week 1

7 CHAPTER

Networks: Mobile Business

CHAPTER OUTLINE

SECTION 7.1 Connectivity: The Business Value of a Networked World	SECTION 7.2 Mobility: The Business Value of a Wireless World
Overview of a Connected World Benefits of a Connected World Challenges of a Connected World	Wireless Network Categories Business Applications of Wireless Networks
What’s in IT for me? The pace of technological change never ceases to amaze. Kindergarten classes are now learning PowerPoint and many elementary school children have their own cell phones. What used to take hours to download over a dial-up modem connection can now transfer in a matter of seconds through an invisible, wireless network connection from a computer thousands of miles away. We are living in an increasingly wireless present and hurtling ever faster toward a wireless future. The tipping point of ubiquitous, wireless, handheld, mobile computing is approaching quickly. As a business student, understanding network infrastructures and wireless technologies allows you to take advantage of mobile workforces. Understanding the benefits and challenges of mobility is a critical skill for business executives, regardless of whether you are a novice or a seasoned Fortune 500 employee. By learning about the various concepts discussed in this chapter, you will develop a better understanding of how business can leverage networking technologies to analyze network types, improve wireless and mobile business processes, and evaluate alternative networking options.

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opening case study

Disrupting the Taxi: Uber

Ray Markovich started driving a taxi in Chicago three years ago after shutting his struggling wireless phone store. Driving a cab wasn’t particularly gratifying or lucrative—he had to pay $400 a week just to lease his white 2011 Ford Escape. It was predictable if monotonous work. Well, there’s nothing monotonous about it now. In June, Markovich, a thin, well-dressed man with short brown hair and spots of gray in his mustache and goatee, walked into the local office of Uber, the San Francisco-based taxi technology start-up. Uber put him through an hour of orientation, gave him a free iPhone that carries its car dispatch app and some gear to mount it on the windshield, and sent him on his way.

Since then, Markovich has had to dodge flak from traditional cabbies who complain that they can no longer pick up riders in the city’s tonier neighborhoods, and he’s receiving a constant flood of emails from Uber itself, offering steep discounts on new cars and other perks to secure his loyalty. At the same time, he has increased his earnings by about 20 percent and says he’s simply evolving along with his customers. “No one under the age of 40 with a smart phone is going out and getting a cab anymore,” says Markovich. “I say if you can’t beat ’em, join ’em.”

A battle for the future of transportation is being waged outside our offices and homes. Uber and a growing collection of well-funded start-ups, such as the ride-sharing service Lyft, are trying to make getting a taxi as easy as booking a reservation on OpenTable or checking a price on Amazon—just another thing you do with your smart phone. Flush with Silicon Valley venture capital, these companies have an even grander ambition: they want to make owning a car completely unnecessary. They’re battling each other, city regulators, entrenched taxi interests, and critics who claim they are succeeding only because they run roughshod over laws meant to protect public safety. “Being out in front of the taxi industry, putting a bull’s-eye on our back, has not been easy,” says Travis Kalanick, the 37-year-old chief executive of Uber. “The taxi industry has been ripe for disruption for decades. But only technology has allowed it to really kick in.”

Nearly four years ago, Uber introduced the idea of allowing passengers to book the nearest town car by smart phone and then track the vehicle on a map as it approaches their location. After the ride, the service automatically compensates the driver from the customer’s preloaded credit card—no awkward tipping required. It’s a simple experience and a much more pleasant way to get a ride than stepping onto a busy street and waving at oncoming traffic.

Uber has raised $307 million from a group of backers that include Google Ventures, Google’s investment arm, and Jeff Bezos, the founder of Amazon. It operates in 270 cities around the world and was on track to book more than $1 billion annually in rides in 2013, according to financial information that leaked to the gossip website Valleywag last November. In February alone, Uber expanded to Dubai; Honolulu; Lyon; Manila; Milwaukee; Pittsburgh; Tucson, Arizona; and Durban, South Africa.

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In the process, Uber has managed to become one of the most loved and hated startups of the smart phone age. Its customers rave about the reliability and speed of the service even as they bitterly complain about so-called surge pricing, the elevated rates Uber charges during hours of high demand. Uber has also been blocked from operating in several markets by regulators out to protect the interests of consumers or entrenched incumbents, depending on whom you ask. After customers complained about the ban in Austin, Texas, the Austin City Council adopted a regulatory structure for ridesharing, enabling Uber to operate in the city. In Boston and Chicago, taxi operators have sued their cities for allowing unregulated companies to devalue million-dollar operating permits. Things grew especially heated recently in Paris when incensed taxi drivers shut down highway exits to the main airports and gridlocked city traffic.

Kalanick calls the cab industry a “protectionist scheme.” He says these protests are not about the drivers but cab companies “that would prefer not to compete at all and like things the way they are.”

His opponents are equally critical. They accuse Uber of risking passengers’ lives by putting untested drivers on the road, offering questionable insurance, and lowering prices as part of a long-term conspiracy to kill the competition, among other alleged transgressions. Fueling the anti-Uber cause is the tragic case of a 6-year-old girl in San Francisco who was struck and killed by an Uber driver. “Would you feel comfortable if you had a 21-year-old daughter living alone in the city, using a smart phone app to get in a vehicle for hire, and that vehicle ends up being a 2001 Chevy Astro van with 300,000 miles on it?” says Trevor Johnson, one of the directors of the San Francisco Cab Drivers Association. “I’ve made it my personal mission to make it as difficult as possible for these guys to operate.”

Kalanick calls himself the perfect man for the job of liberating drivers and riders. His previous company, video-streaming start-up Red Swoosh, was well ahead of its time, and Kalanick limped along for years taking no salary before selling it to Akamai Technologies in 2007 for a modest sum. “Imagine hearing ‘no’ a hundred times a day for six years straight,” he says. “When you go through an experience like that, you are sort of a hardened veteran. You only persevere if you are really hard-core and fight for what you believe in. 1

 

 

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section 7.1

Connectivity: The Business Value of a Networked World

LEARNING OUTCOMES

7.1Explain the five networking elements creating a connected world.

7.2Identify the benefits and challenges of a connected world.

OVERVIEW OF A CONNECTED WORLD

LO 7.1: Explain the five networking elements creating a connected world.

Computer networks are continuously operating all over the globe, supporting our 24/7/365 always-on and always connected lifestyles. You are probably using several networks right now without even realizing it. You might be using a school’s network to communicate with teachers, a phone network to communicate with friends, and a cable network to watch TV or listen to the radio. Networks enable telecommunications or the exchange of information (voice, text, data, audio, video). The telecommunication industry has morphed from a government-regulated monopoly to a deregulated market in which many suppliers ferociously compete. Competing telecommunication companies offer local and global telephony services, satellite service, mobile radio, cable television, cellular phone services, and Internet access (all of which are detailed in this chapter). Businesses everywhere are increasingly using networks to communicate and collaborate with customers, partners, suppliers, and employees. As a manager, you will face many communication alternatives, and the focus of this chapter is to provide you with an initial understanding of the different networking elements you will someday need to select (see  Figure 7.1 ).

FIGURE 7.1

Networking Elements Creating a Connected World

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Network Categories

The general idea of a network is to allow multiple devices to communicate at the highest achievable speeds and, very important, to reduce the cost of connecting. How a particular network achieves these goals depends in part on how it is physically constructed and connected. Networks are categorized based on geographic span: local area networks, wide area networks, and metropolitan area networks. Today’s business networks include a combination of all three.

A  local area network (LAN)  connects a group of computers in close proximity, such as in an office building, school, or home. LANs allow sharing of files, printers, games, and other resources. A LAN also often connects to other LANs and to wide area networks. A  wide area network (WAN)  spans a large geographic area such as a state, province, or country. Perhaps the best example is the Internet. WANs are essential for carrying out the day-to-day activities of many companies and government organizations, allowing them to transmit and receive information among their employees, customers, suppliers, business partners, and other organizations across cities, regions, and countries and around the world. In networking,  attenuation  represents the loss of a network signal strength measured in decibels (dB) and occurs because the transmissions gradually dissipate in strength over longer distances or because of radio interference or physical obstructions such as walls. A  repeater  receives and repeats a signal to reduce its attenuation and extend its range.

WANs often connect multiple smaller networks, such as local area networks or metropolitan area networks. A  metropolitan area network (MAN)  is a large computer network usually spanning a city. Most colleges, universities, and large companies that span a campus use an infrastructure supported by a MAN.  Figure 7.2  shows the relationships and a few differences among a LAN, WAN, and MAN. A cloud image often represents the Internet or some large network environment.

Although LANs, WANs, and MANs all provide users with an accessible and reliable network infrastructure, they differ in many dimensions; two of the most important are cost and performance. It is easy to establish a network between two computers in the same room or building but much more difficult if they are in different states or even countries. This means someone looking to build or support a WAN either pays more or gets less performance, or both. Ethernet is the most common connection type for wired networking and is available in speeds from 10 mbps all the way up to 10,000 Mbps (10 Gbit). The most common wire used for Ethernet networking is Cat5 (Category 5), and the connectors used are RJ45, slightly larger than the RJ11 connectors used by phones, but the same shape.

Network Providers

The largest and most important network, the Internet, has evolved into a global information superhighway. Think of it as a network made up of millions of smaller networks, each with the ability to operate independently of, or in harmony with, the others. Keeping the Internet operational is no simple task. No one owns or runs it, but it does have an organized network topology. The Internet is a hierarchical structure linking different levels of service providers, whose millions of devices, LANs, WANs, and MANs supply all the interconnections. At the top of the hierarchy are  national service providers (NSPs) , private companies that own and maintain the worldwide backbone that supports the Internet. These include Sprint, Verizon, MCI (previously UUNet/WorldCom), AT&T, NTT, Level3, Century Link, and Cable & Wireless Worldwide. Network access points (NAPs) are traffic exchange points in the routing hierarchy of the Internet that connects NSPs. They typically have regional or national coverage and connect to only a few NSPs. Thus, to reach a large portion of the global Internet, a NAP needs to route traffic through one of the NSPs to which it is connected. 2

One step down in the hierarchy is the regional service provider.  Regional service providers (RSPs)  offer Internet service by connecting to NSPs, but they also can connect directly to each other. Another level down is an Internet service provider (ISP), which specializes in providing management, support, and maintenance to a network. ISPs vary services provided and available bandwidth rates. ISPs link to RSPs and, if they are geographically close, to other ISPs. Some also connect directly to NSPs, thereby sidestepping the hierarchy. Individuals and companies use local ISPs to connect to the Internet, and large companies tend to connect directly using an RSP. Major ISPs in the United States include AOL, AT&T, Comcast, Earthlink, and NetZero. The further up the hierarchy, the faster the connections and the greater the bandwidth. The backbone shown in  Figure 7.3  is greatly simplified, but it illustrates the concept that basic global interconnections are provided by the NSPs, RSPs, and ISPs. 3

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FIGURE 7.2

Network Categories: LAN, WAN, and MAN

Network Access Technologies

Performance is the ultimate goal of any computer, computer system, or network. Performance is directly related to the network’s speed of data transfer and capacity to handle transmission. A network that does not offer adequate performance simply will not get the job done for those who rely on it. Luckily, networks can be upgraded and expanded if performance is inadequate.

We measure network performance in terms of  bandwidth , the maximum amount of data that can pass from one point to another in a unit of time. Bandwidth is similar to water traveling through a hose. If the hose is large, water can flow through it quickly. Data differs from a hose in that it must travel great distances, especially on a WAN, and not all areas of the network have the same bandwidth. A network essentially has many hoses of unequal capacity connected together, which will restrict the flow of data when one is smaller than the others. Therefore, the speed of transmission of a network is determined by the speed of its smallest bandwidth.

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FIGURE 7.3

Internet Topology

A  bit  (short for binary digit) is the smallest element of data and has a value of either 0 or 1. Bandwidth is measured in terms of  bit rate  (or  data rate ) , the number of bits transferred or received per unit of time.  Figure 7.4  represents bandwidth speeds in terms of bit rates. Bandwidth is typically given in bits per second (abbreviated as bps) and bytes per second (abbreviated as Bps). It is important to note that these two terms are not interchangeable.

