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Chapter

4

Telecommunicationsand

Networks

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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.

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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.

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Section I

The Networked Enterprise

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Networking the Enterprise

Networking business and employeesConnecting them to customers, suppliers, and

other stakeholders.

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Trends in Telecommunications

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Trends in Telecommunications (continued)

IndustryMore competitiveMore options for the firm

Technology Unrestricted connectivityEasy access for end users

Open systemsUse common standards for hardware,

software, applications, & networking.

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Trends in Telecommunications (continued)

Technology (continued)High degree of interoperabilityDigital networks

Higher transmission speedsMoves larger amounts of informationGreater economyLower error ratesMultiple types of communications on the

same circuits

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Trends in Telecommunications (continued)

Technology (continued)Fiber-optic lines & cellular, PCS, satellite

& other wireless technologiesFaster transmission speeds

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Trends in Telecommunications (continued)

Business applicationsDramatic 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

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Business Value of Telecommunications Networks

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The Internet

A network of networksPopular uses

E-mailInstant messagingBrowsing the World Wide WebNewsgroups and chat rooms

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The Internet (continued)

The business value of the Internet

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Intranets

Within an organizationUses Internet technologiesBusiness value of Intranets

Used for information sharing, communication, collaboration, & support of business processes.

Web publishingComparatively easy, attractive, & lower

cost alternative for publishing & accessing multimedia business information

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Intranets (continued)

Business Operations & ManagementUsed for developing & deploying critical

business applicationsSupports operations and managerial

decision making

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Extranets

Network links that use Internet technologies to interconnect the firm’s intranet with the intranets of customers, suppliers, or other business partnersConsultants, subcontractors, business

prospects, & others

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Extranets (continued)

Business valueImprove communication with customers and

business partnersGain competitive advantage in

Product developmentCost savingsMarketingDistributionLeveraging their partnerships

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Section II

Telecommunications Network Alternatives

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Telecommunications Network Alternatives

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A Telecommunications Network Model

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A Telecommunications Network Model (continued)

Consists of five basic componentsTerminals

Any input/output device that uses telecommunication networks to transmit or receive data

Telecommunication processorsSupport data transmission and reception

between terminals and computers

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A Telecommunications Network Model (continued)

Telecommunications channelsThe medium over which data are

transmitted and receivedComputers

Interconnected by telecommunications networks

Telecommunications control softwareControl telecommunications activities &

manage the functions of telecommunications networks

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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

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Types of Telecommunications Networks (continued)

Virtual Private NetworksA secure network that uses the Internet as its

main backbone network, but relies on fire walls and other security features

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Types of Telecommunications Networks (continued)

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Types of Telecommunications Networks (continued)

Client/Server NetworksClients – end user PCs or NCsServer – helps with application processing

and also manages the network

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Types of Telecommunications Networks (continued)

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Types of Telecommunications Networks (continued)

Network computing“the network is the computer”

Thin clients process small application programs called “applets.”

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A Telecommunications Network Model (continued)

Peer-to-Peer (P2P)Two major models

Central server architecturePure peer-to-peer

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Telecommunications Media

Twisted-pair wireCoaxial cable

Minimizes interference and distortionAllows high-speed data transmission

Fiber opticsGlass fiber that conducts pulses of light

generated by lasersSize and weight reductionIncreased speed and carrying capacity

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Telecommunications Media (continued)

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Wireless Technologies

Terrestrial MicrowaveLine-of-sight path between relay stations

spaced approximately 30 miles apart.

Communications SatellitesGeosynchronous orbitsServe as relay stations for communications

signals transmitted from earth stations

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Wireless Technologies (continued)

Cellular & PCS SystemsEach 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

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Wireless Technologies (continued)

Wireless LANsSpread spectrumWi-Fi (wireless fidelity)

Wireless WebUses Web-enabled information appliancesVery thin clients

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Telecommunications Processors

Modems (modulation/demodulation)Changes signals from analog to digital and

back to analog

MultiplexersAllows a single communication channel to

carry simultaneous data transmissions from many terminals

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Telecommunications Processors (continued)

Internetwork ProcessorsSwitches

Makes connections between telecomm circuits so a message can reach its intended destination

RouterInterconnects networks based on different

rules or protocols

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Telecommunications Processors (continued)

HubPort switching communications processor

GatewayA processor that interconnects networks

that use different communications architecture

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Telecommunications Software

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

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Telecommunications Software (continued)

Network ManagementTraffic managementSecurityNetwork monitoringCapacity planning

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Network Topologies

StarTies end user computers to a central

computerConsidered 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

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Network Topologies (continued)

BusLocal processors share the same bus, or

communications channelTree is a variation which ties several bus

networks together

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Network Topologies (continued)

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Network Architectures & Protocols

ProtocolsA standard set of rules & procedures for the

control of communications in a networkStandards for the physical characteristics of

cables and connectorsNetwork Architecture

Goal is to promote an open, simple, flexible, efficient telecommunications environment

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Network Architectures and Protocols (continued)

OSI Model

TCP/IPTransmission Control Protocol/Internet

ProtocolUsed by the Internet and all intranets and

extranets

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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 baudNarrow-band

Low-speed transmissionBroadband

High-speed transmission

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Switching Alternatives

Circuit switching

Packet switching

Cell switching

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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?

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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?

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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?

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Discussion Questions (continued)

Do you think that business use of the Internet, intranets, and extranets has changed what businesspeople 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?

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Real World Case 1 – 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?

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Real World Case 1 (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?

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Real World Case 1 (continued)

What other IT or web-based services could FedEx and UPS offer their business or consumer customers?

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Real World Case 2 – Nielsen Media Research

Managing bandwidth useMonitoring and enforcingCentralizing operationsTesting & tuning applications

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Real World Case 2 (continued)

How do the network bandwidth problems experienced by the companies in this case affect their business performance?

What network management tactics are used to help solve these problems?

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Real World Case 2 (continued)

What other network management tactics would you recommend to help solve the business problems identified in this case?

What are some network usage problems not mentioned in the case that could be solved by better network management?

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Real World Case 3 – Link Staffing, FMC, AutoWeb, & APL Logistics

Why do companies implement virtual private networks?

What is the business case for outsourcing VPN services?

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Real World Case 3 (continued)

What role does network management software play in implementing and managing VPNs?

What challenges did each company face and how did they use VPNs to help answer those challenges?

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Real World Case 4 – Dow Chemical

Why have companies been reluctant to rely on Internet telephony instead of traditional telephone systems for business use?

Do the potential business benefits support Dow Chemical’s decision to implement a new global VOIP network?

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Real World Case 4 (continued)

Would you recommend that more companies implement IP telephony services? Why?

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Real World Case 5 – General Motors Corp.

What is the business value of wireless LANs to GM?

What are the security vulnerabilities of wireless LANs? Is GM taking appropriate security measures?

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Real World Case 5 (continued)

What are some other possible business applications of wireless LANs?

What are some of the benefits and challenges of LANs in a small business environment?