1. 7.1 © 2009 by Prentice Hall 7 Chapter Telecommunications, the Internet and Wireless Technology

2. 7.2 © 2009 by Prentice Hall TELECOMMUNICATIONS AND NETWORKING IN TODAY’S BUSINESS WORLD Telecommunications environment provides connectivity by providing communication channels for text, voice, and video images. The network infrastructure for a large corporation consists of many different kinds of networks for both data and voice communication. Most of these different kinds of networks are moving towards a common Internet foundation. The Business Telecommunications Environment

3. 7.3 © 2009 by Prentice Hall Firms used two fundamentally different types of networks; telephone networks and computer networks. Both voice and data communication networks have become more powerful more portable and less expensive. Broadband connections provided by telephone and cable companies running at 1 million bits per second Japan has the highest speed and the lowest cost per megabit per second in the countries surveyed.

4. 7.4 © 2009 by Prentice Hall TELECOMMUNICATIONS AND NETWORKING IN TODAY’S BUSINESS WORLD A networking and communications revolution led by Internet-based technologies More than 1 billion instant messages per day 4 billion e-mails each day 65 million music files downloaded

5. 7.5 © 2009 by Prentice Hall TELECOMMUNICATIONS AND NETWORKING IN TODAY’S BUSINESS WORLD Estimated 3.9 billion photos sent over the Internet $769 billion spent in the United States on telecommunications equipment and services Today, networking and the Internet are synonymous with doing business.

6. 7.6 © 2009 by Prentice Hall TELECOMMUNICATIONS AND NETWORKING IN TODAY’S BUSINESS WORLD Corporate Network Infrastructure Figure 8-2

7. 7.7 © 2009 by Prentice Hall TELECOMMUNICATIONS AND NETWORKING IN TODAY’S BUSINESS WORLD The seven major trends in telecommunications: Rapid technological innovation has resulted in a proliferation of new hardware devices and new alternatives for business communications. Continuing telecommunications deregulation has encouraged competition and created many alternatives. Networking and Communications Trends

8. 7.8 © 2009 by Prentice Hall TELECOMMUNICATIONS AND NETWORKING IN TODAY’S BUSINESS WORLD Distinctions between telephone, cable television, Internet, and satellite telecommunication are blurred. Growing dominance of Internet technologies in voice, video, and data communications Rapid growth in “last-mile” high-speed broadband connections to homes and businesses Networking and Communications Trends (Continued)

9. 7.9 © 2009 by Prentice Hall TELECOMMUNICATIONS AND NETWORKING IN TODAY’S BUSINESS WORLD Rapid growth in wireless telephone, wireless computer networks, and mobile Internet devices Growing scope of communication-intense services and products Networking and Communications Trends (Continued)

10. 7.10 © 2009 by Prentice Hall CONTEMPORARY NETWORKING INFRASTRUCTURE A network consists of two or more connected computers. Each computer on the network contains a network interface device called a network interface card (NIC). The connection medium for linking network components can be a telephone wire, coaxial cable, or radio signal in the case of cell phone and wireless local area networks. Networks and Corporate Infrastructure

11. 7.11 © 2009 by Prentice Hall CONTEMPORARY NETWORKING INFRASTRUCTURE The network operating system (NOS) routes and manages communications on the network and coordinates network resources. Networks also contain a switch or a hub acting as a connection point between the computers. Hubs are very simple devices that connect network components, sending a packet of data to all other connected devices. Networks and Corporate Infrastructure (Continued)

12. 7.12 © 2009 by Prentice Hall CONTEMPORARY NETWORKING INFRASTRUCTURE A switch has more intelligence than a hub and can filter and forward data to a specified destination. Switches are used within individual networks. A router is a special communications processor used to route packets of data through different networks, ensuring that the message sent gets to the correct address. Networks and Corporate Infrastructure (Continued)

13. 7.13 © 2009 by Prentice Hall Components of a Simple Network CONTEMPORARY NETWORKING INFRASTRUCTURE Figure 8-4

14. 7.14 © 2009 by Prentice Hall CONTEMPORARY NETWORKING INFRASTRUCTURE Client/Server Computing Packet Switching TCP/IP and Connectivity Key Digital Networking Technologies

