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END BACK NEXT The Networked Enterprise Trends in Telecommunica- tions The Internet Revolution Business Use of the Internet Section II Telecommunica- tions Alternatives Telecommunica- tions Model Network Topologies Bandwidth Alternatives KEY TERMS Copyright 2005, McGraw-Hill/Irwin, Inc. 6-1 Real World Cases Telecommunications Telecommunications and Networks and Networks END BACK NEXT The Networked Enterprise Trends in Telecommunica- tions The Internet Revolution Business Use of the Internet Section II Telecommunica- tions Alternatives Telecommunica- tions Model Network Topologies Bandwidth Alternatives KEY TERMS Copyright 2005, McGraw-Hill/Irwin, Inc. 6-2 Real World Cases Learning Objectives Learning Objectives 1. Identify several major developments and trends in the industries, technologies, and applications of telecommunications and Internet technologies. 2. Provide examples of the business value of Internet, intranet, and extranet applications. 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. END BACK NEXT The Networked Enterprise Trends in Telecommunica- tions The Internet Revolution Business Use of the Internet Section II Telecommunica- tions Alternatives Telecommunica- tions Model Network Topologies Bandwidth Alternatives KEY TERMS Copyright 2005, McGraw-Hill/Irwin, Inc. 6-3 Real World Cases The Networked The Networked Enterprise Enterprise Networking Converges Computing and Communications Reduction of Geographic Boundaries Networked Enterprises Real World Real World Case 1 Case 1- Celanese Chemicals Celanese Chemicals and Others and Others Click to go to Case 1 END BACK NEXT The Networked Enterprise Trends in Telecommunica- tions The Internet Revolution Business Use of the Internet Section II Telecommunica- tions Alternatives Telecommunica- tions Model Network Topologies Bandwidth Alternatives KEY TERMS Copyright 2005, McGraw-Hill/Irwin, Inc. 6-4 Real World Cases Trends in Trends in Telecommunications Telecommunications Industry Trends Industry Trends Industry Trends Industry Trends Toward more competitive vendors, carriers, alliances and network services, accelerated by deregulation and the growth of the Internet and the World Wide Web Technology Trends Technology Trends Toward extensive use of Internet, digital fiber-optic, and wireless technologies to create high-speed local and global internetworks for voice, data, images, audio, and videocommunications Application Trends Application Trends Toward the pervasive use of the Internet, enterprise intranets, and interorganizational extranets to support electronic business and commerce, enterprise collaboration, and strategic advantage in local and global markets

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Page 1: Learning Objectives Telecommunications and Networksfaculty.tamucc.edu/hormozi/MISY3310/Chap006/chap006.pdf · 1 END BACK NEXT The Networked Enterprise Trends in Telecommunica-tions

1

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The Networked EnterpriseTrends in Telecommunica-tionsThe Internet RevolutionBusiness Use of the InternetSection IITelecommunica-tionsAlternativesTelecommunica-tions ModelNetwork TopologiesBandwidth Alternatives

KEY TERMS

Copyright 2005, McGraw-Hill/Irwin, Inc. 6-1

Real World Cases

Telecommunications Telecommunications and Networksand Networks

ENDBACK NEXT

The Networked EnterpriseTrends in Telecommunica-tionsThe Internet RevolutionBusiness Use of the InternetSection IITelecommunica-tionsAlternativesTelecommunica-tions ModelNetwork TopologiesBandwidth Alternatives

KEY TERMS

Copyright 2005, McGraw-Hill/Irwin, Inc. 6-2

Real World Cases

Learning ObjectivesLearning Objectives1. Identify several major developments

and trends in the industries, technologies, and applications of telecommunications and Internet technologies.

2. Provide examples of the business value of Internet, intranet, and extranet applications.

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.

