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McGraw-Hill-Ryerson ©2015 The McGraw-Hill Companies, All Rights Reserved
Opening Case:
The Ironman
6-2 Copyright © 2015 McGraw-Hill Ryerson Limited
Chapter Six Overview
• SECTION 6.1 – NETWORKS AND TELECOMMUNICATIONS – Introduction – Network Basics – Internet Providers – Networks Enable Data Sharing
• SECTION 6.2 – MOBILE TECHNOLOGY – Business Drivers for Mobile Technologies – Using Cellular Technologies in Business – Using Satellite Technologies in Business – Using Wireless Technologies in Business – Challenges of Business Mobility – Mobile Business Trends
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Learning Outcomes
1. Explain network basics and how networks enable data sharing to occur.
2. Describe the use of networks and telecommunications in business (i.e., VoIP, networking businesses, increasing speed of business, and the challenges associated with securing business networks).
3. Describe the business drivers for using mobile technologies, and the advantages and disadvantages of using cellular technologies in business.
4. Describe how satellite technologies are used in business, and how LBS, GPS, and GIS help create business value.
5. Explain Wi-Fi, Wi-MAX, and RFID technologies, their use in business, as well as mobile business trends.
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McGraw-Hill-Ryerson ©2015 The McGraw-Hill Companies, All Rights Reserved
NETWORKS AND
TELECOMMUNICATIONS
6-5 Copyright © 2015 McGraw-Hill Ryerson Limited
Learning
Outcome • Telecommunication system
– Enables the transmission of data over public or private networks
• Network
– A system created by linking two or more computers and establishing standards, or protocols, so that they can work together
Introduction
6.1
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Learning
Outcome • Three types of networks include:
– Local Area Network
• Operates within a geographically limited area usually a building or groups of buildings
– Wide Area Network
• Operates over a widely dispersed area, including around the world
– Metropolitan Area Network
• Large computer network spanning a city
Network Basics
6.1
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6-7 Copyright © 2015 McGraw-Hill Ryerson Limited
Learning
Outcome • Internet Service Provider (ISP) – Provides access to the Internet and related services
• Wireless Internet Service Provider (WISP)
– Allows subscribers to connect using a wireless at specific “hotspots”
• Online Service Provider (OSP) – Connects subscribers through its own web site offering a wide array
of ancillary resources
• Application Service Provider (ASP) – Offers Internet-based business services
• Service Level Agreements (SLA) – Define the responsibilities of the service provider and the customer’s
expectations
Internet Service Providers
6.1
Learning
Outcome
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Wireless Access Diagram
Figure 6.1
6.1
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Learning
Outcome
Advantages
• Uses existing networks and Internet infrastructure
• Cheaper than traditional phone service
• Visual connection as well as voice
• Ability to send reports etc. through file transfer feature
Disadvantages
• Similar to other Internet communications problems
– Dropped connections
– Security threats
Voice over IP (VoIP)
6.2 Uses TCP/IP technology to transmit voice and visuals over long-distance telephone lines
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Learning
Outcome
Copyright © 2015 McGraw-Hill Ryerson Limited 6-10
Voice over IP (VoIP)
Figure 6.2
. Diagram of a VoIP Connection 6.2
6-11 Copyright © 2015 McGraw-Hill Ryerson Limited
Learning
Outcome Traditional networking systems include:
Virtual Private Network (VPN)
• Secure access through the Internet to an organization’s internal network
Value-Added Network (VAN)
• Private network for securely exchanging information through a high-capacity connection
Disadvantages
• Handle limited types of business data
• Do not support real-time business process integration
• Relatively expensive, complex and difficult to expand
Networking Business
6.2
Learning
Outcome
Copyright © 2015 McGraw-Hill Ryerson Limited 6-12
E-Business Network Characteristics
Transparent exchange of data with suppliers, trading partners and customers.
Reliable and secure exchange of information internally and externally via the Internet or other networks.
End-to-end integration and message delivery across multiple systems, in particular databases, clients, and servers.
Scalable processing power and networking capacity to meet high demands.
Integrator and transactions framework for both digital businesses and traditional bricks-and-mortar businesses that want to leverage the Internet for any type of business.
Figure 6.3
6.2
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Learning
Outcome
Copyright © 2015 McGraw-Hill Ryerson Limited 6-13
Virtual Private Network Overview
Figure 6.4
6.2
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Learning
Outcome Speed is measured by the volume of data that can be transmitted per unit of time.
