6 - 1 Copyright © 2006, The McGraw-Hill Companies, Inc. All rights reserved.

6 - 2 Copyright © 2006, The McGraw-Hill Companies, Inc. All rights reserved. Telecommunications And Networks Chapter 6

6 - 3 Copyright © 2006, The McGraw-Hill Companies, Inc. All rights reserved. 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. Learning Objectives

6 - 4 Copyright © 2006, The McGraw-Hill Companies, Inc. All rights reserved. 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.

6 - 5 Copyright © 2006, The McGraw-Hill Companies, Inc. All rights reserved. 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.

6 - 6 Copyright © 2006, The McGraw-Hill Companies, Inc. All rights reserved. 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.

6 - 7 Copyright © 2006, The McGraw-Hill Companies, Inc. All rights reserved. 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.

6 - 8 Copyright © 2006, The McGraw-Hill Companies, Inc. All rights reserved. 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?

6 - 9 Copyright © 2006, The McGraw-Hill Companies, Inc. All rights reserved. Telecommunications Definition: The exchange of information in any form (voice, data, text, images, audio, video) over networks

Copyright © 2006, The McGraw-Hill Companies, Inc. All rights reserved. Trends in Telecommunications

Copyright © 2006, The McGraw-Hill Companies, Inc. All rights reserved. Open Systems Definition: Information systems that use common standards for hardware, software, applications, and networking

Copyright © 2006, The McGraw-Hill Companies, Inc. All rights reserved. Connectivity Definition: The ability of networked computers and other devices to easily access and communicate with each other and share information

Copyright © 2006, The McGraw-Hill Companies, Inc. All rights reserved. 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

Copyright © 2006, The McGraw-Hill Companies, Inc. All rights reserved. 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

Copyright © 2006, The McGraw-Hill Companies, Inc. All rights reserved. Business Value of Telecommunications

Copyright © 2006, The McGraw-Hill Companies, Inc. All rights reserved. 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

Copyright © 2006, The McGraw-Hill Companies, Inc. All rights reserved. Internet

Copyright © 2006, The McGraw-Hill Companies, Inc. All rights reserved. Internet Applications

Copyright © 2006, The McGraw-Hill Companies, Inc. All rights reserved. Business Use of the Internet

Copyright © 2006, The McGraw-Hill Companies, Inc. All rights reserved. Business Value of the Internet

Copyright © 2006, The McGraw-Hill Companies, Inc. All rights reserved. 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

Copyright © 2006, The McGraw-Hill Companies, Inc. All rights reserved. Business Value of Intranets Communications and Collaboration – includes , voic , 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

Copyright © 2006, The McGraw-Hill Companies, Inc. All rights reserved. Business Value of Intranets

Copyright © 2006, The McGraw-Hill Companies, Inc. All rights reserved. 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

Copyright © 2006, The McGraw-Hill Companies, Inc. All rights reserved. Business Value of Extranets

Copyright © 2006, The McGraw-Hill Companies, Inc. All rights reserved. Intranets & Extranets

Copyright © 2006, The McGraw-Hill Companies, Inc. All rights reserved. Case #2: Serving Citizens without Wires MEMA Technologies: Global-positioning satellite communications Cellular phones Geospatial technologies Microelectronics technologies

Copyright © 2006, The McGraw-Hill Companies, Inc. All rights reserved. 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

Copyright © 2006, The McGraw-Hill Companies, Inc. All rights reserved. Case #2: Serving Citizens without Wires 1.What is the business value of advanced mobile technologies to Maryland’s 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.

Copyright © 2006, The McGraw-Hill Companies, Inc. All rights reserved. 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 ( or G- Com International ( to help you answer.

