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Chapter 4
Chapter 4
Learning Outcomes
1. Describe data networks, their quality-of-service (QOS) 3. Evaluate performance improvements from virtual
issues, and how IP addresses and APIs function. Identify collaboration and communication technologies, and
opportunities to apply networked devices to improve explain how they support group work.
operational efficiency and business models.
4. Describe how companies can contribute to sustainability,
2. Describe wireless 3G and 4G networks, mobile network and green, social, and ethical challenges related to the
infrastructure, and how they support worker productivity, use and operations of IT networks.
business operations, and strategy.
Chapter Snapshot
The basic technology that makes global communication as packets in order to be transmitted over a network to
possible is the Internet Protocol, or IP. Each device attached their destination, which also has a unique IP address. Most
to a network has a unique IP address that enables it to send networks use IP Version 4 (IPv4). In April 2014 ARIN, the
and receive files. Files are broken down into blocks known group that oversees Internet addresses, reported that IPv4
110
Internet Protocol (IP) is
32 bit address
the method by which data IPv4
0000.0000.0000.0000
are sent from one device to
another via a network.
128 bit address
IPv6
IP address. Every device that 0000.0000.0000.0000.0000.0000.0000.0000
communicates with a network
must have a unique identify-
ing IP address. An IP address Figure 4.1 IPv4 addresses have 4 groups of four alphanumeric characters, which
allows for 232 or roughly 4.3 billion unique IP address. IPv6 addresses have
is comparable to a telephone
8 groups of alphanumerics, which allows for 2128, or 340 trillion, trillion, trillion
number or home address.
addresses. IPv6 offers also enhanced quality of service that is needed by the
IP Version 4 (IPv4) has latest in video, interactive games, and e-commerce.
been Internet protocol for
over three decades, but
has reached the limits of addresses were running out—making it urgent that enterprises move to the newer IPv6
its design. It is difficult to (Figure 4.1). Enterprises need to prepare for the 128-bit protocol because switching
configure, it is running out from IPv4 to IPv6 is not trivial.
of addressing space, and it Networking is undergoing tremendous change. The convergence of access tech-
provides no features for site nologies, cloud, advanced 4G networks, multitasking mobile operating systems, and
renumbering to allow for collaboration platforms continues to change the nature of work, the way we do busi-
an easy change of Internet ness, how machines interact, and other things not yet imagined. The downsides of
Service Provider (ISP), among such massive use of energy-dependent wired and wireless networks are their carbon
other limitations. footprints and damage to the environment as well as personal privacy. Intelligently
planned sustainability efforts can reduce the depletion of the earth’s natural resources
significantly. Efforts to protect what is left of personal privacy are less successful.
SONY’S RAPID In the early 2000s, Sony Corporation had been engaged in strategic mergers and
BUSINESS GROWTH acquisitions to strengthen itself against intensifying competition. By 2007 Sony’s
enterprise network (internal network) had become too complex and incapable
Sony Corporation
111
112 Chapter 4 Networks for Efficient Operations and Sustainability
NETWORK Many of the Sony Group companies had developed independently—and had inde-
LIMITATIONS pendent networks. Devices connected to the independent networks were using the
same IP addresses. That situation is comparable to users having duplicate telephone
numbers—making it impossible to know which phone was being called. Also,
phones with the same number could not call each other.
Once these networks were integrated, the duplicate IP address caused traffic-
routing conflicts. Routing conflicts, in turn, led to the following problems:
1. Sony’s employee communication options were severely limited, which harmed
productivity.
2. File sharing and real time communication were not possible.
3. Introducing cloud services was difficult and time-consuming.
4.1 Data Networks, IP Addresses, and APIs 113
MIGRATION TO IPV6 To eliminate these limitations, Sony decided to invest in IPv6-based networks in
NETWORKS: AN 2006; it then launched a full-scale effort in 2008. With its virtually unlimited number
INVESTMENT IN of IP addresses, IPv6 would support Sony’s long-term, next-generation information
THE FUTURE and communications technology (ICT) infrastructure strategy and improve collabo-
ration and productivity.
IP Version 6 (IPv6) is Migrating from IPv4 to IPv6 involved 700 sites, hundreds of thousands of net-
replacing IPv4 because it working devices, and hundreds of thousands of network users spread around the
has run out of IP addresses. globe. During the transition, Sony realized that it was necessary to support both IP
protocols. That is, the IPv6 would supplement and coexist with the existing enter-
prise IPv4 network, rather than replace it. Running both protocols on the same
network at the same time was necessary because Sony’s legacy devices and apps
only worked on IPv4.
Sony selected Cisco as a key partner in the migration and integration of IPv4
and IPv6 traffic because of the maturity of its IPv6 technology. The integrated net-
work has been used by Sony as infrastructure for product development. Sony also
upgraded its Cisco network switches at the corporate data center, campuses, and
remote offices to handle concurrent IPv4 and IPv6 traffic.
