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

2. Telecommunications and Networks
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. The Networked Enterprise
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. Telecommunications Network Alternatives
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
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?

51. Discussion Questions (continued)
What is the business value driving so many companies to rapidly install and extend intranets throughout their organizations?
What strategic competitive benefits do you see in a company’s use of extranets?

52. Discussion Questions (continued)
Do you think that business use of the Internet, intranets, and extranets has changed what business people expect from information technology in their jobs?
Do you believe that the insatiable demand for everything wireless, video, and Web-enabled will be the driving force behind developments in telecommunications, networking, and computing technologies for the foreseeable future?

53. Real World Case 1 – Sierra Wireless
What is the value of a wireless communications system?
What are some disadvantages and limitations of a wireless network?
Would you prefer a wireless laptop to a networked PC in your work environment?
Which application is most likely to bring success to wireless e-commerce?

54. Real World Case 2 – Axia SuperNet Ltd.
What are the benefits and limitations of broadband communications lines?|
What are the possible benefits of Alberta’s SuperNet infrastructure?
What are the managerial issues in implementing SuperNet?
Should other Canadian provinces develop a system like SuperNet?

55. Real World Case 3 – FedEx versus UPS
Why does telecommunications play such a key role in the competition between FedEx and UPS?
Why does “information about the package” have such a strategic business value in the express delivery business?

56. Real World Case 3 (continued)
What telecommunications products or services would you recommend that FedEx or UPS use to improve their competitive position in the overnight delivery and shipping business?
Consider the different management styles of FedEx and UPS. What makes them work?

57. Real World Case 3 (continued)
What other IT or web-based services could FedEx and UPS offer their business or consumer customers?