Copyright © 2006, The McGraw-Hill Companies, Inc. All rights reserved. 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

Copyright © 2006, The McGraw-Hill Companies, Inc. All rights reserved. Telecommunications Network Components

Copyright © 2006, The McGraw-Hill Companies, Inc. All rights reserved. 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

Copyright © 2006, The McGraw-Hill Companies, Inc. All rights reserved. LAN & VPN

Copyright © 2006, The McGraw-Hill Companies, Inc. All rights reserved. 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 user’s PC

Copyright © 2006, The McGraw-Hill Companies, Inc. All rights reserved. Client/Server

Copyright © 2006, The McGraw-Hill Companies, Inc. All rights reserved. Client/Server & Network Computing

Copyright © 2006, The McGraw-Hill Companies, Inc. All rights reserved. Peer-to-Peer

Copyright © 2006, The McGraw-Hill Companies, Inc. All rights reserved. Peer-to-Peer

Copyright © 2006, The McGraw-Hill Companies, Inc. All rights reserved. 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

Copyright © 2006, The McGraw-Hill Companies, Inc. All rights reserved. Telecommunications Media

Copyright © 2006, The McGraw-Hill Companies, Inc. All rights reserved. Wireless Technologies Terrestrial Microwave – earthbound microwave systems that transmit high- speed 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

Copyright © 2006, The McGraw-Hill Companies, Inc. All rights reserved. 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

Copyright © 2006, The McGraw-Hill Companies, Inc. All rights reserved. Wireless Application Protocol (WAP)

Copyright © 2006, The McGraw-Hill Companies, Inc. All rights reserved. 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

Copyright © 2006, The McGraw-Hill Companies, Inc. All rights reserved. Modem

Copyright © 2006, The McGraw-Hill Companies, Inc. All rights reserved. Telecommunications Technologies

Copyright © 2006, The McGraw-Hill Companies, Inc. All rights reserved. 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

Copyright © 2006, The McGraw-Hill Companies, Inc. All rights reserved. Communications Processors

Copyright © 2006, The McGraw-Hill Companies, Inc. All rights reserved. Network Processors

Copyright © 2006, The McGraw-Hill Companies, Inc. All rights reserved. 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

Copyright © 2006, The McGraw-Hill Companies, Inc. All rights reserved. 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

Copyright © 2006, The McGraw-Hill Companies, Inc. All rights reserved. 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

Copyright © 2006, The McGraw-Hill Companies, Inc. All rights reserved. Network Topologies

Copyright © 2006, The McGraw-Hill Companies, Inc. All rights reserved. Network Topologies

Copyright © 2006, The McGraw-Hill Companies, Inc. All rights reserved. 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

Copyright © 2006, The McGraw-Hill Companies, Inc. All rights reserved. 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

Copyright © 2006, The McGraw-Hill Companies, Inc. All rights reserved. OSI & TCP/IP Models

Copyright © 2006, The McGraw-Hill Companies, Inc. All rights reserved. IP Address

Copyright © 2006, The McGraw-Hill Companies, Inc. All rights reserved. Bandwidth Definition: Classification of communications speed and capacity of telecommunications networks Transmission Rates: Narrow-band – low-speed Broadband – high-speed

Copyright © 2006, The McGraw-Hill Companies, Inc. All rights reserved. Transmission Speeds

Copyright © 2006, The McGraw-Hill Companies, Inc. All rights reserved. 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 McGraw-Hill Companies, Inc. All rights reserved. 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 McGraw-Hill Companies, Inc. All rights reserved. Case #3: Wi-Fi Networks Benefits: Superfast Lower cost

Copyright © 2006, The McGraw-Hill Companies, Inc. All rights reserved. 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 McGraw-Hill Companies, Inc. All rights reserved. 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?

Copyright © 2006, The McGraw-Hill Companies, Inc. All rights reserved. Case #4: Voice Over IP Services: Combine with voic Audio-conferencing Collaboration technologies Video

Copyright © 2006, The McGraw-Hill Companies, Inc. All rights reserved. Case #4: Voice Over IP Benefits: Install one line to carry voice and data Reduced staff training Improved productivity

Copyright © 2006, The McGraw-Hill Companies, Inc. All rights reserved. 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.

Copyright © 2006, The McGraw-Hill Companies, Inc. All rights reserved. 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 McGraw-Hill Companies, Inc. All rights reserved. Summary Open systems with unrestricted connectivity using Internet technologies are the primary telecommunications technology drivers in e- business 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.

Copyright © 2006, The McGraw-Hill Companies, Inc. All rights reserved. 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 making

Copyright © 2006, The McGraw-Hill Companies, Inc. All rights reserved. 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 McGraw-Hill Companies, Inc. All rights reserved. End of Chapter Chapter 6