BUSINESS RESULTS The use of IPv6 eliminated the issue of conflicting IP addresses, enabling Sony
employees in all divisions to take advantage of the productivity benefits of real time
collaboration applications. Other business improvements are:
• Flexibility to launch new businesses quickly
• Reduced TCO of enterprise network
• Network without communications constraints, supporting “One Sony” through
information systems
Sources: Compiled from Cisco (2014a; 2014b), Khedekar (2012), and AT&T (2012).
Questions
1. Why might IPv6 be a business continuity issue for organizations?
2. Explain how Sony’s IPv4 enterprise network was restricting the
productivity of its workers.
3. What problems did duplicate IP addresses cause at Sony? Give an
analogy.
4. Why did Sony need to run both protocols on its network instead of
replacing IPv4 with IPv6?
5. Describe the strategic benefit of Sony’s IPv6 implementation.
6. Do research to determine the accuracy of this prediction: “Today,
almost everything on the Internet is reachable over IPv4. In a few years,
both IPv4 and IPv6 will be required for universal access.”
FUNDAMENTALS OF The capacity and capabilities of data networks provide opportunities for more
DATA NETWORKS automated operations and new business strategies. M2M communications over
wireless and wired networks automate operations, for instance, by triggering
Bandwidth is the capacity or action such as sending a message or closing a valve. The speed at which data can
throughput per second of a be sent depends on the network’s bandwidth. Bandwidth characteristics are shown
network. in Figure 4.3.
More Mobile
Over 10 billion
Connections
Faster Mobile
2.5 megabits per second (Mbps)
Speeds
More Mobile
Almost 5 billion
Users
HIGH DEMAND FOR As described in Tech Note 4.1, global mobile data traffic is increasing. The four
HIGH-CAPACITY drivers of that demand are shown in Figure 4.4. Demand for high-capacity networks
NETWORKS is growing at unprecedented rates. Examples of high-capacity networks are wireless
mobile, satellite, wireless sensor, and VoIP (voice over Internet Protocol) such as
Skype. Voice over IP (VoIP) networks carry voice calls by converting voice (analog
signals) to digital signals that are sent as packets. With VoIP, voice and data trans-
missions travel in packets over telephone wires. VoIP has grown to become one of
the most used and least costly ways to communicate. Improved productivity, flex-
ibility, and advanced features make VoIP an appealing technology.
FUNCTIONS Figure 4.5 describes the basic functions of business networks: communication,
SUPPORTED BY mobility, collaboration, relationships, and search. These functions depend on net-
BUSINESS NETWORKS work switches and routers—devices that transmit data packets from their source
to their destination based on IP addresses. A switch acts as a controller, enabling
networked devices to talk to each other efficiently. For example, switches connect
computers, printers, and servers within an office building. Switches create a net-
work. Routers connect networks. A router links computers to the Internet, so users
Communication Search
Provides sufficient capacity for human Able to locate data, contracts,
and machine-generated transmissions. documents, spreadsheets, and other
Delays are frustrating, such as when knowledge within an organization
large video files pause during download easily and efficiently.
waiting for the packets to arrive.
Buffering means the network cannot
handle the speed at which the video is
being delivered and therefore stops to
collect packets.
All generations of networks are based on switching. Prior to 4G, networks included
circuit switching, which is slower than packet switching. 4G was first to be fully
packet switched, which significantly improved performance. The two basic types of
switching are:
Circuit switching: A circuit is a dedicated connection between a source and destina-
tion. In the past, when a call was placed between two landline phones, a circuit or
connection was created that remained until one party hung up. Circuit switching
is older technology that originated with telephone calls; it is inefficient for digital
transmission.
Packet switching: Packet switching transfers data or voice in packets. Files are bro-
ken into packets, numbered sequentially, and routed individually to their destina-
tion. When received at the destination, the packets are reassembled into their proper
sequence.
Wireless networks use packet switching and wireless routers whose antennae trans-
mit and receive packets. At some point, wireless routers are connected by cables to
wired networks, as shown in Figure 4.6.
© Metta digital/Alamy
QUALITY OF SERVICE An important management decision is the network’s quality of service (QoS),
especially for delay-sensitive data such as real time voice and high-quality video.
The higher the required QoS, the more expensive the technologies needed to man-
age organizational networks. Bandwidth-intensive apps are important to business
processes, but they also strain network capabilities and resources. Regardless of the
4.1 Data Networks, IP Addresses, and APIs 117
type of traffic, networks must provide secure, predictable, measurable, and some-
times guaranteed services for certain types of traffic. For example, QoS technolo-
gies can be applied to create two tiers of traffic:
• Prioritize traffic: Data and apps that are time-delay-sensitive or latency-
sensitive apps, such as voice and video, are given priority on the network.
