Chapter 6 Telecommunications And Networks

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					Chapter 6 Telecommunications And Networks
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
       •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.
Why Study Networking?
       •When computers are networked, two industries – computing and ommunications
       – 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.
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.
       •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 to help you answer.

       •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

Telecommunications Definition:
       •The exchange of information in any form (voice, data, text, images, audio,
       video) over networks

Trends in Telecommunications
Open Systems Definition:
       •Information systems that use common standards for hardware, software,
       applications, and networking

Connectivity Definition:
      •The ability of networked computers and other devices to easily access and
      communicate with each other and share information

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

Digital Network Technologies Definition:
        •Digital transmission technologies that transmit information in the form of
        discrete pulses

       •Higher transmission speeds
       •Movement of larger amounts of information
       •Greater economy
       •Lower error rates
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

Internet Applications
Business Use of the Internet
Business Value of the Internet

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

Business Value of Intranets
       •Communications and Collaboration – includes email, voicemail, 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

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

Business Value of Extranets
Intranets & Extranets

Case #2: Serving Citizens without Wires
MEMA Technologies:
       •Global-positioning satellite communications
       •Cellular phones
       •Geospatial technologies
       •Microelectronics technologies
      •A device to communicate warnings to properly position individuals before an
      event happens

       •A tool to collect timely information after a disaster hits
       •What is the business value of advanced mobile technologies to Maryland’s
       emergency management services?

       •In what other government services could GPS serve to provide business value?
       Give some examples.

       •Are there disadvantages or risks associated with the deployment of GPS systems
       to monitor the location of people? Explain.
       •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.

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

       •Telecommunications Channels – media over which data are transmitted and

       •Computers – all sizes and types

       •Telecommunications Control Software – programs that control
       telecommunications activities

Telecommunications Network Components
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

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
Client/Server & Network Computing

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

       •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
       •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

Wireless Application Protocol (WAP)
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
Telecommunications Technologies
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
      Communications Processors
Network Processors
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
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

Network Topologies
      •Star – ties end user computers to a central computer
       •Ring – ties local computer processors together in a ring on a relatively equal

      •Bus – local processors share the same communications channel
Network Topologies
Network Topologies
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
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

OSI & TCP/IP Models
IP Address
Bandwidth Definition:
       •Classification of communications speed and capacity of telecommunications

Transmission Rates:
       •Narrow-band – low-speed
       •Broadband – high-speed
Transmission Speeds
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

       •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
Case #3: Wi-Fi Networks
       •Lower cost
       •Hit-or-miss hotspots
       •Lost productivity due to disruptions
       •Must create billing systems
       •Must establish technical standards
       •Must develop tighter security measures
•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?
Case #4: Voice Over IP
•Combine email with voicemail
•Collaboration technologies
Case #4: Voice Over IP
•Install one line to carry voice and data
•Reduced staff training
•Improved productivity
Case #4: Voice Over IP
•What are the main benefits that can be gained by companies that switch to VoIP

•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.
•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.
•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
•Businesses are installing and extending intranets throughout their organizations to:
•Improve communications and collaboration among individuals and teams within the
•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
•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:
•Telecommunications processors
•Communications channels
•Telecommunications software
End of Chapter

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