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Networks, Collaboration and Sustainability
9th Edition Information Technology for Management Advancing Sustainable, Profitable Business Growth Part I. Managing the Value of Data and Information Technology Chapter 4 Networks, Collaboration and Sustainability [INSERT COURSE NAME HERE] Copyright 2013 John Wiley & Sons, Inc.
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Chapter 4 Outline 4.1 Business IT Networks and Components 4.2 Wireless Network Applications and Mobile Infrastructure 4.3 Network Management and Search 4.4 Collaboration and Communication Technologies 4.5 Sustainability and Ethical Issues Copyright 2013 John Wiley & Sons, Inc.
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Chapter 4 Learning Outcomes
Describe network systems and their quality of service issues. Describe wireless applications, mobile network infrastructure and how they support worker productivity, business operations, and strategy. Explain the business valve of intranets, extranets and other network portals and their role in improving relationships with employees, customers and supply chain partners. Evaluate performance improvements from virtual collaboration and communication technologies, and explain how they support group work. Describe how companies can contribute to sustainability, green, social, and ethical challenges related to the use and operations of IT networks. Copyright 2013 John Wiley & Sons, Inc.
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For Class Discussion & Debate Case 1: Mobile Network Gives Haneda Airport Its Competitive Edge
Opening Case (see book for full text) Discuss 1. Why is free, easy instant-on wireless connectivity an important service at an airport? 2. How does the WLAN impact customer service? 3. How can wireless connectivity reduce customer service costs for the airlines that use Haneda Airport’s international terminal? 4. What do international airports compete for? Why? 5. What components are needed for a WLAN? Copyright 2013 John Wiley & Sons, Inc.
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Case 1: Decide and Debate
Decide 6. Visit the Haneda Airport, International Flight Passenger Terminal at haneda-airport.jp/inter/en/. Click on MOBILE TIAT. What other mobile IT-based services are offered to travelers? How might these mobile technologies make it easier and less expensive to manage airport operations? Debate 7. What are Haneda Airport’s competitors? 8. Does TIAT’s investment in the WLAN to provide instant-on connectivity to customers in the international terminal provide Haneda Airport with a strategic advantage? Or is the WLAN an expense—that is, the cost of doing business today? Copyright 2013 John Wiley & Sons, Inc.
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4.1 Business IT Networks and Components
Business networks support five basic functions: communication Mobility collaboration relationships search Digital Transmission: The transmission of the signal by the switches and routers is called switching. Copyright 2013 John Wiley & Sons, Inc.
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Switching: transmission of the signal
Circuit switching: Circuit switching is older technology that was used for telephone calls. Plain old telephone service (POTS) and most wired telephone calls are transmitted, at least in part, over a dedicated circuit. Packet switching: The path of the signal is digital, and is neither dedicated nor exclusive. A file is broken into smaller blocks, called packets. Figure 4.3. Wireless local area network is created by multiple wireless access points Copyright 2013 John Wiley & Sons, Inc.
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IT at Work 4.1: Hospital of the Future Built on Network Infrastructure
See text for full case When hospital’s management began planning a move to a new facility, they saw an opportunity to design the hospital of the future. Their goal was to use state-of-the-art clinical, information, and mobile network technologies to provide safer, more effective patient care Robust Next-Gen Wireless Network Network Solution and Benefits Questions 1. What capabilities did RMH management envision for the hospital of the future? 2. Why was an adaptable network solution so critical to RMH? 3. What were the main components of the hospital’s network? 4. In your opinion, how do the hospital’s network-enabled capabilities influence quality of health care and health care costs? Copyright 2013 John Wiley & Sons, Inc.
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Network Terminology Bandwidth: Throughput capacity or speed of a network Protocol: Standards that govern how networked devices exchange information. TCP/IP: Transmission control protocol/Internet Protocol are a suite of Internet protocols. Broadband: Short for broad bandwidth. Fixed-line broadband: Cable or DSL Internet connections. Mobile broadband: Wireless high-speed Internet access through a portable modem, phone, or other device. Copyright 2013 John Wiley & Sons, Inc. 4-9 9
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3G and 4G Networks 3G: Short for third generation of cellular telecommunications technology 4G: Short for fourth generation. 4G mobile network standards enable faster data transfer rates. Users can get 4G wireless connectivity through one of two standards: WiMAX LTE (Long-Term Evolution) Copyright 2013 John Wiley & Sons, Inc.