• Throttle traffic: In order to give latency-sensitive apps priority, other types
of traffic need to be held back (throttled).
The ability to prioritize and throttle network traffic is referred to as traffic shaping
and forms the core of the hotly debated Net neutrality issue, which is discussed in
IT at Work 4.1.
IT at Work 4 . 1
Net Neutrality Debate Intensifies
In 2014 the battle over the complicated issue of net neu- Federal Communications Commission’s
trality heated up. Net neutrality is a principle that Internet 2010 Decision
Service Providers (ISPs) and their regulators treat all Internet On December 21, 2010, the Federal Communications
traffic the same way. On the opposing side of that issue is Commission (FCC) approved a compromise that created two
traffic shaping. Traffic shaping creates a two-tier system for classes of Internet access: one for fixed-line providers and
specific purposes such as: the other for the wireless Net. In effect, the new rules are
1. Time-sensitive data are given priority over traffic that Net semi-neutrality. The FCC banned any outright blocking
can be delayed briefly with little-to-no adverse effect. of and “unreasonable discrimination” against websites or
Companies like Comcast argue that Net neutrality rules applications by fixed-line broadband providers. But the rules
hurt consumers. Certain applications are more sensi- do not explicitly forbid “paid prioritization,” which would
tive to delays than others, such as streaming video and allow a company to pay an ISP for faster data transmission.
Internet phone services. Managing data transfer makes Net Semi-Neutrality Overturned in 2014
it possible to assure a certain level of performance or
In January 2014 an appeals court struck down the FCC’s
QoS.
2010 decision. The court allowed ISPs to create a two-tiered
2. In a corporate environment, business-related traffic may
Internet, but promised close supervision to avoid anticom-
be given priority over other traffic, in effect, by paying
petitive practices, and banned “unreasonable” discrimina-
a premium price for that service. Proponents of traffic
tion against providers.
shaping argue that ISPs should be able to charge more
On April 24 FCC Chairman Tom Wheeler reported that
to customers who want to pay a premium for priority
his agency would propose new rules to comply with the
service.
court’s decision that would be finalized by December 2014.
Specifically, traffic is shaped by delaying the flow of less Wheeler stated that these rules “would establish that behavior
important network traffic, such as bulk data transfers, P2P harmful to consumers or competition by limiting the openness
file-sharing programs, and BitTorrent traffic. of the Internet will not be permitted” (Wheeler, 2014). But
Traffic shaping is hotly debated by those in favor of Net Wheeler’s proposal would allow network owners to charge
neutrality. They want a one-tier system in which all Internet extra fees to content providers. This decision has angered
data packets are treated the same, regardless of their con- consumer advocates and Net neutrality advocates who view
tent, destination, or source. In contrast, those who favor the Wheeler with suspicion because of his past work as a lobbyist
two-tiered system argue that there have always been differ- for the cable industry and wireless phone companies.
ent levels of Internet service and that a two-tiered system
would enable more freedom of choice and promote Internet- Sources: Compiled from Federal Communications Commission (fcc.
based commerce. gov, 2014), Wheeler (2014), and various blog posts.
118 Chapter 4 Networks for Efficient Operations and Sustainability
Questions 4. Did the FCC’s 2010 ruling favor either side of the debate?
Explain.
1. What is Net neutrality?
5. What has been a reaction to the 2014 appeals court deci-
2. What tiers are created by traffic shaping?
sion? Explain.
3. Why did the battle over Net neutrality intensify in 2014?
NETWORK To be able to evaluate networks and the factors that determine their functionality,
TERMINOLOGY you need to be familiar with the following network basics:
• Bandwidth: Bandwidth depends on the network protocol. Common wire-
less protocols are 802.11b. 802.11g, 802.11n, and 802.16. For an analogy to
bandwidth, consider a pipe used to transport water. The larger the diameter
of the pipe, the greater the throughput (volume) of water that flows through
it and the faster water is transferred through it.
• Protocol: Protocols are rules and standards that govern how devices on a
network exchange data and “talk to each other.” An analogy is a country’s
driving rules—whether to drive on the right or left side of the road.
• TCP/IP: Transmission control protocol/Internet protocol (TCP/IP) is the
basic communication protocol of the Internet. This protocol is supported
by every major network operating system (OS) to ensure that all devices on
the Internet can communicate. It is used as a communications protocol in a
company’s private network for internal uses.
Broadband (short for broad • Fixed-line broadband: Describes either cable or DSL Internet connections.
bandwidth) means high- • Mobile broadband: Describes various types of wireless high-speed Internet
capacity or high-speed access through a portable modem, telephone, or other device.
network. • 3G: 3G networks support multimedia and broadband services, do so over a
wider distance, and at faster speeds than prior 1G and 2G generations. 3G
networks have far greater ranges because they use large satellite connec-
tions to telecommunication towers.
