Management Information Systems Management Information Systems

MANAGING THE DIGITAL FIRM, 12TH EDITION CHAPTER 7: TELECOMMUNICATIONS, THE INTERNET,
AND WIRELESS TECHNOLOGY
Learning Objectives

• What are the principal components of telecommunications

Chapter 7 networks
t k andd key
k networking
t ki technologies?
t h l i ?
• What are the main telecommunications transmission media
and types of networks?
TELECOMMUNICATIONS, THE
• How does the Internet and Internet technology work and
INTERNET,
INTERNET how do they support communication and e‐business?
AND WIRELESS TECHNOLOGY • What are the principal technologies and standards for
wireless networking, communication, and Internet access?
VIDEO CASES
Case 1: Traveling the Internet and Wireless Technology • Why are radio frequency identification (RFID) and wireless
Case 2: Unified Communications Systems With Virtual Collaboration: IBM and Forterra sensor networks valuable for business?
Instructional Video 1: AT&T Launches Managed Cisco Telepresence Solution
Instructional Video 2: CNN Telepresence
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Hyundai Heavy Industries Creates A Wireless Shipyard Telecommunications and Networking in Today’s Business World

• Problem: Shipbuilding space is too large (4.2 sq mi) • Networking and communication Trends
and complex to track inventory in real‐time, limiting – Convergence:
efficiency • Telephone networks and computer networks converging into
• Solution: High‐speed wireless network built by KT single digital network using Internet standards
Corp using radio sensors,
Corp, sensors notebooks,
notebooks mobiles,
mobiles Web g cable companies
• E.g. p providing
p g voice service
cams – Broadband:
• Illustrates: • More
M than
h 60% U
U.S.
S Internet
I users h
have broadband
b db d access

– Powerful capabilities and solutions offered by – Broadband wireless:

contemporary networking technology • Voice and data communication as well as Internet access are
increasingly taking place over broadband wireless platforms
– Use of radio sensor technologies to track inventory
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AND WIRELESS TECHNOLOGY AND WIRELESS TECHNOLOGY
Telecommunications and Networking in Today’s Business World Telecommunications and Networking in Today’s Business World
COMPONENTS OF A SIMPLE COMPUTER NETWORK
• What is a computer network?
– Two or more connected computers
– Major components in simple network
• Client computer
• Server computer
p
• Network interfaces (NICs)
• Connection medium
• Network operating system
• Hub or switch
– Routers
• Device used to route packets of data through different networks,
ensuring that data sent gets to the correct address FIGURE 7‐1 Illustrated here is a very simple computer network, consisting of computers, a network operating system
residing on a dedicated server computer, cable (wiring) connecting the devices, network interface cards
(NICs), switches, and a router.

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Telecommunications and Networking in Today’s Business World Telecommunications and Networking in Today’s Business World

CORPORATE
• Components of networks in large companies NETWORK
– Hundreds of local area networks (LANs) linked to INFRASTRUCTURE
firmwide corporate network Today’s corporate network
infrastructure is a collection of
many different networks from
– Various powerful servers the public switched telephone
network, to the Internet, to
• Web site corporate local area networks
linking workgroups,
• Corporate intranet, extranet departments, or office floors.

y
• Backend systems
FIGURE 7‐2
– Mobile wireless LANs (Wi‐Fi networks)
– Videoconferencing system
– Telephone network
– Wireless cell phones
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Telecommunications and Networking in Today’s Business World Telecommunications and Networking in Today’s Business World

• Key networking technologies • Key networking technologies (cont.)