A  modem  is a device that enables a computer to transmit and receive data. A connection with a traditional telephone line and a modem, which most residential users had in the 1990s, is called dial-up access. Today, many users in underdeveloped countries and in rural areas in developed countries still use dial-up. It has two drawbacks. First, it is slow, providing a maximum rate of 56 Kbps. (At 56 Kbps, it takes eight minutes to download a three-minute song and more than a day to download a two-hour movie.) Second, dial-up modem access ties up the telephone line so the user cannot receive and make phone calls while online. The good news is this is not as big an issue as it once was because many people have cell phones and no longer require the telephone line for making phone calls. 4

Once the most common connection method worldwide, dial-up is quickly being replaced by broadband.  Broadband  is a high-speed Internet connection that is always connected. Highspeed in this case refers to any bandwidth greater than 2 Mbps. Not long ago, broadband speeds were available only at a premium price to support large companies’ high-traffic networks. Today, inexpensive access is available for home use and small companies.

The two most prevalent types of broadband access are digital subscriber lines and highspeed Internet cable connections.  Digital subscriber line (DSL)  provides high-speed digital data transmission over standard telephone lines using broadband modem technology, allowing both Internet and telephone services to work over the same phone lines. Consumers typically obtain DSL Internet access from the same company that provides their wired local telephone access, such as AT&T or Century Link. Thus, a customer’s telephone provider is also its ISP, and the telephone line carries both data and telephone signals using a DSL modem. DSL Internet services are used primarily in homes and small businesses.

FIGURE 7.4

Bandwidth Speeds

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DSL has two major advantages over dial-up. First, it can transmit and receive data much faster—in the 1 to 2 Mbps range for downloading and 128 Kbps to 1 Mbps for uploading. (Most high-speed connections are designed to download faster than they upload because most users download more—including viewing web pages—than they upload.) The second major advantage is that because they have an always-on connection to their ISP, users can simultaneously talk on the phone and access the Internet. DSL’s disadvantages are that it works over a limited physical distance and remains unavailable in many areas where the local telephone infrastructure does not support DSL technology. 5

Whereas dial-up and DSL use local telephone infrastructure,  high-speed Internet cable connections  provide Internet access using a cable television company’s infrastructure and a special cable modem. A  cable modem (or broadband modem)  is a type of digital modem used with high-speed cable Internet service. Cable modems connect a home computer (or network of home computers) to residential cable TV service; DSL modems connect to residential public telephone service. The ISP typically supplies the cable and DSL modems. Cisco Systems is one of the largest companies producing computer networking products and services, including the Linksys brand of networking components. Typically, broadband or high-speed Internet service has an average transfer rate 10 times faster than conventional dial-up service.  Telecommuting (virtual workforce)  allows users to work from remote locations, such as home or a hotel, using high-speed Internet to access business applications and data.

Unlike DSL, high-speed Internet cable is a shared service, which means everyone in a certain radius, such as a neighborhood, shares the available bandwidth. Therefore, if several users are simultaneously downloading a video file, the actual transfer rate for each will be significantly lower than if only one person were doing so. On average, the available bandwidth using cable can range from 512 Kbps to 50 Mbps for downloading and 786 Kbps for uploading.6

Another alternative to DSL or high-speed Internet cable is dedicated communications lines leased from AT&T or another provider. The most common are T1 lines, a type of data connection able to transmit a digital signal at 1.544 Mpbs. Although this speed might not seem impressive, and T1 lines are more expensive than DSL or cable, they offer far greater reliability because each is composed of 24 channels, creating 24 connections through one line. If a company has three plants that experience a high volume of data traffic, it might make sense to lease lines for reliability of service.7

A company must match its needs with Internet access methods. If it always needs high bandwidth access to communicate with customers, partners, or suppliers, a T1 line may be the most cost-effective method.  Figure 7.5  provides an overview of the main methods for Internet access. The bandwidths in the figure represent average speeds; actual speeds vary, depending on the service provider and other factors such as the type of cabling and speed of the computer.8

Broadband over power line (BPL)  technology makes possible high-speed Internet access over ordinary residential electrical lines and offers an alternative to DSL or high-speed cable modems. BPL works by transmitting data over electrical lines using signaling frequencies higher than the electrical (or voice in the case of DSL) signals. BPL allows computer data to be sent back and forth across the network with no disruption to power output in the home. Many homeowners are surprised to learn that their electrical system can serve as a home network running speeds between 1 and 3 Mbps with full Internet access. Unfortunately, limitations such as interference and availability have affected BPL’s popularity.

FIGURE 7.5

Types of Internet Access

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Network Protocols

A  packet  is a single unit of binary data routed through a network. Packets directly affect network performance and reliability by subdividing an electronic message into smaller, more manageable packets.  Standard packet formats  include a packet header, packet body containing the original message, and packet footer. The  packet header  lists the destination (for example, in IP packets the destination is the IP address) along with the length of the message data. The  packet footer  represents the end of the packet or transmission end. The packet header and packet footer contain error-checking information to ensure that the entire message is sent and received. The receiving device reassembles the individual packets into the original by stripping off the headers and footers and then piecing together the packets in the correct sequence.  Traceroute  is a utility application that monitors the network path of packet data sent to a remote computer. Traceroute programs send a series of test messages over the network (using the name or IP address) until the last message finally reaches its destination. When finished, traceroute displays the path from the initial computer to the destination computer. A  proxy  is software that prevents direct communication between a sending and receiving computer and is used to monitor packets for security reasons.

A  protocol  is a standard that specifies the format of data as well as the rules to be followed during transmission. Computers using the same protocol can communicate easily, providing accessibility, scalability, and connectability between networks.  File transfer protocol (FTP)  is a simple network protocol that allows the transfer of files between two computers on the Internet. To transfer files with FTP, the FTP client program initiates a connection to a remote computer running FTP server software. After completing the connection, the client can choose to send and/or receive files electronically. Network access technologies use a standard Internet protocol called  transmission control protocol/Internet protocol (TCP/IP) , which provides the technical foundation for the public Internet as well as for large numbers of private networks. One of the primary reasons for developing TCP/IP was to allow diverse or differing networks to connect and communicate with each other, essentially allowing LANs, WANs, and MANs to grow with each new connection. An  IP address  is a unique number that identifies where computers are located on the network. IP addresses appear in the form of xxx.xxx.xxx.xxx, though each grouping can be as short as a single digit.

TCP (the TCP part of TCP/IP) verifies the correct delivery of data because data can become corrupt when traveling over a network. TCP ensures that the size of the data packet is the same throughout its transmission and can even retransmit data until delivered correctly. IP (the IP part of TCP/IP) verifies that the data are sent to the correct IP address, numbers represented by four strings of numbers ranging from 0 to 255 separated by periods. For example, the IP address of  www.apple.com  is 97.17.237.15.

Here is another way to understand TCP/IP. Consider a letter that needs to go from the University of Denver to Apple’s headquarters in Cupertino, California. TCP makes sure the envelope is delivered and does not get lost along the way. IP acts as the sending and receiving labels, telling the letter carrier where to deliver the envelope and who it was from. The Postal Service mainly uses street addresses and zip codes to get letters to their destinations, which is really what IP does with its addressing method.  Figure 7.6  illustrates this example. However, unlike the Postal Service, which allows multiple people to share the same physical address, each device using an IP address to connect to the Internet must have a unique address or else it could not detect which individual device a request should be sent to.

One of the most valuable characteristics of TCP/IP is how scalable its protocols have proven to be as the Internet has grown from a small network with just a few machines to a huge internetwork with millions of devices. Although some changes have been required periodically to support this growth, the core of TCP/IP is the same as it was more than 25 years ago. 9   Dynamic Host Configuration Protocol (DHCP)  allows dynamic IP address allocation so users do not have to have a preconfigured IP address to use the network. DHCP allows a computer to access and locate information about a computer on the server, enabling users to locate and renew their IP address. ISPs usually use DHCP to allow customers to join the Internet with minimum effort. DHCP assigns unique IP addresses to devices, then releases and renews these addresses as devices leave and return to the network.

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APPLY YOUR KNOWLEDGE

BUSINESS DRIVEN DISCUSSION

Net Neutrality

Net neutrality—the great debate has been raging for some time now, with the battle lines clearly drawn. Net neutrality is about ensuring that everyone has equal access to the Internet. It is the founding principle that all consumers should be able to use the Internet and be free to access its resources without any form of discrimination.

On one side of the debate are the ISPs, such as Comcast, that are building the Internet infrastructure and want to charge customers relative to their use, namely, the amount of bandwidth they consume. The ISPs argue that more and more users accessing bandwidth-intense resources provided by the likes of YouTube and Netflix place huge demands on their networks. They want Internet access to move from a flat-rate pricing structure to a metered service.

On the other hand, content providers, such as Google, support the counterargument that if ISPs move toward metered schemes, this may limit the usage of many resources on the Internet such as iTunes and Netflix. A metered service may also stifle the innovative opportunities the open Internet provides.

The U.S. Court of Appeals for the District of Columbia Circuit struck down the Federal Communications Commission’s net neutrality rules, which would have required Internet service providers to treat all Web traffic equally. The ruling will allow ISPs to charge companies such as Netflix and Amazon fees for faster content delivery.

Do you agree that the government should control the Internet? Should website owners be legally forced to receive or transmit information from competitors or other websites they find objectionable? Provide examples of when net neutrality might be good for a business and when net neutrality might be bad for a business. Overall, is net neutrality good or bad for business? 10

If there is one flaw in TCP/IP, it is the complexity of IP addresses. This is why we use a  domain name system (DNS)  to convert IP addresses into domains, or identifying labels that use a variety of recognizable naming conventions. Therefore, instead of trying to remember 97.17.237.15, users can simply specify a domain name to access a computer or website, such as  www.apple.com .  Figure 7.7  lists the most common Internet domains. 11

The list of domain names is expected to expand in the coming years to include entities such as .pro (for accountants, lawyers, and physicians), .aero (for the air-transport industry), and .museum (for museums). The creation of an .xxx domain was recently approved for pornographic content. Countries also have domain names such as .au (Australia), .fr (France), and .sp (Spain).

FIGURE 7.6

Example of TCP/IP

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FIGURE 7.7

Internet Domains

Websites with heavy traffic often have several computers working together to share the load of requests. This offers load balancing and fault tolerance, so when requests are made to a popular site such as  www.facebook.com , they will not overload a single computer and the site does not go down if one computer fails. A single computer can also have several host names—for instance, if a company is hosting several websites on a single server, much as an ISP works with hosting.

Domain names are essentially rented, with renewable rights, from a domain name registrar, such as  godaddy.com . Some registrars only register domain names, whereas others provide hosting services for a fee. ICANN (Internet Corporation for Assigned Names and Numbers) is a nonprofit governance and standards organization that certifies all domain name registrars throughout the world. With the certification, each registrar is authorized to register domain names, such as .com, .edu, or .org. 12

Network Convergence

In part due to the explosive use of the Internet and connectivity of TCP/IP, there is a convergence of network devices, applications, and services. Consumers, companies, educational institutions, and government agencies extensively engage in texting, web surfing, videoconference applications, online gaming, and ebusiness.  Network convergence  is the efficient coexistence of telephone, video, and data communication within a single network, offering convenience and flexibility not possible with separate infrastructures. Almost any type of information can be converted into digital form and exchanged over a network. Network convergence then allows the weaving together of voice, data, and video. The benefits of network convergence allow for multiple services, multiple devices, but one network, one vendor, and one bill, as suggested by  Figure 7.8 .

One of the challenges associated with network convergence is using the many tools efficiently and productively. Knowing which communication channel—PC, text message, videoconference—to use with each business participant can be a challenge.  Unified communications (UC)  is the integration of communication channels into a single service. UC integrates communication channels, allowing participants to communicate using the method that is most convenient for them. UC merges instant messaging, videoconferencing, email, voice mail, and Voice over IP (VoIP). This can decrease the communication costs for a business while enhancing the way individuals communicate and collaborate.