15. 7.15 © 2009 by Prentice Hall CONTEMPORARY NETWORKING INFRASTRUCTURE Client/server computing is a distributed computing model in which much of the processing power is located within small, inexpensive client computers. The powerful clients are linked to one another through a network that is controlled by a network server computer. The server sets the rules of communication for the network and provides every client with an address so others can find it on the network. Client/Server Computing:

16. 7.16 © 2009 by Prentice Hall CONTEMPORARY NETWORKING INFRASTRUCTURE Management Information Systems Chapter 8 Telecommunications, Networks, and the Internet Telecommunications, Networks, and the Internet In packet-switched networks, messages are first broken down into small bundles of data called packets. These packets are sent along different communication paths and then the packets are reassembled once they reach their destinations. Packet Switching:

17. 7.17 © 2009 by Prentice Hall CONTEMPORARY NETWORKING INFRASTRUCTURE Management Information Systems Chapter 8 Telecommunications, Networks, and the Internet Telecommunications, Networks, and the Internet Packet switching makes more efficient use of the communications capacity of a network. The packets include information for directing the packet to the right address and for checking transmission errors along with the data. Packet Switching: (Continued)

18. 7.18 © 2009 by Prentice Hall Packed-Switched Networks and Packet Communications CONTEMPORARY NETWORKING INFRASTRUCTURE Figure 7-5

19. 7.19 © 2009 by Prentice Hall CONTEMPORARY NETWORKING INFRASTRUCTURE TCP/IP is the communications protocol used by the Internet and all Internet devices. TCP/IP provides for breaking up digital messages into packets, routing them to the proper addresses, and then reassembling them into coherent messages. TCP/IP uses a suite of protocols: TCP and IP. TCP/IP and Connectivity:

20. 7.20 © 2009 by Prentice Hall CONTEMPORARY NETWORKING INFRASTRUCTURE Handles the movement of data between computers Establishes a connection between the computers, sequences the transfer of packets, and acknowledges the packets sent Transmission Control Protocol (TCP):

21. 7.21 © 2009 by Prentice Hall CONTEMPORARY NETWORKING INFRASTRUCTURE Responsible for the delivery of packets Includes the disassembling and reassembling of packets during transmission Internet Protocol (IP):

22. 7.22 © 2009 by Prentice Hall TCP/IP: Four-Layer Reference Model 1.Application layer: Communication between applications and other layers 2.Transport layer: Acknowledging and sequencing packets to/from application 3.Internet layer: Addressing, routing, packaging data packets 4.Network interface layer: Placing packets on and receiving them from network medium The Corporate Telecommunications System Features of Contemporary Telecommunications Systems

23. 7.23 © 2009 by Prentice Hall The TCP/IP Reference Model CONTEMPORARY NETWORKING INFRASTRUCTURE Figure 7-6

24. 7.24 © 2009 by Prentice Hall PURPOSES AND FUNCTIONS OF A TELECOMMUNICATIONS SYSTEM Telecommunications: Communication of information by electronic means  Includes digital data transmission as well as voice transmission Establish interface between sender and the receiver Route messages along most efficient paths Performs elementary processing of information Performs editorial tasks on data Converts message speed or format Controls flow of information How do they do that?

25. 7.25 © 2009 by Prentice Hall Analog signal Continuous waveform Passes through communications medium Used for voice communications Types of Signals: Analog and Digital

26. 7.26 © 2009 by Prentice Hall Digital signal Discrete waveform Transmits data coded into two discrete states as 1-bits and 0-bits Used for data communications Modem Translates computer’s digital signals into analog and vice versa Types of Signals: Analog and Digital

27. 7.27 © 2009 by Prentice Hall Functions of the Modem CONTEMPORARY NETWORKING INFRASTRUCTURE Figure 8-7

28. 7.28 © 2009 by Prentice Hall CONTEMPORARY NETWORKING INFRASTRUCTURE Twisted Wire Coaxial Cable Fiber Optics and Optical Networks Wireless Transmission Physical Transmission Media The different kinds of physical transmission media used by the networks are:

29. 7.29 © 2009 by Prentice Hall Twisted wire Copper wire twisted in pairs Older analog transmission medium Can be used for digital signals Modems used for translating between digital and analog Coaxial cable: Insulated copper wire Faster, more interference-free than twisted pair Difficult to install The Corporate Telecommunications System Transmission Media Functions of the modem

