1. 1
Chapter
4
Telecommunications
and
Networks
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2. 2
Learning Objectives
Identify 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.
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3. 3
Learning Objectives (continued)
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.
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4. 4
Section I
The Networked Enterprise
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5. 5
Networking the Enterprise
Networking business and employees
Connecting them to customers, suppliers, and
other stakeholders.
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6. 6
Trends in Telecommunications
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7. 7
Trends in Telecommunications (continued)
Industry
More
competitive
More options for the firm
Technology
Unrestricted connectivity
Easy access for end users
Open systems
Use common standards for hardware,
software, applications, & networking.
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8. 8
Trends in Telecommunications (continued)
Technology (continued)
High degree of interoperability
Digital networks
Higher transmission speeds
Moves larger amounts of information
Greater economy
Lower error rates
Multiple types of communications on the
same circuits
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9. 9
Trends in Telecommunications (continued)
Technology (continued)
Fiber-optic lines & cellular, PCS, satellite
& other wireless technologies
Faster transmission speeds
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10. 10
Trends in Telecommunications (continued)
Business applications
Dramatic increase in the number of
feasible telecommunication applications.
Cut costs, reduce lead times, shorten
response times, support e-commerce,
improve collaboration, share resources,
lock in customers & suppliers, & develop
new products & services
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11. 11
Business Value of Telecommunications
Networks
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12. 12
The Internet
A network of networks
Popular uses
E-mail
Instant messaging
Browsing the World Wide Web
Newsgroups and chat rooms
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13. 13
The Internet (continued)
 The business value of the Internet
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14. 14
Intranets
Within an organization
Uses Internet technologies
Business value of Intranets
Used for information sharing, communication,
collaboration, & support of business processes.
Web publishing
Comparatively easy, attractive, & lower cost
alternative for publishing & accessing
multimedia business information
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15. 15
Intranets (continued)
Business Operations & Management
Used for developing & deploying critical
business applications
Supports operations and managerial
decision making
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16. 16
Extranets
Network links that use Internet technologies to
interconnect the firm’s intranet with the
intranets of customers, suppliers, or other
business partners
Consultants, subcontractors, business
prospects, & others
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17. 17
Extranets (continued)
Business value
Improve communication with customers and
business partners
Gain competitive advantage in
Product development
Cost savings
Marketing
Distribution
Leveraging their partnerships
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18. 18
Section II
Telecommunications Network Alternatives
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19. 19
Telecommunications Network Alternatives
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20. 20
A Telecommunications Network Model
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21. 21
A Telecommunications Network Model (continued)
Consists of five basic components
Terminals
Any input/output device that uses
telecommunication networks to transmit
or receive data
Telecommunication processors
Support data transmission and reception
between terminals and computers
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22. 22
A Telecommunications Network Model (continued)
Telecommunications channels
The medium over which data are
transmitted and received
Computers
Interconnected by telecommunications
networks
Telecommunications control software
Control telecommunications activities &
manage the functions of telecommunications
networks
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23. 23
Types of Telecommunications Networks
Wide Area Networks (WAN)
Cover a large geographic area.
Local Area Networks (LAN)
Connect computers & other information
processing devices within a limited physical
area.
Connected via ordinary telephone wiring,
coaxial cable, or wireless radio & infrared
systems
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24. 24
Types of Telecommunications Networks (continued)
Virtual Private Networks
A secure network that uses the Internet as
its main backbone network, but relies on fire
walls and other security features
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25. 25
Types of Telecommunications Networks (continued)
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26. 26
Types of Telecommunications Networks (continued)
Client/Server Networks
Clients – end user PCs or NCs
Server – helps with application processing
and also manages the network
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27. 27
Types of Telecommunications Networks (continued)
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28. 28
Types of Telecommunications Networks (continued)
Network computing
“the network is the computer”
Thin clients process small application
programs called “applets.”
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29. 29
A Telecommunications Network Model (continued)
Peer-to-Peer (P2P)
Two major models
Central server architecture
Pure peer-to-peer
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30. 30
Telecommunications Media
Twisted-pair wire
Coaxial cable
Minimizes interference and distortion
Allows high-speed data transmission
Fiber optics
Glass fiber that conducts pulses of light
generated by lasers
Size and weight reduction
Increased speed and carrying capacity
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31. 31
Telecommunications Media (continued)
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32. 32
Wireless Technologies
Terrestrial Microwave
Line-of-sight path between relay stations
spaced approximately 30 miles apart.
Communications Satellites
Geosynchronous orbits
Serve as relay stations for communications
signals transmitted from earth stations
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33. 33
Wireless Technologies (continued)
Cellular & PCS Systems
Each cell is typically from one to several
square miles in area.
Each cell has its own low-power transmitter
or radio relay antenna.
