INFORMATION TECHNOLOGY

Chapter 3

Information Technology

The technology used for the study, understanding, planning, design, construction, testing, distribution, support and operations of software, computers and computer related systems that exist for the purpose of Data, Information and Knowledge processing. The study, design, development, implementation, support or management of computer-based information systems, particularly software applications and computer hardware." IT deals with the use of electronic computers and computer software to convert, store, protect, process, transmit, and securely retrieve information.

"Many of the impacts of Information Technology are straightforward. But they are not necessarily obvious, nor are they trivial

(Jack Nilles, Centre for Future Research)

IT Impact on Organization

Information technology (IT) is dramatically changing the business landscape. Although organization cultures and business strategies shape the use of IT in organizations, more often the influence is stronger the other way round. IT significantly affects strategic options and creates opportunities and issues that managers need to address in many aspects of their business.

IT Impact on Organization

Business strategy - collapsing time and distance, enabling electronic commerce Organization Culture - encouraging the free flow of information Organization Structures - making networking and virtual corporations a reality Management Processes - providing support for complex decision making processes Work - dramatically changing the nature of professional, and now managerial work The workplace - allowing work from home and on the move, as in telework

Business Strategy

IT creates new opportunities for innovation in products and services. Services which used to be delivered in person can now be delivered over networks. Among the key levers are: resequencing: including parallel processing of databases simultaneity: making information instantly available in several systems time extension: offering 24 hour a day; 365 days a year service portability: taking service and products closer to the user reusability: using information captured for one purpose (e.g. transactions), and using for others (e.g. customer

Organization Culture

Newer types of IT such as electronic mail are creating significant changes in the way that information flows around group ware, and between them and their customers and suppliers. It can hasten the development of more open and innovative cultures. However, as experts like Davenport warns, and surveys from companies like Reuters confirm, the notion that "information is power" still reigns large in many org group ware also, our experience shows that many new systems fail to become accepted by their users, because the systems developers have not been culturally sensitive to the department or group ware, in which the new systems are to be used.

Organization Structures

For many years it has been argued that IT will enable larger spans of control and the flattening of group ware. This has at last happened, but due as much to initiatives like BPR (business process reengineering) and the drive to cut costs. Research on whether IT encourages centralization decentralizations produced ambivalent results. Many companies have centralized operations (for efficiency) while at the same time decentralizing activities. It now seems clear that IT enables a greater variety of structures. In particular it enables more flexible and fluid structures - networked structures, dispersed team and teams that come and go as needs change (as in the virtual corporation).

Management Processes

IT is rapidly entering the era where it supports unstructured management processes as well as highly routinized business processes. It provides more effective ways of accessing information from multiple sources, including use of external information on databases and the Internet. However, group decision support systems that operate in a meeting room environment can help enhance decision making, but it does need someone who is an expert facilitator to help the group master the technique of structured discussion.

Work

IT is dramatically changing the nature of professional work. There are few offices where professional do not make use of personal computers, and in many jobs involving extensive information and knowledge based work, the use of the computer is often a core activity. Becoming effective not only requires traditional skills of organizing, thinking, writing etc., but knowing how best to use the power of IT for researching sources, accessing information, connecting to experts, communicating ideas and results, and packaging the knowledge (asset) for reuse. One aspect of this is the need for hybrid managers people who are competent at both their discipline and IT.

The Workplace

The way in which IT diminishes the effect of distance means that it creates a variety of options for reorganizing the workplace. At a basic level, it can provide more flexibility in the office, allowing desk sharing and a degree of location independence within a building (this will develop as CTI (Computer Telephony Integration) and wireless PCs become more firmly established. At another level it permits the dispersion of work teams, thus saving costs of relocation and travel. It has also created the mobile professional and also allows people to work effectively from home.