30. 7.30 © 2009 by Prentice Hall Fiber optics Strands of clear glass fiber bound into cables Data sent as pulses of light Faster, lighter, more durable Difficult to install; more expensive Used in high-capacity optical networks Currently slowed by need to convert back and forth to electrical data Can use multiplexing; allows one channel to carry several transmissions The Corporate Telecommunications System Transmission Media

31. 7.31 © 2009 by Prentice Hall Wireless Transmission Use electromagnetic spectrum Microwave and infrared use high-frequency radio signals Paging systems, cellular telephones, PDAs, mobile data networks Wireless communication requires compatible standards Security/privacy issues The Corporate Telecommunications System Transmission Media

32. 7.32 © 2009 by Prentice Hall

33. 7.33 © 2009 by Prentice Hall Types of Networks CONTEMPORARY NETWORKING INFRASTRUCTURE TypeArea Local Area Network (LAN)Up to 500 meters (half a mile); an office or floor of a building Campus Area Network (CAN)Up to 1,000 meters (a mile); a college campus or corporate facility Metropolitan Area Network (MAN) A city or metropolitan area Wide Area Network (WAN)Transcontinental or global area

34. 7.34 © 2009 by Prentice Hall Transmission Speed bps: bits per second baud rate: rate of signal changes bps = baud rate * how many bits encoded in one signal status Bandwidth = max freq. – min. freq., i.e., Range of frequencies accommodated on a particular channel The Higher the bandwidth, the Faster the transmission speed The Corporate Telecommunications System Transmission Media

35. 7.35 © 2009 by Prentice Hall The Corporate Telecommunications System Transmission Speed Transmission Media Twisted wireUp to 100 MbpsLow cost MicrowaveUp to 200+ Mbps SatelliteUp to 200+ Mbps Coaxial cableUp to 200 Mbps Fiber-optic cableUp to 6+ TbpsHigh cost

36. 7.36 © 2009 by Prentice Hall Connects computers and other digital devices within 2000 ft radius Cabling or wireless technology links computers, network interface cards, and software Network Operating System (NOS)-Windows, Linux, Novell Ethernet- dominant LAN standard Client/server or peer-to-peer architecture Star, bus, and ring topologies Communications Networks Local Area Networks

37. 7.37 © 2009 by Prentice Hall Communications Networks A local area network (LAN) Figure 8-7

38. 7.38 © 2009 by Prentice Hall COMMUNICATIONS NETWORKS Star Network: All computers and other devices are connected to a central host computerStar Network: All computers and other devices are connected to a central host computer Bus Network: Links a number of computers by a single circuitBus Network: Links a number of computers by a single circuit Ring Network: All computers are linked by a closed loopRing Network: All computers are linked by a closed loop Network Topologies

39. 7.39 © 2009 by Prentice Hall Network Topologies CONTEMPORARY NETWORKING INFRASTRUCTURE Figure 7-8

40. 7.40 © 2009 by Prentice Hall Wireless LANs Wi-Fi (802.11b) standard: Up to 11 Mbps, low cost, high-speed mobile Internet access, links work groups (also 54g) Bluetooth standard: Up to 720 Kbps, small personal area networks WiMax making headway Local Area Networks (LANs) and Wide Area Networks (WANs) COMMUNICATIONS NETWORKS

41. 7.41 © 2009 by Prentice Hall Wide Area Networks (WANs) Span large geographical distance Consist of variety of cable, satellite, and microwave technologies Switched lines, dedicated lines Local Area Networks (LANs) and Wide Area Networks (WANs) COMMUNICATIONS NETWORKS

42. 7.42 © 2009 by Prentice Hall Value-Added Networks (VANs) Private, multipath, data-only, third-party- managed network Virtual Private Network (VPN) Uses public infrastructure Allows secure connections –Accenture model Network Services and Broadband Technologies COMMUNICATIONS NETWORKS

43. 7.43 © 2009 by Prentice Hall THE INTERNET A network composed of computers and other devices that are logically linked together by a unique address space based on the Internet Protocol Technically, the Internet is a global information system defined by three characteristics:

44. 7.44 © 2009 by Prentice Hall THE INTERNET A network where network devices are able to support communications using TCP/IP or other compatible protocols A network that provides high-level services layered on a communication and network infrastructure

45. 7.45 © 2009 by Prentice Hall CONTEMPORARY NETWORKING INFRASTRUCTURE Digital Subscriber Line (DSL): Series of technologies for high-capacity transmission over copper wire Cable modem: Service for high-speed transmission of data over cable TV lines that are shared by many users T lines: Dedicated lines for high-speed secure data transmission and Internet connection Broadband Network Services and Technologies