Computers & other communications
processors coordinate & control the
transmissions to/from mobile users as they
move from one cell to another
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34. 34
Wireless Technologies (continued)
Wireless LANs
Spread spectrum
Wi-Fi (wireless fidelity)
Wireless Web
Uses Web-enabled information appliances
Very thin clients
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35. 35
Telecommunications Processors
Modems (modulation/demodulation)
Changes signals from analog to digital and
back to analog
Multiplexers
Allows a single communication channel to
carry simultaneous data transmissions from
many terminals
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36. 36
Telecommunications Processors (continued)
Internetwork Processors
Switches
Makesconnections between telecomm
circuits so a message can reach its
intended destination
Router
Interconnects networks based on different
rules or protocols
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37. 37
Telecommunications Processors (continued)
Hub
Port switching communications processor
Gateway
A processor that interconnects networks
that use different communications
architecture
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38. 38
Telecommunications Software
Provides a variety of communications support
services including connecting & disconnecting
communications links & establishing
communications parameters such as
transmission speed, mode, and direction.
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39. 39
Telecommunications Software (continued)
Network Management
Traffic management
Security
Network monitoring
Capacity planning
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40. 40
Network Topologies
Star
Tiesend user computers to a central
computer
Considered the least reliable
Ring (sometimes called Token Ring)
Ties local computer processors together in a
ring on a more equal basis.
Considered more reliable & less costly
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41. 41
Network Topologies (continued)
Bus
Local processors share the same bus, or
communications channel
Tree is a variation which ties several bus
networks together
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42. 42
Network Topologies (continued)
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43. 43
Network Architectures & Protocols
Protocols
Astandard set of rules & procedures for the
control of communications in a network
Standards for the physical characteristics of
cables and connectors
Network Architecture
Goal is to promote an open, simple, flexible,
efficient telecommunications environment
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44. 44
Network Architectures and Protocols (continued)
OSI Model
TCP/IP
Transmission Control Protocol/Internet
Protocol
Used by the Internet and all intranets and
extranets
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45. 45
Bandwidth Alternatives
Bandwidth is the frequency range of a
telecommunications network
Determines the channel’s maximum
transmission rate
Measured in bits per second (bps) or baud
Narrow-band
Low-speed transmission
Broadband
High-speed transmission
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46. 46
Switching Alternatives
Circuit switching
Packet switching
Cell switching
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47. 47
Discussion Questions
The Internet is the driving force behind
developments in telecommunications,
networks, and other information technologies.
Do you agree or disagree?
How is the trend toward open systems,
connectivity, and interoperability related to
business use of the Internet, intranets, and
extranets?
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48. 48
Discussion Questions (continued)
How will wireless information appliances and
services affect the business use of the Internet
and the Web?
What are some of the business benefits and
management challenges of client/server
networks? Network computing? Peer-to-peer
networks?
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49. 49
Discussion Questions (continued)
What is the business value driving so many
companies to rapidly install and extend
intranets throughout their organizations?
What strategic competitive benefits do you see
in a company’s use of extranets?
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50. 50
Discussion Questions (continued)
Do you think that business use of the Internet,
intranets, and extranets has changed what
businesspeople expect from information
technology in their jobs?
Do you believe that the insatiable demand for
everything wireless, video, and Web-enabled
will be the driving force behind developments
in telecommunications, networking, and
computing technologies for the foreseeable
future?
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51. 51
Real World Case 1 – FedEx versus UPS
Why does telecommunications play such a key
role in the competition between FedEx and
UPS?
Why does “information about the package”
have such a strategic business value in the
express delivery business?
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52. 52
Real World Case 1 (continued)
What telecommunications products or services
would you recommend that FedEx or UPS use
to improve their competitive position in the
overnight delivery and shipping business?
Consider the different management styles of
FedEx and UPS. What makes them work?
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53. 53
Real World Case 1 (continued)
What other IT or web-based services could
FedEx and UPS offer their business or
consumer customers?
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54. 54
Real World Case 2 – Nielsen Media Research
Managing bandwidth use
Monitoring and enforcing
Centralizing operations
Testing & tuning applications
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55. 55
Real World Case 2 (continued)
How do the network bandwidth problems
experienced by the companies in this case
affect their business performance?
What network management tactics are used to
help solve these problems?
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56. 56
Real World Case 2 (continued)
What other network management tactics
would you recommend to help solve the
business problems identified in this case?
What are some network usage problems not
mentioned in the case that could be solved by
better network management?
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57. 57
Real World Case 3 – Link Staffing, FMC, AutoWeb, & APL
Logistics
Why do companies implement virtual private
networks?
What is the business case for outsourcing VPN
services?
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58. 58
Real World Case 3 (continued)
What role does network management software
play in implementing and managing VPNs?
What challenges did each company face and
how did they use VPNs to help answer those
challenges?
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59. 59
Real World Case 4 – Dow Chemical
Why have companies been reluctant to rely on
Internet telephony instead of traditional
telephone systems for business use?
Do the potential business benefits support
Dow Chemical’s decision to implement a new
global VOIP network?
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60. 60
Real World Case 4 (continued)
Would you recommend that more companies
implement IP telephony services? Why?
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61. 61
Real World Case 5 – General Motors Corp.
What is the business value of wireless LANs to
GM?
What are the security vulnerabilities of
wireless LANs? Is GM taking appropriate
security measures?
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62. 62
Real World Case 5 (continued)
What are some other possible business
applications of wireless LANs?
What are some of the benefits and challenges
of LANs in a small business environment?
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