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Slide 5.

Chapter 5
Networks, telecommunications and the Internet

Bocij, Chaffey, Greasley, Hickie, Business Information Systems, 3rd Edition Pearson Education Limited 2006

Slide 5.2

Learning objectives
After this lecture, you will be able to:
specify which components of a communications system are necessary to exchange information within and between businesses; explain the basic components and terminology of networks, including the Internet; identify the benefits available through the introduction of computer networks; identify the advantages and disadvantages of the client/server architecture in comparison with traditional approaches; explain the broad implications of the Internet on the marketplace.
Bocij, Chaffey, Greasley, Hickie, Business Information Systems, 3rd Edition Pearson Education Limited 2006

Slide 5.3

Management issues
From a managerial perspective, this lecture addresses the following areas:
What are the business benefits of networks? What are the basic concepts and terminology associated with the Internet and other networks? How does the Internet change marketplace structures? How are network components selected?

Bocij, Chaffey, Greasley, Hickie, Business Information Systems, 3rd Edition Pearson Education Limited 2006

Slide 5.4

Computer networks defined


A computer network can be defined as: a communications system that links two or more computers and peripheral devices and enables transfer of data between the components. Telecommunications: The method by which data and information are transmitted between different locations. Local-area network (LAN): A computer network that spans a limited geographic area, typically a single office or building.

Wide-area network (WAN): Networks covering a large area which connect businesses in different parts of the same city, different parts of a country or different countries.
Bocij, Chaffey, Greasley, Hickie, Business Information Systems, 3rd Edition Pearson Education Limited 2006

Slide 5.5

Figure 5.1 Communications links between different stakeholders in an industry


Bocij, Chaffey, Greasley, Hickie, Business Information Systems, 3rd Edition Pearson Education Limited 2006

Slide 5.6
Table 5.1 A summary of the key advantages and disadvantages of network technology
Advantages 1 Lower transaction costs due to less human input 2 Improved sharing of information and hardware resources 3 Reduced costs through sharing hardware and software 4 Reduced time for communication compared with traditional methods such as postal mail 5 Increased security of data which is backed up on file servers. Increased security through restricting access via user names and passw ords
Bocij, Chaffey, Greasley, Hickie, Business Information Systems, 3rd Edition Pearson Education Limited 2006

Disadvantages 1 Over reliance on networks for mission-critical applications 2 3 Cost of initial setup and administration Disruption during initial setup and maintenance 4 Reduced security due to more external access points to the network on wide -area networks and the Internet

Slide 5.7

Figure 5.2 Polycom video-conferencing system as used by PepsiCo


Source: Computer Weekly (2004a) and Polycom case study press relese. Bocij, Chaffey, Greasley, Hickie, Business Information Systems, 3rd Edition Pearson Education Limited 2006

Slide 5.8

Mini case study


Gill Haggarty, PepsiCo personal productivity delivery manager, said, The systems were chosen because they are easy to use and reliable and they allow us to hold multipoint calls. As we work on cross-site projects, video conferencing is invaluable to us. It has significantly reduced the need for senior executives to travel to North America and within Europe. The technology has also been used for cross-site training, allowing training to be rolled out across eight locations in a week. This would have taken four weeks before the roll-out as we would have had to visit each site. Haggarty explains the cost justification of the system as follows: At the Theale headquarters we calculated that if only 25% of the potential travel and executive time were reduced payback would be within the first 6 months of use. For the manufacturing sites, if travel and accommodation costs only are used the payback is 3 years, however if the savings in man days are added to this, the payback is once again less than 6 months.
Bocij, Chaffey, Greasley, Hickie, Business Information Systems, 3rd Edition Pearson Education Limited 2006

Slide 5.9

Figure 5.3 Components of a client/server system


Bocij, Chaffey, Greasley, Hickie, Business Information Systems, 3rd Edition Pearson Education Limited 2006

Slide 5.10

Client/server
Client/server: The client/server architecture consists of client computers such as PCs sharing resources such as a database stored on more powerful server computers. Benefits:
Faster execution Distributed approach Customisation and flexibility

Bocij, Chaffey, Greasley, Hickie, Business Information Systems, 3rd Edition Pearson Education Limited 2006

Slide 5.11

Client/server disbenefits
Time lost by staff configuration Instability caused by clashes with applications Maintenance Performance Cost generally higher TCO

Bocij, Chaffey, Greasley, Hickie, Business Information Systems, 3rd Edition Pearson Education Limited 2006

Slide 5.12

Server benefits
Server: A server is a powerful computer used to control the management of a network. It may have a specific function such as storing user files or a database or managing a printer. Maintain security: Access to information in files is restricted according to the user name and password issued to users of the network. Sharing of peripheral devices connected to the network, such as printers and tape drives. These are often attached directly to the server. Sharing of applications such as word processors, which do not then need to be stored on the hard drive of the end-users computer. The cost of buying applications can be reduced through buying a site licence. Sharing of information: Access to this data is maintained by the NOS and it is stored within the hard drive of a server as files or as part of a database.
Bocij, Chaffey, Greasley, Hickie, Business Information Systems, 3rd Edition Pearson Education Limited 2006

