Digitalization began in 1974 with chewing gum: Why the history of digitalization needs to be rewritten

Future without lines: How the DataMatrix code is changing our economy

The ubiquitous “beep,” which has sounded at supermarket checkouts and in warehouses for decades, marks more than just the completion of a purchase or the registration of an item. It is the acoustic echo of a revolution in the global economy, a symbol of efficiency and automation that is inextricably linked to the barcode. But after an impressive track record of ten billion scans being carried out worldwide every day, the barcode is at a turning point. A new generation of codes is poised to fundamentally change the way we identify products and share information.

This transformation takes us from one-dimensional barcode to two-dimensional matrix code, specifically GS1's DataMatrix code. After more than 50 years of the barcode's undisputed triumph, a global change is imminent that will have a profound impact on companies, consumers and the entire value chain.

1974: The beginning of an era

The year 1974 marked a milestone in the history of trading. The first barcode was scanned in a supermarket in Ohio - an event that marked the beginning of automated checkout and the start of an unprecedented success story for the GS1 organization. The machine-readable GS1 barcode containing the Global Trade Item Number (GTIN), formerly known as the European Article Number (EAN), quickly became the universal standard in global goods exchange. It has become the key to efficient and secure business processes that are valid across company boundaries and continents and are scanned ten billion times on products worldwide every day.

Suitable for:

• The barcode has revolutionized global logistics in several ways

GS1 standards act as the global language of business. They enable companies to optimize their processes, ensure product traceability and increase security in supply chains. GS1 sees itself as a global network that, together with customers and partners, develops market-driven and future-oriented solutions that directly contribute to the company's success. Today, two million companies across 25 industries worldwide use this common “language” to uniquely identify products, locations and assets, capture relevant data and share it seamlessly with business partners within their value networks. GS1’s motto – “The Global Language of Business” – underlines this central role.

50 years of Srichcode scans: A noise that continues to be present

The characteristic “beep” when scanning a barcode has become an integral part of our modern lives. Fifty years ago, on June 26, 1974, this sound was first heard while scanning a pack of gum in an Ohio grocery store. This event marked the beginning of an era in which the efficiency and speed of trading was revolutionized by technology. Even as a new generation of barcodes is on the horizon to meet the growing information needs of businesses and consumers, the familiar sound of shopping will continue to be with us.

Digital change is accompanied by a variety of iconic acoustic signals. Think of the catchy Windows welcome melody, the activation tones of voice assistants like Siri and Alexa, or the omnipresent ringing and vibrating of our smartphones. But the absolute classic, the “beep” when scanning a barcode, is symbolic of progress in data capture and processing. Today we see this sequence of black lines on a light background almost everywhere - in retail, logistics, healthcare and many other industries. This sound occurs more than ten billion times a day around the world.

Thomas Fell, CEO of GS1 Germany, aptly summarizes the importance of the barcode: “The barcode has stood for process reliability and increased efficiency for 50 years. As one of the pioneers of digital transformation, it has significantly changed the way data is collected and processed, enabling further technological innovations, for example self-checkout in supermarkets. The barcode not only has the speed Cash registers increased, but also laid the foundation for more precise inventory management, optimized supply chains and improved product tracking.

Serving the German economy from the first “beep”.

The 50th anniversary of the barcode is shared with GS1 Germany. This non-profit organization is the central point of contact for companies in Germany that want to use barcodes or other GS1 standards for their products, shipments, documents or machines. In order to apply these standards, companies need a GTIN, which they can also obtain from GS1 Germany. The GTIN under the most famous barcode, the EAN-13, is an indispensable part of global trade.

The Cologne-based company's portfolio now includes around two dozen such “global standards”, which are essentially aimed at smart and efficient economic processes. This also includes two-dimensional barcodes such as the GS1 DataMatrix code and QR codes, which bridge the physical and digital worlds. A global network of 116 GS1 organizations continuously develops these solutions to actively address the challenges in industry and commerce in 150 countries and 25 industries. GS1 Germany is an integral part of this network and has been supporting the German economy since it was founded in 1974 - from the first "beep" and in close cooperation with its customers, including numerous big players from industry and trade.