• Bandwidth measures the medium’s capacity
• Hertz is cycles per second
• Bits per second (bps) refers to the number of signals transmitted per second
Increasing the Speed of Business
6.2
Figure 6.5
Telecommunications Transmission
Speeds
Learning
Outcome
Copyright © 2015 McGraw-Hill Ryerson Limited 6-15
Internet Function Average Download Time
6.2 Function
Dial-Up (56 K)
Satellite (512 K)
DSL (1M)
Cable (5M)
Wireless (5M)
An email 1 sec <1 sec
A basic Web page 10 sec <1 sec
One 5-minute Song (5M) 15 min 2 min 1 min 40 sec
One 2-hour Movie (500M) 20 hours 4 h 2 h 70 min
Figure 6.6
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Learning
Outcome
Copyright © 2015 McGraw-Hill Ryerson Limited 6-16
Advantages & Disadvantages of Broadband Technology
6.2 Technology
Typical Download Speed (Mbps)
Typical Upload Speed (Mbps)
Advantages and Disadvantages
DSL 0.5-3 0.25-1.0
-Uses existing telephone lines -Slower downloads than cheaper alternatives
Cable 0.5-250 0.5-15
-Uses existing cable -Shared connections can overload system
T1/T3 dedicated line 1.5-3 1.5-3
-Uses existing telephone wiring -Susceptible to crosstalk
From Figure 6.7
Learning
Outcome
Copyright © 2015 McGraw-Hill Ryerson Limited 6-17
Advantages & Disadvantages of Broadband Technology
6.2 Technology
Typical Download Speed (Mbps)
Typical Upload Speed (Mbps)
Advantages and Disadvantages
Fibre-to-the- home 5-300 1-15
-Fast data speeds, low power costs -Not widely available
Fixed Wireless 0.5-12 0.5
-Inexpensive to install -Weather, topography etc. can cause interference
Satellite 0.5-2 0.05 -Nearly universal coverage -Expensive service/equipment
From Figure 6.7
6-18 Copyright © 2015 McGraw-Hill Ryerson Limited
Learning
Outcome Organizations must be concerned about proper identification and authorization of users for network access • Logon and Password
– Employees must be trained to guard their passwords and used them properly
• Data Encryption – Confidential information must be coded – “Keys” for decoding must be protected – Cost of encryption is related to strength of the
codes
• Digital certificates/Digital Cash – Methods of reducing credit card fraud
Securing Business Networks
6.2
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6-19 Copyright © 2015 McGraw-Hill Ryerson Limited
OPENING CASE QUESTIONS
The Ironman
1. Why is having real-time data of an athlete’s progress in a race important to the Ironman championship?
2. How is WTC using telecommunications and networks to improve its competitive advantage in the professional sports broadcasting industry?
3. How could WTC employ VoIP to enhance the experience of family and friends watching the triathalon?
4. What disadvantages or challenges would WTC likely face implementing broadband technology?
5. What security issues does WTC likely need to address in its use of network technologies?
McGraw-Hill-Ryerson ©2015 The McGraw-Hill Companies, All Rights Reserved
Data Warehousing
Learning
Outcome
Copyright © 2015 McGraw-Hill Ryerson Limited 6-21
Drivers of Wireless Growth
Mobile refers to technologies that travel with the user.
Wireless is any type of electronic operation that does not use a “hard wired” connection, physical plug in a physical outlet.
6.3
Universal access to data and applications
People are mobile and can access more data than ever before but are not at the point of all data, anytime, anywhere, and anyplace.
Automation of business processes
Wireless technologies can centralize critical data and eliminate redundant processes.
User convenience, timeliness, and accessibility
People are no longer cut off from the world or from the office. Through wireless tools and mobile devices they can have real time data access and transmission.
From Figure 6.8
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Learning
Outcome
Copyright © 2015 McGraw-Hill Ryerson Limited 6-22
Mobile Devices Changing Business
6.3
Figure 6.9
6-23 Copyright © 2015 McGraw-Hill Ryerson Limited
Learning
Outcome • Mobile Applications can:
– Help track materials and shipments from suppliers and distributors to customers
– Manage inventory
– Support Point of Sale
– Collect data in an automated fashion
– Provide immediate data analysis
Mobile Strategy
6.3
Learning
Outcome
Copyright © 2015 McGraw-Hill Ryerson Limited 6-24
Factors to Consider When Deploying Mobile Strategies
6.3
Step
Defining Risk Define potential risk to the organization of a GO or NO GO decision.