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IT at Work 4.2: Net Neutrality vs. Traffic Shaping
See text for full case Net neutrality is a one-tier system in which all Internet data packets are treated the same, regardless of their content, destination or source. Traffic shaping is the practice of managing data transfer to ensure a certain level of performance or QoS. Specifically, traffic is shaped by delaying the flow of less-important network traffic (e.g., bulk data transfers, P2P (peer-to-peer) file-sharing programs, BitTorrent traffic) and giving priority to more important data. Traffic shaping creates a two-tier system. Questions What is net neutrality? Why is net neutrality such a hotly debated issue? Did the FCC’s ruling favor either side of the debate? Explain. Copyright 2013 John Wiley & Sons, Inc. 4-11 11
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4.2 Wireless Network Applications and Mobile Infrastructure
More users are using more bandwidth. By 2016, there will be an estimated 5.1 billion mobile users, up from 4.1 billion in By 2016, 60%, or 3 billion people, will generate more than one gigabyte of mobile data traffic per month. More users have more mobile devices. By 2016, there will be 10 billion mobile devices and connections—that’s one-and-a-half devices for each person on Earth. More powerful mobiles. By 2016, smartphones will be 82% of all handsets, up from 12% in Mobile traffic originating from tablets will grow 62-fold from 2011 to 2016. Wireless networks serving mobiles are getting faster. By 2016, 36% of mobile data traffic will be on a 4G network (The Network, 2011). Copyright 2013 John Wiley & Sons, Inc.
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IT at Work 4.3: Mobile and Virtual Care
See text for full case Verizon Wireless is developing a suite of digital health care solutions that include chronic care management and virtual care. Digital care management solution leverages a cloud platform and connected medical devices. This solution will integrate biometric devices and deliver personalized care plans to people on their mobile devices. Virtual care solution will leverage advances in 4G LTE technology by utilizing smartphones, tablets, and video technology. Questions 1. What are the benefits of digital health care solutions? 2. What technologies are needed for virtual health care? Copyright 2013 John Wiley & Sons, Inc. 4-13 13
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Strategic Build-Out of Mobile Capabilities
Enterprises are moving away from ad hoc adoption of mobile devices and network infrastructure to a more strategic planning build-out of their mobile capabilities. Mobile infrastructure consists of the integration of technology, software, support, security measures, and devices for the management and delivery of wireless communications. Wi-Fi technology allows devices to share a network or Internet connection without the need to connect to a commercial network. There are three types of WWANS: WANS, WiMAX, and LANS. Copyright 2013 John Wiley & Sons, Inc. 4-14 14
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Copyright 2013 John Wiley & Sons, Inc.
Figure 4.5. Wi-Fi allows computers to share a network wirelessly without connecting to a commercial network. Copyright 2013 John Wiley & Sons, Inc.
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Copyright 2013 John Wiley & Sons, Inc.
Figure 4.6. WiMAX: a broadband wireless metropolitan area network (MAN) access standard that can deliver voice and data at distances of 30 miles. Copyright 2013 John Wiley & Sons, Inc.
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Questions What factors are contributing to mobility?
Why is strategic planning of mobile networks important? How does Wi-Fi work? What is a WLAN? Why is WiMAX important? What factors should be considered when selecting a mobile network? Copyright 2013 John Wiley & Sons, Inc. 4-17 17
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4.3 Network Management and Search
When the network goes down or access is blocked, so does the ability to operate or function. Damages when a company cannot operate or fulfill orders include: lost sales and productivity inability to send and receive payments inability to process payroll and inventory Network infrastructure alone does not improve business performance. It’s how network capabilities combine with other IT to support employees, connect remote locations, service customers, and coordinate with supply chain partners. Figure 4.7 shows the model of network, collaboration and performance relationship Copyright 2013 John Wiley & Sons, Inc.
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Figure 4.7. Model of Network, Collaboration, and Performance Relationship
Copyright 2013 John Wiley & Sons, Inc.