– Client/server computing – Packet switching
• Distributed computing model
• Method
h d off slicing
l digital
d l messages into parcels
l
• Clients linked through network controlled by network (packets), sending packets along different
server computer communication paths as they become available
available, and
• Server sets rules of communication for network and then reassembling packets at destination
provides every client with an address so others can find
it on the network • Previous circuit‐switched networks required assembly
of complete point‐to‐point circuit
• Has largely replaced centralized mainframe computing
• Packet switching more efficient use of network’s
• The Internet: Largest implementation of client/server
computing communications capacity

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Telecommunications and Networking in Today’s Business World Telecommunications and Networking in Today’s Business World
PACKED‐SWITCHED NETWORKS AND PACKET COMMUNICATIONS
• Key networking technologies (cont.)
– TCP/IP and connectivity
• Connectivity between computers enabled by protocols
• Protocols: Rules that govern transmission of information between
two points
• Transmission Control Protocol/Internet Protocol (TCP/IP)
– Common worldwide standard that is basis for Internet
• Department of Defense reference model for TCP/IP
/
– Four layers
1 Application layer
1.
2. Transport layer
3. Internet layer
FIGURE 7‐3 Data are grouped into small packets, which are transmitted independently over various communications
channels and reassembled at their final destination.
4. Network interface layer

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Telecommunications and Networking in Today’s Business World Telecommunications and Networking in Today’s Business World

THE TRANSMISSION
CONTROL PROTOCOL/
• Signals: digital vs. analog
INTERNET PROTOCOL
(TCP/IP) REFERENCE
– Modem: Translates digital signals into analog form
MODEL
This figure illustrates the four
• Types
T off networks
t k
layers of the TCP/IP reference
model for communications – Local‐area networks (LANs)
( )
FIGURE 7‐4 • Campus‐area networks (CANs)
• Peer‐to‐peer
Peer to peer
• Topologies: star, bus, ring
– Metropolitan and wide‐area
wide area networks
• Wide‐area networks (WANs)
• Metropolitan‐area
l networks
k (MANs)
( )
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Telecommunications and Networking in Today’s Business World Telecommunications and Networking in Today’s Business World
FUNCTIONS OF THE MODEM
NETWORK
TOPOLOGIES
The three basic network
topologies are the star, bus,
and ring.
ring

FIGURE 7‐6

FIGURE 7‐5 A modem is a device that translates digital signals into analog form (and vice versa) so that computers can
transmit data over analog networks such as telephone and cable networks.

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Telecommunications and Networking in Today’s Business World Telecommunications and Networking in Today’s Business World
BP’S SATELLITE TRANSMISSION SYSTEM
• Physical transmission media
– Twisted wire (modems)
– Coaxial cable
– Fiber optics and optical networks
• Dense wavelength division multiplexing (DWDM)
– Wireless transmission media and devices
• Microwave
• Satellites
• Cellular telephones
– Transmission speed (hertz,
(hertz bandwidth) FIGURE 7‐7 Communication satellites help BP transfer seismic data between oil exploration ships and research centers
in the United States.

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The Global Internet The Global Internet

THE DOMAIN NAME

• What is the Internet? SYSTEM
Domain Name System is a
• Internet Addressing and Architecture hierarchical system with a root
domain, top‐level domains,
second‐level domains, and host

– The Domain Name System computers at the third level.

FIGURE 7‐8
• Hierarchical
Hi hi l structure
t t
• Top‐level domains
– Internet Architecture and Governance
• No
N formal
f l management:t IAB,
IAB ICANN
ICANN, W3C
– The Future Internet: IPv6 and Internet2
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The Global Internet The Global Internet

INTERNET THE BATTLE OVER NET NEUTRALITY

NETWORK Read the Interactive Session and discuss the following questions
ARCHITECTURE
The Internet backbone
• What is network neutrality? Why has the Internet operated
connects to regional networks
networks,
which in turn provide access to
under
d nett neutrality
t lit up to
t this
thi point
i t in
i time?
ti ?
Internet service providers,
large firms, and government
institutions Network access
institutions. • Who’s
o s in favor
a o of
o net
et neutrality?
eut a ty? Who’s
o s opposed? Why?
y?
points (NAPs) and
metropolitan area exchanges
(MAEs) are hubs where the • What would be the impact on individual users, businesses,
backbone intersects regional
and local networks and where and
d government if Internet providers
id switched
i h d to a tiered
i d
backbone owners connect with
one another. service model?
FIGURE 7‐9
• Are you in favor of legislation enforcing network neutrality?
Why or why not?

