Management Information Systems:

Managing the Digital Firm

Sixteenth Edition • Global Edition

Chapter 7
Telecommunications, the Internet,
and Wireless Technology

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Learning Objectives
7.1 What are the principal components of
telecommunications networks and key networking
technologies?
7.2 What are the different types of networks?
7.3 How do the Internet and Internet technology work, and
how do they support communication and e-business?
7.4 What are the principal technologies and standards for
wireless networking, communication, and Internet
access?
7.5 How will M I S help my career?

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Networking and Communication
Trends
• Convergence
– Telephone networks and computer networks
converging into single digital network using Internet
standards
• Broadband
– More than 76 percent U.S. Internet users have
broadband access
• Broadband wireless
– Voice, data communication are increasingly taking
place over broadband wireless platforms
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What Is a Computer Network?
• Two or more connected computers
• Major components in simple network
– Client and server computers
– Network interfaces (NIC s)
– Connection medium
– Network operating system (NO S)
– Hubs, switches, routers
• Software-defined networking (SD N)
– Functions of switches and routers managed by central
program

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Figure 7.1 Components of a Simple
Computer Network

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Networks in Large Companies
• Hundreds of local area networks (LAN s) linked to firm-wide
corporate network
• A number of powerful servers support a corporate website,
a corporate intranet, and perhaps an extranet. Some of
these servers link to other large computers supporting
backend systems.
• Here the corporate network infrastructure supports a
mobile sales force using mobile phones and smartphones,
mobile employees linking to the company website, and
internal company networks using mobile wireless local
area networks (Wi-Fi networks).

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Figure 7.2 Corporate Network
Infrastructure Figure 7. 2 provides an illustration of these
more complex, larger scale corporate-
wide networks.
Here the corporate network infrastructure
supports a mobile sales force using mobile
phones and smartphones, mobile employees
linking to the company website, and internal
company networks using mobile wireless local
area networks (Wi-Fi networks).
In addition to these computer networks, the
firm’s infrastructure may include a separate
telephone network that handles most voice
data.
Many firms are dispensing with their
traditional telephone networks and using
Internet telephones that run on their existing
Data.

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Key Digital Networking Technologies
(1 of 3)
• Contemporary digital networks and the Internet are based on three
key technologies:
1. Client/server computing
– is a distributed computing model
– Clients linked through network controlled by network
server computer
– Server sets rules of communication for network and
provides every client with an address so others can find it
on the network
– Has largely replaced centralized mainframe computing
– The Internet: largest implementation of client/server
computing
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Key Digital Networking Technologies
(2 of 3)

2. Packet switching
– Method of slicing digital messages into parcels
(packets), sending packets along different
communication paths as they become available, and
then reassembling packets at destination
– Previous circuit-switched networks required assembly
of complete point-to-point circuit
– Packet switching more efficient use of network’s
communications capacity

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Figure 7.3 Packet-Switched Networks
and Packet Communications

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Key Digital Networking Technologies
(3 of 3)

• 3. TCP /IP and connectivity

– Protocols: rules that govern transmission of information
between two points
– Transmission Control Protocol/Internet Protocol (TCP /I P)
 Common worldwide standard that is basis for the Internet
– Department of Defense reference model for TCP /I P
 Four layers
– Application layer
– Transport layer
– Internet layer
– Network interface layer
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Figure 7.4 The Transmission Control
Protocol/Internet Protocol (T C P/I P)
Reference Model
• Two computers using TCP/IP can
communicate even if they are based on
different hardware and software platforms.
• Data sent from one computer to the other
passes downward through all four layers,
starting with the sending computer’s
Application layer and passing through the
Network Interface layer.
• After the data reach the recipient host
computer, they travel up the layers and are
reassembled into a format the receiving
computer can use.
• If the receiving computer finds a damaged
packet, it asks the sending computer to
retransmit it.
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Types of Networks
• Signals: Digital versus analog
– Analog signal-represented by a continuous waveform
that passes through a communications medium and
has been used for voice communication. Ex telephone
handset, speaker on your computer,iPod earphone
– Digital signal-discrete, binary waveform rather than a
continuous waveform.Digital signals communicate
information as strings of two discrete states:one bits
and zero bits, which are represented as on-off electrical
pulses.
– Modem(modulator-demodulator.): translates digital
signals into analog form (and vice versa)

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Types of Networks
• Types of networks
– Local area networks (LAN s):A local area network
(LAN) is designed to connect personal computers and
other digital devices within a half-mile or 500-meter
radius.
 Ethernet:the dominant LAN standard at the physical
network level
 Client/server vs. peer-to-peer
– Client/server :the network operating system resides
primarily on a single server, and the server provides
much of the control and resources for the network.
– peer-to-peer:treats all processors equally and is used
primarily in small networks with 10 or fewer users.
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Types of Networks
• Types of networks(cont)
– Wide area networks (WAN s):span broad geographical distances—
entire regions, states, continents, or the entire globe. The most
universal and powerful WAN is the Internet.
– Metropolitan area networks (MAN s):a network that spans a
metropolitan area, usually a city and its major suburbs. Its
geographic scope falls between a WAN and a LAN.
– Campus area networks (CAN s):CANs interconnect multiple local
area networks (LAN) within an educational or corporate campus.
Most CANs connect to the public Internet.

