Understanding Telecommunications and Networks in Business: Trends, Applications, and Value

1. Management Information Systems Managing Information Technology in the Business Enterprise

2. Chapter 4 Telecommunications and Networks

3. Learning Objectives • Identify major developments and trends in the industries, technologies, and business applications of telecommunications and Internet technologies. • Provide examples of the business value of Internet, intranet, and extranet applications.

4. Learning Objectives (continued) • Identify the basic components, functions, and types of telecommunications networks used in business. • Explain the functions of major types of telecommunications network hardware, software, media, and services.

5. Section I The Networked Enterprise

6. Networking the Enterprise • Networking business and employees • Connecting them to customers, suppliers, and other stakeholders.

7. Trends in Telecommunications

8. Industry Trends • Deregulated market • Rapid growth • More competitive • More options for the firm

9. Technology Trends • Unrestricted connectivity • Internet based platform • Open systems with common standards for hardware, software, applications, & networking. • Interoperability between applications • Fibre-optic and wireless media for high-speed connections

10. Technology Trends (continued) • Digital networks • Higher transmission speeds • Moves larger amounts of information • Greater economy • Lower error rates • Multiple types of communications on the same circuits

11. Application Trends • Dramatic increase in the number of feasible telecommunication applications. • Cut costs, reduce lead times, shorten response times, support e-commerce, improve collaboration, share resources, lock in customers & suppliers, & develop new products & services

12. Business Value of Telecommunications Networks

13. The Internet • A network of networks • Popular uses • E-mail • Instant messaging • Browsing the World Wide Web • Newsgroups and chat rooms

14. Business Value of the Internet

15. Intranets • Communicates within an organization • Uses Internet technologies

16. Business value of Intranets • Used for information sharing, communication, collaboration, & support of business processes. • Web publishing is comparatively easy, attractive, & lower cost alternative for publishing & accessing multimedia • Business Operations & Management • Used for developing & deploying critical business applications • Supports operations and managerial decision making

17. Extranets • Network links that use Internet technologies to interconnect the firm’s intranet with the intranets of customers, suppliers, or other business partners • Consultants, subcontractors, business prospects, & others

18. Business value of Extranets • Gain competitive advantage in • Product development • Cost savings • Improve communication with customers and business partners • Marketing • Distribution • Leveraging their partnerships

19. Section II Telecommunications Network Alternatives

20. Telecommunications Network Alternatives

21. A Telecommunications Network Model

22. Basic Components of a Network Model • Terminals • Any input/output device that uses telecommunication networks to transmit or receive data • Telecommunication processors • Support data transmission and reception between terminals and computers

23. Basic Components of a Network Model (continued) • Telecommunications channels • The medium over which data are transmitted and received • Computers • Interconnected by telecommunications networks • Telecommunications control software • Control telecommunications activities & manage the functions of telecommunications networks

24. Types of Telecommunications Networks • Wide Area Networks (WAN) • Cover a large geographic area. • Local Area Networks (LAN) • Connect computers & other information processing devices within a limited physical area. • Connected via ordinary telephone wiring, coaxial cable, or wireless radio & infrared systems

25. Types of Telecommunications Networks (continued) • Virtual Private Networks • A secure network that uses the Internet as its main backbone network, but relies on fire walls and other security features

26. Types of Telecommunications Networks (continued)

27. Types of Telecommunications Networks (continued) • Client/Server Networks • Clients – end user PCs or NCs • Server – helps with application processing and also manages the network

28. Types of Telecommunications Networks (continued)

29. Types of Telecommunications Networks (continued) • Network computing • “the network is the computer” • Thin clients process small application programs called “applets.”

30. Types of Telecommunications Networks (continued) • Peer-to-Peer (P2P) • Two major models • Central server architecture • Pure peer-to-peer

31. Telecommunications Media • Twisted-pair wire • Coaxial cable • Minimizes interference and distortion • Allows high-speed data transmission • Fiber optics • Glass fiber that conducts pulses of light generated by lasers • Size and weight reduction • Increased speed and carrying capacity

32. Telecommunications Media (continued)

33. Wireless Technologies • Terrestrial Microwave • Line-of-sight path between relay stations spaced approximately 30 miles apart. • Communications Satellites • Geosynchronous orbits • Serve as relay stations for communications signals transmitted from earth stations

34. Wireless Technologies (continued) • Cellular & PCS Systems • Each cell is typically from one to several square miles in area. • Each cell has its own low-power transmitter or radio relay antenna. • Computers & other communications processors coordinate & control the transmissions to/from mobile users as they move from one cell to another

35. Wireless Technologies (continued) • Wireless LANs • Spread spectrum • Wi-Fi (wireless fidelity) • Wireless Web • Uses Web-enabled information appliances • Very thin clients

36. Telecommunications Processors • Modems (modulation/demodulation) • Changes signals from analog to digital and back to analog • Multiplexers • Allows a single communication channel to carry simultaneous data transmissions from many terminals

37. Telecommunications Processors (continued) • Internetwork Processors • Switches • Makes connections between telecomm circuits so a message can reach its intended destination • Router • Interconnects networks based on different rules or protocols

38. Telecommunications Processors (continued) • Hub • Port switching communications processor • Gateway • A processor that interconnects networks that use different communications architecture

39. Telecommunications Software • Provides a variety of communications support services including connecting & disconnecting communications links & establishing communications parameters such as transmission speed, mode, and direction.

40. Network Management Software • Traffic management • Security • Network monitoring • Capacity planning

41. Network Topologies • Star • Ties end user computers to a central computer • Considered the least reliable • Ring (sometimes called Token Ring) • Ties local computer processors together in a ring on a more equal basis. • Considered more reliable & less costly

42. Network Topologies (continued) • Bus • Local processors share the same bus, or communications channel • Tree is a variation which ties several bus networks together

43. Network Topologies (continued)

44. Network Architectures & Protocols • Protocols • A standard set of rules & procedures for the control of communications in a network • Standards for the physical characteristics of cables and connectors • Network Architecture • Goal is to promote an open, simple, flexible, efficient telecommunications environment

45. Network Architectures and Protocols (continued) • OSI (Open Systems Interconnection) Model • 7 layer network model • TCP/IP • Transmission Control Protocol/Internet Protocol • Used by the Internet and all intranets and extranets

46. Bandwidth Alternatives • Bandwidth is the frequency range of a telecommunications network • Determines the channel’s maximum transmission rate • Measured in bits per second (bps) or baud • Narrow-band • Low-speed transmission • Broadband • High-speed transmission

47. Switching Alternatives • Circuit switching • Packet switching • Cell switching

48. Summary • Network use will increase • The Internet enables many new services • Internet improves costs, revenues, services • Intranets provide internal links to employees • Extranets link externally to customers, suppliers • Networks consist of terminals, processors, channels, computers, and software • Network choices include processors, media, and software

49. Discussion Questions • The Internet is the driving force behind developments in telecommunications, networks, and other information technologies. Do you agree or disagree? • How is the trend toward open systems, connectivity, and interoperability related to business use of the Internet, intranets, and extranets?

50. Discussion Questions (continued) • How will wireless information appliances and services affect the business use of the Internet and the Web? • What are some of the business benefits and management challenges of client/server networks? Network computing? Peer-to-peer networks?