Knowing the Limits Of Technology
Set realistic expectations regarding needed functionality, about the IT resources deploying it and the capabilities of ultimate users.
Protecting Data From Loss
Security must be a multi-faceted approach covering all areas of exposure.
Compliance in the Mobile Enterprise
More mobility, more devices, more potential for security breaches.
Staying flexible & Embracing Change
Once implemented, monitor and modify strategy on a regular basis.
From Figure 6.10
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6-25 Copyright © 2015 McGraw-Hill Ryerson Limited
Learning
Outcome • 3G cellular networks are designed for high-speed transmission of multi-media data and voice.
• 4G networks are set up to integrate radio and television transmission and to consolidate the world’s phone standards into one high-speed technology.
• Convergence of voice, video, and data allow users to make calls, surf the Web, use touch controls, access music, audiobooks, videos, TV shows and movies on mobile devices.
Cellular Technologies
6.3
Learning
Outcome
Copyright © 2015 McGraw-Hill Ryerson Limited 6-26
Cellular Technology Overview
Figure 6.11
6.3
Learning
Outcome
Copyright © 2015 McGraw-Hill Ryerson Limited 6-27
Cellular Technology Advantages & Disadvantages
6.3
Figure 6.12
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6-28 Copyright © 2015 McGraw-Hill Ryerson Limited
Learning
Outcome • Smartphone
Make calls, surf the Web, email a photo and download an enormous variety of “apps”
• Tablets
Small, flat computer with a touch-screen and virtual keyboard. Mobile office applications have spurred rapid business adoption.
• Bluetooth
A telecommunications industry specification that allows mobile devices to use a short-range wireless connection.
Cellular Technologies
6.3
Figure 6.13
The Bluetooth
Virtual Keyboard
6-29 Copyright © 2015 McGraw-Hill Ryerson Limited
Learning
Outcome Communication Satellite • A large, expensive, microwave
repeater in the sky
• Cost-effective for transmitting large quantities of data
Microwave Transmitter • Uses the atmosphere (or outer
space) as a transmission medium to send signals to a microwave receiver
• Communications satellites Facilitate data transmission
Communication Satellite Technologies
Figure 6.14
6.4 Satellite Microwave Link
6-30 Copyright © 2015 McGraw-Hill Ryerson Limited
Learning
Outcome Applications that use the geographic location of the device to provide location-specific data to the mobile user.
Privacy Issues
• Subject geographically targeted for promotions without prior consent
• Customer’s knowledge of another’s location may lead to embarrassing situations
• Location data can be used for harassment or attack
• Service denial because a location for delivery is deemed unsafe
• Legal restrictions
Location-Based Services (LBS)
6.4
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Learning
Outcome
Copyright © 2015 McGraw-Hill Ryerson Limited 6-31
Mass Market LBS Market Segments
6.4
Market
Emergency -Locate emergency call -Roadside Assistance
Navigation -Directions to points of interest -E-tourism -Avoidance of traffic jams
Tracking -Tracking of children or elderly -Find-a-friend
Location Advertising -Located video push
Gaming -N-Gage (allows multiple gamers to play against each other over Bluetooth or wireless phone network connections.)
From Figure 6.15
Learning
Outcome
Copyright © 2015 McGraw-Hill Ryerson Limited 6-32
Professional Market LBS Market Segments
6.4 Market
Workforce Organization -Field force management -Optimization of routes -Logistics -Enterprise Resource Planning
Security -Field tracking -Worker protection
From Figure 6.15
6-33 Copyright © 2015 McGraw-Hill Ryerson Limited
Learning
Outcome Global position systems (GPS) • A constellation of 24 well-spaced satellites that orbit the Earth and
make it possible for people with ground receivers to pinpoint their geographical location.
Global Positioning Systems
6.4
Global Positioning System Architecture
Figure 6.16
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6-34 Copyright © 2015 McGraw-Hill Ryerson Limited
Learning
Outcome Geographic information system (GIS)
• Consists of hardware, software, and data that provide location information for display on a multidimensional map.
