Chapter 4

Business Telecommunications

The InternetworkedEnterprise

• The Internet and Internetworked technology based networks (intranets and extranets) have become the primary IT infrastructure

• Allows for managers, end users, workgroups, project teams to communicate, share work, and exchange data and information

The InternetworkedEnterprise cont.

• Most organizations could not survive or compete without advanced computer networks

Telecommunications

• Defined as the exchange of information in any form over a computer-based network

• There are three major categories of telecommunications applications each relying on Internet based networks

Telecommunications

• Enterprise collaboration - Applications using telecom networks to support communication, coordination, and collaboration among business teams and workgroups

• Electronic Commerce - Applications that support trade over the Internet

Telecommunications

• Internal Business - Telecommunications that support a variety of company operations

Business Value of Telecommunications

• Advanced telecommunications aid in overcoming barriers to business success

– geographic barriers– time barriers– cost barriers– structural barriers

Management Focus

• Managers need to have an awareness of major trends in telecommunications

• Services and networks are available from many vendors

• Internet and the World Wide Web have created new products, services, and providers

Management cont

• Businesses have increased their uses of the Internet and Web for e-commerce and enterprise collaboration

Technology Trends

• Open systems that use Internet technology are the driving force behind business communications

• Movement towards client/server networks

• Open systems are defined as information systems that use common elements such as transmission protocol

Technology Trends

• Connectivity is the ability of computer networks to communicate and share information

• Changing from analog to digital network technologies

• Digital offers advantages

Digital Advantages

• Higher transmission speeds

• Can transport larger blocks of data

• Economic

• Lower error rates (very important)

• Can transmit multiple types of communications over same line

Communications Media

• Moving towards fiber optic and satellite communications

• These mediums allow for lower installation labor and reduced physical size

• Greater capacity

• Faster transmission speeds

• Freedom from electrical interference

TelecomApplication Trends

• There are many, many telecommunications applications enabled by the Internet, WWW, intranets and extranets

• Telecom networks are an essential component of business

• Telecom lowers costs and shortens business lead and response times

Telecom Trends cont

• Support electronic commerce

• Enable workgroup collaboration

• Develop online processes

• Share resources

• Enable new product and service development

The Internet Revolution

• The largest network in the world

• No central location

• Network of networks

• Unique addresses (IP addresses)

• Growing rapidly

Internet Applications

• E-Mail

• Browsing or surfing

• Newsgroup participation

• Browser software opens information doors

• Companies use websites to launch e-business solutions

• Download capability for app software

Business Uses of the Internet

• Strategic uses of the Internet

• Business partner collaboration

• Provide for customer and vendor support

• Buy and sell over the ‘net

• Marketing, sales, and service applications

• E-commerce

• Enterprise communications

Enterprise Communicationand Collaboration

• Internet, intranet, extranets support global communications and collaboration among employees, customers, vendors, and any other business partners

• Interactive web sites, e-mail, BBS, videoconferencing

Electronic Commerce

• Trade conducted over the Internet

• Electronic Data Interchange (EDI) is the transfer of document based data and information over Internet

• Electronic Funds Transfer (EFT) is the transfer of payments over secure networks

Business Objectivesfor the Internet

• Attract new customers

• Improve service for existing customers

• Develop web-based markets and distribution channels for existing products

• Develop new information based products that are easily accessible on the Web

Communications Network

• A communications network requires several elements– Terminals - Can be phones, computers,

transaction terminals, etc– Telecom processors - Modems, switches,

routers– Media - Physical connection, copper wire, coax

cable, fiber optic, rf, infrared, satellite

Computers and ControlSoftware

• Host computers (mainframes)

• Front-end processors (minicomputers)

• Network servers (microcomputers)

• Telecom monitor software (mainframes)

• Network operating systems (network servers)

• Communications applications (micros)

Network Configurations

• Wide Area Network (WAN)

• Local Area Network (LAN)

• Interconnected (Internet, Intranet, Extranet)

• Client/Server

• VPN (virtual private network)

WANs

• Cover large geographic areas such as cities, countries, continents, etc

• Cable, fiber optics are primary mediums

LANs

• Closer proximity than WAN

• Offices, schools, manufacturing

• Use twisted pair wire, coax cable, radio frequency, infrared

• Require NIC (network interface card)

• Most popular configuration is network server with network operating system installed

Internetworks

• Rely on Internet technology

• Intranet - Secure network using Internet technology

• Extranet - External network linking business partners, auxillary offices using

• Client/Server - End user stations are clients

• Rely on central Server

Network Computing

• Browser based network

• Network computers have no disk drives

• Reliant on powerful servers that contain operating system, applications, databases, and applets

TelecommunicationsChannels

• Many forms of media– twisted pair wire - ordinary telephone wire– coax cable - cable television– Cellular networks– Infrared– Radio frequency

Twisted Pair

• Advantages are low cost, ease of use, readily available

• Disadvantages are high levels of interference, must use repeaters that amplify signal, low security

Coaxial Cable

• Advantages are low cost, easy to run, can be bundled, laid underground, high transmission rates

• Disadvantages - more expensive than twisted pair

Fiber Optic

• Low cost (relative)• High transmission rates• Light weight• Low noise interference• Can be run undersea• High security• Disadvantages - Difficult to install, hard to

repair

Cellular

• Cellular grids

• Low cost to users

• Not secure

• Can be secured with encryption (fairly expensive)

RF and Infrared

• Easy to set up

• Easy to maintain

• Fairly expensive (but declining prices)

• Limited to close distances

Telecom Devices

• Modems convert analog to digital back to analog• Multiplexers allow single channel to be split into

multiple channels• Switches, routers direct traffic on network• Hub allows for multiple connections to single

server• Gateway allows connection of differing

topologies

Three Types of NetworkTopology

• Star

• Ring

• Bus

Star

• All terminals linked to a central computer

• This computer directs traffic among terminals

• Susceptible to downtime

• High cost

Ring

• Terminals tied together in a loop

• Often used to link mainframes

• More reliable and less costly

Bus

• Centralized cable that each terminal connects to

• Does not require a host

• Often used to connect small group of microcomputers