One area experiencing huge growth in network convergence is the use of the Internet for voice transmission.  Voice over IP (VoIP)  uses IP technology to transmit telephone calls. For the first time in more than 100 years, VoIP is providing an opportunity to bring about significant change in the way people communicate using the telephone. VoIP service providers—specialists as well as traditional telephone and cable companies and some ISPs—allow users to call anyone with a telephone number, whether local, long distance, cellular, or international.

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FIGURE 7.8

The Benefits of Network Convergence

Two ways to use VoIP for telephone calls are through a web interface that allows users to make calls from their computer and through a phone attached to a VoIP adapter that links directly to the Internet through a broadband modem.  Figure 7.9  illustrates these two ways along with the use of VoIP-enabled phones, bypassing the need for an adapter.

VoIP services include fixed-price unlimited local and long-distance calling plans (at least within the United States and Canada), plus a range of interesting features, such as:

The ability to have more than one phone number, including numbers with different area codes.

Integration of email and voice mail so users can listen to their voice mail by using their computer.

The ability to receive personal or business calls via computer, no matter where the user is physically located. 13

The biggest benefit of VoIP is its low cost. Because it relies on the Internet connection, however, service can be affected if the bandwidth is not appropriate or Internet access is not available.

Skype is a perfect example of IP applied to telephone use. Unlike typical VoIP systems that use a client and server infrastructure, Skype uses a peer-to-peer network.  Peer-to-peer (P2P)  is a computer network that relies on the computing power and bandwidth of the participants in the network rather than a centralized server. Skype’s user directory is distributed among the users in its network, allowing scalability without a complex and expensive centralized infrastructure. Peer-to-peer networks became an overnight sensation years ago through a service called Napster that distributed digital music illegally. Skype has found a way to use this resource to provide value to its users. 14

FIGURE 7.9

VoIP Connectivity

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APPLY YOUR KNOWLEDGE

BUSINESS DRIVEN DEBATE

Should Airlines Allow Cellphone Calls During Flights?

The Federal Communications Commission has proposed allowing passengers to use their mobile wireless devices, including cell phones, while flying above 10,000 feet. Cell phones on airplanes would not be using the traditional cellular networks because they are not designed to operate at 35,000 feet. Rather, calls would be batched and bounced down to the ground through a satellite or specialized air-to-ground cellular system, forcing airlines to charge much more per minute than standard carrier rates.

Supporters say that cell phone use does not interfere with aviation safety and that on foreign airlines where it is permitted, passengers’ calls tend to be short and unobtrusive.

Critics argue that allowing voice calls in flight would compromise flight attendants’ ability to maintain order in an emergency, increase cabin noise and tension among passengers, and add unacceptable risk to aviation security. They also point out that a majority of the traveling public want the cell phone ban maintained. Do you agree or disagree with the use of cell phones on airlines? 16

As the popularity of VoIP grows, governments are becoming more interested in regulating it as they do traditional telephone services. In the United States, the Federal Communications Commission requires compliance among VoIP service providers comparable to those for traditional telephone providers such as support for local number portability, services for the disabled, and law enforcement for surveillance, along with regulatory and other fees.

An exciting and new convergence is occurring in the area of television with  Internet Protocol TV (IPTV) , which distributes digital video content using IP across the Internet and private IP networks. Comcast provides an example of a private IP network that also acts as a cable TV provider. Traditional television sends all program signals simultaneously to the television, allowing the user to select the program by selecting a channel. With IPTV, the user selects a channel and the service provider sends only that single program to the television. Like cable TV, IPTV uses a box that acts like a modem to send and receive the content (see  Figure 7.10 ). A few IPTV features include:

Support of multiple devices: PCs and televisions can access IPTV services.

Interactivity with users: Interactive applications and programs are supported by IPTV’s two-way communication path.

Low bandwidth: IPTV conserves bandwidth because the provider sends only a single channel.

Personalization: Users can choose not only what they want to watch, but also when they want to watch it. 15

BENEFITS OF A CONNECTED WORLD

LO 7.2: Identify the benefits and challenges of a connected world.

Before networks, transferring data between computers was time-consuming and labor-intensive. People had to copy data physically from machine to machine using a disk.

Resource sharing makes all applications, equipment (such as a high-volume printer), and data available to anyone on the network, without regard to the physical location of the resource or the user. Sharing physical resources also supports a sustainable MIS infrastructure, allowing companies to be agile, efficient, and responsible at the same time. Cloud computing (see  Chapter 5 ) and virtualization consolidate information as well as systems that enhance the use of shared resources. By using shared resources, cloud computing, and virtualization allow for collective computing power, storage, and software on demand.

Perhaps even more important than sharing physical resources is sharing data. Most companies, regardless of size, depend not just on their customer records, inventories, accounts receivable, financial statements, and tax information, but also on their ability to share these, especially with operations in remote locations. Networking with a LAN, WAN, or MAN allows employees to share data quickly and easily and to use applications such as databases and collaboration tools that rely on sharing. By sharing data, networks have made business processes more efficient. For example, as soon as an order is placed, anyone in the company who needs to view it—whether in marketing, purchasing, manufacturing, shipping, or billing—can do so.

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FIGURE 7.10

IPTV Components

Intranets and extranets let firms share their corporate information securely. An  intranet  is a restricted network that relies on Internet technologies to provide an Internet-like environment within the company for information sharing, communications, collaboration, web publishing, and the support of business processes, as suggested in  Figure 7.11 . This network is protected by security measures such as passwords, encryption, and firewalls, and thus only authorized users can access it. Intranets provide a central location for all kinds of company-related information such as benefits, schedules, strategic directions, and employee directories. 17

FIGURE 7.11

Intranet Uses

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Where Would You GoPro?

Just imagine a beautiful white-tailed eagle soaring high above the French Alps. Well, you can soar right along with this beautiful creature, getting a true bird’s eye view from the streaming wireless video sent from a GoPro camera attached to its back. The incredible footage went viral, and now everybody is sharing their GoPro footage from new fathers to Olympic athletes. Wil Tidman, who runs GoPro’s 40-person production team, stated, “We want to show the cameras’ diverse uses and give the users the ability to edit and share videos online.” Currently, the company is averaging three GoPro-hashtagged videos uploaded to YouTube per minute.

Who’s Shooting All That Action Footage

People with dramatic jobs, from soldiers to oil riggers, use GoPro in their work, and Tidman’s team scours the web for potential hits. He found footage of a firefighter rescuing a cat from a burning building, and the resulting YouTube post got 18 million views.

“A father sent us footage of him throwing his baby into the air,” says Tidman. “The child had a camera on his head, and you saw the excitement of their relationship.” GoPro aired it as a 30-second spot during last year’s Super Bowl.

GoPro equipped the Rolling Stones with 40 cameras for their 2013 tour. Tidman’s team also helps indies, some of whose clips have earned them a degree of fame, proof of a GoPro bump. 18

In a group, choose one of your favorite products or services and create a marketing strategy using GoPro.

 

An  extranet  is an extension of an intranet that is available only to authorized outsiders, such as customers, partners, and suppliers. Having a common area where these parties can share information with employees about, for instance, order and invoice processing can be a major competitive advantage in product development, cost control, marketing, distribution, and supplier relations. Companies can establish direct private network links among themselves or create private, secure Internet access, in effect a private tunnel within the Internet, called a  virtual private network (VPN).   Figure 7.12  illustrates using a VPN to connect to a corporate server.

FIGURE 7.12

Using a VPN

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Extranets enable customers, suppliers, consultants, subcontractors, business prospects, and others to access selected intranet websites and other company network resources that allow information sharing. Consultants and contractors can facilitate the design of new products or services. Suppliers can ensure that the raw materials necessary for the company to function are in stock and can be delivered in a timely fashion. Customers can access ordering and payment functions and check order status. The extranet links the company to the outside world in a way that improves its operations.

Extranets provide business value in several ways. First, by relying on web browsers they make customer and supplier access to company resources easy and fast. Second, they enable a company to customize interactive web-enabled services for the intended audience, to build and strengthen strategic relationships with customers and suppliers. Finally, extranets can allow and improve collaboration with customers and other business partners.

CHALLENGES OF A CONNECTED WORLD

Networks have created a diverse yet globally connected world. By eliminating time and distance, networks make it possible to communicate in ways not previously imaginable. Even though networks provide many business advantages, they also create increased challenges in (1) security and (2) social, ethical, and political issues.

Security

Networks are a tempting target for mischief and fraud. A company first has to ensure proper identification of users and authorization of network access. Outside suppliers might be allowed to access production plans via the company’s extranet, for example, but they must not be able to see other information such as financial records. The company should also preserve the integrity of its data; only qualified users should be allowed to change and update data, and only well-specified data. Security problems intensify on the Internet, where companies need to guard against fraud, invalid purchases, and misappropriation of credit card information.

Two methods for encrypting network traffic on the web are secure sockets layer and secure hypertext transfer protocol.  Secure sockets layer (SSL)  is a standard security technology for establishing an encrypted link between a web server and a browser, ensuring that all data passed between them remain private. Millions of websites use SSL to protect their online transactions with their customers.

To create an SSL connection, a web server requires an  SSL certificate , an electronic document that confirms the identity of a website or server and verifies that a public key belongs to a trustworthy individual or company. (Public key is described in  Chapter 4 .) Typically, an SSL certificate will contain a domain name, the company name and address, and the expiration date of the certificate and other details. Verisign is the leading Internet certification authority that issues SSL certificates. When a browser connects to a secure site, it retrieves the site’s SSL certificate, makes sure it has not expired, and confirms that a certification authority has issued it. If the certificate fails on any one of these validation measures, the browser will display a warning to the end user that the site is not secure. If a website is using SSL, a lock icon appears in the lower right-hand corner of the user’s web browser.

Secure hypertext transfer protocol (SHTTP or HTTPS)  is a combination of HTTP and SSL to provide encryption and secure identification of an Internet server. HTTPS protects against interception of communications, transferring credit card information safely and securely with special encryption techniques. When a user enters a web address using https://, the browser will encrypt the message. However, the server receiving the message must be configured to receive HTTPS messages.

In summary, each company needs to create a network security policy that specifies aspects of data integrity availability and confidentiality or privacy as well as accountability and authorization. With a variety of security methods, such as SSL and SHTTP, a company can protect its most important asset, its data.

Social, Ethical, and Political Issues

Only a small fraction of the world’s population has access to the Internet, and some people who have had access in the past have lost it due to changes in their circumstances such as unemployment or poverty. Providing network access to those who want or need it helps to level the playing field and removes the  digital divide , a worldwide gap giving advantage to those with access to technology. Organizations trying to bridge the divide include the Boston Digital Bridge Foundation, which concentrates on local schoolchildren and their parents, helping to make them knowledgeable about computers, programs, and the Internet. Other organizations provide inexpensive laptops and Internet access in low-income areas in developing countries. 19

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Another social issue with networking occurs with newsgroups or blogs where like-minded people can exchange messages. If the topics are technical in nature or sports related such as cycling, few issues arise. Problems can begin when social media feature topics people can be sensitive about, such as politics, religion, or sex, or when someone posts an offensive message to someone else. Different countries have different and even conflicting laws about Internet use, but because the Internet knows no physical boundaries, communication is hard to regulate, even if anyone could. Some people believe network operators should be responsible for the content they carry, just as newspapers and magazines are. Operators, however, feel that like the post office or phone companies, they cannot be expected to police what users say. If they censored messages, how would they avoid violating users’ rights to free speech?

Many employers read and censor employee emails and limit employee access to distracting entertainment such as YouTube and social networks such as Facebook. Spending company time playing is not a good use of resources, they believe.

Social issues can even affect the government and its use of networks to snoop on citizens. The FBI has installed a system at many ISPs to scan all incoming and outgoing email for nuggets of interest. The system was originally called Carnivore, but bad publicity caused it to be renamed DCS1000. Although the name is much more generic, its goal is the same—locate information on illegal activities by spying on millions of people. A common conception associated with networking technologies is “Big Brother is watching!” People are wary of how much information is available on the Internet and how easily it can fall into the wrong hands. 20

section 7.2

Mobility: The Business Value of a Wireless World

LEARNING OUTCOMES

7.3Describe the different wireless network categories.