• 4G: 4G mobile network standards enable faster data transfer rates. 4G net-
works are digital, or IP, networks.
Overall, 2G networks were for voice, 3G networks for voice and data, and 4G net-
works for broadband Internet connectivity.
The Advanced Research Projects Agency network (ARPAnet) was the first real net-
work to run on packet-switching technology. In October 1969 computers at Stanford
University, UCLA, and two other U.S universities connected for the first time—
making them the first hosts on what would become the Internet. ARPAnet was
designed for research, education, and government agencies. ARPAnet provided a
communications network linking the country in the event that a military attack or
nuclear war destroyed conventional communications systems.
In 1971 e-mail was developed by Ray Tomlinson, who used the @ symbol to
separate the username from the network’s name, which became the domain name.
4.1 Data Networks, IP Addresses, and APIs 119
3G AND 4G 4G delivers average realistic download rates of 3 Mbps or higher (as opposed to
theoretical rates, which are much higher). In contrast, today’s 3G networks typically
deliver average download speeds about one-tenth of that rate. Even though individ-
ual networks, ranging from 2G to 3G, started separately with their own purposes,
soon they will be converted to the 4G network.
4G is based purely on the packet-based IP—unlike 2G and 3G that have a
circuit-switched subsystem. Users can obtain 4G wireless connectivity through one
of the following standards:
1. WiMAX is based on the IEEE 802.16 standard. IEEE 802.16 specifications are:
• Range: 30 miles (50 km) from base station
• Speed: 70 megabits per second (Mbps)
• Line-of-sight not needed between user and base station
WiMAX operates on the same basic principles as Wi-Fi in that it transmits data
from one device to another via radio signals.
2. Long-Term Evolution (LTE) is a GSM-based technology that is deployed by
Verizon, AT&T, and T-Mobile. LTE capabilities include:
• Speed: Downlink data rates of 100 Mbps and uplink data rates of 50 Mbps
Improved network performance, which is measured by its data transfer capacity,
provides fantastic opportunities for mobility, mobile commerce, collaboration,
supply chain management, remote work, and other productivity gains.
BUSINESS USES Near-field communication (NFC) enables two devices within close proximity to
OF NEAR-FIELD establish a communication channel and transfer data through radio waves. NFC are
COMMUNICATION location-aware technologies that are more secure than other wireless technologies
like Bluetooth and Wi-Fi. Unlike RFID, NFC is a two-way communication tool.
Location-aware NFC technology can be used to make purchases in restaurants,
resorts, hotels, theme parks and theaters, at gas stations, and on buses and trains.
Here are some examples of NFC applications and their potential business value.
• The Apple iWatch wearable device with NFC communication capabilities
could be ideal for mobile payments. Instead of a wallet, users utilize their
iWatch as a credit card or wave their wrists to pay for their Starbucks coffee.
With GPS and location-based e-commerce services, retailers could send a
coupon alert to the iWatch when a user passes their store. Consumers would
then see the coupon and pay for the product with the iWatch.
• Ticketmaster Spain teamed up with Samsung to offer NFC tickets to a Dum
Dum Girls concert in Madrid. Consumers needed to download the NFC
Ticketmaster app from the Samsung app store to purchase a ticket, which
was then stored in their phone for secure entry at the door.
• International fresh produce distributor Total Produce plans to give consum-
ers access to videos, recipes, and interactive games about the benefits of a
healthy diet via NFC tag–equipped SmartStands located in supermarkets
120 Chapter 4 Networks for Efficient Operations and Sustainability
and convenience stores. “We can upload a new video to these units instantly
to respond to opportunities; a barbecue-themed video on a sunny afternoon,
a pumpkin carving video for Halloween or a recipe video to complement an
in-store price promotion,” says Vince Dolan, European marketing manager
at Total Produce. “Similarly, we can update grower videos to reflect changes
in product range at any time” (Boden, 2014).
• Passengers on public transportation systems can pay fares by waving an
NFC smartphone as they board.
IT at Work 4 . 2
NFC-Embedded Guitar Picks
Fans attending gigs by The Wild Feathers were given gui- create exciting user experiences. With millions of NFC-
tar picks embedded with an NFC tag. Warner Music had equipped smartphones set to reach users over the next few
distributed the guitar picks for fans to enter a competition, years and the technology’s advantages for shoppers and
share content via social media, and vote at the gig simply businesses, NFC is emerging as a major technology.
by tapping with an NFC phone. NFC-embedded picks were
inserted into the band’s promotional flyers at six European Questions
venues. Each pick was encoded with a unique URL and also
1. Assume you attended a concert and were given a bro-
printed with a unique code for iPhone users to enable track-
chure similar to the one distributed to fans at The Wild
ing and monitoring.
