The objectives of this chapter: Understand the concept of a network; apply Metcalfe’s law in understanding the value of a network; identify major developments and trends in the industries, technologies, and business applications of telecommunications and Internet technologies;...
Copyright © 2006, The McGrawHill Companies, Inc. All rights reserved 6-1 Chapter Telecommunications And Networks Copyright © 2006, The McGrawHill Companies, Inc. All rights reserved 6-2 Learning Objectives Identify several 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 Copyright © 2006, The McGrawHill Companies, Inc. All rights reserved 6-3 Learning Objectives 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 Copyright © 2006, The McGrawHill Companies, Inc. All rights reserved 6-4 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-tobusiness coordination and commerce, and for small as well as large organizations Copyright © 2006, The McGrawHill Companies, Inc. All rights reserved 6-5 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 Copyright © 2006, The McGrawHill Companies, Inc. All rights reserved 6-6 Case #1: Wireless Business Applications 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? 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 Copyright © 2006, The McGrawHill Companies, Inc. All rights reserved 6-7 Case #1: Wireless Business Applications 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? 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? Copyright © 2006, The McGrawHill Companies, Inc. All rights reserved 6-8 Telecommunications Definition: • The exchange of information in any form (voice, data, text, images, audio, video) over networks Copyright © 2006, The McGrawHill Companies, Inc. All rights reserved 6-9 Trends in Telecommunications Copyrightâ2006,TheMcGrawưHillCompanies,Inc.Allrightsreserved - 10 Bandwidth Definition: Classification of communications speed and capacity of telecommunications networks Transmission Rates: Narrow-band low-speed Broadband high-speed Copyrightâ2006,TheMcGrawưHillCompanies,Inc.Allrightsreserved - 60 Transmission Speeds Copyright © 2006, The McGrawHill Companies, Inc. All rights reserved - 61 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 Copyright © 2006, The McGrawHill Companies, Inc. All rights reserved - 62 Switching Alternatives • Packet Switching – messages are divided into fixed or variable length packets, and packets are sent across networks • Cell Switching – breaks voice, video and other data into fixed cells of 53 bytes and routes them to their next destination in the network Copyright © 2006, The McGrawHill Companies, Inc. All rights reserved - 63 Case #3: Wi-Fi Networks Benefits: • Superfast • Lower cost Copyright © 2006, The McGrawHill Companies, Inc. All rights reserved - 64 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 Copyright © 2006, The McGrawHill Companies, Inc. All rights reserved - 65 Case #3: Wi-Fi Networks What are the business benefits of Wi-Fi networks? What are some of the problems faced by companies who are using Wi-Fi networks? What are some solutions to those problems? What are some other business uses for Wi-Fi networks not mentioned in this case? What are their business benefits and challenges? Copyright © 2006, The McGrawHill Companies, Inc. All rights reserved - 66 Case #4: Voice Over IP Services: • Combine email with voicemail Audio-conferencing Collaboration technologies Video Copyrightâ2006,TheMcGrawưHillCompanies,Inc.Allrightsreserved - 67 Case #4: Voice Over IP Benefits: • Install one line to carry voice and data • Reduced staff training Improved productivity Copyrightâ2006,TheMcGrawưHillCompanies,Inc.Allrightsreserved - 68 Case #4: Voice Over IP What are the main benefits that can be gained by companies that switch to VoIP systems? What are some of the major cost factors that may limit a positive rate of return from investments in VoIP projects? 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 Copyrightâ2006,TheMcGrawưHillCompanies,Inc.Allrightsreserved - 69 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 Copyright © 2006, The McGrawHill Companies, Inc. All rights reserved - 70 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 Copyrightâ2006,TheMcGrawưHillCompanies,Inc.Allrightsreserved - 71 Summary Businesses are installing and extending intranets throughout their organizations to: • Improve communications and collaboration among individuals and teams within the enterprise • Publish and share valuable business information easily, inexpensively, and effectively via enterprise information portals • Develop and deploy critical applications to support business operations and decision Copyright © 2006, The McGrawHill Companies, Inc. All rights reserved - 72 making Summary • The primary role of extranets is to link the intranet resources of a company to the intranets of its customers, suppliers, and other business partners • The major generic components of any telecommunications network are: • • • • • Terminals Telecommunications processors Communications channels Computers Telecommunications software Copyright © 2006, The McGrawHill Companies, Inc. All rights reserved - 73 Chapter End of Chapter Copyright © 2006, The McGrawHill Companies, Inc. All rights reserved - 74 ... 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. .. Copyright © 2006, The McGrawHill Companies, Inc. All rights reserved 6-9 Trends in Telecommunications Copyrightâ2006,TheMcGrawưHillCompanies,Inc.Allrightsreserved - 10 Open Systems Definition: Information systems that use common standards for hardware,...Chapter Telecommunications And Networks Copyright © 2006, The McGrawHill Companies, Inc. All rights reserved 6-2 Learning Objectives Identify several major developments and trends in the