7.4Explain the different wireless network business applications.

WIRELESS NETWORK CATEGORIES

LO 7.3: Describe the different wireless network categories.

As far back as 1896, Italian inventor Guglielmo Marconi demonstrated a wireless telegraph, and in 1927, the first radiotelephone system began operating between the United States and Great Britain. Automobile-based mobile telephones were offered in 1947. In 1964, the first communications satellite, Telstar, was launched, and soon after, satellite-relayed telephone service and television broadcasts became available. Wireless networks have exploded since then, and newer technologies are now maturing that allow companies and home users alike to take advantage of both wired and wireless networks. 21

Before delving into a discussion of wireless networks, we should distinguish between mobile and wireless, terms that are often used synonymously but actually have different meanings. Mobile means the technology can travel with the user; for instance, users can download software, email messages, and web pages onto a laptop or other mobile device for portable reading or reference. Information collected while on the road can be synchronized with a PC or company server. Wireless, on the other hand, refers to any type of operation accomplished without the use of a hard-wired connection. There are many environments in which the network devices are wireless but not mobile, such as wireless home or office networks with stationary PCs and printers. Some forms of mobility do not require a wireless connection; for instance, a worker can use a wired laptop at home, shut down the laptop, drive to work, and attach the laptop to the company’s wired network.

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Teddy The Guardian

Two London-based entrepreneurs are building an Internet of huggable things for sick children to make any hospital visit more like a trip to Disneyland. Teddy The Guardian captures heart rate, temperatures, and blood-oxygen levels when a child grabs it by the paw to give it a cuddle. All measurements are sent wirelessly to nurses and parents, mobile devices. The new cute, cuddly teddy bear is packed full of sensors designed to track children’s vital signs and help quickly find out potential issues. Teddy The Guardian takes from 5 to 7 seconds to record measurements and is programmed to run five times per hour. Future versions of Teddy The Guardian will be interactive, using machine learning to find out the child’s favorite song or bedtime story and then play the related content for a more soothing hospital visit. Big pharmaceutical companies in the United States have already placed over $500,000 in orders and plan to donate the bears to hospitals and clinics.

This is clearly a brilliant idea, and soon we will see Teddy The Guardian in many local hospitals and clinics. Can you identify any additional markets where Teddy The Guardian should focus? Can you think of any ethical issues related to huggable things? Can you think of any security issues related to huggable things?

In many networked environments today, users are both wireless and mobile; for example, a mobile user commuting to work on a train can maintain a VoIP call and multiple TCP/IP connections at the same time.  Figure 7.13  categorizes wireless networks by type.

Personal Area Networks

A  personal area network (PAN)  provides communication for devices owned by a single user that work over a short distance. PANs are used to transfer files, including email, calendar appointments, digital photos, and music. A PAN can provide communication between a wireless headset and a cell phone or between a computer and a wireless mouse or keyboard. Personal area networks generally cover a range of less than 10 meters (about 30 feet).  Bluetooth  is a wireless PAN technology that transmits signals over short distances among cell phones, computers, and other devices. The name is borrowed from Harald Bluetooth, a king in Denmark more than 1,000 years ago. Bluetooth eliminates the need for wires, docking stations, or cradles, as well as all the special attachments that typically accompany personal computing devices. Bluetooth operates at speeds up to 1 Mbps within a range of 33 feet or less. Devices that are Bluetooth-enabled communicate directly with each other in pairs, like a handshake. Up to eight can be paired simultaneously. And Bluetooth is not just for technology devices. An array of Bluetooth-equipped appliances, such as a television set, a stove, and a thermostat, can be controlled from a cell phone—all from a remote location. 22

FIGURE 7.13

Wireless Communication Network Categories

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Wireless LANs

A  wireless LAN (WLAN)  is a local area network that uses radio signals to transmit and receive data over distances of a few hundred feet. An  access point (AP)  is the computer or network device that serves as an interface between devices and the network. Each computer initially connects to the access point and then to other computers on the network. A  wireless access point (WAP)  enables devices to connect to a wireless network to communicate with each other. WAPs with  multiple-in/multiple-out (MIMO) technology  have multiple transmitters and receivers, allowing them to send and receive greater amounts of data than traditional networking devices.  Wireless fidelity (Wi-Fi)  is a means by which portable devices can connect wirelessly to a local area network, using access points that send and receive data via radio waves. Wi-Fi has a maximum range of about 1,000 feet in open areas such as a city park and 250 to 400 feet in closed areas such as an office building.  Wi-Fi infrastructure  includes the inner workings of a Wi-Fi service or utility, including the signal transmitters, towers, or poles and additional equipment required to send out a Wi-Fi signal. Most WLANs use a Wi-Fi infrastructure in which a wireless device, often a laptop, communicates through an access point or base station by means of, for instance, wireless fidelity.

Areas around access points where users can connect to the Internet are often called hotspots.  Hotspots  are designated locations where Wi-Fi access points are publicly available. Hotspots are found in places such as restaurants, airports, and hotels—places where business professionals tend to gather. Hotspots are extremely valuable for those business professionals who travel extensively and need access to business applications. By positioning hotspots at strategic locations throughout a building, campus, or city, network administrators can keep Wi-Fi users continuously connected to a network or the Internet, no matter where they roam. 23

In a Wi-Fi network, the user’s laptop or other Wi-Fi-enabled device has a wireless adapter that translates data into a radio signal and transmits it to the wireless access point. The wireless access point, which consists of a transmitter with an antenna that is often built into the hardware, receives the signal and decodes it. The access point then sends the information to the Internet over a wired broadband connection, as illustrated in  Figure 7.14 . When receiving data, the wireless access point takes the information from the Internet, translates it into a radio signal, and sends it to the computer’s wireless adapter. If too many people try to use the Wi-Fi network at one time, they can experience interference or dropped connections. Most laptop computers come with built-in wireless transmitters and software to enable computers to discover the existence of a Wi-Fi network automatically.

Wi-Fi operates at considerably higher frequencies than cell phones use, which allows greater bandwidth. The bandwidths associated with Wi-Fi are separated according to several wireless networking standards, known as 802.11, for carrying out wireless local area network communication. The  Institute of Electrical and Electronics Engineers (IEEE)  researches and institutes electrical standards for communication and other technologies.  IEEE 802.11n (or Wireless-N)  is the newest standard for wireless networking. Compared with earlier standards such as 802.11b, Wireless-N offers faster speeds, more flexibility, and greater range. The organization denotes different versions of the standard—for example, Wireless-G and Wireless-N—by a lowercase letter at the end of this number.  Figure 7.15 outlines the bandwidths associated with a few of these standards. 24

FIGURE 7.14

Wi-Fi Networks

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Sports Sensors

A sensor is a device that detects or measures a physical property such as heat, light, sound, or motion and records, indicates, or otherwise reacts to it in a particular way. With wireless apps and sensors, a number of new, high-tech tools for amateurs provide coach-quality feedback to athletes of all levels, including:

Tennis (Sony): Sony recently created a tennis-tracking device and app that will let users collect the kind of game-play data that used to be available only to professionals.

Golf (Swingbyte): The ultralight sensor clips to the club and monitors speed, acceleration, arc, and other statistics.

Hockey (Fwd Powershot): The ultralight sensor fits into the handle end of the stick and measures swing speed, angle, and acceleration.

Basketball (94Fifty Smart Sensor): Embedded in a standard ball, the sensor tracks shot speed, arc, and backspin plus dribble speed and force.

Baseball (Zepp): Stuck to the knob of the bat, the sensor tracks the speed and plane of a swing and the angle of impact. 25

In a group, create a product that takes advantage of sensors, including what the sensor would measure and how it would deliver the feedback to the user.

 

An increasing number of digital devices, including most laptops, netbooks, tablets such as the iPad, and even printers are incorporating Wi-Fi technology into their design. Cell phones are incorporating Wi-Fi so they can automatically switch from the cell network to a faster Wi-Fi network where available for data communications. BlackBerrys and iPhones can connect to an access point for data communications such as email and web browsing, but not for voice unless they use the services of Skype or another VoIP.

Wireless MANs

A  wireless MAN (WMAN)  is a metropolitan area network that uses radio signals to transmit and receive data. WMAN technologies have not been highly successful to date, mainly because they are not widely available, at least in the United States. One with the potential for success is  Worldwide Interoperability for Microwave Access (WiMAX) , a communications technology aimed at providing high-speed wireless data over metropolitan area networks. In many respects, WiMAX operates like Wi-Fi, only over greater distances and with higher bandwidths. A WiMAX tower serves as an access point and can connect to the Internet or another tower. A single tower can provide up to 3,000 square miles of coverage, so only a few are needed to cover an entire city. WiMAX can support data communications at a rate of 70 Mbps. In New York City, for example, one or two WiMAX access points around the city might meet the heavy demand more cheaply than hundreds of Wi-Fi access points. WiMAX can also cover remote or rural areas where cabling is limited or nonexistent and where it is too expensive or physically difficult to install wires for the relatively few users. 26

FIGURE 7.15

Wi-Fi Standards and Bandwidths

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WiMAX can provide both line-of-sight and non-line-of-sight service. A non-line-of-sight service uses a small antenna on a mobile device that connects to a WiMAX tower less than six miles away where transmissions are disrupted by physical obstructions. This form of service is similar to Wi-Fi but has much broader coverage area and higher bandwidths. A line-of-sight option offers a fixed antenna that points at the WiMAX tower from a rooftop or pole. This option is much faster than non-line-of-sight service, and the distance between the WiMAX tower and antenna can be as great as 30 miles.  Figure 7.16  illustrates the WiMAX infrastructure. 27

Some cellular companies are evaluating WiMAX as a means of increasing bandwidth for a variety of data-intensive applications such as those used by smart phones. Sprint and Clearwire are building a nationwide WiMAX network in the United States. WiMAX-capable gaming devices, laptops, cameras, and even cell phones are being manufactured by companies, including Intel, Motorola, Nokia, and Samsung.28

Wireless WAN—Cellular Communication System

A  wireless WAN (WWAN)  is a wide area network that uses radio signals to transmit and receive data. WWAN technologies can be divided into two categories: cellular communication systems and satellite communication systems.

Although mobile communications have been around for generations, including the walkie-talkies of the 1940s and mobile radiophones of the 1950s, it was not until 1983 that cellular telephony became available commercially. A cell phone is a device for voice and data, communicating wirelessly through a collection of stationary ground-based sites called base stations, each of which is linked to its nearest neighbor stations. Base station coverage areas are about 10 square miles and are called cells, as  Figure 7.17  illustrates.29

FIGURE 7.16

WiMAX Infrastructure

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FIGURE 7.17

Cell Phone Communication System Overview

The first cell phone was demonstrated in 1973 by Motorola (it weighed almost 2 pounds), but it took 10 years for the technology to become commercially available. The Motorola DynaTAC, marketed in 1983, weighed one pound and cost about $4,000. Cellular technology has come a long way since then.30

Cellular systems were originally designed to provide voice services to mobile customers and thus were designed to interconnect cells to the public telephone network. Increasingly, they provide data services and Internet connectivity. There are more cell phones than landline phones in many countries today, and it is no longer uncommon for cell phones to be the only phones people have.

Cell phones have morphed into  smart phones  that offer more advanced computing ability and connectivity than basic cell phones. They allow for web browsing, emailing, listening to music, watching video, computing, keeping track of contacts, sending text messages, and taking and sending photos. The Apple iPhone and RIM BlackBerry are examples of smart phones.  Figure 7.18  lists the cellular service generations.