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The Global Internet The Global Internet
CLIENT/SERVER COMPUTING ON THE INTERNET
• Internet services
– E‐mail
– Chatting and instant messaging
– Newsgroups
– Telnet
– File Transfer Protocol (FTP)
– World Wide Web
– VoIP
– Virtual p
private network (VPN)
( ) FIGURE 7‐10 Client computers running Web browser and other software can access an array of services on servers over
the Internet. These services may all run on a single server or on multiple specialized servers.

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The Global Internet The Global Internet
HOW VOICE OVER IP WORKS
A VIRTUAL PRIVATE
NETWORK USING
THE INTERNET
This VPN is a private network
of computers linked using a
secure “tunnel” connection
over the Internet. It protects
data transmitted over the
public Internet by encoding the
data and “wrapping” them
within the Internet Protocol
(IP). By adding a wrapper
around a network message to
hide its content, organizations
can create a private connection
that travels through the public
Internet.

FIGURE 7‐12
FIGURE 7‐11 An VoIP phone call digitizes and breaks up a voice message into data packets that may travel along different
routes before beingg reassembled at the final destination. A processor
p nearest the call’s destination,, called a
gateway, arranges the packets in the proper order and directs them to the telephone number of the
receiver or the IP address of the receiving computer.

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The Global Internet The Global Internet

MONITORING EMPLOYEES ON NETWORKS: UNETHICAL OR GOOD BUSINESS?

Read the Interactive Session and discuss the following questions
• The World Wide Web
– HTML (Hypertext Markup Language):
• Should managers monitor employee e‐mail and
• Formats documents for display on Web
Internet usage? Why or why not?
– Hypertext Transfer Protocol (HTTP):
• Describe an effecti
effective
eee‐mail
mail and Web use
se polic
policy for • Communications standard
d d used
d ffor transferring
f Web
b
a company. pages
– Uniform
f resource locators
l ((URLs):
)
• Should managers inform employees that their Web • Addresses of Web pages
behavior is being monitored? Or should managers – E.g. http://www.megacorp.com/content/features/082602.html
monitor secretly? Why or why not? – Web servers
• Software for locating and managing Web pages
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HOW GOOGLE
• The World Wide Web (cont.) WORKS
The Google search engine is
– Search engines continuously crawling the Web,
indexing the content of each
page, calculating its popularity,
• Started in early 1990s as relatively simple software and storing the pages so that it
programs using keyword indexes can respond quickly to user
requests to see a page. The
entire process takes
k about
b one‐
• Today, major source of Internet advertising revenue via half second.

search engine marketing, using complex algorithms and FIGURE 7‐13

page ranking techniques to locate results

– Shopping bots
• Use intelligent agent software for searching Internet for
shopping
h i iinformation
f i
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TOP U.S. WEB SEARCH ENGINES
• Web 2.0
– Four defining features
1. Interactivityy
2. Real‐time user control
3. Social participation
4. User‐generated content
– Technologies and services behind these features
• Cloud computing
• Blogs/RSS
• Mashups & widgets
• Wikis
FIGURE 7‐14 Google is the most popular search engine on the Web, handling 72 percent of all Web searches.
• S i l networks
Social k
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AND WIRELESS TECHNOLOGY AND WIRELESS TECHNOLOGY
The Global Internet The Wireless Revolution

• Web 3.0 − the Semantic Web • Cellular systems

– Effort of W3C to add meaning to existing Web – Competing standards for cellular service
– Make searching more relevant to user • CDMA: United States
• Other visions • GSM: Rest of world, plus AT&T and T‐Mobile
– More “i
M “intelligent”
t lli t” computing
ti – Third‐generation
Thi d ti (3G) networks
t k
– 3D Web • Suitable for broadband Internet access
– Pervasive Web b • 144 Kbps – 2Mbps
– Increase in cloud computing, SaaS – 4G networks
– Ubiquitous connectivity between mobile and other access • Entirely packet‐switched
devices
• 100 Mbps – 1Gbps
– Make Web a more seamless experience
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The Wireless Revolution The Wireless Revolution

A BLUETOOTH
• Wireless computer networks and Internet access NETWORK (PAN)
– Bluetooth (802.15) Bluetooth enables a variety of
devices, including cell phones,
• Links up to 8 devices in 10‐m area PDAs wireless keyboards and
PDAs,
mice, PCs, and printers, to
• Useful for personal networking (PANs) and in business to interact wirelessly with each
other within a small 30‐foot
transmit data from handheld devices to other ((10‐meter)) area. In addition to
the links shown, Bluetooth can
transmitters be used to network similar
devices to send data from one
– Wi‐Fi (802
(802.11)
11) PC to another, for example.

