Chapter 6: Business Networks and Telecommunications

Management Information Systems, Fifth Edition

Management Information Systems, Fifth Edition

Objectives
Describe business and home applications of digital telecommunications Identify the major media and devices used in telecommunications Explain the concept of protocols

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Objectives (continued)
Compare and contrast various networking and Internet services List networking technologies and trends that are likely to have an impact on businesses and information management in the near future Discuss the pros and cons of telecommuting

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Telecommunications in Business
Telecommunications: transmittal of data and information
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Allows communications over large distances

Network technologies bring about several improvements to business process

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Telecommunications in Business (continued)

Advantages of telecommunications
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Better business communication Geographical distance irrelevant Greater efficiency Information becomes immediately available Better distribution of data

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Telecommunications in Business (continued)

Advantages of telecommunications
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Instant transactions Flexible and mobile workforce Alternative channels Network security is risk

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Telecommunications in Daily Use: Cellular Phones

Name derived from areas of service called cells Use computerized transceiver
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Transmits and receives signals

Transmit and receive calls almost anywhere Other uses

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E-mail and faxing GPS Digital cameras

Major advantage is mobility

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Videoconferencing
Videoconferencing: transmitted images and speech Brings conference rooms thousands of miles apart together Save on multiple costs
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Travel Lodging Time

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Fax
Fax: Transmission and reception of images over telephone line Fax machine digitizes image and transmits representative bits to other fax machine Can be sent through Internet
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Uses special software

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Wireless Payments and Warehousing

Radio frequency identification (RFID) technology enables quick transactions and payments Used in gas stations and wireless toll plazas
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Facilitates payments Check availability Locate items to be picked up and stored

Used in warehouses

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Peer-to-Peer File Sharing

Peer-to-Peer file sharing: locate and download files from online computer through Internet
o o o

LimeWire KaZaa Morpheus

Exchange music and video files Raises many issues with copyright violation BitTorrent: Download segments of files from multiple sources

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Web-Empowered Commerce
Increasingly fast communication allows businesses options
o o o o o o

Research Market Educate Train Shop

Online exchanges and auctions

Entire industries created by Web

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Bandwidth and Media

Bandwidth: speed at which data are communicated Bits per second: unit of measure for bandwidth Baseband: carry only one transmission at a time Broadband: carry multiple transmissions simultaneously

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Bandwidth (continued)

Figure 6.1: Transmission speed measurement units

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Media
Several types of communications media Tangible or intangible
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Tangible
Twisted pair cable Coaxial cable Optical fiber

Intangible media
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Microwave radio technologies

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Media (continued)
Twisted pair cable: pairs of insulated copper wires twisted together
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Twisting reduces electromagnetic interference Low cost Used in networking devices Used for Internet

Coaxial cable: for cable television transmission Optical fiber: uses light to represent bits
Not susceptible to interference

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Media (continued)
Microwaves: high-frequency radio waves that can carry signals over long distances Used in radio-frequency technologies Signals transmitted by satellite links Geostationary satellites are farther away from the Earth Electrical power lines: electrical power grid used for telecommunication

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Media (continued)

Figure 6.2: Networking media

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Networks
Network: combination of devices (nodes) connected through communication channels Any compatible device can transmit and receive on a network

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Types of Networks
Three basic types of networks
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Local area network (LAN): established by single organization and shared among employees
Server: single computer often used as central repository of programs and files for all computers Peer-to-peer LAN: no central device controls communications

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Types of Networks (continued)

Wireless LANs (WLANs): easier installation and more scalable
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Scalability: ease of expanding system Wireless networks less secure

Metropolitan area network (MAN): links multiple LANs within large city Wide area network (WAN): far-reaching system of networks composed of LANs or MANs

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Types of Networks (continued)

Value-added networks (VANs): networks with enhanced services
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Reliability Management Maintenance

Internet service providers (ISPs): preferred method of conducting commerce

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PANs
Personal area network (PAN): wireless network designed for handheld and portable devices
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Used by one or two people Transmission speed slower Maximum distance 10 meters

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Networking Hardware
Networks use variety of devices to connect computers and peripheral devices Network interface card: connects through cable or wireless antenna to middle device Middle device connects to LAN or WAN
o o

Hub: central location to connect computers Switch: controls direction of communications

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Networking Hardware (continued)

Bridge: connects two networks Router: routes data packets to next node Repeater: amplifies or regenerates signals Modem: translates communication signals form analog to digital and vice versa Dial-up connection: slower type of connection through modem

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Virtual Private Networks

Virtual private network (VPN): alternative to creating LAN Does not require leasing of lines Utilizes Internet, a public network to simulate a private network Enables intranets and extranets