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The Networked EnterpriseTrends in Telecommunica-tionsThe Internet RevolutionBusiness Use of the InternetSection IITelecommunica-tionsAlternativesTelecommunica-tions ModelNetwork TopologiesBandwidth Alternatives

KEY TERMS

Copyright 2005, McGraw-Hill/Irwin, Inc. 6-3

Real World Cases

The Networked The Networked EnterpriseEnterprise

• Networking Converges Computing and Communications• Reduction of Geographic

Boundaries• Networked Enterprises•• Real World Real World Case 1Case 1--

Celanese Chemicals Celanese Chemicals and Othersand Others

Click to go toCase 1

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The Networked EnterpriseTrends in Telecommunica-tionsThe Internet RevolutionBusiness Use of the InternetSection IITelecommunica-tionsAlternativesTelecommunica-tions ModelNetwork TopologiesBandwidth Alternatives

KEY TERMS

Copyright 2005, McGraw-Hill/Irwin, Inc. 6-4

Real World Cases

Trends in Trends in TelecommunicationsTelecommunications

Industry TrendsIndustry TrendsIndustry TrendsIndustry Trends Toward more competitive vendors, carriers, alliances

and network services, accelerated by deregulation and the growth of the Internet and the World Wide Web

Technology TrendsTechnology Trends Toward extensive use of Internet, digital fiber-optic, and wireless technologies to create high-speed local and global internetworks for voice, data, images, audio, and videocommunications

Application TrendsApplication Trends Toward the pervasive use of the Internet, enterprise intranets, and interorganizational extranets to support electronic business and commerce, enterprise collaboration, and strategic advantage in local and global markets

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KEY TERMS

Copyright 2005, McGraw-Hill/Irwin, Inc. 6-5

Real World Cases

Trends in Trends in TelecommunicationsTelecommunications

Services available todayServices available today……Full Service Spectrum•Broadcast TV•High-definition TV•Enhanced pay-per-view•Video-on-demand•Interactive TV•Interactive video games•Video catalog shopping•Distance learning•Desktop multimedia•Image networking•Transaction services•Internet access•Telecommuting•Videoconferences•Video telephony•Wireless Access•Cellular/PCS systems•POTS-Plain old telephone service

EntertainmentEntertainment

InformationInformationTransactionsTransactions

CommunicationsCommunications ENDBACK NEXT

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KEY TERMS

Copyright 2005, McGraw-Hill/Irwin, Inc. 6-6

Real World Cases

Trends in Trends in TelecommunicationsTelecommunications

Technology TrendsTechnology Trends•Internet Networking Technologies•Open Systems•Connectivity•Interoperability•Digital Network Technologies•Higher Transmission Speeds•Move Larger Amounts of Information•Greater Economy•Lower Error Rates than Analog

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The Networked EnterpriseTrends in Telecommunica-tionsThe Internet RevolutionBusiness Use of the InternetSection IITelecommunica-tionsAlternativesTelecommunica-tions ModelNetwork TopologiesBandwidth Alternatives

KEY TERMS

Copyright 2005, McGraw-Hill/Irwin, Inc. 6-7

Real World Cases

Trends in Trends in TelecommunicationsTelecommunications

Business ApplicationsBusiness Applications……•Creation of Business Value•Develop Strategic Capabilities•Overcome Geographic Barriers•Overcome Time Barriers•Overcome Cost Barriers•Overcome Structural Barriers

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KEY TERMS

Copyright 2005, McGraw-Hill/Irwin, Inc. 6-8

Real World Cases

Trends in Trends in TelecommunicationsTelecommunications

The Internet RevolutionThe Internet Revolution……Internet Applications•Surf•E-Mail•Discuss•Chat•Buy and Sell•Download•Compute•Other Uses

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KEY TERMS

Copyright 2005, McGraw-Hill/Irwin, Inc. 6-9

Real World Cases

Business Use of the Business Use of the InternetInternet

GE Power Systems: GE Power Systems: Using the Using the Internet CaseInternet Case

•Creation of a Power Plant Entirely on the Internet•Holding Virtual Meetings•Blueprints Exchanged and Modified in Real Time on the Web•Customers Can Watch as Turbine is Built from Anywhere•20-30% Reduction in Time to Build Turbine•1-2% Increase in Turbine Output•30% Increase in Sales Revenue END

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The Networked EnterpriseTrends in Telecommunica-tionsThe Internet RevolutionBusiness Use of the InternetSection IITelecommunica-tionsAlternativesTelecommunica-tions ModelNetwork TopologiesBandwidth Alternatives

