OF QR CODE
The use of QR coding has been increasing in business world but the unfamiliarity of QR
coding techniques among people results in its limitation in few areas. Although it can be seen
in almost every products like books, electronics, food items, large appliances, etc. but still
large number of people in society does not know what it represent or has to inform about.
Companies advertise and distribute information’s to the customers in QR codes but since they
are unaware of the technology, they do not reach to the desired information. Various hackers
have been successful in programming and infecting QR codes with virus that can exploit the
web pages in which it is been read (InfoSec, 2017). Also if the print of QR code is not proper
and clear, the objective behind it may not be achieved. Another disadvantage QR coding has
that it is depended on other instruments or gadgets like decoding machines and smart phones
to decode the information and the process is strictly based on the ability of the scanner. Thus
if someone does not has scanning machine, the technology becomes useless for them. There
are many alternative technologies that can sometimes prove better than QR like Blipper,
Microsoft Tag, Google Goggles, Maxicode, and Data Matrix (Taylor, 2017). QR codes also
enables risks in which other fraud websites exploits the company QR codes and makes
changes that can prove dangerous. Stealing of information also happens where fake
company’s uses the codes for representing their own brands. Therefore, the management as
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well as suppliers requires treading cautiously in order to attain risk free QR coding
technology.
EXAMPLE OF SUCCESSFUL QR CODE IMPLEMENTATION IN FIRMS
Ford Motor Group: In Lebanon Ford Car Company every car has got a unique QR code in
order to mark quality and traceability of quality manufacturing and to ensure that each of its
components is not reused. The company uses this technology to streamline with its
manufacturing process and Direct Parts Marking (DPM). The QR codes in the finished cars
deals with the information like calculating finance payments, schedule test drives, and to
detect cars of similar lots in case of second hand purchase (Bunkley, 2013).
Woolworth: A famous Australian company dealing in more than hundreds of products used in
day to day life manages its supply chain management in very efficient manner. The company
uses QR coding system in order to allot batch numbers to different lots according to their
entry in the store. The information assists store managers to put the first entered goods in the
first dispatching lot. The QR coding is also done by them in production units where the
freshly produced fruits and vegetables are given QR codes to provide customers with the
relevant information about product freshness and their source of production (Lambert, 2013).
The company utilises the QR coding systems in areas where technical description of goods
relating packaging details, unit quantity and specifications are mentioned (Woolworths
Limited, 2016).
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FUTURE DIRECTIONS OF THE QR TECHNOLOGY
The uses of QR code technology are not limited to few countries but are spreading worldwide
and many countries are getting ready to accept in their SCM. The ISO standard and matured
policy of the system is the reason why it is been accepted in many Asian and European
countries also. The technology enables future mobile strategy for trade of products and
promotional programs. The digital connections between people are enabled and any paper
based information is transferred via internet that again proves a powerful concept. In the
above research made the drawbacks identified can be considered important while predicting
future directions of the QR coding technology. Many advanced applications are taking place
in the market which provides more benefits than QR coding. One such is Near Field
Communication (NFC) that allows transferring of data or information’s wirelessly provided
the devices are closely placed. The increase of mobile technology is the cause behind the
success of NFC and many mobiles phones have inbuilt applications of NFC for users
(QRCodeStickers.Org, 2013). Digimarc Barcodes is another alternative of QR codes in which
the entire package is embedded indiscernibly with UPC or EAN of the product. If the packing
is damaged, it can still provide necessary information and also prove faster process since
requirement of finding the QR code image in the package will not be necessary. While
comparing QR codes and traditional Bar codes, the future seems bright with QR coding
technology as the image barcodes can be scanned on the basis of appearance and logo of
items (Sutter, 2015). The process in which QR coding is made requires some amendments
before they are spread more widely. Since the dependency of mobile and gadgets are still
prominent in QR technology, the possibility of rise of other technologies is increasing. There
are few areas that can be improved in QR technology which can ensure the implementation of
technology in future also. If the scanning of codes is enabled in already installed apps like
shopping apps, purchase inventory record apps, organisations and suppliers personal
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websites, etc., it can eliminate some obstacles regarding adoption of the system. Creative
coding can be done by experimenting QR codes on various materials like activating of
machines while any product with QR codes is passed through gates or nearby detecting
machines in warehouses or stores (Monk, 2013). From all the above analysis it is clear that
QR codes cannot be eliminated entirely from the market although substitutes or altered
versions of it can take its position in future prospect of chain supply management.
