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Learning Objectives

1. Identify several major developments and


trends in the industries, technologies
and business applications of
telecommunications and Internet
technologies.
2. Provide examples of the business value
of Internet, intranet, and extranet
applications.
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Learning Objectives
3. Identify the basic components,
functions, and types of
telecommunications networks used in
business.
4. Explain the functions of major types of
telecommunications network hardware,
software, media, and services.

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Why Study Networking?


When computers are networked, two
industries computing and
communications converge, and the
result is vastly more than the sum of the
parts.
Suddenly, computing applications become
available for business-to-business
coordination and commerce, and for small
as well as large organizations.
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Case #1: Wireless Business Applications


Business Value of Wireless:
Time is money. Pocket PCs help reduce
travel time at Celanese Chemicals related
to plant equipment diagnosis.
Fidelity Investments attracts customers by
offering services via wireless devices.
GM uses wireless devices to improve
forklift operator productivity and cut costs.
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Case #1: Wireless Business Applications


1. What is the business value of wireless
technologies in the chemicals and automotive
manufacturing industries? What other
manufacturing applications might benefit from
wireless technologies? Why?
2. What are some of the business benefits of
wireless technologies in finance and
investments? What other applications would
you recommend? Why? Check the website
of Fidelity.com to help you answer.
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Case #1: Wireless Business Applications


3. What are some of the business benefits and
challenges of using wireless technologies in
retailing? What are some other applications
that might be beneficial to consumers, as well
as retailers? Why?
4. What are some of the major challenges
limiting the widespread use of wireless
technologies in many business applications?
What can be done to meet such challenges?
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Telecommunications
Definition:
The exchange of information in any form
(voice, data, text, images, audio, video)
over networks

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Open Systems
Definition:
Information systems that use common
standards for hardware, software,
applications, and networking

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Connectivity
Definition:
The ability of networked computers and
other devices to easily access and
communicate with each other and share
information

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Interoperability
Definition:
The ability of an open system to enable
the many different applications of end
users to be accomplished using the
different varieties of computer systems,
software packages, and databases
provided by a variety of interconnected
networks

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Digital Network Technologies


Definition:
Digital transmission technologies that transmit
information in the form of discrete pulses
Benefits:
Higher transmission speeds
Movement of larger amounts of information
Greater economy
Lower error rates
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Business Value of Telecommunications

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Internet
Definition:
A network made up of millions of smaller
private networks each with the ability to
operate independent of, or in harmony
with, all the other millions of networks
connected to the Internet

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Internet Applications

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Business Use of the Internet

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Business Value of the Internet

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Intranet
Definition:
A network inside an organization that
uses Internet technologies to provide an
Internet-like environment within the
enterprise for information sharing,
communications, collaboration, and the
support of business processes

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Business Value of Intranets


Communications and Collaboration includes
email, voicemail, paging, faxes, and groupware
Web Publishing easy, attractive and low-cost
way of publishing and accessing multimedia
business information
Business Operations and Management
platform for developing and deploying critical
business applications to support business
operations and managerial decision making
across the inter-networked enterprise
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Business Value of Intranets

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Extranet
Definition:
Network links that use Internet
technologies to interconnect the intranet
of a business with the intranets of its
customers, suppliers, or other business
partners

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Business Value of Extranets

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Case #2: Serving Citizens without Wires


MEMA Technologies:
Global-positioning satellite
communications
Cellular phones
Geospatial technologies
Microelectronics technologies

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Case #2: Serving Citizens without Wires


Features:
A device to communicate warnings to
properly position individuals before an
event happens
A tool to collect timely information after a
disaster hits

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Case #2: Serving Citizens without Wires


1. What is the business value of advanced
mobile technologies to Marylands emergency
management services?
2. In what other government services could GPS
serve to provide business value? Give some
examples.
3. Are there disadvantages or risks associated
with the deployment of GPS systems to
monitor the location of people? Explain.
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Case #2: Serving Citizens without Wires


4. What is the business value of the
various applications of GPS satellite
networks beyond those discussed in the
case? Check out the websites of
satellite services providers like Hughes
Network Systems (www.hns.com) or GCom International (www.g-com.com) to
help you answer.

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Telecommunications Network Components


Terminals any input/output device that uses
telecommunications networks to transmit or receive data
Telecommunications Processors devices that perform
control and support functions
Telecommunications Channels media over which data
are transmitted and received
Computers all sizes and types
Telecommunications Control Software programs that
control telecommunications activities
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Telecommunications Network Components

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Types of Telecommunications Networks


Wide Area Network (WAN) network that
covers a large geographic area
Local Area Network (LAN) network connecting
information processing devices within a limited
physical area
Virtual Private Network (VPN) secure network
that uses the Internet as its main backbone
network, but relies on network firewalls,
encryption, and other security features of its
Internet and intranet connections and those of
participating organizations
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LAN & VPN

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Types of Telecommunications Networks


