Week 6

Telecommunications
and Networks
Learning Objectives

 Explain why successful managers must be

familiar with telecommunications concepts and
terminology
 Describe the principles of communication within a
computer system and among computers
 Identify the major media and devices used in
telecommunications

LDP 612: Week 6 2

Learning Objectives (Cont.)

 List and explain the functions of different network

layouts.
 Explain how telecommunications can improve
operations in organizations
 Cite the latest developments in telecommunications
media and transmission speed

LDP 612: Week 6 3

Telecommunications in
Business
 Transmittal of data from one computer to another
over a distance

 Telecommunications has improved business in

three main ways:
 Better communication

 Higher efficiency

 Better distribution of data & information

LDP 612: Week 6 4

Telecommunications in Daily
Use
 Mobile Phones
 Wireless Phones
 Tele conferences
 Video conferences
 Voice Mail
 Facsimile
 Information Kiosks
LDP 612: Week 6 5
Telecommunications in Daily Use
(Cont.)

 Web-Based Electronic Commerce

 Worldwide Peer-to-Peer File Sharing
 Napster, Gnutella, BearShare, Morpheus,
edonkey, KaZaa,....
 With directory
 Without directory

LDP 612: Week 6 6

Telecommunications in Daily Use
(Cont.)
(a) with directory (b) no directory (peer-to-peer)

(a)

(b)

LDP 612: Week 6 7

Data Communications

 Any transfer of data within a computer, between

a computer and another device, or between two
computers

 Parallel and Serial Data Communications

LDP 612: Week 6 8

Bandwidth and Media
 Communications medium
 Physical medium through which data can be
communicated
 E.g. Telephone lines, television cables
 Capacity
 Speed at which data are communicated
 Also called the transmission rate
 It is often called “bandwidth”
 Bandwidth is measured in bits per second (bps)
 The greater the capacity, the faster the transmission

LDP 612: Week 6 9

Transmission speed

 A medium’s capacity is determined by the range of

bits per second at which it can operate

 Baud is the number of signals per minute

 Repeater receives and strengthens signals before

sending them on

LDP 612: Week 6 10

Transmission Speed (Cont.)
Telecommunications transmission speed of various media

LDP 612: Week 6 11

Networks
 LANs (Local Area Networks)
 Networks within a building, or within a group of
adjacent buildings
 WANs (Wide Area Networks)
 Networks that cross organizational boundaries or
reach outside the company
 Value-added networks (VANs)
 Wireless communication

LDP 612: Week 6 12

Network Topology
•Physical layout of the nodes in a network – The Types:

LDP 612: Week 6 13

Protocols
 Communication protocols

 Rules governing the communication between computers

or between computers and other computer-related
devices

 Network protocols

 Rules governing a network of devices

LDP 612: Week 6 14

Networking Hardware
 Network Interface Card

 Hub

 Switch

 Bridge/Gateway

 Router

LDP 612: Week 6 15

 NETWORK INTERFACE CARD

A network interface card (NIC) is a

computer circuit board or card that is
installed in a computer so that it can
be connected to a network.

LDP 612: Week 6 16

Network Hub

hub is a device for connecting multiple twisted pair or fiber optic Ethernet devices
together and making them act as a single network segment. Hubs are not
sophisticated and are broadcast devices. Hubs do not manage any of the traffic
that comes through them, and any packet entering any port is regenerated and
broadcast out on all other ports. LDP 612: Week 6 17
 Network Switch

A network switch is a small hardware device that joins multiple computers

together within one local area network (LAN). Network switches appear nearly
identical to network hubs, but a switch generally contains more intelligence (and a
slightly higher price tag) than a hub. Network switches are capable of inspecting
data packets as they are received, determining the source and destination device
of each packet, and forwarding them LDPappropriately.
612: Week 6 18
Network Gateway/Bridge

A network gateway is an internetworking system capable of joining together two

networks that use different base protocols. A network gateway can be
implemented completely in software, completely in hardware, or as a
combination of both.
LDP 612: Week 6 19
 Network router

