Lecture Management information systems (9/e) – Chapter 6: Telecommunications and networks

The objectives of this chapter: Understand the concept of a network; apply Metcalfe’s law in understanding the value of a network; identify major developments and trends in the industries, technologies, and business applications of telecommunications and Internet technologies;...

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trends in the industries, technologies

and business applications of

telecommunications and Internet

technologies.

of Internet, intranet, and extranet

applications.

Learning Objectives

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Learning Objectives

and types of telecommunications

networks used in business.

telecommunications network hardware, software, media, and services.

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Why Study Networking?

industries – computing and

communications – converge, and the

result is vastly more than the sum of the parts.

become available for

business-to-business coordination and commerce,

and for small as well as large

organizations.

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Case #1: Wireless Business Applications

Business Value of Wireless:

travel time at Celanese Chemicals related

to plant equipment diagnosis.

offering services via wireless devices.

forklift operator productivity and cut costs.

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1 What is the business value of wireless

technologies in the chemicals and automotive manufacturing industries? What other

manufacturing applications might benefit from wireless technologies? Why?

2 What are some of the business benefits of

wireless technologies in finance and

investments? What other applications would

you recommend? Why? Check the website of Fidelity.com to help you answer

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3 What are some of the business benefits and

challenges of using wireless technologies in

retailing? What are some other applications

that might be beneficial to consumers, as well

as retailers? Why?

4 What are some of the major challenges

limiting the widespread use of wireless

technologies in many business applications? What can be done to meet such challenges?

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(voice, data, text, images, audio, video)

over networks

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Trends in Telecommunications

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Open Systems

Definition:

standards for hardware, software,

applications, and networking

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Definition:

other devices to easily access and

communicate with each other and share information

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Interoperability

Definition:

the many different applications of end

users to be accomplished using the

different varieties of computer systems, software packages, and databases

provided by a variety of interconnected

networks

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Digital Network Technologies

Definition:

• Digital transmission technologies that transmit

information in the form of discrete pulses

Benefits:

• Higher transmission speeds

• Movement of larger amounts of information

• Greater economy

• Lower error rates

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Business Value of Telecommunications

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Definition:

private networks each with the ability to

operate independent of, or in harmony

with, all the other millions of networks

connected to the Internet

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Internet

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Internet Applications

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Business Use of the Internet

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Business Value of the Internet

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Intranet

Definition:

A network inside an organization that

uses Internet technologies to provide an Internet-like environment within the

enterprise for information sharing,

communications, collaboration, and the

support of business processes

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Business Value of Intranets

• Communications and Collaboration – includes email, voicemail, paging, faxes, and groupware

• Web Publishing – easy, attractive and low-cost way of publishing and accessing multimedia

business information

• Business Operations and Management –

platform for developing and deploying critical

business applications to support business

operations and managerial decision making

across the inter-networked enterprise

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Business Value of Intranets

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Definition:

technologies to interconnect the intranet

of a business with the intranets of its

customers, suppliers, or other business

partners

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Business Value of Extranets

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Intranets & Extranets

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Case #2: Serving Citizens without Wires

Features:

properly position individuals before an

event happens

disaster hits

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1 What is the business value of advanced

mobile technologies to Maryland’s emergency management services?

2 In what other government services could GPS

serve to provide business value? Give some examples

3 Are there disadvantages or risks associated

with the deployment of GPS systems to

monitor the location of people? Explain

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various applications of GPS satellite

networks beyond those discussed in the case? Check out the websites of

satellite services providers like Hughes

help you answer.

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Telecommunications Network Components

• Terminals – any input/output device that uses

telecommunications networks to transmit or receive data

• Telecommunications Processors – devices that perform control and support functions

• Telecommunications Channels – media over which data are transmitted and received

• Computers – all sizes and types

• Telecommunications Control Software – programs that control telecommunications activities

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Telecommunications Network Components

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Types of Telecommunications Networks

• Wide Area Network (WAN) – network that

covers a large geographic area

• Local Area Network (LAN) – network connecting information processing devices within a limited physical area

• Virtual Private Network (VPN) – secure network that uses the Internet as its main backbone

network, but relies on network firewalls,

encryption, and other security features of its

Internet and intranet connections and those of

participating organizations

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LAN & VPN

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Types of Telecommunications Networks

• Client/Server – PCs and workstations, called

clients are interconnected by local area

networks and share application processing with network servers

• Network Computing – Thin clients provide a

browser-based user interface for processing

small application programs

• Peer-to-Peer – file-sharing software connects

each PC to a central server or to another online user’s PC

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Client/Server

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Client/Server & Network Computing