Implications on Managers

Understanding the Changing Context of IT - as well as the direct impact on their business managers need to be able to see these developments in the context of the wider environment in which their business operates. For a long term perspective Keeping abreast of Developments - not about the details of the technologies, but about the business impacts; for example by meeting suppliers business consultant's, attending conferences, or receiving customized presentations from independent analysts. Integrating IT and Business Planning - the IT strategy should support the business strategy and vice versa. This may need new planning processes, hybrid teams, and a increased incorporation of the levers into business plans. Addressing Culture Issues - the dimensions of existing and desired culture need to be understood and how proposed systems will affect them. In particular attention needs to be paid to the organization's information culture

Implications on Managers

Experimenting with new Structures - using IT to remove some of the limitations of hierarchy and to encourage the development of innovative teams, using experts located in different functions and places. Managing dispersed teams is challenging but rewarding. Ensuring that new systems are customized change proof - our studies have shown many new systems to be developed around existing customized structures and responsibilities. Since these change very rapidly, new systems should be built with flexibility and change in mind. Developing New Skills - more of tomorrow's managers will need to become hybrid managers, combining the knowledge and skills of general management, their own discipline and IT. Using IT as a management tool - initiating personal use of IT into every day work. This should include use of decision support tools, groupware, knowledge management solutions and exploiting the Internet.

Implications on Managers

Exploiting Information as a Strategic Asset - using the techniques of Information Resources Management to develop it as a valuable resource for internal use, for adding value to customer activities or services, or for creating saleable products. Introducing Knowledge Management and Innovation going beyond information to developing networks of knowledge experts who evolve the organization's knowledge assets to create extra capabilities and value. Reorganizing the Workplace - by introducing flexible working and telework. The business benefits of this in terms of productivity and cost savings are such that there are many personal benefits to be achieved by a successful implementation.

Components of IT

Processor, memory and input/out put channels, Micro. Mini and Large scale computers, Mass storage technologies, Data communication, networking and distributed processing, Data entry, display respond, and Software

TELECOMMUNICATION S AND NETWORKS

Learning Objectives

Identify major developments and trends in the industries, technologies, and business applications of telecommunications and Internet technologies. Identify the basic components, functions, and types of telecommunications networks used in business.

SECTION I
The Networked Enterprise

Networking the Enterprise

Networking business and employees Connecting them to customers, suppliers, and other stakeholders.

Trends in Telecommunications
Industry
More

competitive More options for the firm

Technology
Unrestricted

connectivity Easy access for end users

Open systems Use common standards for hardware, software, applications, & networking.

Trends in Telecommunications (continued)

Technology
High

(continued)

degree of interoperability Digital networks

Higher transmission speeds Moves larger amounts of information Greater economy Lower error rates Multiple types of communications on the same circuits

Trends in Telecommunications (continued)

Technology

(continued)

Fiber-optic lines & cellular, PCS, satellite & other wireless technologies Faster transmission speeds

Trends in Telecommunications (continued)

Business

applications

Dramatic

increase in the number of feasible telecommunication applications. Cut costs, reduce lead times, shorten response times, support e-commerce, improve collaboration, share resources, lock in customers & suppliers, & develop new products & services

The Internet

A network of networks Popular uses

E-mail Instant

messaging Browsing the World Wide Web Newsgroups and chat rooms

The Internet (continued)

The business value of the Internet

Intranets

Within an organization Uses Internet technologies Business value of Intranets

Used

for information sharing, communication, collaboration, & support of business processes. Web publishing

Comparatively easy, attractive, & lower cost alternative for publishing & accessing multimedia business information

Intranets (Portals)

Extranets

Network links that use Internet technologies to interconnect the firms intranet with the intranets of customers, suppliers, or other business partners
Consultants,

subcontractors, business prospects,

& others

Extranets (continued)

Business value
Improve

communication with customers and business partners Gain competitive advantage in

Product

development Cost savings Marketing Distribution Leveraging their partnerships

SECTION II
Telecommunications Network Alternatives

Telecommunications Network Alternatives

A Telecommunications Network Model

A Telecommunications Network Model (continued)

Consists of five basic components

Terminals
Any

input/output device that uses telecommunication networks to transmit or receive data

Telecommunication
Support

processors

data transmission and reception between terminals and computers

A Telecommunications Network Model (continued)

Telecommunications
The

channels

medium over which data are transmitted and received

by telecommunications networks

Computers
Interconnected Control

Telecommunications

control software

telecommunications activities & manage the functions of telecommunications networks

Types of Telecommunications Networks

Wide Area Networks (WAN)

Cover

a large geographic area.