KEY TERMS

Copyright 2005, McGraw-Hill/Irwin, Inc. 6-10

Real World Cases

Business Use of the Business Use of the InternetInternet

Internet Adds Value to BusinessesInternet Adds Value to Businesses

Headquarters Suppliers

Remote OfficesCustomersBusiness Partners

InventoryManagement

Systems

The Internet

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KEY TERMS

Copyright 2005, McGraw-Hill/Irwin, Inc. 6-11

Real World Cases

Deriving Business ValueDeriving Business Value

ReduceReduceCosts ofCosts of

DoingDoingBusinessBusiness

Develop NewDevelop NewWebWeb--BasedBasedProductsProducts

IncreaseIncreaseCustomerCustomer

Loyalty andLoyalty andRetentionRetention

AttractAttractNewNew

CustomersCustomers

DevelopDevelopNew MarketsNew Marketsand Channelsand Channels

GenerateGenerateNewNew

RevenueRevenueSourcesSources

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KEY TERMS

Copyright 2005, McGraw-Hill/Irwin, Inc. 6-12

Real World Cases

The Role of IntranetsThe Role of Intranets•Intranets Redefined•Use of Web Browsers•TCP/IP Network Protocols•HTML Hypermedia•Internet-Like Environment•Extranet LinksHow Companies Derive Business ValueHow Companies Derive Business Value……

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KEY TERMS

Copyright 2005, McGraw-Hill/Irwin, Inc. 6-13

Real World Cases

The Role of IntranetsThe Role of IntranetsExisting

E-Mail, Voice-Mail Systems

ExistingDatabases

andEnterprise

Applications

HTML, MS Office,XML, Java, and

Other DocumentTypes

ExistingHardware

andNetworks

Communication andCollaboration

Business Operationsand Management

Web Publishing

Intranet Portal Management

FIREWALL

IntranetEnterpriseInformation

Portal

Employees

Everyone

Customers,Suppliers,

and Partners

Author, publish, andshare hypermedia

documents

Centrally administerclients, servers,

security, directory,and traffic

Secure, universalaccess to view

and use corporateand external data

Communicate andcollaborate with e-mail,

discussion forums,chat, and conferencing Intranet

Extranet

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KEY TERMS

Copyright 2005, McGraw-Hill/Irwin, Inc. 6-14

Real World Cases

The Role of IntranetsThe Role of Intranets

• Designer of Electronic Design Automation (EDA) Software Tools• 3,000 Employees Worldwide• Developed Intranet Called

OnTrack for 500 Managers• Created a Single Enterprise

Information Portal• Provided Immediate Instant

Information

Cadence OnTrack: Cadence OnTrack: Business Business Value of an IntranetValue of an Intranet

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KEY TERMS

Copyright 2005, McGraw-Hill/Irwin, Inc. 6-15

Real World Cases

The Role of ExtranetsThe Role of Extranets•Business Value of Extranets•Gaining Competitive Advantage•Virtual Private Networks•Firewalls and Security Issues•Interactive Web-Enabled Services to Business Partners

GraphicallyGraphically……END

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KEY TERMS

Copyright 2005, McGraw-Hill/Irwin, Inc. 6-16

Real World Cases

Partners,Consultants,Contractors

Consumers

Business Consumers

Suppliers and Distributors

The InternetworkedEnterprise

The Role of ExtranetsThe Role of ExtranetsConnecting Enterprise to Consumers, Connecting Enterprise to Consumers, Business Customers, Suppliers, and Business Customers, Suppliers, and Other Business PartnersOther Business Partners

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KEY TERMS

Copyright 2005, McGraw-Hill/Irwin, Inc. 6-17

Real World Cases

The Role of ExtranetsThe Role of Extranets

• Platinum Lender Access Extranet Created by Countrywide• Access to Account and

Transaction Information• Snap-on Created Franchise

Information Network for Their Independent Dealers• Supports Interactive News and

Information Exchange

Countrywide and SnapCountrywide and Snap--on: on: Extranet ExamplesExtranet Examples