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Figure 7.5 Functions of the Modem

A modem is a device that translates digital signals into analog form (and vice versa)
so that computers can transmit data over analog networks such as telephone and cable
networks.

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Transmission Media and
Transmission Speed
• Physical transmission media
– Twisted pair wire (CAT5)
– Coaxial cable
– Fiber optics cable
– Wireless transmission media and devices
 Satellites
 Cellular systems

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Transmission Media and
Transmission Speed
• Transmission speed
– Bits per second (bp s):The total amount of digital information
that can be transmitted through any telecommunications
medium
– Hertz:The number of cycles per second that can be sent
through that medium
– Bandwidth:The range of frequencies that can be
accommodated on a particular telecommunications channel

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 What is the Internet?
• The Internet
– World’s most extensive network
– Internet service providers (I SP s)
 Provide connections
 Types of Internet connections
– Dial-up: 56.6 Kbp s
– Digital subscriber line (DS L/F I O S): operate over existing
telephone lines to carry voice, data, and video at transmission
rates ranging from385 Kbp s –40 Mbp s
– Cable Internet connections: provided by cable television
vendors use digital cable coaxial lines to deliver high-speed
Internet access to homes and businesses.1–50 Mbp s
– Satellite
– T1/T3 lines: international telephone standards for digital
communication.1.54–45 M b p s
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Internet Addressing and Architecture
• Each device on Internet assigned Internet Protocol (I P)
address
• 32-bit number, e.g. 207.46.250.119
• The Domain Name System (DN S)
– Converts I P addresses to domain names
– Hierarchical structure
– Top-level domains

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Figure 7.6 The Domain Name System

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Internet Architecture and Governance
• Network service providers
– Own trunk lines (high-speed backbone networks)
• Regional telephone and cable T V companies
– Provide regional and local access
• Professional organizations and government bodies
establish Internet standards
– Internet Architecture Board(IAB):helps define the overall structure
of the Internet
– Internet Corporation for Assigned Names and Numbers
(ICANN):manages the domain name system
– World Wide Web Consortium (W3C):sets Hypertext Markup
Language and other programming standards for the web.

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Figure 7.7 Internet Network
Architecture

The Internet
backbone connects
to regional
networks, which in
turn provide access
to Internet service
providers, large
firms, and
government
institutions.

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The Future Internet: I P v 6 and
Internet 2
• I Pv 6
– New addressing scheme for I P numbers
– Will provide more than a quadrillion new addresses
– Not compatible with current I Pv 5 addressing
• Internet2
– Advanced networking consortium
 Universities, businesses, government agencies,
other institutions
– Developed high-capacity 100 G bp s testing network
– Testing leading-edge new technologies for Internet
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Internet Services and Communication
Tools (1 of 2)
• Internet services
– E-mail
– Chatting and instant messaging
– Newsgroups
– Telnet
– File Transfer Protocol (FT P)
– World Wide Web
• Voice over I P (VoI P)
– Digital voice communication using I P, packet switching

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Internet Services and Communication
Tools (1 of 2)

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Figure 7.8 Client/Server Computing
on the Internet

Client computers running web browsers and other software can access an array of services
on servers over the Internet. These services may all run on a single server or on multiple
specialized servers.

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Internet Services and Communication
Tools (2 of 2)
• Unified communications
– Communications systems that integrate voice, data,
e-mail, conferencing
• Virtual private network (VP N)
– Secure, encrypted, private network run over Internet
– Several competing protocols are used to protect data transmitted
over the public Internet, including Point-to-Point Tunneling
Protocol (PPTP). In a process called tunneling , packets of data
are encrypted and wrapped inside IP packets. By adding this
wrapper around a network message to hide its content, business
firms create a private connection that travels through the public
Internet
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 Figure 7.9 How Voice over IP Works

A VoIP phone call digitizes and breaks up a voice message into data packets that may travel
along different routes before being reassembled at the final destination. A processor nearest the
call’s destination, called a gateway, arranges the packets in the proper order and directs them to
the telephone number of the receiver or the IP address of the
receiving computer.
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 Figure 7.10 A Virtual Private Network
Using the Internet