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Peer-to-Peer

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Peer-to-Peer

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Telecommunications Media

• Twisted-Pair Wire – copper wire twisted into pairs

• Coaxial Cable – sturdy copper or

aluminum wire wrapped with spacers to insulate and protect it

• Fiber Optics – one or more hair-thin

filaments of glass fiber wrapped in a

protective jacket

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Telecommunications Media

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Wireless Technologies

• Terrestrial Microwave – earthbound

microwave systems that transmit

high-speed radio signals in a line-of-sight path between relay stations spaced

approximately 30 miles apart

• Communications Satellites - high-earth

orbit communications satellites placed in stationary geosynchronous orbits

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to another

• Wireless LANs –high- or low-frequency radio

technology installed in an office or building

• Wireless Web – wireless, Web-enabled

information appliances accessing the Internet,

intranets and extranets

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Wireless Application Protocol (WAP)

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Telecommunications Processors

• Modems – convert digital signals from a

computer into analog frequencies that can

be transmitted over ordinary telephone

lines

• Multiplexers – allows a single

communications channel to carry

simultaneous data transmissions from

many terminals

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Modem

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Telecommunications Technologies

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Internetwork Processors

• Switch – makes connections between

telecommunications circuits in a network

• Router – intelligent communications processor that interconnects networks based on different protocols

• Hub – a port switching communications

processor

• Gateway – connects networks using different

communications architectures

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Communications Processors

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Network Processors

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Network Management

• Traffic Management – manage network

resources and traffic to avoid congestion and optimize telecommunications service levels to users

• Security – provide authentication,

encryption, firewall, auditing and

enforcement

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Network Management

• Network Monitoring – troubleshoot and

watch over the network, informing

network administrators of potential

problems before they occur

• Capacity Planning – survey network

resources and traffic patterns and users’ needs to determine how best to

accommodate the needs of the network

as it grows and changes

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• Ring – ties local computer processors

together in a ring on a relatively equal

basis

• Bus – local processors share the same communications channel

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Network Topologies

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Network Topologies

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Network Architectures & Protocols

• Protocol – standard set of rules and procedures for the control of communications in a network

• Network Architecture – the use of standard

protocols, standard communications hardware

and software interfaces and the design of a

standard multilevel interface between end users and computer systems with the goal of

promoting an open, simple, flexible, and efficient telecommunications environment

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OSI & TCP/IP Models

• Open Systems Interconnection (OSI) -

model is a seven-layer model that serves

as a standard model for network

architectures

• Transmission Control Protocol / Internet

Protocol (TCP/IP) – is a five layer

telecommunications protocol used by the Internet

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OSI & TCP/IP Models

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IP Address

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Definition:

and capacity of telecommunications

networks

Transmission Rates:

• Narrow-band – low-speed

• Broadband – high-speed

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Transmission Speeds

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Switching Alternatives

• Circuit Switching – a switch opens a

circuit to establish a link between a

sender and receiver; it remains open until the communication session is completed

• Message Switching – a message is

transmitted a block at a time from one

switching device to another

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• Cell Switching – breaks voice, video and other data into fixed cells of 53 bytes and routes them to their next destination in the network

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Case #3: Wi-Fi Networks

Benefits:

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Case #3: Wi-Fi Networks

1 What are the business benefits of Wi-Fi

networks?

2 What are some of the problems faced by

companies who are using Wi-Fi networks?

What are some solutions to those problems?

3 What are some other business uses for Wi-Fi

networks not mentioned in this case? What

are their business benefits and challenges?

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Case #4: Voice Over IP

Benefits:

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Case #4: Voice Over IP

1 What are the main benefits that can be gained

by companies that switch to VoIP systems?

2 What are some of the major cost factors that

may limit a positive rate of return from

investments in VoIP projects?

3 Should more companies switch to VoIP

systems? Visit the websites of Avaya and

Cisco Systems to view their VoIP news,

products, and services to help you answer

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• Organizations are becoming networked

enterprises that use the Internet, intranets, and other telecommunications networks to support

business operations and collaboration within the enterprise, and with their customers, suppliers, and other business partners

• Telecommunications technology is moving

toward open, inter-networked digital networks

for voice, data, video and multimedia

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Summary

• Open systems with unrestricted connectivity

using Internet technologies are the primary

telecommunications technology drivers in

e-business systems

• Companies are deriving strategic business

value from the Internet, which enables them to disseminate information globally, communicate and trade interactively with customized

information and services for individual

customers, and foster collaboration of people

and integration of business processes within the enterprise and with business partners

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intranets throughout their organizations

to:

• Improve communications and collaboration among individuals and teams within the

enterprise

• Publish and share valuable business

information easily, inexpensively, and effectively via enterprise information portals

• Develop and deploy critical applications to

support business operations and decision

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Summary

• The primary role of extranets is to link the

intranet resources of a company to the intranets

of its customers, suppliers, and other business partners

• The major generic components of any

telecommunications network are:

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