Feathers concert. Would you use the guitar pick or com-
Marketing Campaign Success Shows parable NFC-embedded item to participate in a contest?
an Exciting Future for NFC To post on Facebook or tweet about the concert? Explain
The tags generated a high response rate. Over 65 percent of why or why not.
the NFC guitar picks had registered in the competition. And 2. How can NFC be applied to create an interesting user
35 percent of the fans had shared content on social media— experience at a sporting event? At a retail store or coffee
spending an average of five minutes on the site. shop?
NFC is being used in marketing campaigns because 3. Refer to your answers in Question 2. What valuable
the technology offers slick one-tap interaction. NFC allows information could be collected by the NFC tag in these
brands to engage with their customers in unique ways and businesses?
APPLICATION When software developers create applications, they must write and compile the
PROGRAM INTERFACES code for a specific operating system (OS). Figure 4.7 lists the common OSs. Each
AND OPERATING OS communicates with hardware in its own unique way; each OS has a specific API
SYSTEMS that programmers must use. Video game consoles and other hardware devices also
have APIs that run software programs.
In early 2012 the digital music service Spotify released its API to developers. The
developers quickly created hundreds of apps that fans are using to discover and share
new music. The most popular new app is Tunigo, which uses its music experts to curate
playlists targeted to various moods. The Tunigo service was so successful that Spotify
bought it and made it part of Browse. Browse is the in-house curation department
that searches Spotify’s catalog and continuously delivers new playlists (Dean, 2013).
Browse lets you search for specific playlists based on your mood. These playlists
are created by other users and selected by Spotify staffers. Users have created over
1 billion playlists, which grow and morph every day.
122 Chapter 4 Networks for Efficient Operations and Sustainability
The power of Spotify was demonstrated in 2013 when it won a challenge with
Pink Floyd to gain access to the group’s entire music collection: every track from
every album the band had ever released. The Pink Floyd collection became part of
Spotify’s streaming music service when the tracks were officially “unlocked” in June
2013. The challenge was for the song “Wish You Were Here” to be streamed by fans
over 1 million times in just a few days. Pink Floyd members fulfilled the deal.
APIs are channels to new customers and markets: APIs enable partners to
use business assets to extend the reach of a company’s products or services to
customers and markets they might not reach easily.
APIs promote innovation: Through an API, people who are committed to a
challenge or problem can solve it themselves.
APIs are a better way to organize IT: APIs promote innovation by allowing
everyone in a company to use each other’s assets without delay.
APIs create a path to lots of Apps: Apps are going to be a crucial channel
in the next 10 years. Apps are powered by APIs. Developers use APIs and
combinations of APIs to create new user experiences.
IT at Work 4 . 3
Smart City or Police State?
In the small city of Santander on Spain’s Atlantic coast, how data collected from sensors mounted outside a bar to
Mayor Iñigo de la Serna raised $12 million, mostly from track noise levels might be used.
the European Commission, to launch SmartSantander.
• Scenario #1. Instances of loud noises and squealing tires
SmartSantander is a smart city experiment that is improving
are transmitted to local police. The city uses the informa-
the quality of life, reducing energy consumption, and engag-
tion to enforce public nuisance laws and make arrests.
ing its citizens in civic duties.
• Scenario #2: People who live in the neighborhood show
10,000 Sensors Embedded civic leaders what is keeping them up at night and
The city implemented wireless sensor networks and embed- receive help in resolving the problem.
ded 10,000 sensors in its streets and municipal vehicles to • Scenario #3: Landlords could use data showing less noise
monitor garbage collection, crime, and air quality and manage and cleaner air to promote their apartments or office
street lighting for better energy efficiency. Sensors communi- buildings.
cate with smartphone apps to inform drivers and commuters
on parking availability, bus delays, road closures, and the The Dark Side of Smart
current pollen count in real time. Parking apps direct drivers The wireless networks and sensors need to be maintained.
to available spaces via cell phone alerts. Drivers benefit from Thousands of batteries embedded in roadways could have
a reduction in the time and annoyance of finding parking expensive and disruptive maintenance requirements.
spots. Anyone can feed his or her own data into the system Parking space alerts might create other annoyances. If
by, for example, snapping a smartphone photo of a pothole everyone becomes aware of a parking spot up the street, the
or broken streetlight to notify the local government that a rush of cars converging on a few open locations could lead
problem needs to be fixed. to rage and defeat the purpose of such an alert.
Build-Out of Smart City Applications
Sources: Compiled from O’Connor (2013) and Edwards (2014).
This mobile technology can help cities contribute to a greener
planet. Municipal landscape sprinklers can send facts to city Questions
agencies for analysis to conserve water usage. Sensors can
monitor weather and pollen counts as well as water and 1. What are the benefits of a smart city?
power leaks. 2. What are the potential abuses of data collected in this way?
3. Consider the dark side of smart. Are you skeptical of the
Police State benefits of a smart city?