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Switching Techniques
Circuit switching: dedicated channel established for duration of transmission Packet switching: message broken into packets Packet: group of bits transmitted together Frame relay: high-speed packet-switching protocol used in WANs
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Variable-sized packets routed quickly

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Switching Techniques (continued)

Figure 6.3: A packet

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Protocols
Protocol: set of rules governing communication between computers Protocol is like human language and basic understanding Some protocols designed for WANs, LANs, and wireless communications Most important set of protocols called TCP/IP

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TCP/IP
TCP/IP: Transmission Control Protocol/Internet Protocol
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Ensures packets arrive accurately Ensures delivery of packets from node to node, respectively

Internet backbone: highest speed channels Host: computer connect directly to backbone IP number: unique identification for device DNS: Domain Name Service maintains character-based names of IP numbers

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TCP/IP (continued)
Static IP number: permanent number assigned to device Dynamic IP number: temporary IP number assigned for duration of connection

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Ethernet
Ethernet: LAN protocol using coaxial cable Gigabit Ethernet: faster Ethernet connections Devices on network contend with other devices for transmission time CSMA/CD protocol ensures no collisions in transmission

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Wireless Protocols
IEEE 802.11: known as Wi-Fi
Supports wireless communication within 100 meters of router o Max speed 11 Mbps
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Access point (hotspot): allows Internet access within range of equipment Encryption: ability to scramble and code messages
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Use keys shared between sender and receiver

Bluetooth: allows devices to communicate within 10 meters

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Wireless Protocols (continued)

Worldwide Interoperability for Microwave Access (WIMAX): increases range and speed of wireless communication
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Works with metropolitan area networks

Mobile Broadband Wireless Access (MBWA): similar to cell phone communications

o o

Compatible with IP services Compatible with Wi-Fi and Bluetooth

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Wireless Protocols (continued)

Figure 6.6: Wireless networking protocols

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Generations in Mobile Communications

Networking professionals refer to generations of mobile communication technologies First generation analog Second generation used digital voice encoding Third generation stepped up speeds Fourth Generation digital
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Packet switching Higher security

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Internet Networking Services

Variety of options to choose from when subscribing to network services Downstream: speed of receiving from network Upstream: speed of transmitting to network

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Internet Networking Services (continued)

Figure 6.6: Wireless networking protocols

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Cable
Internet links provided by television cable firms Cable connected to Internet server At residence, cable split into TV set and computer Cable shared by all subscribers

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Digital Subscriber Line (DSL)

Digital subscriber line (DSL): data remains digital through entire transmission Uses telephone lines connected to DSL bridge Several types of DSL
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Asymmetric allows different upstream and downstream rates

Transmission rates closely related to distance from telephone company

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T1 and T3 Lines
T1 and T3 lines: point-to-point dedicated digital circuits
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T3 lines made of 24 channels of 64 Kbps T1 line made of 672 channels of 64 Kbps Expensive Used in universities

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Satellite
Satellite services use microwaves Service provider installs dish antenna, used as communications satellite Speeds up to 45 Mbps GPS free satellite service

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Fixed Wireless
Fixed wireless: point-to-point transmission between two stationary devices Wireless Internet service provider (WISP)
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Provides fixed wireless service

Highly modular and scalable

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Optical Carrier
Optical carrier
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Expensive High connection speeds

Uses basic unit of 51.84 Mbps Used by

o o o

ISPs Search engines Content-rich Web sites

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Broadband over Power Lines (BPL)

Broadband over Power Lines (BPL): uses electric power lines to carry digital signals Used by utility companies
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Monitor power consumption Detect power failure Track power outages

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The Future of Networking Technologies: Broadband Telephoning

Voice over Internet Protocol: uses Internet connection to conduct telephone conversations Free of charge Different quality of sound from traditional telephone services Does not allow calls to emergency numbers such as 911

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Radio Frequency Identification

RFID tags tiny and need little power Objects are embedded with tags that contain radio transceiver Tags encoded with electronic product code Readers decode data stored in tags memory and data passed to host computer

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Converging Technologies
Convergence occurs in networking technology Cell phones can act as Web phones Television sets connect to Internet Wireless technologies combined in same device enhance functionality

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Summary
Telecommunications is communication over distance Different media have different bandwidths Networks are classified according to reach and complexity Network can be turned into a virtual private network (VPN) Two ways to switch a communication line: packet switching and circuit switching

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Summary (continued)
Network protocols are sets of rules to which all devices on network must adhere The Internet adheres to the TCP/IP protocol Wireless technologies make it easy and affordable to create wireless LANs Organizations and individuals have variety of choices when subscribing to networking services As Internet links become faster, Internet telephoning is gaining in popularity

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Summary (continued)
Wireless technologies support the increasingly popular RFID technologies Much like hardware, telecommunications technologies are merging Increasing numbers of employees now telecommute

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