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IT at Work 4.4: US Custom’s Network Crash…
See text for full case On August 2007, more than 20,000 international travelers were stranded for up to eleven hours because the U.S. Customs and Border Protection (CBP) Agency could not process passengers due to a network crash. Immediate Causes of the Crash and Crisis. The outage started with a malfunctioning NIC on a single workstation. Policy Remained in Force. Because of a zero-tolerance policy, all travelers must be processed and screened through national law-enforcement databases. Human or Machine Error? Human errors were a bigger part of the outage than technological ones. Copyright 2013 John Wiley & Sons, Inc. 4-20 20
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IT at Work – 4.4 continued CBP’s Plan to Avoid Another Crash. The CBP recognized the need to improve its IT staff, equipment, and infrastructure. Questions What are the risks of a legacy network? What were the technical factors that contributed to the failure of the backup system? Copyright 2013 John Wiley & Sons, Inc. 4-21 21
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IT at Work 4.5: Labatt Brewer Builds “The Pub”
Canada’s Labatt Brewer Builds “The Pub,” an Intranet for Enterprise collaboration and Search – see text for full case How does an enterprise ensure that its employees get the information they need when they need it? Labatt’s Intranet’s Architecture and Benefits. After determining Labatt’s business and technology requirements, the Labatt IT team decided that an intranet would provide the most efficient way of delivering the single point of access to employees. Using The Pub, Labatt rolled out new programs to its employees, such as the Innovation Database. With the robust search function within The Pub, employees are able to quickly locate the documents they need and obtain the information they require to make better business decisions. Copyright 2013 John Wiley & Sons, Inc. 4-22 22
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IT at Work 4.5 – continued Questions
How do information silos impact productivity? Why was a single point of access an important feature? How has sharing information via The Pub improved collaboration at Labatt? Why might workers not be in favor of document and data sharing? Copyright 2013 John Wiley & Sons, Inc. 4-23 23
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Computer Networks Intranets: a network serving the internal informational needs of a company. Extranets and VPNs. An extranet is a private, company-owned network that can be logged into remotely via the Internet. Typical users are suppliers, vendors, partners, or customers. VPNs. A major concern is the security of the transmissions that could be intercepted or compromised. One solution is to use virtual private networks (VPNs), which encrypt the packets before they are transferred over the network. Figure 4.9. Virtual Private Network. Copyright 2013 John Wiley & Sons, Inc.
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Enterprise Search The volume of data stored in many organizations reached the point where it actually interferes with productivity rather than contributes to it. One solution is enterprise search. Enterprise search (Figure 4.10) starts with content indexing, which is created by software that crawls through directories and websites to extract content from databases and other repositories. Once the index is created, it can be queried—just as users do Google searches of the Internet. Copyright 2013 John Wiley & Sons, Inc. 4-25 25
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Copyright 2013 John Wiley & Sons, Inc.
Figure Overview of enterprise search. Copyright 2013 John Wiley & Sons, Inc.
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Enterprise Search – continued
Questions 1. How might a company’s business performance be affected by its network’s capabilities? 2. What are the benefits of an IP-based network? 3. Describe how VoIP can reduce an organization’s communication costs. 4. What is the difference between an intranet and an extranet? 5. How does a virtual private network (VPN) provide security? 6. What is the importance of enterprise search? Copyright 2013 John Wiley & Sons, Inc. 4-27 27
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4.4 Collaboration and Communication Technologies
Virtual Collaboration: Information Sharing between Retailers and Their Suppliers: P&G and Wal-Mart. Retailer-Supplier Collaboration: Asda Corporation. Lower Transportation and Inventory Costs and Reduced Stockouts: Unilever. Reduction of Product Development Time: Caterpillar, Inc. Group Work and Decision Processes: Group Work and Dynamics. Online Brainstorming in the Cloud. Evernote (evernote.com) iMindMap Online Copyright 2013 John Wiley & Sons, Inc. 4-28 28
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4.4 Collaboration and Communication Technologies – continued
Questions 1. What is virtual collaboration? 2. Why is group work challenging? 3. What are the benefits of working in groups? 4. What might limit the use of in-person brainstorming? 5. How can online brainstorming tools overcome those limits? Copyright 2013 John Wiley & Sons, Inc. 4-29 29
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4.5 Green, Legal, and Ethical Issues
MOBILE, CLOUD, SOCIAL, AND GLOBAL LEAVE A FOOTPRINT ON THE ENVIRONMENT Sustainability Solutions Communications technology accounts for approximately 2% of global carbon emissions Network service providers, as well as organizations, face the challenges of energy efficiency, smaller carbon footprint, and eco-sustainability Copyright 2013 John Wiley & Sons, Inc.
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IT at Work 4.6: Eco-Sustainable Networks Cut Carbon Emissions by 42%
See text for full case Sustainability Incentives 1. To reduce costs. Energy consumption is one of the biggest operating costs for both fixed and mobile networks. 2. To overcome limited availability of reliable electricity. 3. To be more socially responsible. 4. To gain competitive advantage. All of these factors helped eco-sustainable networks cut carbon emissions by 42% by 2013. Copyright 2013 John Wiley & Sons, Inc. 4-31 31
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Ethical Considerations of a Connected Workforce
Driving while distracted Health Risks RF emissions and SAR specific absorption rate, or SAR, is a way of measuring the quantity of radio frequency (RF) energy that is absorbed by the body. Life out of control Copyright 2013 John Wiley & Sons, Inc.
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