46. 7.46 © 2009 by Prentice Hall THE INTERNET A Domain Name System (DNS) converts IP addresses to English-like domain names. The domain name is the name that corresponds to the unique 32-bit numeric IP address for each computer connected to the Internet. Internet Addressing, Architecture, and Governance Every device connected to the Internet has a unique 32-bit numeric IP address. The Domain Name System:

47. 7.47 © 2009 by Prentice Hall THE INTERNET Management Information Systems Chapter 8 Telecommunications, Networks, and the Internet Telecommunications, Networks, and the Internet DNS servers maintain a database containing IP addresses mapped to their corresponding domain names. To access a computer on the Internet, users need only specify its domain name. Internet Addressing, Architecture, and Governance (Continued) The Domain Name System:

48. 7.48 © 2009 by Prentice Hall INTERNET ADDRESSING IP Address –32-bit number, four strings –207.46.250.119 Domain Name Service (DNS) –Converts IP to domain names –www.microsoft.com –.com,.edu,.gov,.mil,.net,.org –.biz,.info

49. 7.49 © 2009 by Prentice Hall The Domain Name System THE INTERNET Figure 7-9

50. 7.50 © 2009 by Prentice Hall THE INTERNET Management Information Systems Chapter 8 Telecommunications, Networks, and the Internet Telecommunications, Networks, and the Internet Internet Protocol version 4 (IPv4): A 32-bit string of numbers organized into four sets of numbers ranging from 0 to 255; contains up to 4 billion addresses Internet Protocol version 6 (IPv6): 128-bit addresses, contains over a quadrillion possible unique addresses Limitations on IP Addresses: IPv4 and IPv6:

51. 7.51 © 2009 by Prentice Hall THE INTERNET Internet Architecture: Internet Network Architecture Figure 8-10

52. 7.52 © 2009 by Prentice Hall THE INTERNET Management Information Systems Chapter 8 Telecommunications, Networks, and the Internet Telecommunications, Networks, and the Internet Internet Architecture Board (IAB) Internet Corporation for Assigned Names and Numbers (ICANN) Internet Governance: No one “owns” the Internet, however, worldwide Internet policies are established by the following organizations:

53. 7.53 © 2009 by Prentice Hall THE INTERNET Internet Network Information Center (InterNIC) Internet Engineering Steering Group (IESG) Internet Engineering Task Force (IETF) Internet Society (ISOC) World Wide Web Consortium (W3C) Internet Governance: (Continued)

54. 7.54 © 2009 by Prentice Hall THE INTERNET E-mail: Person-to-person messaging; document sharing Usenet newsgroups: Discussion groups on electronic bulletin boards LISTSERVs: Discussion groups using e-mail mailing list servers Chatting and instant messaging: Interactive conversations Major Internet Services Table 8-6

55. 7.55 © 2009 by Prentice Hall THE INTERNET Telnet: Logging on to one computer system and doing work on another FTP: Transferring files from computer to computer World Wide Web: Retrieving, formatting, and displaying information (including text, audio, graphics, and video) using hypertext links Major Internet Services (Continued) Table 8-6 (Continued)

56. 7.56 © 2009 by Prentice Hall THE INTERNET Client/server Computing on the Internet Figure 7-11

57. 7.57 © 2009 by Prentice Hall THE INTERNET Management Information Systems Chapter 8 Telecommunications, Networks, and the Internet Telecommunications, Networks, and the Internet The World Wide Web: Hypertext Web servers Searching for information on the Web The Internet and Business Value

58. 7.58 © 2009 by Prentice Hall THE INTERNET The Internet lowers search costs Search engines Intelligent agents and shopping bots Broadcast and push technology The semantic Web Searching and Finding Information on the Internet

59. 7.59 © 2009 by Prentice Hall THE INTERNET Intranets: An intranet is an internal organizational network that provides access to data across a business firm. Extranets: Allow authorized vendors and customers to have limited access to its internal intranet Intranets and Extranets

60. 7.60 © 2009 by Prentice Hall TECHNOLOGIES AND TOOLS FOR COMMUNICATION AND E-BUSINESS E-Mail Chatting and Instant Messaging Electronic Discussion Groups

