The world’s first barcode, designed in 1948, took more than 25 years to make it out of the lab and onto a retail package. Since then, the barcode has done much more than make grocery checkouts faster—it has remade our understanding of how physical objects can be identified and tracked, creating a new pace and set of expectations for the speed and reliability of modern commerce.
Nearly eighty years later, a new iteration of that technology, which encodes data in two dimensions, is poised to take the stage. Today’s 2D barcode is not only out of the lab but “open to a world of possibility,” says Carrie Wilkie, senior vice president of standards and technology at GS1 US.
2D barcodes encode substantially more information than their 1D counterparts. This enables them to link physical objects to a wide array of digital resources. For consumers, 2D barcodes can provide a wealth of product information, from food allergens, expiration dates, and safety recalls to detailed medication use instructions, coupons, and product offers. For businesses, 2D barcodes can enhance operational efficiencies, create traceability at the lot or item level, and drive new forms of customer engagement.
An array of 2D barcode types supports the information needs of a variety of industries. The GS1 DataMatrix, for example, is used on medication or medical devices, encoding expiration dates, batch and lot numbers, and FDA National Drug Codes. The QR Code is familiar to consumers who have used one to open a website from their phone. Adding a GS1 Digital Link URI to a QR Code enables it to serve two purposes: as both a traditional barcode for supply chain operations, enabling tracking throughout the supply chain and price lookup at checkout, and also as a consumer-facing link to digital information, like expiry dates and serial numbers.
Regardless of type, however, all 2D barcodes require a business ecosystem backed by data. To capture new value from advanced barcodes, organizations must supply and manage clean, accurate, and interoperable data around their products and materials. For 2D barcodes to deliver on their potential, businesses will need to collaborate with partners, suppliers, and customers and commit to common data standards across the value chain.
Driving the demand for 2D barcodes
Shifting to 2D barcodes—and enabling the data ecosystems behind them—will require investment by business. Consumer engagement, compliance, and sustainability are among the many factors driving this transition.
Real-time consumer engagement: Today’s customers want to feel connected to the brands they interact with and purchase from. Information is a key element of that engagement and empowerment. “When I think about customer satisfaction,” says Leslie Hand, group vice president for IDC Retail Insights, “I’m thinking about how I can provide more information that allows them to make better decisions about their own lives and the things they buy.”
2D barcodes can help by connecting consumers to online content in real time. “If, by using a 2D barcode, you have the capability to connect to a consumer in a specific region, or a specific store, and you have the ability to provide information to that consumer about the specific product in their hand, that can be a really powerful consumer engagement tool,” says Dan Hardy, director of customer operations for HanesBrands, Inc. “2D barcodes can bring brand and product connectivity directly to an individual consumer, and create an interaction that supports your brand message at an individual consumer/product level.”
This content was produced by Insights, the custom content arm of MIT Technology Review. It was not written by MIT Technology Review’s editorial staff.