The data streams and mobile apps that keep citizens 4. Would you want to live in a smart city? Explain.
informed also keep the government informed. What is the 5. How would you prevent Santander from becoming a
difference between a smart city and a police state? Consider police state?
STRATEGIC BUILD- Enterprises are moving away from the ad hoc adoption of mobile devices and
OUT OF MOBILE network infrastructure to a more strategic planning build-out of their mobile capa-
CAPABILITIES bilities. As technologies that make up the mobile infrastructure evolve, identifying
strategic technologies and avoiding wasted investments require more extensive
planning and forecasting. Factors to consider are the network demands of multi-
tasking mobile devices, more robust mobile OSs, and their applications.
Mobile Infrastructure
Mobile infrastructure consists of the integration of technology, software, support,
security measures, and devices for the management and delivery of wireless com-
munications.
4.2 Wireless Networks and Mobile Infrastructure 125
Satellite
Internet Antenna
Cable/DSL
Modem
Wireless Network
Acess Point
1 3
Directional Antenna
PC and PC Card
Laptop(s) or Desktop(s)
WIRELESS WIDE AREA There are three general types of mobile networks: wide area networks (WANs),
NETWORKS WiMAX, and local area networks (LANs). WANs for mobile computing are known as
wireless wide area networks (WWANs). The range of a WWAN depends on the trans-
mission media and the wireless generation, which determines which services are avail-
able. Two components of wireless infrastructures are wireless LANs and WiMAX.
LANs
Wireless LANs use high-frequency radio waves to communicate between comput-
ers, devices, or other nodes on the network. A wireless LAN typically extends an
existing wired LAN by attaching a wireless AP to a wired network.
WiMAX
Wireless broadband WiMAX transmits voice, data, and video over high-frequency
radio signals to businesses, homes, and mobile devices. It was designed to bypass
traditional telephone lines and is an alternative to cable and DSL. WiMAX is
based on the IEEE 802.16 set of standards and the metropolitan area network
(MAN) access standard. Its range is 20 to 30 miles and it does not require a clear
line of sight to function. Figure 4.10 shows the components of a WiMAX/Wi-Fi
network.
Notebook with
built-in
WiMAX adapter
WiMAX
hub
WiMAX Internet
network
Base station
Wi-Fi
hotspots
Figure 4.10 WiMAX/Wi-Fi
network.
4.3 Collaboration and Communication Technologies 127
When evaluating mobile network solutions, there are four factors to consider. They
are:
1. Simple: Easy to deploy, manage, and use.
2. Connected: Always makes the best connection possible.
3. Intelligent: Works behind the scenes, easily integrating with other systems.
4. Trusted: Enables secure and reliable communications.
Questions
1. What factors are contributing to mobility?
2. Why is strategic planning of mobile networks important?
3. How does Wi-Fi work?
4. What is a WLAN?
5. Why is WiMAX important?
6. What factors should be considered when selecting a mobile network?
VIRTUAL Leading businesses are moving quickly to realize the benefits of virtual collabora-
COLLABORATION tion. Several examples appear below.
GROUP WORK AND Managers and staff continuously make decisions as they develop and manufacture
DECISION PROCESSES products, plan social media marketing strategies, make financial and IT invest-
ments, determine how to meet compliance mandates, design software, and so on.
By design or default, group processes emerge, referred to as group dynamics, and
those processes can be productive or dysfunctional.
© NetPhotos/Alamy
Figure 4.11 Evernote
brainstorming, note taking,
and archiving software
website.
INTRANETS, Intranets are used within a company for data access, sharing, and collaboration.
EXTRANETS, AND They are portals or gateways that provide easy and inexpensive browsing and
VIRTUAL PRIVATE search capabilities. Colleges and universities rely on intranets to provide services
NETWORKS to students and faculty. Using screen sharing and other groupware tools, intranets
can support team work.
An extranet is a private, company-owned network that can be logged into
remotely via the Internet. Typical users are suppliers, vendors, partners, or custom-
ers (Figure 4.12). Basically, an extranet is a network that connects two or more
companies so they can securely share information. Since authorized users remotely
access content from a central server, extranets can drastically reduce storage space
on individual hard drives.
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. VPNs consist of
encryption software and hardware that encrypt, send, and decrypt transmissions, as
shown in Figure 4.13. In effect, instead of using a leased line to create a dedicated,
physical connection, a company can invest in VPN technology to create virtual
130 Chapter 4 Networks for Efficient Operations and Sustainability
© Ian Dagnall/Alamy
Figure 4.12 Example of an
AT&T extranet used by a
customer to access account
information.
connections routed through the Internet from the company’s private network to the
remote site or employee. Extranets can be expensive to implement and maintain
because of hardware, software, and employee training costs if hosted internally
rather than by an application service provider (ASP).
© tungphoto/iStockphoto
Figure 4.13 Virtual private
networks (VPNs) create
encrypted connections to
company networks.