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KEY TERMS

Copyright 2005, McGraw-Hill/Irwin, Inc. 6-18

Real World Cases

Telecommunications Telecommunications Network AlternativesNetwork Alternatives

• GPS Use by Trucking and Cement Firms• “Time-Definite-Delivery”• Omni TRACKS System• Better Management of Time-

Sensitive MaterialsReal World Real World Case 2Case 2--ConCon--Way NOW and Trimble Way NOW and Trimble

Navigation: The Business Navigation: The Business Value of GPS NetworksValue of GPS Networks Click to go to

Case 2

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KEY TERMS

Copyright 2005, McGraw-Hill/Irwin, Inc. 6-19

Real World Cases

Key Components and Alternatives•Networks•Media• Processors• Software•Channels•Topology/Architecture

Telecommunications Telecommunications Network AlternativesNetwork Alternatives

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KEY TERMS

Copyright 2005, McGraw-Hill/Irwin, Inc. 6-20

Real World Cases

A Telecommunications A Telecommunications Network ModelNetwork Model

Telecommunications Telecommunications Network AlternativesNetwork Alternatives

PCs, NCs, andOther Terminals

TelecommunicationsProcessors

TelecommunicationsChannels

TelecommunicationsProcessors

TelecommunicationsSoftware

Computers

11

2233

22

44

55

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KEY TERMS

Copyright 2005, McGraw-Hill/Irwin, Inc. 6-21

Real World Cases

Types of Telecommunications Types of Telecommunications NetworksNetworks

Telecommunications Telecommunications Network AlternativesNetwork Alternatives

•Wide Area Networks (WANs)•Local Area Networks (LANs)•Network Server•Network Operation System•Virtual Private Network (VPNs) GraphicallyGraphically…… END

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The Networked EnterpriseTrends in Telecommunica-tionsThe Internet RevolutionBusiness Use of the InternetSection IITelecommunica-tionsAlternativesTelecommunica-tions ModelNetwork TopologiesBandwidth Alternatives

KEY TERMS

Copyright 2005, McGraw-Hill/Irwin, Inc. 6-22

Real World Cases

Example Wide Area NetworkExample Wide Area Network

Telecommunications Telecommunications Network AlternativesNetwork Alternatives

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KEY TERMS

Copyright 2005, McGraw-Hill/Irwin, Inc. 6-23

Real World Cases

Example Local Area NetworkExample Local Area Network

Telecommunications Telecommunications Network AlternativesNetwork Alternatives

PC Workstation PC Workstation PC Workstation

PC Workstation PC Workstation PC Workstation

Shared Printer

Shared Databasesand Software Packages

Internetwork Processorto Other Processors

NetworkServer

Shared HardDisk Unit

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KEY TERMS

Copyright 2005, McGraw-Hill/Irwin, Inc. 6-24

Real World Cases

Example Virtual Private NetworkExample Virtual Private Network

Telecommunications Telecommunications Network AlternativesNetwork Alternatives

IntranetServer

Router

Intranet

Company ACompany A

Company BCompany B

IntranetIntranetServer

ExtranetServer

Router

NetworkFirewall

NetworkFirewall

Extranet

TheTheInternetInternet

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KEY TERMS

Copyright 2005, McGraw-Hill/Irwin, Inc. 6-25

Real World Cases

Link Staffing Case: Challenges Link Staffing Case: Challenges of VPN Servicesof VPN Services

Telecommunications Telecommunications Network AlternativesNetwork Alternatives

•Connecting 49 Branches in 29 States by a VPN•Outsourced Network to OpenReach•Previous Problems with Another Provider•New Provider Quite Successful END

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The Networked EnterpriseTrends in Telecommunica-tionsThe Internet RevolutionBusiness Use of the InternetSection IITelecommunica-tionsAlternativesTelecommunica-tions ModelNetwork TopologiesBandwidth Alternatives

KEY TERMS

Copyright 2005, McGraw-Hill/Irwin, Inc. 6-26

Real World Cases

Client/Server NetworksClient/Server NetworksFunctions of the Computer SystemsFunctions of the Computer Systems

Client Systems Servers

MainframeLarge Servers

•• Functions:Functions:Provide user interface, perform some/most processing on an application.

•• Functions:Functions:Shared computation, application control, distributed databases.