Streaming  is a method of sending audio and video files over the Internet in such a way that the user can view the file while it is being transferred. Streaming is not limited to cellular usage; all wireless and even wired networks can take advantage of this method. The most obvious advantage is speed, a direct benefit for mobile and wireless devices since they are still not as fast as their wired counterparts.31 Until this point, all smart phones, though equipped with long term evolution (LTE) or 4G broadband-based data transfer technology, could not support broadband-based phone calls.  Voice over LTE (VoLTE)  allows mobile voice calls to be made over broadband networks, creating—under the right network conditions—clearer audio and fewer dropped calls. One easy way to think of VoLTE is as, essentially, a VoIP call on your mobile phone. The functionality is still the same, but the data transfers in a faster and more efficient manner.

FIGURE 7.18

Cell Phone Generations

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Wi-Fi for Fishes

Not too long ago, the Seattle Aquarium decided it needed to take a deep dive into its network infrastructure and deploy wireless across its facilities. Now, a year and half in, the aquarium has found Wi-Fi to be a tool that not only lets it serve visitors in unique ways but enriches the exchanges possible between staff members and the community, says Pam Lamon, the aquarium’s web and social media coordinator. For instance, there are long stretches when Umi, the aquarium’s 40-pound giant Pacific octopus, doesn’t move at all. Now, staff members armed with tablets can roam around the exhibit showing visitors videos of Umi feeding while they field questions.

Wireless even lets the aquarium interact with people who can’t visit in person. For instance, during a recent Google+ Hangout on Air, a young boy from an East Coast school asked an aquarium diver how many fish were swimming in the tank with her. The diver, wearing a wetsuit and a facemask with a microphone and speaker, began pointing out fish. “One, two, three, four, five, six, seven,” she counted off, before giving up and telling him there were 500, give or take a few. “It’s a little bit hard to know for sure because they just don’t hold still while we count them,” she joked.

The Seattle Aquarium is far from alone among businesses and organizations that are tapping into wireless to expand or improve services. As wireless has morphed from a pleasant perk to a necessity for employees and clients across industries, many businesses are finding they can no longer make do without wireless or with limited Wi-Fi services. Today, not only is there incentive to find better solutions, but companies have access to more sophisticated equipment to help them pinpoint network problems. From next-generation access points to cloud-based management systems, wireless tools can provide expanded capabilities, are easy to manage, and are available in a range of prices. 32

In a group, choose a business in your area that could benefit from wireless technology, such as the Seattle Aquarium, and create a plan detailing the additional services it could offer its customers.

Wireless WAN—Satellite Communication System

The other wireless WAN technology is a satellite communication system. A  satellite  is a space station that orbits the Earth, receiving and transmitting signals from Earth-based stations over a wide area. When satellite systems first came into consideration in the 1990s, the goal was to provide wireless voice and data coverage for the entire planet, without the need for mobile phones to roam between many provider networks. But by the time satellite networks were ready for commercial use, they had already been overtaken by cellular systems.

The devices used for satellite communication range from handheld units to mobile base stations to fixed satellite dish receivers. The peak data transmission speeds range from 2.4 Kbps to 2 Mbps. For the everyday mobile professional, satellite communication may not provide a compelling benefit, but for people requiring voice and data access from remote locations or guaranteed coverage in local locations, satellite technology is a viable solution.

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FIGURE 7.19

Satellite Communication System

Conventional communication satellites move in stationary orbits approximately 22,000 miles above Earth. A newer satellite medium, the low-orbit satellite, travels much closer to Earth and can pick up signals from weak transmitters. Low-orbit satellites also consume less power and cost less to launch than conventional satellites. With satellite networks, business-people almost anywhere in the world have access to full communication capabilities, including voice, videoconferencing, and Internet access.  Figure 7.19  briefly illustrates the satellite communication system. 33

Protecting Wireless Connections

Network intrusions can occur if access codes or passwords are stored on a device that is lost or stolen. However, any time a wireless network connects to a wired one, the wireless network can serve as a conduit for a hacker to gain entry into an otherwise secure wired network. This risk is especially high if the wireless network is not sufficiently secured in its own right.

Before the emergence of the Internet, hackers generally had to be physically present within the corporate complex to gain access to a wired network. The thousands, if not millions, of access points enabled by the Internet now allow hackers to work from a distance. This threat has spawned a variety of security techniques, from firewalls to VPNs to SSL and HTTPS.

Several techniques can secure wireless networks from unauthorized access whether used separately or in combination. One method is authenticating Wi-Fi access points. Because Wi-Fi communications are broadcast, anyone within listening distance can intercept communications. Every time someone uses an unsecured website via a public Wi-Fi access point, his or her logon name and password are sent over the open airwaves with a high risk that someone might eavesdrop or capture logon names, passwords, credit card numbers, and other vital information.  Wired equivalent privacy (WEP)  is an encryption algorithm designed to protect wireless transmission data. If you are using a Wi-Fi connection, WEP encrypts the data by using a key that converts the data to a nonhuman readable form. The purpose of WEP was to provide wireless networks with the equivalent level of security as wired networks. Unfortunately, the technology behind WEP has been demonstrated to be relatively insecure compared to newer protocols such as WPA. WLANs that use Wi-Fi have a built-in security mechanism called  Wi-Fi protected access (WPA) , a wireless security protocol to protect Wi-Fi networks. It is an improvement on the original Wi-Fi security standard, Wired Equivalent Privacy (WEP) and provides more sophisticated data encryption and user authentication. Anyone who wants to use an access point must know the WPA encryption key to access the Wi-Fi connection.

War chalking  is the practice of tagging pavement with codes displaying where Wi-Fi access is available. The codes for war chalking tell other users the kind of access available, the speed of the network, and if the network is secured.  War driving  is deliberately searching for Wi-Fi signals while driving by in a vehicle. Many individuals who participate in war driving simply map where Wi-Fi networks are available. Other individuals have a more malicious intent and use war driving to hack or break into these networks. War driving has been a controversial practice since its inception and has raised the awareness of the importance of wireless network security.

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Managing Mobile Devices

IT consumerization  is the blending of personal and business use of technology devices and applications. Today’s workforce grew up with the Internet and its members do not differentiate between corporate and personal technology. Employees want to use the same technology they have at home in the office. This blending of personal and business technology is having a significant impact on corporate MIS departments, which traditionally choose all of the technology for the organization. Today, MIS departments must determine how to protect their networks and manage technology that they did not authorize or recommend. Two ways an MIS department can manage IT consumerization is through mobile device management and mobile application management.

Mobile device management (MDM)  remotely controls smart phones and tablets, ensuring data security. MIS departments implement MDM by requiring passcodes on organizational smart phones to ensure data encryption and, in the event of a lost smart phone, that all data on the device can be deleted remotely. MDM tools can also enforce policies, track inventory, and perform real-time monitoring and reporting. One problem with MDM is that the full-device approach can be too heavy-handed in an era when employees, not their employers, own their smart phones and tablets. Users may wonder, “If I only use my phone to check email at night, why do I have to enter my work password every time I want to use the phone?” or, “If I lose my phone, why does my IT department want to wipe pictures of my dog remotely?”

Mobile application management (MAM)  administers and delivers applications to corporate and personal smart phones and tablets. MAM software assists with software delivery, licensing, and maintenance and can limit how sensitive data can be shared among apps. An important feature of MAM is that it provides corporate network administrators with the ability to wipe corporate mobile apps from an end user’s device remotely.

BUSINESS APPLICATIONS OF WIRELESS NETWORKS

LO 7.4: Explain the different wireless network business applications.

Companies of all types and sizes have relied on wireless technology for years. Shipping and trucking companies developed some of the earliest wireless applications to help track vehicles and valuable cargo, optimize the logistics of their global operations, perfect their delivery capabilities, and reduce theft and damage. Government agencies such as the National Aeronautics and Space Administration and the Department of Defense have relied on satellite technologies for decades to track the movement of troops, weaponry, and military assets; to receive and broadcast data; and to communicate over great distances.

Wireless technologies have also aided the creation of new applications. Some build upon and improve existing capabilities. UPS, for example, is combining several types of wireless network technologies from Bluetooth to WWANs and deploying scanners and wearable data-collection terminals to automate and standardize package management and tracking across all its delivery centers.  Figure 7.20  displays the three business applications taking advantage of wireless technologies.

FIGURE 7.20

Wireless Business Applications

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FIGURE 7.21

Elements of an RFID system

Radio-Frequency Identification (RFID)

Radio-frequency identification (RFID)  uses electronic tags and labels to identify objects wirelessly over short distances. It holds the promise of replacing existing identification technologies such as the bar code. RFID wirelessly exchanges information between a tagged object and a reader/writer. An  RFID tag  is an electronic identification device that is made up of a chip and antenna. An  RFID reader (RFID interrogator)  is a transmitter/receiver that reads the contents of RFID tags in the area. A RFID system is composed of one or more RFID tags, one or more RFID readers, two or more antennas (one on the tag and one on each reader), RFID application software, and a computer system or server, as  Figure 7.21  illustrates. Tags, often smaller than a grain of rice, can be applied to books or clothing items as part of an adhesive bar-code label or included in items such as ID cards or packing labels. Readers can be stand-alone devices, such as for self-checkout in a grocery store, integrated with a mobile device for portable use, or built in as in printers. The reader sends a wireless request that is received by all tags in the area that have been programmed to listen to wireless signals. Tags receive the signal via their antennas and respond by transmitting their stored data. The tag can hold many types of data, including a product number, installation instructions, and history of activity (such as the date the item was shipped). The reader receives a signal from the tag using its antenna, interprets the information sent, and transfers the data to the associated computer system or server.

Passive RFID tags  do not have a power source, whereas  active RFID tags  have their own transmitter and a power source (typically a battery). The power source runs the microchip’s circuitry and broadcasts a signal to the reader (similar to the way a cell phone transmits signals to a base station). Passive RFID tags draw power from the RFID reader, which sends out electromagnetic waves that induce a current in the tag’s antenna.  Semi-passive RFID tags  use a battery to run the microchip’s circuitry but communicate by drawing power from the RFID reader.  Asset tracking  occurs when a company places active or semi-passive RFID tags on expensive products or assets to gather data on the items’ location with little or no manual intervention. Asset tracking allows a company to focus on its supply chain, reduce theft, identify the last known user of assets, and automate maintenance routines. Active and semi-passive tags are useful for tracking high-value goods that need to be scanned over long ranges, such as railway cars on a track. The cost of active and semi-passive RFID tags is significant; hence, low-cost items typically use passive RFID tags.

The  RFID accelerometer  is a device that measures the acceleration (the rate of change of velocity) of an item and is used to track truck speeds or taxi cab speeds.  Chipless RFID tags  use plastic or conductive polymers instead of silicon-based microchips, allowing them to be washed or exposed to water without damaging the chip. Examples of the innovative uses of RFID include:

RFID chips injected under the skin of animals by using a syringe to help ranchers meet regulations, track wild animals for ecological studies, and return lost pets to their owners.

Retail stores using RFID to track and monitor inventory. Hospitals and pharmaceutical companies meet government regulations and standards with RFID. Even local libraries are using RFID to control theft and speed up the checkout process.

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RFID antitheft systems installed by car manufacturers. Toll roads use RFID to collect payments from passing cars.

Hospitals tracking patients’, doctors’, and nurses’ locations to facilitate help in emergency situations and ensure safety. RFID also tracks equipment location to ensure quick response times during an emergency.

American Express and MasterCard using RFID for automatic payments.

Walmart and other large retailers using RFID to maintain inventory, stop shoplifting, and speed customer checkout processes. 34

Global Positioning System (GPS)

A  global positioning system (GPS)  is a satellite-based navigation system providing extremely accurate position, time, and speed information. The U.S. Department of Defense developed the technology in the early 1970s and later made it available to the public. GPS uses 24 global satellites that orbit Earth, sending signals to a receiver that can communicate with three or four satellites at a time. A GPS receiver can be a separate unit connected to a mobile device using cable or wireless technology such as Bluetooth, or it can be included in devices such as mobile phones or vehicle navigation systems.  Automatic vehicle location (AVL)  uses GPS tracking to track vehicles. AVL systems use a GPS receiver in the vehicle that links to a control center. Garmin is one of the more popular manufacturers of GPS tracking systems, offering vehicle tracking, phone and laptop integration, and hiker navigation for water and air.