This VPN is a private network of computers linked using a secure tunnel connection over the
Internet.
It protects data transmitted over the public Internet by encoding the data and wrapping them
within the Internet protocol. By adding a wrapper around a network message to hide its content,
organizations can create a private connection that travels through the public Internet.
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The Web
• Hypertext
– Hypertext Markup Language (HTM L):formats documents
and incorporates dynamic links to other documents and pictures
stored in the same or remote computers
– Hypertext Transfer Protocol (H T T P):HTTP is the
communications standard that transfers pages on the web. For
example, when you type a web address in your browser, such as
http://www.sec.gov , your browser sends an HTTP request to the
sec.gov server requesting the home page of sec.gov .
– Uniform resource locator (UR L):When typed into a browser,
a URL tells the browser software exactly where to look for the
information
 http://www.megacorp.com/content/features/082602.
html
• Web servers
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 Software for locating and managing web pages
Searching for Information on the Web
• Mobile search:Google, Amazon, and Yahoo have developed new search
interfaces to make searching and shopping from smartphones more convenient.

• Semantic search:to make search engines capable of understanding what

• we are really looking for.

• Social search:an effort to provide fewer, more relevant, and

• trustworthy search results based on a person’s network of social contacts.

• Visual search:the explosion of photos and videos on the Internet created a

demand for searching and classifying these visual objects.

• Intelligent agent shopping bots:Shopping bots use intelligent agent

software for searching the Internet for shopping information.

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Searching for Information on the Web
• Search engine marketing:When users enter a search term on Google,
Bing, Yahoo, or any of the other sites serviced by these search engines, they receive
two types of listings: sponsored links, for which advertisers have paid to be listed
(usually at the top of the search results page), an unsponsored, organic search results.
In addition, advertisers can purchase small text boxes on the side of search results
pages.

• Search engine optimization (SE O):is the process of improving the

quality and volume of web traffic to a website by employing a series of techniques
that help a website achieve a higher ranking with the major search engines when
certain keywords and phrases are put into the search field.

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Figure 7.11 Top Desktop/Laptop Web
Search Engines Worldwide

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Figure 7.12 How Google Works

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The Future Web
• More tools to make sense of trillions of pages on the
Internet
• Pervasive web
• Internet of Things (I o T)
• Internet of People
• App Internet
• Increased cloud computing and Saa S
• Ubiquitous mobile connectivity
• Greater seamlessness of web as a whole

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Cellular Systems (1 of 2)
• Competing standards
– CDM A : United States only
– G S M : Rest of world, A T&T, T-Mobile
• Third-generation (3G) networks
– 144 Kbp s
– Suitable for e-mail access, web browsing

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Cellular Systems (2 of 2)
• Fourth-generation (4G) networks
– Up to 100 Mbps
– Suitable for Internet video
– LT E and Wi Max
• 5G Networks
– Gigabit capacity
– Currently under development and early test
deployments

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Wireless Computer Networks and
Internet Access (1 of 2)
• Bluetooth (802.15)
– Links up to 8 devices in 10-m area using low-power,
eter

radio-based communication
– Useful for personal networking (P AN s)
• Wi-Fi (802.11)
– Set of standards: 802.11
– Used for wireless L A N and wireless Internet access
– Use access points: device with radio
receiver/transmitter for connecting wireless devices to
a wired L A N
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Wireless Computer Networks and
Internet Access (2 of 2)
– Hotspots: one or more access points in public place to
provide maximum wireless coverage for a specific area
– Weak security features
• W i Max (802.16)
– Wireless access range of 31 miles
– Require W iM ax antennas

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Figure 7.13 A Bluetooth Network
(P A N)

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Figure 7.14 An 802.11 Wireless L A N

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Radio Frequency Identification (R F I
D)
• Use tiny tags with microchips containing data about an
item and location
• Tag antennas to transmit radio signals over short distances
to special RFI D readers
• Common uses:
– Automated toll-collection
– Tracking goods in a supply chain
• Reduction in cost of tags making RFI D viable for many
firms

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Figure 7.15 How R F I D Works

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Wireless Sensor Networks (WSN s)
• Networks of hundreds or thousands of interconnected
wireless devices
• Used to monitor building security, detect hazardous
substances in air, monitor environmental changes, traffic,
or military activity
• Devices have built-in processing, storage, and radio
frequency sensors and antennas
• Require low-power, long-lasting batteries and ability to
endure in the field without maintenance
• Major sources of “Big Data” and fueling “Internet of Things”

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Figure 7.16 A Wireless Sensor
Network

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