Chap 5 - Networks Telecoms and Internet

Slide 5.
Chapter 5
Networks, telecommunications
and the Internet
Bocij, Greasley and Hickie, Business Information Systems PowerPoints on the Web, 5th edition © Pearson Education Limited 2015
Slide 5.2
Learning objectives
• After this lecture, you will be able to:

– specify which components of a communications
system are necessary to exchange information within
and between businesses;
– explain the basic components and terminology of
networks, including the Internet;
– identify the benefits available through the introduction
of computer networks;
– identify the advantages and disadvantages of the
client/server architecture in comparison with traditional
approaches;
– explain the broad implications of the Internet on the
marketplace.
Slide 5.3
Management issues
• From a managerial perspective, this lecture

addresses the following areas:
– What are the business benefits of networks?
– What are the basic concepts and terminology
associated with the Internet and other networks?
– How does the Internet change marketplace
structures?
– How are network components selected?
Slide 5.4
Computer networks defined

A computer network can be defined as: ‘a communications
system that links two or more computers and peripheral devices
and enables transfer of data between the components’.
Slide 5.5
Characteristics of computer
networks
Sharing Resources from one Computer to another Computer over a
network.
Performance by measuring the speed of data transmission with number

of users, connectivity and the software used.
Reliability makes easy to use an alternative source for data

communication in case of hardware failure or connectivity issues.
Scalability increases the system performance by adding more

processors.
Security is the main characteristics of Computer network where you can

take necessary steps for protecting your data from unauthorized acces.
Slide 5.6
Telecommunications Networks:
The method by which data and information are transmitted
between different locations.
Slide 5.7
Local-area network (LAN):

• A computer network that spans a limited geographic area,
typically a single office or building.
Slide 5.8
Wide-area network (WAN):

Networks covering a large area which connect businesses in
different parts of the same city, different parts of a country or
different countries.
Slide 5.9
Communications links between different

stakeholders in an industry
Slide 5.10
A summary of the key advantages and disadvantages

of network technology
Slide 5.11
Network & Client/server system
Figure 5.2 Components of a client/server system
Slide 5.12
Client/server
• Client/server: The client/server architecture consists

of client computers such as PCs sharing resources
such as a database stored on more powerful server
computers.
• Benefits:
– Faster execution
– Distributed approach
– Customisation and flexibility.
Slide 5.13
Client/server Disadvantages
• Time lost by staff configuration

• Instability caused by clashes with applications
• Maintenance
• Performance
• Cost – generally higher TCO.
Slide 5.14
Server benefits
A server is a powerful computer used to control the
management of a network. It may have a specific function such
as storing user files or a database or managing a printer.
• Maintain security: Access to information in files is restricted

according to the user name and password issued to users of
the network.
• Sharing of peripheral devices connected to the network,
such as printers and tape drives. These are often attached
directly to the server.
• Sharing of applications such as word processors, which do
not then need to be stored on the hard drive of the end-user’s
computer. The cost of buying applications can be reduced
through buying a ‘site license’.
• Sharing of information: Access to this data is maintained by
the NOS and it is stored within the hard drive of a server as
files or as part of a database.
Slide 5.15
Table 5.2 Types of server
Slide 5.16
Telecommunications equipment
• Modem (modulator–demodulator): A modem is a
communications device that allows users to ordinary telephone
line.
• Analogue: Analogue data is continuous in that an infinite
number of values between two given points can be represented.
As an example, the hands of a clock are able to represent every
single possible time of the day.
• Digital: Digital data can only represent a finite number of
discrete values. For example, at the most basic level, a
computer recognises only the values 0 (zero) and 1. Any values
between 0 and 1, for example 0.15, cannot be represented.
• Hubs: Hubs are used to connect up to 20 PCs to a network in a
convenient way.
• Bridges and routers: These are used to connect different
LANs and transfer data packets from one network to the next.
Slide 5.17
line.
convenient way.
Slide 5.18
line.
convenient way.
Slide 5.19
Data transmission types

• Broadband: A relatively high-capacity, high-speed
transmission medium such as cable.
• Can provide transfer rates of up to 24 Mbps.
• ADSL = Asynchronous digital subscriber line – upload
and download speeds are different.
• ISDN (integrated services digital network): Data
transfer rates of 64 kbps. An ISDN telephone line
provides two separate ‘channels’ allowing simultaneous
voice and data transmissions.
Slide 5.20
Wireless network standards
• Bluetooth (PAN)
– A wireless standard for transmission of data between
devices over short ranges (normally less than 10 m).
• Wi-Fi (LAN)
– A high-speed wireless local-area network enabling
wireless access to the Internet for mobile, office and
home users.
• WiMax (MAN)
– A long distance transmission standard that allows an
access range up to 30 miles at speeds up to 75 Mbps.
Slide 5.21
The Internet
• The Internet
The Internet refers to the physical network that links
computers across the globe. It consists of the
infrastructure of network servers and communications
links between them that are used to hold and transport
information between the client PCs and web servers.
• Internet service provider (ISP)
A provider enabling home or business users a connection
to access the Internet. They can also host web-based
applications.
• Backbones
High-speed communication links used to enable Internet
communications across a country and internationally.
Slide 5.22
Figure 5.6 Infrastructure components of the Internet
Slide 5.23
Business and consumer models of