Digital solutions for more efficiency

Thomas Fell emphasizes the practical relevance of the GS1 standards for the corporate value creation process: “With our universal standards, we make a practical contribution to the corporate value creation process. We develop them side by side with the users and see ourselves as a driving force when it comes to digitalization and as a neutral platform for cross-company collaboration." This cooperative approach ensures that GS1's solutions are always market-oriented and future-oriented and support companies in becoming themselves to assert itself successfully in a dynamic market environment. An important aspect here is simplifying the e-commerce business and meeting consumers' growing information needs - tasks that the new barcode generation should fulfill even better in the future.

Although it is difficult to quantify the exact economic contribution of the GS1 standards, Thomas Fell is convinced: “Of course it cannot be quantified exactly, but there is no doubt that our standards have an impact on the profitability of companies, which is always a great motivation for us “The efficiency gains enabled by the use of barcodes and other GS1 standards have a positive impact on the entire value chain, from production to logistics and sales.

Into the future with multifunctional 2D codes

The next generation of barcodes, based on more powerful 2D codes, will play a similarly important role as linear barcodes have played in the last 50 years. Two-dimensional barcodes offer decisive advantages, especially when it comes to storing and transmitting larger amounts of information. While one-dimensional barcodes are limited by their linear structure, 2D codes allow the combination of more than 7,000 numeric characters. This capability is crucial in a world where the need for detailed product information is constantly growing.

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• A successor to the barcode on product packaging is now in the starting blocks

Direct internet connection

Another key advantage of 2D codes is their ability to connect users directly to the Internet. By scanning such a code, consumers and business partners can access a wealth of information in seconds. The relevance of this information is further increased by the new “GS1 Digital Link” data exchange standard. This standard acts like a “switch” and makes it possible to display different information depending on the context.

Diversity of information

For example, consumers are interested in information about allergens, ingredients, recipe ideas or customer reviews. Business partners, on the other hand, need access to economic or technical data that is relevant to their specific processes. The highlight is that the code on the product remains the same, while the information content changes depending on the time, location and device of the barcode scan - a single code for a variety of applications. This flexibility and expanded information content make 2D codes a powerful tool for greater transparency and efficiency throughout the entire value chain.

Resistance to damage

The resistance of 2D codes to damage is another important advantage. Even if parts of the code are illegible, modern scanners can usually still reliably capture the information contained therein. This is particularly important in demanding environments such as warehouses or production facilities.

Future readability

From 2028, the 2D codes should be readable at supermarket checkouts across the board. This marks an important step in the replacement of traditional barcodes. Despite all the innovations and impending change, the world of goods and digital business processes will by no means become quieter. The familiar “beep” will continue to be with us, albeit perhaps in a new, more diverse soundscape of data collection.

Paradigm shift

The introduction of 2D codes is more than just a technical upgrade. It is a paradigm shift that has the potential to redefine the interaction between products, companies and consumers. The ability to store large amounts of data and access it in context opens up completely new possibilities for personalized offers, improved traceability and more efficient supply chain design.

Benefits for companies

For companies, this means they will be able to label their products in more detail and provide consumers with more comprehensive information. This can lead to higher customer satisfaction and stronger customer loyalty. At the same time, the improved database enables more precise control of inventory levels, reduction of waste and optimization of logistical processes.

Sustainability opportunities

2D codes also offer new opportunities in the area of ​​sustainability. By integrating information about the origin of raw materials, the production process and the recyclability of products, consumers can make more informed decisions and companies can transparently communicate their efforts to increase sustainability.

Challenges for companies

However, the switch to 2D codes also requires investments and adjustments on the part of companies. Scanner systems must be updated and internal processes must be adapted accordingly. GS1 supports companies in this transition with comprehensive information and training.

The future of global goods transport is digital and networked. The transition from barcode to 2D code is an important step on this path. It makes it possible to fully exploit the advantages of digitalization and further improve the efficiency, transparency and sustainability of the global economy. Although the noise at the checkout may change, the fundamental importance of automatic identification and data capture for modern commerce and logistics remains. The “beep” may change, but its message – progress and efficiency – remains unchanged.

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