• Some Common Uses:
– Locating businesses or points of interest in a specific area
– Routing from departure to destination
– Mapping population densities
Geographic Information Systems
6.4
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Learning
Outcome • Wireless LAN (WLAN) - A local area network that uses radio signals to transmit and receive data over distances of a few hundred feet
• Wireless fidelity (Wi-Fi) - A means by which portable devices can connect without a cable to a local area network, using access points that send and receive data via radio waves
Wireless Fidelity (Wi-Fi)
6.5
Learning
Outcome
Copyright © 2015 McGraw-Hill Ryerson Limited 6-36
Wi-Fi in the Sky
Figure 6.17
6.5
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6-37 Copyright © 2015 McGraw-Hill Ryerson Limited
Learning
Outcome Worldwide Interoperability for Microwave Access • A communications technology
aimed at providing high-speed wireless data over metropolitan area networks (MANs)
• Requires a tower & a receiver
• Wide range capability provides service to remote area
• Line-of-site and non-line-of- site operability
WiMAX
Figure 6.18
6.5
6-38 Copyright © 2015 McGraw-Hill Ryerson Limited
Learning
Outcome • Radio frequency identification (RFID) – Uses active or passive tags that store information and relay it to
electronic readers
• RFID tag – Contains a microchip and an antenna, and typically works by
transmitting an item’s numerical identifier via radio waves to a network for tracking purposes
Radio Frequency Identification
6.5
RFID
Architecture
Figure 6.19
6-39 Copyright © 2015 McGraw-Hill Ryerson Limited
Learning
Outcome • RFID codes can be:
– Linked to the purchase of a particular product by a specific customer
• A loyalty promotion code identifies the customer and the purchase is saved towards a discount but also becomes data in the customer’s record
– Read at greater distances than bar codes allowing surveillance
• For example, reading what is in someone’s shopping bag in a mall can be done without the target being aware
• There are proposals to require all RFID products to be labeled
• RSA Blocker Tags are used to restrict reading of the tags to within the store’s premises
RFID Privacy Issues
6.5
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Learning
Outcome
Copyright © 2015 McGraw-Hill Ryerson Limited 6-40
Challenges of Business Mobility
6.5
Figure 6.21
6-41 Copyright © 2015 McGraw-Hill Ryerson Limited
Learning
Outcome Mobility creates a large number of remote access points into a network
• Wi-Fi Protected Access (WPA)
– A wireless security protocol to protect Wi-Fi networks
• War chalking
– The practice of tagging pavement with codes displaying where Wi-Fi access is available
• War driving
– Deliberately searching for Wi-Fi signals while driving by in a vehicle
Protecting Wireless Connections
6.5
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Learning
Outcome • Direct marketing only to contracted entities
• Electronic messages identify senders
• Solicitation only with target’s consent
• LBS indicates to user how the data will be used
• Opportunities provided for user to reject marketing initiatives
Privacy Policies for Location-based services (LBS)
6.5
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6-43 Copyright © 2015 McGraw-Hill Ryerson Limited
Learning
Outcome • Social networking is pre-loaded on mobile devices.
• Mobile TV, real-time video streaming and cost- effective content downloads are a reality with 4G devices.
• Multi-function devices cheaper and more versatile.
• Availability of increased bandwidth supports expansion of Location-based services.
• Marketing and logistics applications are growing to take advantage of Location-based services.
Mobile Business Trends
6.5
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OPENING CASE QUESTIONS
The Ironman
6. How is WTC using mobile (cellular) technologies to improve its operations?
7. How is WTC using satellite technologies to improve its operations?
8. Explain how WTC is using WiMAX and RFID wireless technologies in its operations. To what extent do these technologies offer business value?
9. Identify the ethical and security dilemmas that WTC faces in using wireless technologies in its business operations.
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CLOSING CASE ONE: Wireless Bikes
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?
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6-46 Copyright © 2015 McGraw-Hill Ryerson Limited
CLOSING CASE TWO: Geoblogging for Chimpanzees and More
1. Now just imagine what you could do with Google Earth if you added GPS. What other types of research might be accomplished using GPS?
2. How could other nonprofits use geoblogs and GPS to help their cause?
3. How could a business use Google Earth and GPS to create a competitive advantage?
4. Are there any ethical or security concerns with this type of geoblog?
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CLOSING CASE THREE: Crash Pads
1. How else can wireless devices be used to prevent injury?
2. Should all football teams, including professional, academic, and recreational, use wireless sensors in helmets?
3. Should other sports such as hockey and cycling start using this technology? Why or why not?
4. How would you suggest that coaches and staff be trained so that they don’t become over-reliant on these devices as the primary indicator of a potential head injury?