CONCLUSION
The above research made on QR code technology explores the possibility of its application in
strategic management. The implementation process has been shown in order to give
assistance to the management of the firms and suppliers to give practical guidance while
supporting the thesis with the study made by authors and researchers. From customers view
point, the decoding strategy should be amended and thus management and IT sectors of the
companies requires to investigate further on the technology and work on it. As demanded by
today’s management and suppliers to carry business with ease and in cost reductive manner,
QR code is the technology that can provide many functions and perform tasks of storing and
enabling information’s in flexible and time saving manner. The technology enables futuristic
amendments since its patent holders do not make any obstruction and permits everyone to
use. Therefore on concluding note it can be said that the technology of QR coding that has
many advantages can provide support in supply chain management if implemented with
consideration in order to avoid any fallback in future.
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REFERENCES:
Bhattachrya, S., 2016. Inventions and Evolution of Everyday Tech – QR Codes. [Online]
Available at: http://www.thetechy.com/inventions-evolution-everyday-tech-qr-codes/
[Accessed 3rd September 2017].
Buchowiecki, M., 2011. Supply Chain Management. [Online] Available at:
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[Accessed 3rd September 2017].
Bunkley, N., 2013. Auto Dealership Using QR Codes, Mobile Apps in 'age of transparency'
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DENSO WAVE INCORPORATED, 2017. History of QR Codes. [Online] Available at:
http://www.qrcode.com/en/history/ [Accessed 3rd September 2017].
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InfoSec, 2017. Cyber Security Risks in Supply Chain Management – Part 2. [Online]
Available at: http://resources.infosecinstitute.com/cyber-security-risks-in-supply-chain-
management-part-2/ [Accessed 3rd September 2017].
IoSCM , 2017. 5 reasons you should work in Supply Chain Management. [Online] Available
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Iron Systems, 2017. Global Supply Chain Management: Solutions, Consulting, Services.
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Lambert, S., 2013. QR Codes at Woolworths connects customers with farmers. [Online]
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Lane, B., 2016. How Are QR Codes Used And What is Their Future? [Online] Available at:
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Monk, C., 2013. The Future of the QR Code in Supply Chain Management. [Online]
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Nyelv, M., 2017. The Purpose of QR Codes. [Online] Available at: http://www.qr-code-
generator.com/qr-code-marketing/why-should-i-use-qr-codes/ [Accessed 3rd September
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2017].
QRCodeStickers.Org, 2013. Near Field Communication: The Future of QR Codes. [Online]
Available at: http://www.qrcodestickers.org/about-qr-codes/future-of-qr-codes.html
[Accessed 3rd September 2017].
QUENTIN, 2014. QR Codes Statistics for 2014. [Online] Available at:
http://qrcodesaustralia.com.au/qr-codes-statistics-for-2014/ [Accessed 3rd September 2017].
Roberts, N.M., 2012. The History of QR Codes. [Online] Available at:
http://www.howtomakeaqrcode.biz/the-history-of-qr-codes.html [Accessed 3rd September
2017].
Schneider, S., 2015. Why QR Codes are the Future of Wearable Devices. [Online] Available
at: https://uqr.me/blog/why-qr-codes-future-wearable-devices/ [Accessed 3rd September
2017].
Sprague, M., n.d. Understanding QR Codes. [Online] Available at:
https://marksprague.wordpress.com/qr-codes-technology/understanding-qr-codes/ [Accessed
3rd September 2017].
Sutter, B., 2015. FUTURE OF BARCODES, RFID, & IMAGE BARCODES; HOW THEY
WILL IMPACT IOT. [Online] Available at: http://www.waspbarcode.com/buzz/future-
barcodes/ [Accessed 3rd September 2017].
Taylor, L., 2017. What Are The Alternatives To QR Codes? [Online] Available at:
http://qrcode.meetheed.com/question12.php [Accessed 3rd September 2017].
Woolworths Limited, 2016. Packaging & Bar Code Specifications For Consumer Units,
Trade Units and Logistic Units. [Online] Available at:
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https://www.wowlink.com.au/cmgt/wcm/connect/1543cb80433d3cf292d89aa521a80a40/19.0
5.16+Packaging+Barcode+Spec+V11.2+12052016.pdf?MOD=AJPERES [Accessed 3rd
September 2017].
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