•• Functions:Functions: Central database control, security, directory management, heavy-duty processing.

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KEY TERMS

Copyright 2005, McGraw-Hill/Irwin, Inc. 6-27

Real World Cases

Other NetworkingOther Networking• Client/Server Networks–Clients–Servers–Downsizing–Legacy Systems

• Network Computing• Peer-to-Peer Networks

(P2P) ENDBACK NEXT

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KEY TERMS

Copyright 2005, McGraw-Hill/Irwin, Inc. 6-28

Real World Cases

Other NetworkingOther Networking

A peer-to-peer network architecture with aDirectory of all peers on a central server

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KEY TERMS

Copyright 2005, McGraw-Hill/Irwin, Inc. 6-29

Real World Cases

Other NetworkingOther Networking

A pure peer-to-peer network architecture with no central directory server

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KEY TERMS

Copyright 2005, McGraw-Hill/Irwin, Inc. 6-30

Real World Cases

Telecommunications MediaTelecommunications MediaTwisted-Pair WireCoaxial CableFiber Optics• Photons• Dense Wave Division

Multiplexing (DWDM)Wireless Technologies• Terrestrial Microwave• Communications Satellites

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KEY TERMS

Copyright 2005, McGraw-Hill/Irwin, Inc. 6-31

Real World Cases

Telecommunications MediaTelecommunications Media

• Network Connecting 459 Restaurants and 6 Plants• Used VSAT Satellite

Communications Network• Faster Credit Card

Authorizations• Automatic Overnight Polling of

Financial Data from POS Terminals• Planning Inventory Management

Application

Bob Evans Farms Case: The Bob Evans Farms Case: The Case for Satellite NetworksCase for Satellite Networks

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KEY TERMS

Copyright 2005, McGraw-Hill/Irwin, Inc. 6-32

Real World Cases

Telecommunications MediaTelecommunications MediaCellular and PCS SystemsWireless LANsThe Wireless Web• Very Thin-Clients• Wireless Application

Protocol (WAP)• Third Generation (3G)

Wireless Technologies• Wireless Markup

Language (WML)

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KEY TERMS

Copyright 2005, McGraw-Hill/Irwin, Inc. 6-33

Real World Cases

Telecommunications MediaTelecommunications Media

WebServer

HTMLor

XML

WMLFilter Proxy

WirelessAccess

Protocol

Wireless Application Protocol Wireless Application Protocol (WAP) Architecture for (WAP) Architecture for Wireless Internet ServiceWireless Internet Service

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KEY TERMS

Copyright 2005, McGraw-Hill/Irwin, Inc. 6-34

Real World Cases

Telecommunications MediaTelecommunications Media

• Use of Wireless as Part of UPScan Standardization Effort• Use of Bluetooth for Cordless

Connection to Peripherals• Developed Legacy Application

Programming Interfaces (API)• Connected to Web for New

Customer Tracking Ability

The UPS Case: Wireless LANs The UPS Case: Wireless LANs and Mand M--CommerceCommerce

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KEY TERMS

Copyright 2005, McGraw-Hill/Irwin, Inc. 6-35

Real World Cases

Telecommunications Telecommunications ProcessorsProcessors

•Modems–Modulation–Demodulation•Multiplexers• Internetwork Processors–Switches–Routers–Hubs–Gateways END

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KEY TERMS

Copyright 2005, McGraw-Hill/Irwin, Inc. 6-36

Real World Cases

Telecommunications Telecommunications ProcessorsProcessors

Corporate Local Area Network Internet Provider

Internet Backbone Internet Provider Private HomeModem

Typical Internet ConnectionTypical Internet ConnectionNetwork Interface Card

NIC

NIC

HubEthernetSwitch Router

FrameRelay

Switch Router

ATMSwitch

CoreRouter ATM

SwitchRouter

FrameRelay

Switch

RemoteAccessDevice

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KEY TERMS

Copyright 2005, McGraw-Hill/Irwin, Inc. 6-37

Real World Cases

Telecommunications Telecommunications ProcessorsProcessors

Comparing Connecting TechnologyComparing Connecting Technology

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KEY TERMS

Copyright 2005, McGraw-Hill/Irwin, Inc. 6-38

Real World Cases

Telecommunications Telecommunications SoftwareSoftware

•Network Operating Systems•Network Management–Traffic Management–Security–Network Monitoring–Capacity Planning

