In the packaging you should have one of those and two of these.
Each of the three chips is a little radio transmitters that doesn't need a battery to work. They are powered by any phone that is used to activate and scan them. The vast majority of mobile phones these days, including modern iPhones can interact with the chips. All the chips come with a powerful adhesive.
For more information about the how the chips work and the information they send go here
The NFC reader on the phone, generally at the top of the handset, has to be within about a centimetre of the chip to read it. These chips are designed to be read when placed on almost any surface, including metal.
They can still be read when covered with material like wood, leather or plastic but not when below metal. So you can put them under a seat, handlebars, tyres or on accessories. Note that this will effect the range at which the chips can be read.
The chips are fixed by pulling off the waxed paper covering and then sticking them wherever you have chosen to put them. A smart idea is to test with your phone that they can still be read before gluing them in place. Remember if you can't read them using your phone it is likely that no-one else can.
The label has two functions. It is fitted with a chip that works in the same way as the other two but it is designed primarily to act as deterrent to someone who is thinking of stealing the bicycle. The design of the label is meant to catch the eye and warn off a potential thief.
You should always place the label somewhere that is easily visible. We are aware that having perhaps spent a lot of money on a bike that is pleasing to the eye as well as being a good bike a lack of a visible deterrent will make it more likely that it will be stolen.
If you do not want your bike to have the label put on it directly think about sticking on to something attached to the bike like the lock or perhaps the seat cover or even a plastic bag you use to keep the seat dry.
We are aware that claims are made for invisible deterrent systems like UV (ultraviolet) marking and so called DNA markers. However the evidence is crystal clear that they are completely useless in deterring criminals. The same is true of products that sell GPS tracking devices without signage.
Criminologist Mike Sutton was quoted in a study by the University of Warwick into one market leading product.
"Any arguments that property marking schemes work by projecting some form of paranoia into the minds of thieves and buyers remain completely untested by independent research and are completely unfounded and should, therefore, be treated with what is best described as healthy scientific scepticism. No matter how plausible the commercial marketers of these systems appear, at the time of writing - without fully and genuinely independent evaluation - their products are arguably no better than expensive crime reduction quackery."
One other important point needs to be made.Additional layers of security add to the security of the bike or bike part being protected. Go here to read more about the psychology behind crime prevention. It all adds to the risks as far as a thief is concerned. So you should also have sensible locks on the bike as well.