internet access
It is useful to identify e-business opportunities in terms of whether
an organization is using the Internet to transact with consumers
(business-to-consumer – B2C) or other businesses (business-to-
business – B2B).
• Business-to-consumer (B2C)
Commercial transactions are between an organization and consumers.
• Business-to-business (B2B)
Commercial transactions are between an organization and other
organizations.
Business-to-business transactions predominate over the Internet, in terms
of value, if not frequency. Figure 5.7 helps explain why this is the case. It
shows that there are many more opportunities for B2B transactions than
B2C, both between an organization and its suppliers, together with
intermediaries, and through distributors such as agents and wholesalers
with customers.
Slide 5.24
B2B and B2C interactions between an

organization, its suppliers and its customers
Slide 5.25
The role of the internet in restructuring

business relationships
• The relationship between a company and its suppliers and customers

shown in Figure 5.8 can be dramatically altered by the opportunities
afforded by the Internet. This occurs because the Internet offers a means
of bypassing some of the channel partners. This process is known as
disintermediation or ‘cutting out the middleman’.
• Figure 5.8 illustrates disintermediation in a graphical form for a simplified

retail channel. Further intermediaries such as additional distributors may
occur in a business-to-business market. Figure 5.8(a) shows the former
position where a company markets and sells it products by ‘pushing’ them
through a sales channel. Figures 5.8(b) and (c) show two different types
of disintermediation in which the wholesaler (b) or the wholesaler and
retailer (c) are bypassed, allowing the producer to sell and promote direct
to the consumer.
Slide 5.26
Figure 5.8 Disintermediation of a consumer distribution channel
Slide 5.27
Intranets and extranets
Intranet: An intranet is a secure and private enterprise network

that shares data o application resources via Internet Protocol
(IP).
Extranet: An extranet is a controlled private network allowing
customers, partners, vendors, suppliers and other businesses
to gain information, typically about a specific company or
educational institution, and do so without granting access to
the organization's entire network.
Slide 5.28
The relationship between intranets, extranets

and the Internet
The relationship between
these terms is illustrated in
Figure 5.10. Extranets can be
accessed by authorized
people outside the company
such as collaborators,
suppliers or major customers,
but information is not available
to everyone with an Internet
connection – only those with
password access. Note that
the term ‘intranet’ is
sometimes loosely used to
refer to an extranet.
Slide 5.29
Other wide-area networks

• Wide-area network (WAN)
Networks covering a large area which connect to businesses
in different parts of the same city, different parts of a country
of different countries.
• Value-added networks (VAN)
Value-added networks (VANs) give a subscription service
enabling companies to transmit data securely across a
shared network.
• Virtual private network (VPN)
A data network that makes use of the public
telecommunication infrastructure and Internet, but
information remains secure by the use of security
procedures.
Slide 5.30
Smaller-scale networks
• Local-area network (LAN)

A computer network that spans a limited geographic
area, typically a single office or building.
• Peer-to-peer network
A simple type of LAN which provides sharing of files
and peripherals between PCs.
• Voice over IP (VoIP)
Voice data are transferred across the Internet – it
enables phone calls to be made over the Internet.

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Slide 5.

• After this lecture, you will be able to:

• From a managerial perspective, this lecture

Computer networks defined

Performance by measuring the speed of data transmission with number

Reliability makes easy to use an alternative source for data

Scalability increases the system performance by adding more

Security is the main characteristics of Computer network where you can

Local-area network (LAN):

Wide-area network (WAN):

Communications links between different

A summary of the key advantages and disadvantages

Network & Client/server system

Figure 5.2 Components of a client/server system

• Client/server: The client/server architecture consists

• Time lost by staff configuration

• Maintain security: Access to information in files is restricted

Table 5.2 Types of server

Data transmission types

Wireless network standards

Figure 5.6 Infrastructure components of the Internet

Business and consumer models of

B2B and B2C interactions between an

The role of the internet in restructuring

• The relationship between a company and its suppliers and customers

• Figure 5.8 illustrates disintermediation in a graphical form for a simplified

Figure 5.8 Disintermediation of a consumer distribution channel

Intranets and extranets

Intranet: An intranet is a secure and private enterprise network

The relationship between intranets, extranets

Other wide-area networks

• Local-area network (LAN)

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