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KEY TERMS

Copyright 2005, McGraw-Hill/Irwin, Inc. 6-39

Real World Cases

Network Management SoftwareNetwork Management Software

Telecommunications Telecommunications SoftwareSoftware

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KEY TERMS

Copyright 2005, McGraw-Hill/Irwin, Inc. 6-40

Real World Cases

Nielsen Media Research and Others: Nielsen Media Research and Others: Network Bandwidth Management Network Bandwidth Management ChallengesChallenges

Telecommunications Telecommunications SoftwareSoftware

• Sharing Resources Increases Bandwidth Requirements• Need Clear Idea of Actual

Bandwidth Needs• Gaming, Audio and Video

Downloads Are Large Users• Analysis of Use Adds to Network

Efficiency

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KEY TERMS

Copyright 2005, McGraw-Hill/Irwin, Inc. 6-41

Real World Cases

Network TopologiesNetwork Topologies• Topologies or Network

Structures• Star• Ring• Bus• Mesh• Client/Server May Use

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KEY TERMS

Copyright 2005, McGraw-Hill/Irwin, Inc. 6-42

Real World Cases

Network TopologiesNetwork TopologiesGraphical Topology Examples Graphical Topology Examples

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KEY TERMS

Copyright 2005, McGraw-Hill/Irwin, Inc. 6-43

Real World Cases

Network Architecture Network Architecture and Protocolsand Protocols

• International Standards Organization (ISO)• The Seven-Layer Open

Systems Interconnection (OSI) Model• Five-Layer Transmission

Control Protocol/Internet Protocol (TCP/IP)• OSI and TCP/IP Are Related

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KEY TERMS

Copyright 2005, McGraw-Hill/Irwin, Inc. 6-44

Real World Cases

Network Architecture Network Architecture and Protocolsand Protocols

TCP/IPTCP/IPThe OSIThe OSIModelModel

• Provides communications services for end user applications

• Provides appropriate data transmission formats and codes

• Supports the accomplishment of telecommunications sessions

• Supports the organization and transfer of data between nodes in the network

• Provides appropriate routing by establishing connections among network links

• Supports error-free organization and transmission of data in the network

• Provides physical transmission of data on the telecommunications media in the network

PhysicalLayer

Data LinkLayer

ApplicationLayer

NetworkLayer

TransportLayer

PresentationLayer

SessionLayer

Application orProcess Layer

Host-to-Host Transport Layer

Internet Protocol (IP)

Network Interface

Physical Layer

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The Networked EnterpriseTrends in Telecommunica-tionsThe Internet RevolutionBusiness Use of the InternetSection IITelecommunica-tionsAlternativesTelecommunica-tions ModelNetwork TopologiesBandwidth Alternatives

KEY TERMS

Copyright 2005, McGraw-Hill/Irwin, Inc. 6-45

Real World Cases

Bandwidth AlternativesBandwidth Alternatives•Narrow Band•Medium Band• Broadband• Switching Alternatives

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The Networked EnterpriseTrends in Telecommunica-tionsThe Internet RevolutionBusiness Use of the InternetSection IITelecommunica-tionsAlternativesTelecommunica-tions ModelNetwork TopologiesBandwidth Alternatives

KEY TERMS

Copyright 2005, McGraw-Hill/Irwin, Inc. 6-46

Real World Cases

Bandwidth AlternativesBandwidth Alternatives• Packet Switching Technology• Cell Switching Technology• Choices Made by Firms

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The Networked EnterpriseTrends in Telecommunica-tionsThe Internet RevolutionBusiness Use of the InternetSection IITelecommunica-tionsAlternativesTelecommunica-tions ModelNetwork TopologiesBandwidth Alternatives

KEY TERMS

Copyright 2005, McGraw-Hill/Irwin, Inc. 6-47

Real World Cases

SummarySummary•Telecommunications Trends•The Internet Revolution•The Business Value of the Internet•The Role of Intranets•The Role of Extranets•Telecommunications Networks•Network Alternatives