Routers connect networks with different

protocols and copy data across

LDP 612: Week 6 20

Protocols (Cont.)
 LAN Protocols Example Protocols:
 Polling • FTP
 Contention • HTTP
 Token passing • TCP/IP
 WAN Protocols • IP
 OSI (Open Systems Interconnection) •…
 Standard protocol model

 Seven layers

LDP 612: Week 6 21

Networks
 Intranets

 Extranets

 VPN

 The Internet

LDP 612: Week 6 22

 The Changing Business
Environment

 Mobile and Wireless Phones

 Teleconferencing

 Video conferencing

 Voice Mail

 Facsimile (kipepesi)
LDP 612: Week 6 23
Today, A Wireless Revolution
 Popular Wireless Technologies

 Would You Like Wi-Fi With That?

 Combining Technologies

LDP 612: Week 6 24

 Ethical and Societal Issues
Telecommuting: Pros and Cons
 Pros

 Saves travel cost and time

 Decreases pollution

 May reduce unemployment.

 Productivity higher among telecommuters

LDP 612: Week 6 25

Ethical and Societal Issues
Telecommuting: Pros and Cons

 Cons
 Employers tend to pressure telecommuters
to work harder than workers in the office.
 No office to foster new social ties and
camaraderie.
 May negatively impact some segments of
the economy
 Restaurants
 Downtown business and industries

LDP 612: Week 6 26

The Internet
A large global network of Computers
 Tonnes of Information

 Potentially accessible to everyone

LDP 612: Week 6 27

Internet and Business
 All
internet users are potential customers
 New Business models
 Another Frontier
 New opportunities
 Requires change in Mindset

 Electronic commerce
 Electronic Business

LDP 612: Week 6 28

Internet and Business
 Vendors can provide information 24 hrs a day
 Can extend distribution channels
 Can reduce transaction costs
 Reduces information asymmetry: asymmetry
exists when one party has more information
than other
 Increases richness: depth & detail of
information
 Increases reach: number of people contacted

LDP 612: Week 6 29

Internet and Business
The Power of Electronic Publishing : The Sad
Story of Encyclopedia Britannica
 in 1991, EB sold 400,000 printed copies @ $1,500 each
 in 1993, modest-quality CD-ROM products appeared,
most significantly MS Encarta (Funk & Wagnall’s)
 in 1997, EB sold 10,000 printed copies
 in late 1997, EB changed its product from books to
information, and its delivery channel from printed copies
to mailed optical disks @ $200, then $100
 in late 1999, EB changed its delivery channel to the web,
its business model from fee-per-copy to site-advertising
LDP 612: Week 6 30
Internet Business Models
 VIRTUAL SHOP: Sells goods, services on-line
 MARKETPLACE CONCENTRATOR: Concentrates information
from several providers
 ON-LINE EXCHANGE: Bid-ask system, multiple buyers, sellers
 INFORMATION BROKER: Provide info on products, pricing, etc.
 TRANSACTION BROKER: Buyers view rates, terms from
various sources
 AUCTION: Electronic clearinghouse products, prices, change in
response to demand
 DIGITAL PRODUCT DELIVERY: Sell, download software, other
digital products
 CONTENT PROVIDER: Creates revenue through providing client
for a fee, and advertising
 ON-LINE SERVICE PROVIDER: Provides service, support for
hardware, software products
 VIRTUAL COMMUNITY: Chat room,
LDP 612: Week 6 online meeting place 31
Summary
 Telecommunications concepts and terminology
 Communication within a computer system and
among computers
 Telecommunications media and devices
 Network layouts and protocols
 Telecommunications impact on operations
 Telecommunications developments and speed
 The Internet – Many Opportunities
 The Internet – Unproven Business Models
LDP 612: Week 6 32
EXERCISES

Define the terms: communication, network,
Internet, bandwidth, baud rate, protocol

Discuss how telecommunications affect the
organizations on a daily basis

Discuss data communications

Discuss networking hardware and protocols

Describe the different networks

Discuss the Internet and Business

Discuss the ethical and social issues related to
telecommunications.
LDP 612: Week 6 33