The satellites broadcast signals constantly; the receiver measures the time it takes for the signals to reach it. This measurement, which uses the speed of the signal to determine the distance, is taken from three distinct satellites to provide precise location information. The time measurements depend on high-powered clocks on each satellite and must be precise because an error of one-thousandth of a second can result in a location variation of more than 200 miles. GPS can produce very accurate results, typically within 5 to 50 feet of the actual location (military versions have higher accuracy). GPS also provides latitude, longitude, and elevation information. 35   Latitude  represents a north/south measurement of position.  Longitude  represents an east/west measurement of position.  Geocache  is a GPS technology adventure game that posts the longitude and latitude location for an item on the Internet for users to find. GPS users find the geocache and typically sign a guest book or take an item and leave an item for the next adventure players to find. Caches are often placed in locations that are interesting or challenging for people to discover. A  geocoin , a round coin-sized object, is uniquely numbered and hidden in geocache. Geocoins can also be shaped to match a theme such as the state of Colorado or a birthday party hat. Geocoins are often decorative or commemorative, making them collectible and highly valuable for technology adventures.

GPS applications are in every kind of company vehicle these days—from police cars to bulldozers, from dump trucks to mayoral limousines. Emergency response systems use GPS to track each of their vehicles and so dispatch those closest to the scene of an accident. If a vehicle is missing, its GPS locator can help locate it.  Estimated time of arrival (ETA)  is the time of day of an expected arrival at a certain destination and is typically used for navigation applications.  Estimated time en route (ETE)  is the time remaining before reaching a destination using the present speed and is typically used for navigation applications.

Geographic Information Systems (GIS)

GPS provides the foundation for geographic information systems. A  geographic information system (GIS)  stores, views, and analyzes geographic data, creating multidimensional charts or maps. For example, GISs are monitoring global warming by measuring the speed of glaciers melting in Canada, Greenland, and Antarctica.  Cartography  is the science and art of making an illustrated map or chart. GIS allows users to interpret, analyze, and visualize data in different ways that reveal patterns and trends in the form of reports, charts, and maps.  Edge matching (warping, rubber sheeting)  occurs when paper maps are laid edge to edge and items that run across maps but do not match are reconfigured to match. Edge matching is a critical component of creating a GIS database because map misalignments occur frequently for many reasons, including survey error and cartographic errors.  GIS map automation  links business assets to a centralized system where they can be tracked and monitored over time.

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Spatial data (geospatial data or geographic information)  identifies the geographic location of features and boundaries on Earth, such as natural or constructed features, oceans, and more. Spatial data can be mapped and is stored as coordinates and topology. A GIS accesses, manipulates, and analyzes spatial data.  Geocoding  in spatial databases is a coding process that assigns a digital map feature to an attribute that serves as a unique ID (tract number, node number) or classification (soil type, zoning category). GIS professionals are certified in geocoding practices to ensure that industry standards are met when classifying spatial data.

Companies that deal in transportation combine GISs with database and GPS technology. Airlines and shipping companies can plot routes with up-to-the-second information about the location of all their transport vehicles. Hospitals can locate their medical staff with GIS and sensors that pick up transmissions from ID badges. Automobiles have GPSs linked to GIS maps that display the car’s location and driving directions on a dashboard screen. GM offers the OnStar system, which sends a continuous stream of information to the OnStar center about the car’s exact location.

Some mobile phone providers combine GPS and GIS capabilities so they can locate users within a geographical area about the size of a tennis court to assist emergency services such as 911. Farmers can use GIS to map and analyze fields, telling them where to apply the proper amounts of seed, fertilizer, and herbicides.

A GIS can find the closest gas station or bank or determine the best way to get to a particular location. But it is also good at finding patterns, such as finding the most feasible location to hold a conference according to where the majority of a company’s customers live and work. GIS can present this information in a visually effective way (see  Figure 7.22 ).

A GIS can provide information and insight to both mobile users and people at fixed locations. Google Earth combines satellite imagery, geographic data, and Google’s search capabilities to create a virtual globe that users can download to a computer or mobile device. Not only does this provide useful business benefits, but it also allows for many educational opportunities. Instead of just talking about the Grand Canyon, an instructor can use Google Earth to view that region.

FIGURE 7.22

GIS Uses

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APPLY YOUR KNOWLEDGE

BUSINESS DRIVEN INNOVATION

Snapping a Theftie

Has your smart phone ever been stolen? If so, you are not alone; more than 3 million Americans’ phones were stolen in 2013, which is twice the number in 2012, according to a Consumer Reports survey. Of course, every good entrepreneur can spot an opportunity, and a new antitheft app is one step ahead of criminals who are targeting smart phones.

Lookout is among the latest additions to the growing antitheft industry, and the app features some smart ways of helping you get one step ahead of thieves. A smart phone’s front-facing camera is often regarded as merely a portal to endless selfie photographs. But Lookout puts the camera to good use by capturing a photo of you—or of any would-be thief—when someone inputs your phone’s password incorrectly three times. That photo, or theftie, is instantly emailed to the phone’s owner, along with the device’s approximate location. The antitheft app is free to download, but this handy photo feature is not available on iPhones due to Apple restrictions and comes with an annual charge of $30. 36

Lookout’s team has been adding new features to the app’s alerts, based on the methods thieves use to steal phones undetected. The app also will send emails to its owner if anyone attempts to remove the phone’s SIM card, enables Airplane mode, or turns off the device. From that point, the owner can choose to lock or wipe the phone remotely.

Do you agree that antitheft apps are smart business? Are any ethical issues involved in taking thefties? How would you feel if company security policy required you to install Lookout on your cell phone? If you could add a new feature to Lookout, how would it work and what would it do to deter smart phone theft?

GPS and GIS both use  location-based services (LBS) , applications that use location information to provide a service. LBS is designed to give mobile users instant access to personalized local content and range from 911 applications to buddy finders (“Let me know when my friend is within 1,000 feet”) to games (treasure hunts) to location-based advertising (“Visit the Starbucks on the corner and get $1.00 off a latte”). Many LBS applications complement GPS and GIS, such as:

Emergency services

Field service management

Find-it services

Mapping

Navigation

Tracking assets

Traffic information

Vehicle location

Weather information

Wireless advertising 37

Just as Facebook and Twitter helped fuel the Web 2.0 revolution, applications such as Foursquare, Gowalla, and Loopt are bringing attention to LBS. Each application is a mobile phone service that helps social media users find their friends’ location. Facebook and Twitter have added location-based services to complement their applications.

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LEARNING OUTCOME REVIEW

Learning Outcome 7.1: Explain the five networking elements creating a connected world.

Network categories:

Networks are categorized based on geographic span: local area networks, wide area networks, and metropolitan area networks.

Network providers:

At the top of the hierarchy are national service providers (NSPs), private companies that own and maintain the worldwide backbone that supports the Internet. Regional service providers (RSPs) offer Internet service by connecting to NSPs, but they also can connect directly to each other. Another level down are the Internet service providers (ISPs); recall from Chapter 3 that an ISP provides access to the Internet for a monthly fee.

Network access technologies:

A modem is a device that enables a computer to transmit and receive data. Broadband is a highspeed Internet connection that is always connected. Digital subscriber line (DSL) allows highspeed digital data transmission over standard telephone lines. Internet cable connections provide Internet access using a cable television company’s infrastructure and a special cable modem. A T1 line is a type of data connection able to transmit a digital signal at 1.544 Mpbs.

Network protocols:

A protocol is a standard that specifies the format of data as well as the rules to be followed during transmission. Network access technologies use a standard Internet protocol called transmission control protocol/Internet protocol (TCP/IP); it provides the technical foundation for the public Internet as well as for large numbers of private networks.

Network convergence:

Network convergence is the efficient coexistence of telephone, video, and data communication within a single network, offering convenience and flexibility not possible with separate infrastructures. Voice over IP (VoIP) uses IP technology to transmit telephone calls. Internet protocol TV (IPTV) distributes digital video content using IP across the Internet and private IP networks.

Learning Outcome 7.2: Identify the benefits and challenges of a connected world.

Before networks, transferring data between computers was time-consuming and labor-intensive. People had to copy data physically from machine to machine using a disk. Networks offer many advantages for a business, including:

Sharing resources

Providing opportunities

Reducing travel

Networks have created a diverse yet globally connected world. By eliminating time and distance, networks make it possible to communicate in ways not previously imaginable. Even though networks provide many business advantages, they also create increased challenges in (1) security and (2) social, ethical, and political issues.

Learning Outcome 7.3: Describe the different wireless network categories.

There are four types of wireless networks—PAN, WLAN, WMAN, and WWAN. A PAN provides communication over a short distance that is intended for use with devices that are owned and operated by a single user. A WLAN is a local area network that uses radio signals to transmit and receive data over distances of a few hundred feet. A WMAN is a metropolitan area network that uses radio signals to transmit and receive data, and a WWAN is a wide area network that uses radio signals to transmit and receive data.

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Learning Outcome 7.4: Explain the different wireless network business applications.

Mobile and wireless business applications and services are using satellite technologies. These technologies are GPS, GIS, and LBS. GPS is a satellite-based navigation system providing extremely accurate position, time, and speed information. GIS is location information that can be shown on a map. LBSs are applications that use location information to provide a service that both GPS and GIS use.

OPENING CASE QUESTIONS

1.Knowledge: List the ways Uber is using networks to improve its competitive advantage in the taxi market.

2.Comprehension: Describe the different types of networks Uber is using to run its business.

3.Application: Explain how challenges with wireless networking could affect Uber’s business model.

4.Analysis: Explain why some market segments are not included in Uber’s business model.

5.Synthesis: Develop a use for LBS that Uber customers can benefit from using when looking for a taxi.

6. Evaluate:  Evaluate the security dilemmas that Uber faces in using the various forms of wireless technology.

KEY TERMS

Access point (AP)

Active RFID tag

Asset tracking

Attenuation

Automatic vehicle location (AVL)

Bandwidth

Bit

Bit rate/data rate

Bluetooth

Broadband

Broadband over power line (BPL)

Cable modem (or broadband modem)

Cartography

Chipless RFID tag

Digital divide

Digital subscriber line (DSL)

Domain name system (DNS)

Dynamic Host Configuration Protocol (DHCP)

Edge matching (warping, rubber sheeting)

Estimated time en route (ETE)

Estimated time of arrival (ETA)

Extranet

File transfer protocol (FTP)

Geocache

Geocoding

Geocoin

Geographic information system (GIS)

GIS map automation

Global positioning system (GPS)

High-speed Internet cable connection

Hotspot

IEEE 802.11n (or Wireless-N)

Institute of Electrical and Electronics Engineers (IEEE)

Internet Protocol TV (IPTV)

Intranet

IP address

IT consumerization

Latitude

Local area network (LAN)

Location-based service (LBS)

Longitude

Metropolitan area network (MAN)

Modem

Mobile application management (MAM)

Mobile device management (MDM)

Multiple-in/multiple-out (MIMO) technology

National service provider (NSP)

Network convergence

Packet

Packet footer

Packet header

Passive RFID tag

Peer-to-peer (P2P)

Personal area network (PAN)

Protocol

Proxy

Radio-frequency identification (RFID)

Regional service provider (RSP)

Repeater

RFID accelerometer

RFID reader (RFID interrogator)

RFID tag

Satellite

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Secure hypertext transfer protocol (SHTTP or HTTPS)

Secure sockets layer (SSL)

Semi-passive RFID tag

Smart phones

Spatial data (geospatial data or geographic information)

SSL Certificate

Standard packet format

Streaming

Telecommuting (virtual workforce)

Traceroute

Transmission control protocol/Internet protocol (TCP/IP)

Unified communications (UC)

Virtual private network (VPN)

Voice over IP (VoIP)

Voice over LTE (VoLTE)

War chalking

War driving

Wide area network (WAN)

Wi-Fi infrastructure

Wi-Fi protected access (WPA)

Wired equivalent privacy (WEP)

Wireless access point (WAP)

Wireless fidelity (Wi-Fi)

Wireless LAN (WLAN)

Wireless MAN (WMAN)

Wireless WAN (WWAN)

Worldwide Interoperability for Microwave Access (WiMAX)

REVIEW QUESTIONS

1.Why would a manager be concerned with bandwidth? How is bandwidth measured?