Local Area Networks (LAN)

Connect

computers & other information processing devices within a limited physical area. Connected via ordinary telephone wiring, coaxial cable, or wireless radio & infrared systems

Types of Telecommunications Networks (continued)

Virtual Private Networks

A

secure network that uses the Internet as its main backbone network, but relies on fire walls and other security features

Types of Telecommunications Networks (continued)

Types of Telecommunications Networks (continued)

Client/Server Networks
end user PCs or NCs Server helps with application processing and also manages the network
Clients

Types of Telecommunications Networks (continued)

Types of Telecommunications Networks (continued)

Network computing
the

network is the computer

Thin

clients process small application programs called applets.

A Telecommunications Network Model (continued)

Peer-to-Peer (P2P)
Two

major models

Central server architecture Pure peer-to-peer

Telecommunications Media

Twisted-pair wire Coaxial cable

Minimizes interference and distortion Allows high-speed data transmission

Fiber optics
Glass fiber that conducts pulses of light generated by lasers Size and weight reduction Increased speed and carrying capacity

Wireless Technologies

Terrestrial Microwave
Line-of-sight

path between relay stations spaced approximately 30 miles apart.

Communications Satellites
Geosynchronous

orbits Serve as relay stations for communications signals transmitted from earth stations

New Generations of Wireless Networks

3G network
Broadband up to 2 Mbps Packet switched Combine prior incompatible system

(agreement on standards)

Virtual home environment

Telecommunications Processors

Modems (modulation/demodulation)
Changes

signals from analog to digital and back

to analog

Multiplexers
Allows

a single communication channel to carry simultaneous data transmissions from many terminals

Telecommunications Processors (continued)

Internetwork Processors
Switches
Makes

connections between telecomm circuits so a message can reach its intended destination networks based on different rules or

Router
Interconnects

protocols

Telecommunications Processors (continued)

Hub
Port

switching communications processor

Gateway
A processor

that interconnects networks that use different communications architecture

Telecommunications Software

Provides a variety of communications support services including connecting & disconnecting communications links & establishing communications parameters such as transmission speed, mode, and direction.

Telecommunications Software (continued)

Network Management
Traffic

management Security Network monitoring Capacity planning

Network Topologies

Physical vs. Logical Topology

51

The actual layout of a network and its media is its Physical Topology The way in which the data access the medium and transmits packets is the Logical Topology A glance at a network is not always revealing. Cables emerging from a Hub does not make it necessarily a Star Topology it may actually be a bus or a ring

Bus Topology
52

Bus Topology (5)

53

Advantages Inexpensive to install Easy to add stations Use less cable than other topologies Works well for small networks

Disadvantages
No longer recommended Backbone breaks, whole network down Limited no of devices can be attached Difficult to isolate problems Sharing same cable slows response rates

Ring Topology
54

Ring Topology (3)

55

Advantages Data packets travel at great speed No collisions Easier to fault find No terminators required

Disadvantages Requires more cable than a bus A break in the ring will bring it down Not as common as the bus less devices available

Star Topology
56

Star Topology (3)

57

Advantages Easy to add devices as the network expands One cable failure does not bring down the entire network (resilience) Hub provides centralised management Easy to find device and cable problems Can be upgraded to faster speeds Lots of support as it is the most used

Disadvantages A star network requires more cable than a ring or bus network Failure of the central hub can bring down the entire network Costs are higher (installation and equipment) than for most bus networks

Extended Star Topology

58

A Star Network which has been expanded to include an additional hub or hubs.

Mesh Topology (Web)

59

Mesh Topology (2)

60

Not common on LANs Most often used in WANs to interconnect LANS Each node is connected to every other node Allows communication to continue in the event of a break in any one connection It is Fault Tolerant

Mesh Topology (3)

61

Advantages Improves Fault Tolerance

Disadvantages Expensive Difficult to install Difficult to manage Difficult to troubleshoot

CP2073 Networking