Slide 5.13

Type of server Network

Purpose Contains functions to manage the network resources and control user access

File

This term is sometimes used to refer to network server functions. It can also indicate that users files such as documents and spreadsheets are stored on the network server

Print

Dedicated print servers have a queue of all documents for which print requests have been made, often combined with file or network servers

Fax

Used to route incoming and outgoing faxes received and sent from the users desktop

Mail Database

Stores and forwards e-mail messages Used to store data and provide the software to process data queries supplied by users, often accessed by structured query language (SQL)

Application

Used to store programs such as spreadsheet or bespoke applications run by end-users on their PCs. This removes the need to store each application on every users hard disk

Communications

Manages connections with other networks in a WAN configuration. Sometimes known as gateways and attached to other gateway devices such as routers and firewall servers.

Bocij, Chaffey, Greasley, Hickie, Business Information Systems, 3rd Edition Pearson Education Limited 2006

Slide 5.14

Telecommunications equipment
Modem (modulatordemodulator): A modem is a communications device that allows users to ordinary telephone line. Analogue: Analogue data is continuous in that an infinite number of values between two given points can be represented. As an example, the hands of a clock are able to represent every single possible time of the day. Digital: Digital data can only represent a finite number of discrete values. For example, at the most basic level, a computer recognises only the values 0 (zero) and 1. Any values between 0 and 1, for example 0.15, cannot be represented. Hubs: Hubs are used to connect up to 20 PCs to a network in a convenient way. Bridges and routers: These are used to connect different LANs and transfer data packets from one network to the next.
Bocij, Chaffey, Greasley, Hickie, Business Information Systems, 3rd Edition Pearson Education Limited 2006

Slide 5.15

Selecting broadband issues


1. Broadband availability. 2. Additional services. 3. Limited usage times. 4. Limited download or upload speed. 5. Maximum download or upload speed. 6. Decide the best option using a trial period.

Bocij, Chaffey, Greasley, Hickie, Business Information Systems, 3rd Edition Pearson Education Limited 2006

Slide 5.16

Measuring data transfer rates


Baud: A simple means of measuring the performance of a modem or other device. Early modems operated at speeds of 1200 baud, the equivalent of approximately 100 characters per second. Data transmission rates are more typically expressed in bits per second (bps). In general, the higher the baud rate or bps value, the faster and more efficient the device. Bandwidth: Bandwidth indicates the data transfer rates that can be achieved using given media. It is measured in bits per second (size of the pipe).
Bocij, Chaffey, Greasley, Hickie, Business Information Systems, 3rd Edition Pearson Education Limited 2006

Slide 5.17

Network standards which are relevant


ISDN (integrated services digital network). ADSL (asynchronous digital subscribed line). SMDS (switched multimegabit data service). ATM (asynchronous transfer mode). X.25. Ethernet network. X.400. X.500.
Bocij, Chaffey, Greasley, Hickie, Business Information Systems, 3rd Edition Pearson Education Limited 2006

Slide 5.18

Examples of data transmission speeds 2005

Silver 17.99 per month.


256 kbps Up to 5 x faster than a modem dialup networking or narrowband

Gold 24.99 per month.


512 kbps Up to 10 x faster

Platinum 29.99 per month.


1 Mbps Up to 20 x faster

Bocij, Chaffey, Greasley, Hickie, Business Information Systems, 3rd Edition Pearson Education Limited 2006

Slide 5.19

Data transmission types


Broadband: A relatively high-capacity, high-speed transmission medium such as cable. The standard ADSL broadband speed when it was first introduced was 512,000 bps, 512 kbps or 0.512 Mbps and it requires a specific ADSL modem ADSL = Asynchronous digital subscriber line upload and download speeds are different ISDN (integrated services digital network): Data transfer rates that are up to five times faster than a 56,600 bps modem. An ISDN telephone line provides two separate channels allowing simultaneous voice and data transmissions (superseded).
Bocij, Chaffey, Greasley, Hickie, Business Information Systems, 3rd Edition Pearson Education Limited 2006

Slide 5.20

Activity 5.1 Transmission of data through different hardware and network components
Describe the order in which a message passes from one piece of hardware to the next when a home user in the UK sends an e-mail via the Internet to someone in a large corporation in the USA. You should refer to the following terms: (a) mail server; (b) client PC; (c) modem; (d) hub; (e) network cable; (f) network card; (g) gateway server (telecommunications processor); (h) router. Treat the Internet transmission as a single stage.
Bocij, Chaffey, Greasley, Hickie, Business Information Systems, 3rd Edition Pearson Education Limited 2006

Slide 5.21

Wireless network standards


Wi-Fi (wireless fidelity)
A high-speed wireless local-area network enabling wireless access to the Internet for mobile, office and home users.