2.How have networks contributed to the digital divide?

3.What are the different levels of service providers that supply the interconnections to the Internet?

4.What are the different Internet access technologies you can use to connect to the Internet?

5.What is network convergence and why is it important to a business?

6.What is VoIP and how can it benefit a business?

7.What is the difference between an intranet and an extranet?

8.How do SSL and SHTTP provide security for networks?

9.What is a personal area network?

10.How does Wi-Fi work?

11.What are GIS, GPS, and LBS? How are businesses using these applications to compete?

12.What is RFID and how could it help a large retailer track inventory?

13.What are the advantages of mobile business?

14.How does a domain name system work?

15.What is the difference between VoIP and IPTV?

CLOSING CASE ONE

Wireless Bikes

Bike-sharing programs have been a popular trend in many foreign countries for years but have just started in the United States, driven mainly by the desire to provide zero-emissions transportation for commuters and tourists in urban areas. A new Denver, Colorado, company, Denver B-cycle, offers one of the largest bike-sharing programs in the United States. The company has more than 500 bikes, all made by Trek, that are available through more than 50 bike stations, or B-stations as they are called, in the Denver metropolitan area. Each B-station is fully operated by using a variety of wireless technologies, such as RFID, GPS, and Wi-Fi, which have a number of locking docks that hold as few as five bikes or as many as 25. The number of bikes at each location depends on the amount of use expected.

There are several methods by which a user can access a bike. One method is to use the B-station kiosk machine that allows users to unlock bikes with a credit card. This method is preferred for those who seek infrequent usage for short-term rentals. Here, the user receives a day pass that is good for a 24-hour rental. Another option is to purchase a 7-day, 30-day, or annual membership online or at the B-station kiosk for those planning to use bikes on a regular basis. Members receive an RFID-enabled card that allows them to retrieve any of the available bikes from the B-stations located around the city. Members can also download an iPhone app with the added convenience of using the device to unlock and locate bikes.

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Once a user selects a bike by using the day pass, RFID-enabled membership card, or iPhone application, the transaction must be validated before the bike is unlocked. This is all done using RFID readers and Wi-Fi-enabled devices that validate the transaction with the company’s main database. An RFID reader collects the ID number encoded to an RFID tag attached to the bike. The device then forwards the ID number, using Wi-Fi to the company’s central database, so that the system knows which particular bike to associate with which user. Once validated, the user is then alerted with a beep and a green light, indicating the selected bike is unlocked and available for use. When a user wants to return a bicycle, he or she only needs to find an empty dock at any B-station to roll the bike into the locking position. A beep and green light will signal that the bike has been securely locked, and the RFID reader records the tag ID from the bike and sends this information to the company database to complete the transaction.

In addition to having an RFID tag on each bike, embedded GPS units record the routes that a user travels. When a user returns the bike, the GPS information is uploaded to the company database, along with that bike’s tag ID number. These data help Denver B-cycle understand the most common routes that its users take in addition to allowing the company to collaborate with Denver merchants to target product or service offerings to members, based on their daily routes. For example, a coffee shop might email a coupon to a user who rides by each day. The GPS units also help to protect the company in case a user does not return a bike, or a bike is stolen. B-cycle can use LBS to help find the missing bike.38

Questions

1.What advantages does a wireless network provide Denver B-cycle?

2.What challenges does a wireless network create for Denver B-cycle?

3.What information not described in the case can Denver B-cycle use with RFID and LBS data?

4.How could Denver B-cycle use other wired or wireless network technologies to gain a competitive advantage?

CLOSING CASE TWO

Square: Wireless Payments to an iPhone, Android, or iPad

Square is a little device that magically transforms a smart phone into a credit/debit card machine. It’s changing the game for electronic payments and the way we traditionally send and receive money. Square allows you to buy, sell, and send money by using any Apple or Android mobile device. With three free mobile apps—Square Register, Square Wallet, and Square Cash—Square is designed to help small businesses and sole proprietorships accept credit card payments and help consumers transition to a cashless lifestyle. Here is how Square works:

Request your free reader: Sign up and Square will send you a free Square Reader to take payments on an iPhone, iPad, or Android. Activate your account and process payments in minutes.

Download Square Register: Square Register is a free app that works with Square Reader to turn a smart phone or iPad into a mobile point of sale. Payments, sales reports, and hardware—Register does all this and more.

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Go places. Sell things: Plug in Square Reader, sign in to Square Register, and start swiping. Send receipts via email or text message. Request more free Square Readers so staff can sell for your business too.

Square is amazing technology, but the question you have to ask is whether Square is really changing how we process payments. If you own a small business and could traditionally only accept cash, then the answer is yes! Just think of the farmer’s markets, street fair vendors, or flea market. Unfortunately, small business does not always equate to large profits. These types of customers are low volume and minimal transactions, which equate to low profits for a payment processor like Square, which makes its money by taking 2.75 percent of the total purchase. If you purchase $100 worth of t-shirts at the local street fair with your Visa card, Square collects $2.75 and has to pay Visa $2.20, making a mere $0.55. Square has to run its business on these profits, including expenses for marketing, sales, customer service, employees, accounting, and so on. For a viable business, Square needs to scale its way to massive payment volumes, and with PayPal and Intuit quickly building card readers of their own, the competition is growing.39

Questions

1.Would you categorize Square as a disruptive technology?

2.How is Square using wireless networks to gain a competitive advantage?

3.What can Square do to maintain its competitive advantage and become more profitable?

4.If you were given $1 million dollars to invest in Square, would you do it?

CRITICAL BUSINESS THINKING

1.Building Nationwide Broadband The Federal Communications Commission is proposing a nationwide broadband plan, a sweeping initiative to provide—among other things—100 megabit per second Internet access to 100 million people by 2020. The FCC also proposes to deliver 1 gigabit per second access to places such as schools, libraries, and government buildings. “The national broadband plan is a 21st-century roadmap to spur economic growth and investment, create jobs, educate our children, protect our citizens, and engage in our democracy,” said FCC Chairman Julius Genachowski.40     How will implementing nationwide broadband create technology jobs? Identify three new products or services you could create based on nationwide broadband. Will a nationwide broadband plan eliminate the digital divide in the United States?

2.Foursquare Cheating Foursquare is one of the latest social networking sites that use location-based services. Users check in to places they visit, such as a bar, restaurant, or library. The main goal in using Foursquare is to earn badges and Mayor titles for favorite establishments by checking in more than friends or other Foursquare users. However, users were found to be cheating, recording check-ins to places they had not been. In an effort to make it more difficult to cheat, the company introduced a new cheater code, which uses a smart phone GPS—where available—to validate the users’ true location.41     Why is GPS important to Foursquare? How could individuals cheat on providing locations? Why would individuals cheat about their locations? What did Foursquare implement to halt cheating? Do you think Foursquare users will still find ways to cheat?

3.Pandora Makes Users’ Music Public Pandora, the online music company, lets users create personalized music stations that they can stream online, but it also makes those stations viewable to anyone on the Internet who knows someone’s email address. For example, someone with the email address[email protected] likes a band called Rise Against. Using the email address of Steve Jobs implies he likes country music legend Willie Nelson and jazz trumpeter Chris Botti.42     Do you view your music selection as private or public information? How could someone use this information unethically? Do you see this as a threat for Pandora? Do you think customers will stop using the service? What can Pandora do to ensure customer privacy?

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4.Wireless Network Vulnerability Empty cans of Pringles could be helping malicious hackers spot wireless networks that are open to attack. Security companies have demonstrated that by using a simple Pringles can to create a homemade antenna, someone can easily identify wireless networks. Known as the PringlesCantenna, these networks are rapidly becoming popular because they are cheap (under $10) and easy to set up.     Wireless network security is a big concern of network managers. Because companies and home users have increasingly adopted wireless technology, security precautions need to be enforced. After all, the very nature of using wireless technology deliberately puts information on the airwaves, and anyone within range and equipped with an appropriate receiver (e.g., PringlesCantenna) can grab this information. This is why many wireless networks should apply authentication and encryption mechanisms to provide a trusted level of security.43     Create a report based on Internet research that discusses the tips, techniques, and best practices to protect against this type of amateur hacking. Include a summary on the types of detection and prevention technology available, specifically the use of firewalls and built-in wireless security mechanisms.

5.Cars Hacked Who would have thought that a car could be hacked? But that is exactly what happened in Austin, Texas. About a hundred cars were broken into, not by the usual method of either picking the lock or smashing a window but instead through a Wi-Fi connection. A local dealership, where all the cars were purchased, had installed a Wi-Fi-enabled black box under the dashboard that could disable the car and set off the horn if the owner did not make payments. However, in this case, the owners were not in arrears but, rather, the victims of a recently laid-off employee at the dealership who was seeking revenge by using the web-based system to disable the cars one by one. After someone at the dealership figured out the cars had been hacked, the password that allowed authorization to the black boxes was quickly changed.     Is the black box a good idea? Do you consider this an ethical business practice? If you had bought a car with a black box, would you have it removed? How many customers do you think will consider buying another car from that dealership?

6.Wireless Fitness Sandifer’s Fitness Club is located in central South Carolina. Rosie Sandifer has owned and operated the club for 20 years. The club has three outdoor pools, two indoor pools, 10 racquetball courts, 10 tennis courts, an indoor and outdoor track, and a two-story exercise equipment and massage therapy building. Sandifer has hired you as a summer intern specializing in MIS. The extent of Sandifer’s current technology includes a few PCs in the accounting department and two PCs with Internet access for the rest of the staff. Your first assignment is to create a report detailing networks and wireless technologies. The report should explain how the club could gain a business advantage by implementing a wireless network. If Sandifer likes your report, she will hire you as the full-time employee in charge of MIS. Be sure to include all the uses for wireless devices the club could implement to improve its operations.

7.Google TV As more Internet-related services move beyond delivering content just to the computer, Google wants to bring that content into the living room. In a joint venture, Google is teaming with Sony and Intel to introduce IPTV services either through new Internet-accessible TVs or a new set-top box allowing consumers to search for content, browse the web, view photo albums, and more. Google would provide the needed software along with advertisement opportunities, Sony would manufacture the new TVs, and Intel would supply the processors that make it all happen. Although consumers can already watch TV shows on their computers as well as on a TV, porting Internet content to an HDTV screen seems like the next logical step, which is the magic of IPTV. However, this is a very crowded playing field with many firms competing for the living room space. Google is competing with the likes of VUDU, TiVo, Yahoo! Connected TV, Netflix, Roku, Rovi, DivX, Apple TV, Xbox 360, Boxee, CinemaNow, Popbox, and many others, with no clear winner, at least not at the moment. Brainstorm the advantages and disadvantages associated with IPTV. Do you think Google TV will be successful? Why or why not?

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8.Could the Domain Name System Be Hacked? Is it possible for someone to hack the DNS? If so, it would be a disaster! By hacking the DNS, someone could change a website’s IP address, thereby redirecting someone to a fictitious or look-alike site that could collect passwords and even credit card information. This scenario really happened. A Brazilian ISP, NET Virtua, was hacked using a method called DNS cache poisoning, which takes advantage of a hole in DNS software that redirects users to websites they did not request. The NET Virtua users were trying to access Bradesco, a bank in Brazil, but were sent to a fraudulent website that tried to install malware and steal users’ passwords. Luckily, the hack was detected before too much damage was done.44     How can the DNS be protected from cache poisoning? Because every ISP maintains its own DNS, is this impossible?

9.Shipment Routes Mary Conzachi works in the logistics department for Loadstar, a large trucking company and barge operator in the Midwest. She has looked into a variety of systems to keep track of the location of trucks and barges so that the company can route shipments better and answer customer inquiries faster. Conzachi’s major concern is with the trucks; the barges have commodities and take weeks to move something. She states that it is much harder to keep up with trucking. She needs to know the exact location of the truck at any given time. You have been hired to assist her in recommending a solution. What solution would you recommend? Why?