Questions
1. Why is group work challenging?
2. What might limit the use of in-person brainstorming?
3. How can online brainstorming tools overcome those limits?
4. What is the difference between an intranet and an extranet?
5. How does a virtual private network (VPN) provide security?
© skegbydave/iStockphoto
Figure 4.14 The 4 Rs of
environmental sustainability.
GLOBAL TEMPERATURE At the United Nations’ 2009 climate conference in Copenhagen, climatologists
RISING TOO MUCH estimated that countries must keep the global mean temperature (GMT) from ris-
TOO FAST ing by more than 2 C (3.6 F) above the preindustrial GMT in order to avoid pro-
found damage to life on the earth. Damage includes water and food scarcity, rising
sea levels, and greater incidence and severity of disease. Only three years later,
GMT had already increased by 0.7 C, or 1.3 F. In 2012 IEA chief economist Faith
Birol warned that this trend is perfectly in line with a temperature increase of 6 C
by 2050, which would have devastating impacts on the planet. Since 2005 the Prince
of Wales’ Corporate Leaders Group on Climate Change has lobbied for more
aggressive climate legislation within the United Kingdom, the European Union,
and internationally. It holds that carbon emission reductions between 50 percent
and 85 percent are necessary by 2050 to prevent the global temperature from rising
too much too fast because of the greenhouse effect, as shown in Figure 4.15.
before the year 2020 and decline significantly thereafter, with emissions in 2050 reduced
by 30 to 50 percent compared to 1990 levels.
Analyses by the United Nations Environment Programme and International
Energy Agency warn that current policies are too weak to achieve the 2 C target.
GLOBAL WARMING Global warming refers to the upward trend in GMT. It is one of the most compli-
cated issues facing world leaders. Figure 4.16 shows the relationship of fossil fuel,
soil, water, atmosphere, and so on in the carbon cycle. Even though the global
carbon cycle plays a central role in regulating CO2 in the atmosphere and thus the
earth’s climate, scientists’ understanding of the interlinked biological processes
that drive this cycle is limited. They know that whether an ecosystem will capture,
store, or release carbon depends on climate changes and organisms in the earth’s
biosphere. The biosphere refers to any place that life of any kind can exist on the
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energy sources can be used to power the increasing demands for connectivity? Listed
below are several reports and initiatives to help answer these questions.
SUSTAINABILITY YouTube reported that 100 hours of video are uploaded every minute in 2014—
more than double the 48 hours per minute in 2012. Over 6 billion hours of video are
watched each month on YouTube—almost an hour for every person on the earth.
Within 5 years, from 2008 through 2013, most U.S. households tripled the number
of computing, gaming, consumer electronics, and mobile devices. Statistics about
Twitter and other social services also show phenomenal growth. Almost all of these
network activities are powered by the burning of fossil fuels. Today’s connected
lifestyles will further harm the environment unless corrective actions are taken such
as those listed in Figure 4.19.
Sustainability Initiatives
Communications technology accounts for approximately 2 percent of global
carbon emissions; it is predicted that this figure will double by 2020 as end-
user demand for high-bandwidth services with enhanced quality of experience
explodes worldwide. Innovative solutions hold the key to curbing these emissions
and reducing environmental impact.
136 Chapter 4 Networks for Efficient Operations and Sustainability
Network service providers as well as organizations face the challenges of
energy efficiency, a smaller carbon footprint, and eco-sustainability. To deal with
these challenges, wired and wireless service providers and companies need to
upgrade their networks to next-generation, all-IP infrastructures that are opti-
mized and scalable. The network must provide eco-sustainability in traffic trans-
port and deliver services more intelligently, reliably, securely, efficiently and at the
lowest cost.
For example, Alcatel-Lucent’s High Leverage Network (HLN) can reduce total
cost of ownership (TCO) by using fewer devices, creating an eco-sustainable choice
for service providers. Fewer devices mean less power and cooling, which reduces
the carbon footprint. HLN can also handle large amounts of traffic more efficiently
because the networks are intelligent, sending packets at the highest speed and most
efficiently.
ETHICAL The complexity of a connected life will increase as we move to the new era of nano-
CONSIDERATIONS OF sensors and devices, virtual spaces, and 3D social networks exchanging zillions of
HYPER-CONNECTED bytes of data. Managers and workers need to consider ethical and social issues, such
HUMANS as quality of life and working conditions. Individuals will experience both positive
and negative impacts from being linked to a 24/7 workplace, working in virtual
teams, and being connected to handhelds whose impact on health can be damag-
ing. A 2008 study by Solutions Research Group found that always being connected
is a borderline obsession for many people. According to the study, 68 percent of
Americans may suffer from disconnect anxiety—feelings of disorientation and ner-
vousness when deprived of Internet or wireless access for a period of time. Consider
this development and its implications.