• Set of standards: 802.11a, 802.11b, 802.11g, 802.11n FIGURE 7‐15

• Used
U d ffor wireless
i l LAN andd wireless
i l Internet
I t t access
• Use access points: Device with radio receiver/transmitter
for connecting wireless devices to a wired LAN
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The Wireless Revolution The Wireless Revolution

AN 802.11
WIRELESS LAN
• Wireless computer networks and Internet access
Mobile laptop computers
equipped with network
– Wi‐Fi (cont.)
interface cards link to the
wired LAN by communicating • H
Hotspots:
t t Access
A points
i t iin public
bli place
l tto provide
id
with the access point. The
access point uses radio waves
maximum wireless coverage for a specific area
g
to transmit network signals
from the wired network to the • Weak
W k security
it ffeatures
t
client adapters, which convert
them into data that the mobile
device can understand. The – WiMax (802.16)
( )
client adapter then transmits
the data from the mobile
device back to the access
• Wireless access range of 31 miles
point, which forwards the data
to the wired network. • Require WiMax antennas
FIGURE 7‐16
• Sprint Nextel building WiMax network as foundation for
4G networks
t k
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The Wireless Revolution The Wireless Revolution

• Radio frequency identification (RFID) • Radio frequency identification (RFID) (cont.)

– Use tiny tags with embedded microchips containing – Common uses:
data about an item and location, and antenna
– Tags transmit radio signals over short distances to
• Automated toll‐collection
special
i l RFID readers,
d which
hi h send
d data
d over networkk • Tracking
k goods
d in a supply
l chain
h
to computer for processing
– Active RFID: Tags have batteries, data can be
– Requires companies to have special
g is hundreds of feet, more expensive
rewritten, range p hardware and software
– Passive RFID: Range is shorter, also smaller, less – Reduction in cost of tags making RFID
expensive powered by radio frequency energy
expensive, viable for many firms
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CHAPTER 7: TELECOMMUNICATIONS, THE INTERNET, CHAPTER 7: TELECOMMUNICATIONS, THE INTERNET,
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The Wireless Revolution The Wireless Revolution
HOW RFID WORKS
• Wireless sensor networks (WSNs)
– Networks of hundreds or thousands of
interconnected wireless devices embedded into
physical environment to provide measurements of
many points over large spaces
• Devices have built‐in processing, storage, and radio
frequency sensors and antennas
• Require low‐power, long‐lasting batteries and ability to
endure in the field without maintenance
– Used to monitor building security, detect hazardous
FIGURE 7‐17 RFID uses low‐powered radio transmitters to read data stored in a tag at distances ranging from 1 inch to
substances in air, monitor environmental changes,
100 feet. The reader captures the data from the tag and sends them over a network to a host computer for
processing.
t ffi or military
traffic, ilit activity
ti it
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CHAPTER 7: TELECOMMUNICATIONS, THE INTERNET,
AND WIRELESS TECHNOLOGY
The Wireless Revolution

A WIRELESS SENSOR
NETWORK
The small circles represent
lower‐level nodes and the
larger circles represent high‐
high
end nodes. Lower level nodes
forward data to each other or
to higher‐level nodes, which
transmit data more rapidly
p y and
speed up network
performance.
All rights reserved. No part of this publication may be reproduced, stored
FIGURE 7‐18 in a retrieval system, or transmitted, in any form or by any means,
electronic, mechanical, photocopying, recording, or otherwise, without the
prior written permission of the publisher.
P i t d iin th
Printed the U
United
it d St
States
t off A
America.
i
Copyright © 2011 Pearson Education, Inc.
P bli hi as Prentice
Publishing P ti HallH ll

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