10.Google Collected Public Wi-Fi Data . . . By Mistake Google has admitted to collecting data sent over unsecured Wi-Fi networks mistakenly, using its Street View cars. Google photographs homes from public streets, using a fleet of company cars. Google said it was trying to gather information about the location, strength, and configuration of Wi-Fi networks so it could improve the accuracy of location-based services such as Google Maps and driving directions. However, in the process, the cars were also collecting snippets of emails and other Internet activity from unprotected wireless networks in the homes. Google blamed this on a programming error, temporarily halted the Street View data collection, and announced it would stop collecting all Wi-Fi data. 45  Do you believe this was a mistake by Google? If home users do not protect their wireless networks, what is to stop a neighbor from collecting the same information? Who is really at fault here?

ENTREPRENEURIAL CHALLENGE

BUILD YOUR OWN BUSINESS

Project Focus

1.In an effort to connect better with younger consumers, McDonald’s restaurants in southern California are enticing customers through their mobile phones, offering mobile coupons for a free McFlurry. Under the promotion, customers’ text the message “McFlurry” to a five-digit short code promotional phone line. An electronic coupon for the free dessert is then downloaded to their mobile phones; when consumers bring those phones to participating restaurants, they can redeem the coupon electronically. Mobile coupons (mcoupons) that are stored and carried in a mobile phone have higher redemption rates than paper or ecoupons because they are not forgotten or left at home. Mcoupons can drastically reduce delivery and redemption cost, trigger impulse buys, and send offers to customers in real time that are location based. Your customers are mobile, and you want your business to take advantage of mobile technology, so you have decided to create an innovative system for mcoupons, allowing customers to capitalize on instant redemption coupons. As customers walk past your business (or within a 25-foot radius) a coupon will be pushed to their mobile device. As you prepare to deploy this new mobile marketing campaign, you need to create a detailed analysis of mcoupons, including all of the potential risks and benefits. In your analysis, be sure to discuss the types of coupons you would offer to your mobile customers along with all of the potential risks and benefits.

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2.Radio-frequency identification technologies use active or passive tags in the form of chips or smart labels that can store unique identifiers and relay this information to readers. RFID tags represent the next big step forward from bar codes, and retailers are using RFID to control theft, increase efficiency, and improve demand planning. Businesses are using RFID for everything, including preventing toilets from overflowing, refilling customer’s drinks, identifying human remains, and combating counterfeit drugs. Develop two new products using RFID that can help you reduce expenses, increase profits, and create a competitive advantage for your business.

APPLY YOUR KNOWLEDGE BUSINESS PROJECTS

PROJECT IGoGo Gadgets

Now that Wi-Fi and other types of high-speed wireless networks are becoming common, devices using that technology are multiplying rapidly. Wireless gadgets run the gamut from cell phones to kitchen appliances and digital cameras. Here are some of the hottest new wireless broadband gadgets.

Samsung’s $2,100 Zipel refrigerator features a touch screen with Wi-Fi to browse the Internet, stream media, take notes, and even pull up nutritional information for more than 500 types of food. It will also show Google Calendar entries and weather reports as well as news alerts and other articles.

Toshiba’s UX600 LED TV is a Wi-Fi-enabled HDTV that can stream content straight to its display without network cables.

HTC EVO 4G mobile phone has the ultrafast WiMAX technology, enabling users to surf the web and download beyond broadband speeds with increased reliability. Users can enjoy VoD and IPTV and download music or electronic books, all delivered on a 3.8-inch WVGA screen.

Sony’s Cybershot is a digital camera with Wi-Fi capabilities, allowing users to share their snapshots wirelessly using a built-in web browser.46

New wireless technologies promise to make today’s wireless fidelity networks seem like slow modem dial-up connections. New technologies will provide greater reach geographically of wireless networks along with new personal and business uses. Search the Internet and discover new wireless devices that entrepreneurs and established companies can use to improve their business.

Explain how companies can use these devices to create competitive advantages, streamline production, and improve productivity.

PROJECT IIWAP

Wireless Internet access is quickly gaining popularity among people seeking high-speed Internet connections when they are away from their home or office. The signal from a typical wireless access point (WAP) extends only about 300 feet in any direction, so the user must find a hotspot to access the Internet while on the road. Sometimes hotspots are available for free or for a small fee. You work for a sales company, SalesTek, which has a sales force of 25 representatives and customers concentrated in Denver, Colorado; Salt Lake City, Utah; and Santa Fe, New Mexico. Your sales representatives are constantly on the road, and they require 24/7 Internet access.

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You have been asked to find hotspots for your colleagues to connect while they are on the road. It is critical for your sales force to access the Internet 24/7 to connect with customers, suppliers, and the corporate office. Create a document detailing how your mobile workforce can stay connected to the Internet while traveling. Here are a few tips to get you started:

Use websites such as www.wifinder.com and www.jiwire.com to determine which commercial hotspots would be the most appropriate for your sales force and the commercial network service that these hotspots use.

Search the websites of two or three commercial networks that seem most appropriate to discover more about pricing and services. (Hint: T-Mobile is one example.)

Use www.wifinder.com and www.wififreespot.com to determine how many free public hotspots are available in these cities. Are there enough for your company to rely on them or should you use a commercial Wi-Fi system. If so, which one?

You might also research www.fon.com to see alternative methods of using home broadband connections.

PROJECT IIISecuring Your Home Wireless Network

Wireless networks are so ubiquitous and inexpensive that anyone can easily build one with less than $100 worth of equipment. However, wireless networks are exactly that—wireless—they do not stop at walls. Living in an apartment, dorm, or house means that your neighbors can access your network.

It is one thing to let neighbors borrow sugar or a cup of coffee, but problems occur when you allow them to borrow your wireless network. There are several good reasons for not sharing a home wireless network, including:

Slowing of Internet performance.

Potential for others to view files on your computers and spread dangerous software such as viruses.

Possibility for others to monitor the websites you visit, read your email and instant messages as they travel across the network, and copy your user names and passwords.

Availability for others to send spam or perform illegal activities with your Internet connection.

Securing a home wireless network makes it difficult for uninvited guests to connect through your wireless network. Create a document detailing how you can secure a home wireless network.

PROJECT IVWeather Bots

Warren Jackson designed a GPS-equipped robot when he was a graduate student at the University of Pennsylvania. The robot was created to bring weather balloons back down to Earth, allowing them to land in a predetermined location. The National Weather Service has collected most of its information using weather balloons that carry a device to measure items such as pressure, wind, and humidity. When the balloon reaches about 100,000 feet and pressure causes it to pop, the device falls and lands a substantial distance from its launch point. The weather service and researchers sometimes look for the $200 device, but of the 80,000 sent up annually, they write off many as lost.

Jackson’s idea was so inventive that Penn’s Weiss Tech House—a university organization that encourages students to innovate and bring their ideas to market—awarded Jackson and some fellow graduate engineering students first prize in its third annual PennVention Contest. Jackson won $5,000 and access to expert advice on prototyping, legal matters, and branding.47

GPS and GIS can be used in all sorts of devices, in many industries, for multiple purposes. You want to compete, and win first prize, in the PennVention next year. Create a product, using a GPS or GIS, that is not currently in the market today that you will present at the next PennVention.

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PROJECT VFree Wi-Fi in Africa

Covering Africa with free and low-cost Wi-Fi may not seem like a smart thing, but that is exactly what Paul English, the cofounder of travel search engine Kayak.com, plans to do. English has created a hybrid nonprofit/for-profit company, JoinAfrica, to explore the creation of two tiers of Wi-Fi access in Africa. The first tier will be free and offer basic email service (from Gmail, Yahoo!, etc.) and web browsing (Wikipedia, BBC, etc.). The second tier will be fee-based and offer additional capabilities, including audio, video, and high-quality images.48

Although many countries in Africa struggle to have proper drinking water or even efficient electrical power, English and the JoinAfrica initiative believe having access to the Internet is just as important. JoinAfrica will work with for-profit telecommunication companies in Africa to first branch out with existing connections in villages, providing residents with the first-tier services, and residents can pay money to upgrade to the second tier. More bandwidth-intensive services such as streaming video and pornography will be throttled to ensure a basic level of service for all as the networks grow.

List 10 ways wireless access could hurt remote villages in Africa.

What other infrastructure requirements will JoinAfrica need to implement to ensure the project’s success?

How will changes in technology over the next decade affect the JoinAfrica project?

What types of security and ethical issues will JoinAfrica face?

If you were given $1 million, would you invest it in JoinAfrica?

PROJECT VINever Run with Your iPod

Jennifer Goebel was disqualified from her first-place spot in the Lakefront Marathon in Milwaukee after race officials spotted her using an iPod. A controversial 2007 rule banned portable music devices by all U.S. Track and Field participants because music could give a runner a competitive advantage and cause safety issues if the runner can’t hear announcements. The officials for the Lakefront Marathon took action after viewing online photos of Goebel using her iPod; ironically, the photos were posted by Goeble herself on her own website.49

Do you agree with the USTAF’s decision to disqualify Jennifer Goebel? How could an iPod give a runner a competitive advantage? With so many wireless devices entering the market, it is almost impossible to keep up with the surrounding laws. Do you think Goebel was aware of the headphone ban? In your state, what are the rules for using wireless devices while driving? Do you agree with these rules? How does a business keep up with the numerous, ever-changing rules surrounding wireless devices? What could happen to a company that fails to understand the laws surrounding wireless devices?

PROJECT VIIDing-a-Ling Took My $400!

A satellite television customer requested her service to be disconnected due to poor reception. Soon after disconnecting the service, the customer noticed a direct bank withdrawal for a $430 early-termination fee from the satellite provider. To make matters worse, the unplanned charge caused hundreds of dollars in overdraft charges. To top it all off, a customer service representative apparently named Ding-A-Ling called the customer to see if she would consider reconnecting the service.50

Never give any company your checking account number or direct access to your bank account. If you want to establish a good relationship with a company, give it your credit card number. When a relationship with a supplier turns sour, the last thing you want is for that company to have direct access to your checking account.

Do you think what the satellite provider did was ethical? What could the customer do when disconnecting her service to avoid this type of issue? Can credit card companies enter your bank account and take out as much money as you owe at any time they want? Why is it important to never give a supplier direct access to your business checking account?

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PROJECT VIII911 McNuggets

Cellular technologies have changed the way we do business, and it is hard to imagine life without them. There are many wonderful advantages of using wireless technologies in business, but there are also some serious disadvantages, like the ability to make a bad decision faster.

A woman in Florida called 911 three times after McDonald’s employees told her they were out of Chicken McNuggets. The woman stated that this is an emergency and if she had known they didn’t have any McNuggets, then she would not have given them any money. The woman said McDonald’s offered her a McDouble, but that she didn’t want one. The woman was cited on a misuse of 911 charge.51

It is so easy to pick up the phone, from anywhere, at any time, and make a bad call. How many times do you see people making calls on their cell phones from inappropriate locations? If this woman had to wait in line to use a pay phone, do you think it would have given her time to calm down and rethink her decision? With technology and the ability to communicate at our fingertips, do you agree that it is easier than ever to make a bad decision? What can you do to ensure that you think before you communicate?

PROJECT IXWireless Networks and Streetlights

Researchers at Harvard University and BBN Technologies are designing CitySense, a wireless network attached to streetlights that can report real-time data across the entire city of Cambridge, Massachusetts. The CitySense network mounts each node on a municipal streetlight, where it draws power from city electricity. Each node includes a Wi-Fi interface, weather sensors, and download and uploading data capabilities.52

You are responsible for deploying a CitySense network around your city. What goals would you have for the system besides monitoring urban weather and pollution? What other benefits could a CitySense network provide? How could local businesses and citizens benefit from the network? What legal and ethical concerns should you understand before deploying the network? What can you do to protect your network and your city from these issues?

AYK APPLICATION PROJECTS

If you are looking for Excel projects to incorporate into your class, try any of the following after reading this chapter.