Client/Server PCs and workstations, called
clients are interconnected by local area
networks and share application processing with
network servers
Network Computing Thin clients provide a
browser-based user interface for processing
small application programs
Peer-to-Peer file-sharing software connects
each PC to a central server or to another online
users PC
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Client/Server

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Client/Server & Network Computing

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Peer-to-Peer

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Peer-to-Peer

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Telecommunications Media
Twisted-Pair Wire copper wire twisted
into pairs
Coaxial Cable sturdy copper or
aluminum wire wrapped with spacers to
insulate and protect it
Fiber Optics one or more hair-thin
filaments of glass fiber wrapped in a
protective jacket
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Telecommunications Media

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Wireless Technologies
Terrestrial Microwave earthbound
microwave systems that transmit highspeed radio signals in a line-of-sight path
between relay stations spaced
approximately 30 miles apart
Communications Satellites - high-earth
orbit communications satellites placed in
stationary geosynchronous orbits
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Wireless Technologies
Cellular and PCS Systems a geographic area
divided into cells with one low-power transmitter
device per cell used to relay calls from one cell
to another
Wireless LANs high- or low-frequency radio
technology installed in an office or building
Wireless Web wireless, Web-enabled
information appliances accessing the Internet,
intranets and extranets
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Telecommunications Processors
Modems convert digital signals from a
computer into analog frequencies that can
be transmitted over ordinary telephone
lines
Multiplexers allows a single
communications channel to carry
simultaneous data transmissions from
many terminals
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Telecommunications Technologies

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Internetwork Processors
Switch makes connections between
telecommunications circuits in a network
Router intelligent communications processor
that interconnects networks based on different
protocols
Hub a port switching communications
processor
Gateway connects networks using different
communications architectures
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Network Management
Traffic Management manage network
resources and traffic to avoid congestion
and optimize telecommunications service
levels to users
Security provide authentication,
encryption, firewall, auditing and
enforcement

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Network Management
Network Monitoring troubleshoot and
watch over the network, informing network
administrators of potential problems
before they occur
Capacity Planning survey network
resources and traffic patterns and users
needs to determine how best to
accommodate the needs of the network
as it grows and changes
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Network Topologies
Star ties end user computers to a
central computer
Ring ties local computer processors
together in a ring on a relatively equal
basis
Bus local processors share the same
communications channel
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Network Architectures & Protocols


Protocol standard set of rules and procedures
for the control of communications in a network
Network Architecture the use of standard
protocols, standard communications hardware
and software interfaces and the design of a
standard multilevel interface between end users
and computer systems with the goal of
promoting an open, simple, flexible, and efficient
telecommunications environment
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OSI & TCP/IP Models


Open Systems Interconnection (OSI) model is a seven-layer model that serves
as a standard model for network
architectures
Transmission Control Protocol / Internet
Protocol (TCP/IP) is a five layer
telecommunications protocol used by the
Internet
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Bandwidth
Definition:
Classification of communications speed
and capacity of telecommunications
networks
Transmission Rates:
Narrow-band low-speed
Broadband high-speed
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Transmission Speeds

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Switching Alternatives
Circuit Switching a switch opens a
circuit to establish a link between a
sender and receiver; it remains open until
the communication session is completed
Message Switching a message is
transmitted a block at a time from one
switching device to another

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Case #3: Wi-Fi Networks


Challenges:
Hit-or-miss hotspots
Lost productivity due to disruptions
Must create billing systems
Must establish technical standards
Must develop tighter security measures

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Case #3: Wi-Fi Networks


1. What are the business benefits of Wi-Fi
networks?
2. What are some of the problems faced by
companies who are using Wi-Fi networks?
What are some solutions to those problems?
3. What are some other business uses for Wi-Fi
networks not mentioned in this case? What
are their business benefits and challenges?
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Case #4: Voice Over IP


Services:
Combine email with voicemail
Audio-conferencing
Collaboration technologies
Video

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Case #4: Voice Over IP


Benefits:
Install one line to carry voice and data
Reduced staff training
Improved productivity

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Case #4: Voice Over IP


1. What are the main benefits that can be gained
by companies that switch to VoIP systems?
2. What are some of the major cost factors that
may limit a positive rate of return from
investments in VoIP projects?
3. Should more companies switch to VoIP
systems? Visit the websites of Avaya and
Cisco Systems to view their VoIP news,
products, and services to help you answer.
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Summary
Organizations are becoming networked
enterprises that use the Internet, intranets, and
other telecommunications networks to support
business operations and collaboration within the
enterprise, and with their customers, suppliers,
and other business partners.
Telecommunications technology is moving
toward open, inter-networked digital networks
for voice, data, video and multimedia.
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Summary
Open systems with unrestricted connectivity
using Internet technologies are the primary
telecommunications technology drivers in ebusiness systems.
Companies are deriving strategic business
value from the Internet, which enables them to
disseminate information globally, communicate
and trade interactively with customized
information and services for individual
customers, and foster collaboration of people
and integration of business processes within the
enterprise and with business partners.
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Chapter

6
End of Chapter

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