61. 7.61 © 2009 by Prentice Hall TECHNOLOGIES AND TOOLS FOR COMMUNICATION AND E-BUSINESS Internet telephony: Enable companies to use Internet technology for telephone voice transmission over the Internet or private networks Voice over IP (VoIP) technology: Uses the Internet Protocol (IP) to deliver voice information in digital form using packet switching Unified messaging systems: Combine voice mail, e- mail, and faxes so they can all be obtained from one system Internet Telephony

62. 7.62 © 2009 by Prentice Hall Management Information Systems Chapter 8 Telecommunications, Networks, and the Internet Telecommunications, Networks, and the Internet How IP Telephony Works TECHNOLOGIES AND TOOLS FOR COMMUNICATION AND E-BUSINESS Figure 8-13

63. 7.63 © 2009 by Prentice Hall TECHNOLOGIES AND TOOLS FOR COMMUNICATION AND E-BUSINESS A virtual private network based on the Internet Protocol provides a secure connection between two points across the Internet, enabling private communications to travel securely over the public infrastructure Virtual Private Networks

64. 7.64 © 2009 by Prentice Hall A Virtual Private Network using the Internet TECHNOLOGIES AND TOOLS FOR COMMUNICATION AND E-BUSINESS Figure 8-15

65. 7.65 © 2009 by Prentice Hall Use radio waves to connect stations 802.11b: Current standard; 54 Mbps in 2.4 GHz range Infrastructure mode: Wireless devices communicate with wired LAN via access points Ad-hoc mode: Peer-to-peer mode; wireless devices communicate with each other directly Communications Networks Wireless Networks: Wi-Fi and Bluetooth

66. 7.66 © 2009 by Prentice Hall Communications Networks An 802.11 wireless LAN Figure 8-9

67. 7.67 © 2009 by Prentice Hall Hot spot: Geographic location in which an access point provides public Wi-Fi network service Bluetooth: Standard for wireless personal area networks that can transmit up to 722 Kbps within 10-meter area Communications Networks Wireless Networks: Wi-Fi and Bluetooth

68. 7.68 © 2009 by Prentice Hall Personal Area Network (PAN) –Bluetooth – 802.15 –Connect close devices Local Area Network (LAN) –Wi-FI – 802.11 –Connect users to larger networks Metropolitan Area Networks –WiMax – 802.16 –Used for rural areas – 31 mile radius Wide Area Network (WAN) – proposed EV-DO - combination –Wireless access through cell phone Wireless Networks

69. 7.69 © 2009 by Prentice Hall Integrating wireless into the firm’s infrastructure Maintaining Security and Privacy of wireless Challenges of Wireless

70. 7.70 © 2009 by Prentice Hall Still in its infancy Explosion of mobile phones Phones not just for talking –Delivering and sending digital data/pictures –Anytime/anywhere access Can cut costs, increase flexibility Wireless

71. 7.71 © 2009 by Prentice Hall Increase communication throughout and between organizations More flexibility in work area Easy to change work arrangements Increased productivity-not tied to LAN line Provides new services and products –GPS phones, auto Business Value of Wireless

72. 7.72 © 2009 by Prentice Hall Customer Relationship Management –Mobile support for sales and service –Field service workers have real-time access to company information Send orders directly from point of sale Sears Repairman – connected to parts department and technical information Update customer accounts and deal information to update customer database instantaneously Receive alerts to important events Enter, perform, and update transactions and product information Wireless Applications in the Enterprise

73. 7.73 © 2009 by Prentice Hall Supply Chain Management –Uses RFID – better than barcodes, more data –Improves accuracy of product information Parts replacement Healthcare patient/drug information –Captures movement of goods through the supply chain –Active – sends signal EZPass –Passive – uses reader Walmart – all pallets RFID by 2006 Use in warehousing – picking, packing, shipping Wireless Applications in the Enterprise

74. 7.74 © 2009 by Prentice Hall MANAGEMENT OPPORTUNITIES, CHALLENGES, AND SOLUTIONS Management Opportunities: Wireless technology offers: Flexible business processes (New Orleans and Hurricane Katrina) Business processes not limited by time or space New channel for communicating with client Source of new products and services

75. 7.75 © 2009 by Prentice Hall Creating and integrating wireless technologies into firm’s infrastructure –What applications are best –Organizational change requirements Security and Privacy –Wireless networks still not very secure –RFID can be another intrusion to privacy Wireless Challenges