4 Telecommunications and Networks 1 4 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. 2 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. 3 4 Section I • The Networked Enterprise 4 4 Networking the Enterprise • Networking business and employees • Connecting them to customers, suppliers, and other stakeholders. 5 4 Trends in Telecommunications 6 4 Trends in Telecommunications (continued) – Industry • More competitive • More options for the firm – Technology • Unrestricted connectivity • Easy access for end users – Open systems » Use common standards for hardware, software, applications, & networking. 7 4 Trends in Telecommunications (continued) – Technology (continued) • High degree of interoperability • Digital networks – – – – – Higher transmission speeds Moves larger amounts of information Greater economy Lower error rates Multiple types of communications on the same circuits 8 4 Trends in Telecommunications (continued) – Technology (continued) – Fiber-optic lines & cellular, PCS, satellite & other wireless technologies » Faster transmission speeds 9 4 Trends in Telecommunications (continued) – Business applications • 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 10 4 Business Value of Telecommunications Networks 11 4 The Internet • A network of networks • Popular uses – E-mail – Instant messaging – Browsing the World Wide Web – Newsgroups and chat rooms 12 4 The Internet (continued) • The business value of the Internet 13 4 Intranets • Within an organization • Uses Internet technologies • Business value of Intranets – Used for information sharing, communication, collaboration, & support of business processes. – Web publishing • Comparatively easy, attractive, & lower cost alternative for publishing & accessing multimedia business information 14 4 Intranets (continued) – Business Operations & Management • Used for developing & deploying critical business applications • Supports operations and managerial decision making 15 4 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 16 Extranets (continued) 4 • Business value – Improve communication with customers and business partners – Gain competitive advantage in • • • • • Product development Cost savings Marketing Distribution Leveraging their partnerships 17 4 Section II • Telecommunications Network Alternatives 18 4 Telecommunications Network Alternatives 19 4 A Telecommunications Network Model 20 4 A Telecommunications Network Model (continued) • Consists of five basic components – 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 21 4 A Telecommunications 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 22 4 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 23 4 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 24 4 Types of Telecommunications Networks (continued) 25 4 Types of Telecommunications Networks (continued) • Client/Server Networks – Clients – end user PCs or NCs – Server – helps with application processing and also manages the network 26 4 Types of Telecommunications Networks (continued) 27 4 Types of Telecommunications Networks (continued) • Network computing – “the network is the computer” • Thin clients process small application programs called “applets.” 28 4 Types of Telecommunications Networks (continued) • Peer-to-Peer (P2P) – Two major models • Central server architecture • Pure peer-to-peer 29 4 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 30 4 Telecommunications Media (continued) 31 4 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 32 4 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 33 4 Wireless Technologies (continued) • Wireless LANs – Spread spectrum – Wi-Fi (wireless fidelity) • Wireless Web – Uses Web-enabled information appliances – Very thin clients 34 4 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 35 4 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 36 4 Telecommunications Processors (continued) – Hub • Port switching communications processor – Gateway • A processor that interconnects networks that use different communications architecture 37 4 Telecommunications Software • Provides a variety of communications support services including connecting & disconnecting communications links & establishing communications parameters such as transmission speed, mode, and direction. 38 4 Telecommunications Software (continued) • Network Management – Traffic management – Security – Network monitoring – Capacity planning 39 4 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 40 4 Network Topologies (continued) • Bus – Local processors share the same bus, or communications channel – Tree is a variation which ties several bus networks together 41 4 Network Topologies (continued) 42 4 Network Architectures & Protocols • 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 43 4 Network Architectures and Protocols (continued) • OSI Model • TCP/IP – Transmission Control Protocol/Internet Protocol • Used by the Internet and all intranets and extranets 44 4 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 45 4 Switching Alternatives • Circuit switching • Packet switching • Cell switching 46 4 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? 47 4 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? 48 4 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? 49 4 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? 50 4 References • James A. O'Brien; George M. Marakas. Management Information Systems: Managing Information Technology in the Business Enterprise 6th Ed., Boston: McGraw-Hill/ Irwin,2004 51