Driving while distracted is a crime. Texting while driving is comparable to
driving under the influence (DUI), according to safety experts. Several studies indi-
cate that the use of mobile devices is a leading cause of car crashes. At any given
moment, more than 10 million U.S. drivers are talking on handheld cell phones,
according to the National Highway Traffic Safety Administration. Why is this a
problem? Mobiles are a known distraction, and the NHTSA has determined that
driver inattention is a primary or contributing factor in as many as 25 percent of all
police-reported traffic accidents. This does not include the thousands of accidents
not reported to the authorities.
In most or all states, distracted driving is a crime that carries mandatory fines
(Figure 4.20). For example, in California and New York State, drivers charged with
this crime face fines and have their driving license suspended. If driving while dis-
tracted causes injury or death to others, violators face jail time.
The importance of understanding ethical issues has been recognized by the
Association to Advance Collegiate Schools of Business (AACSB International,
aacsb.edu). For business majors, the AACSB International has defined Assurance
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Questions
1. Why do some experts warn that carbon emission reductions between
50 percent and 85 percent are necessary by 2050?
2. What contributes to the rise of global mean temperature?
3. What is the greenhouse effect?
4. How does the use of mobile devices contribute to the level of green-
house gases?
5. What is ICT’s role in global warming?
6. Why is global warming hotly debated?
7. Explain the goal of sustainability.
8. Explain the characteristics of a life out of control.
138 Chapter 4 Networks for Efficient Operations and Sustainability
Key Terms
3G greenhouse gases Long-Term Evolution sustainability
4G (GHGs) (LTE) switch
5G group dynamics mashup traffic shaping
application program information and commu- mobile broadband transmission control
interface (API) nications technology near-field communication protocol/Internet
bandwidth (ICT) (NFC) protocol (TCP/IP)
Bluetooth Internet Protocol (IP) Net neutrality virtual private network
carbon footprint intranet Net semi-neutrality (VPN)
circuit switching IP address packet voice over IP (VoIP)
climate change IP Version 4 (IPv4) packet switching wide area network (WAN)
climate change mitigation IP Version 6 (IPv6) protocol Wi-Fi
extranet latency-sensitive apps quality of service (QoS) WiMAX
fixed-line broadband local area network (LAN) router
CASE 4.2
Business Case: Google Maps API for Business
A restaurant owner has a website where customers can place Advanced Analytics
orders for delivery. When a customer inputs a delivery address, The Google Maps API for Business offers an analytics tool
a software script verifies whether the address is within the that shows how visitors interact with the maps—for example,
delivery range of the restaurant. If the address is not in the how many visitors switched to satellite view, what they
delivery range, the site does not let the customer check out zoomed, and which map features were used the most. Using
and sends a message informing the customer that he or she this information, businesses can customize the user experi-
is outside of the delivery range. The script requests informa- ence based on their preferences and better engage with
tion from Google Maps via an API to calculate whether or not customers.
the address was in the range. The free version, called Google
Maps API, allows up to 2,500 requests per day from a single
IP address and is limited to noncommercial purposes.
Automobile Association
Google Maps is the most widely used online mapping service
The owner needs to purchase a Google Maps API for
in the world, with more than 800,000 sites using the Google
Business license because any requests in excess of 2,500 will
Maps API and over 250 million active users on mobile devices
be ignored. The Google Maps API for Business provides bet-
alone. In the United Kingdom, the Automobile Association
ter resolution, scale, and enhanced features and support to
(AA) provides roadside assistance and directions to motor-
businesses that add maps to their websites, mobile apps,
ists. AA invested in the Google Maps API for Business to offer
or asset-tracking applications.
interactive route planning and improve visitors’ experiences.
The value AA derived from the API was a 12 percent increase
Directions and Routing Features in the number of routes downloaded, hitting an average of
The Google Maps API delivers the full power of Google’s 4 million downloads per week of its routing or trip-planning
routing engine to applications. Among other features, it: service. Approximately 20 percent of site visitors remained
• Generates routes between up to 23 locations for driving, on the site for at least five minutes—up from only six percent
walking, or cycling. prior to implementation. The API also cuts the time and cost
• Generates routes to avoid toll roads or highways. of IT support for the mapping platform.
CASE 4.3
Video Case: Fresh Direct Connects for Success
Visit and explore the Fresh Direct website at www.freshdirect. constant connectivity to meet customer demands (video runs
com to learn about the company. Visit the Cisco website at 2:50 minutes).
www.cisco.com. Search for the video “Fresh Direct Produce.”
The URL is www.cisco.com/cisco/web/solutions/small_
Questions
business/resource_center/index.html. Watch the video to
1. Describe how network technology enables Fresh Direct’s
learn how Fresh Direct uses network technology to connect
business model.
employees, suppliers, and customers. Meet CEO Davis
2. What factors are critical to Fresh Direct’s performance?
Yung and see how Cisco wireless technology gives his team
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