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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

6-3 Copyright © 2015 McGraw-Hill Ryerson Limited

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

6-6 Copyright © 2015 McGraw-Hill Ryerson Limited

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

Copyright © 2015 McGraw-Hill Ryerson Limited 6-8

Wireless Access Diagram

Figure 6.1

6.1

6-9 Copyright © 2015 McGraw-Hill Ryerson Limited

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

6-14 Copyright © 2015 McGraw-Hill Ryerson Limited

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

6-35 Copyright © 2015 McGraw-Hill Ryerson Limited

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

6-42 Copyright © 2015 McGraw-Hill Ryerson Limited

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

6-44 Copyright © 2015 McGraw-Hill Ryerson Limited

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.

6-45 Copyright © 2015 McGraw-Hill Ryerson Limited

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?

6-47 Copyright © 2015 McGraw-Hill Ryerson Limited

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?