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Chapter- 6

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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 employees
Connecting them to customers, suppliers, and

other stakeholders.

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Trends in Telecommunications

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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.

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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

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Trends in Telecommunications (continued)

Technology (continued)
 Fiber-optic lines & cellular, PCS, satellite & other
wireless technologies
 Faster transmission speeds

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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

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Business Value of Telecommunications

Networks

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The Internet
A network of networks
Popular uses

E-mail

Instant messaging

Browsing the World Wide Web

Newsgroups and chat rooms

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The Internet (continued)

 The business value of the Internet

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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

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Intranets (continued)

Business Operations & Management

 Used for developing & deploying critical business
applications
 Supports 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 partners

 Consultants, subcontractors, business prospects, &

others

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Extranets (continued)

Business value of Extranets

 Improve communication with customers and business
partners
 Gain competitive advantage in

 Product development

 Cost savings

 Marketing

 Distribution

 Leveraging 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 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

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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

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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 Networks

 A 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 Networks
 Clients– end user PCs or NCs
 Server – 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
 Centralserver architecture
 Pure peer-to-peer

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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

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Telecommunications Media (continued)

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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

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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

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Wireless Technologies (continued)

Wireless LANs
 Spread spectrum
 Wi-Fi (wireless fidelity)

Wireless Web
 Uses Web-enabled information appliances
 Very thin clients

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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

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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

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Telecommunications Processors (continued)

Hub

 Port switching communications processor

Gateway

 A 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 Management
Trafficmanagement
Security

Network monitoring

Capacity planning

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Network Topologies
Star
 Tiesend user computers to a central computer
 Considered the least reliable

Ring (sometimes called Token Ring)

 Tieslocal computer processors together in a ring on a
more equal basis.
 Considered more reliable & less costly

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Network Topologies (continued)

Bus

Local processors share the same bus, or

communications channel
Tree is a variation which ties several bus networks

together

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Network Topologies (continued)

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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

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Network Architectures and Protocols (continued)

OSI Model

TCP/IP

Transmission Control Protocol/Internet Protocol

Used 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 baud

 Narrow-band

 Low-speed transmission
 Broadband

 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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