Bluetooth
A wireless standard for transmission of data between devices over short ranges (less than 10 m)

Bocij, Chaffey, Greasley, Hickie, Business Information Systems, 3rd Edition Pearson Education Limited 2006

Slide 5.22

Communications media characteristics

CharacteristicTwisted pair Co-axial Maximum data 4 Mbit/s transfer rate Installation Cost Maintena nce Easy Low Moderate

Fibre optic -

Microwave radioSatellite 100 Mbit/s

140 Mbit/s 10 000 Mbit/s 100 Mbit/s

Moderate Difficult Moderate High Low Low

Difficult High Low

Difficult High

Bocij, Chaffey, Greasley, Hickie, Business Information Systems, 3rd Edition Pearson Education Limited 2006

Slide 5.23

Figure 5.4 Infrastructure components of the Internet


Source: Chaffey (2004). Bocij, Chaffey, Greasley, Hickie, Business Information Systems, 3rd Edition Pearson Education Limited 2006

Slide 5.24

Figure 5.5 An Internet timeline


Source: Chaffey (2004). Bocij, Chaffey, Greasley, Hickie, Business Information Systems, 3rd Edition Pearson Education Limited 2006

Slide 5.25

Figure 5.6 B2B and B2C interactions between an organisation, its suppliers and its customers
Source: Chaffey (2004). Bocij, Chaffey, Greasley, Hickie, Business Information Systems, 3rd Edition Pearson Education Limited 2006

Slide 5.26

Figure 5.7 Summary of transaction alternatives between businesses and consumers


Source: Chaffey (2004). Bocij, Chaffey, Greasley, Hickie, Business Information Systems, 3rd Edition Pearson Education Limited 2006

Slide 5.27

Figure 5.8 Disintermediation of a consumer distribution channel showing (a) the original situation, (b) disintermediation omitting the wholesaler and (c) disintermediation omitting both wholesaler and retailer
Source: Chaffey (2004). Bocij, Chaffey, Greasley, Hickie, Business Information Systems, 3rd Edition Pearson Education Limited 2006

Slide 5.28

Figure 5.9 Vauxhall e-commerce site


Source: www.vauxhall.co.uk. Bocij, Chaffey, Greasley, Hickie, Business Information Systems, 3rd Edition Pearson Education Limited 2006

Slide 5.29

Figure 5.10 The move to re-intermediation: (a) original situation, (b) disintermediation, (c) re-intermediation
Source: Chaffey (2004). Bocij, Chaffey, Greasley, Hickie, Business Information Systems, 3rd Edition Pearson Education Limited 2006

Slide 5.30

Figure 5.11 Kelkoo.com, a European price comparison site


Source: Kelkoo.com. Bocij, Chaffey, Greasley, Hickie, Business Information Systems, 3rd Edition Pearson Education Limited 2006

Slide 5.31

Figure 5.12 The relationship between intranets, extranets and the Internet
Bocij, Chaffey, Greasley, Hickie, Business Information Systems, 3rd Edition Pearson Education Limited 2006

Slide 5.33

Figure 5.14 An example of the use of firewalls to increase security within an e-business infrastructure
Source: Chaffey (2004). Bocij, Chaffey, Greasley, Hickie, Business Information Systems, 3rd Edition Pearson Education Limited 2006

Slide 5.34

Figure 5.15 Information exchange between a web browser and web server
Source: Chaffey (2004). Bocij, Chaffey, Greasley, Hickie, Business Information Systems, 3rd Edition Pearson Education Limited 2006

Slide 5.35

Figure 5.16 The TCP/IP protocol


Source: Chaffey (2004). Bocij, Chaffey, Greasley, Hickie, Business Information Systems, 3rd Edition Pearson Education Limited 2006

Slide 5.36

Figure 5.17 Home page index.html for an example company in a web browser showing HTML source in text editor
Source: Chaffey (2004). Bocij, Chaffey, Greasley, Hickie, Business Information Systems, 3rd Edition Pearson Education Limited 2006

Slide 5.37

Figure 5.18 Hardware and software infrastructure for WAP system


Source: Chaffey (2004).
Bocij, Chaffey, Greasley, Hickie, Business Information Systems, 3rd Edition Pearson Education Limited 2006

Slide 5.38

Figure 5.19 Different protocol layers of the WAP standard


Source: Chaffey (2004). Bocij, Chaffey, Greasley, Hickie, Business Information Systems, 3rd Edition Pearson Education Limited 2006

Slide 5.39

Figure 5.20 Mobile access technologies


Source: Chaffey (2004). Bocij, Chaffey, Greasley, Hickie, Business Information Systems, 3rd Edition Pearson Education Limited 2006

Slide 5.40

Figure 5.21 Components of an interactive digital TV system


Source: Chaffey (2004). Bocij, Chaffey, Greasley, Hickie, Business Information Systems, 3rd Edition Pearson Education Limited 2006

Slide 5.42

Figure 5.24 A small workgroup network connecting a single server to three PCs and a laser printer
Bocij, Chaffey, Greasley, Hickie, Business Information Systems, 3rd Edition Pearson Education Limited 2006

Slide 5.43

Figure 5.25 Skype VOIP provider web site


Source: (www.skype.com). Bocij, Chaffey, Greasley, Hickie, Business Information Systems, 3rd Edition Pearson Education Limited 2006