Technology Guide 4 : Telecommunications and the Internet

QUESTIONS FOR REVIEW an all-campus network? For a departmental

network? For a hospital network?
1. What are data communications? What are the
issues involved in data communications? 4. Under what conditions should a firm install a
PBX instead of a local area network?
2. Describe the two main types of data transmission
media. What are three common electromagnetic 5. Which is more important, bandwidth or
media, and what are the advantages of each? protocol? Why or when?

3. What purpose do modems serve? What is the 6. Why has the data communications industry
difference between simplex, half-duplex, and expanded so rapidly in the last 10 years? Why
full-duplex transmissions? What is a are there so many new providers?
multiplexor, and why is it used?
7. Under what conditions might (textual) electronic
4. Explain a network topology. What are the three mail be better than a facsimile? When would a
common network topologies, and what are the facsimile be better than electronic mail?
relative advantages/disadvantages of each?
What purpose does a PBX serve? 8. Relate the concept of open system to
connectivity and Microsoft’s Windows.
5. What is bandwidth, and why is it important?
What are the two types of data transmission EXERCISES
synchronization, and how are they different?
What is a data communications protocol? 1. Contact a local business that uses a local area
network of at least 15 nodes (e.g., terminals,
6. What is a common carrier? What is packet computers, and printers). Identify and quantify
switching, and how does it work? the resources expended to manage the network
on a per-node basis. What is the per-node
7. What are some of the differences between paper variable cost of the network vs. The per-node
mail and electronic mail? What is electronic fixed cost?
data interchange, and why is it used? What is
electronic funds transfer, and what industry is 2. Imagine you are designing a corporate
most likely to use it? information network for a fast food chain with
1,200 sites in 16 Eastern states. You hope to be
8. Distinguish between a value-added network and able to predict customer demand and react to
a virtual private network. customer preferences better by acting
collectively on all site sales data. What kind of
9. What is a global positioning system, and how is network topology would be best for this
it used? situation? Should the network use the services
of a common carrier for circuits, or should it
10. What is an open system? manage its own communications circuits? What
kind of communications applications should the
QUESTIONS FOR DISCUSSION network be capable of handling?

1. Which transmission media would be the best for 3. Find five recent applications of global
ships at sea? For a banking or automatic teller positioning systems in air, sea, and land
network? For remote news service providers? situations. Prepare a report that outlines the
benefits and the interfaces with other information
2. Some scientists recommend flip-flopping how systems.
people normally communicatethey recommend
that voicecommunication move from phone line
(e.g., cable) to radio and that radio/television
move from radio to cable. What might be
advantages to this? Disadvantages?

3. What type of network topology might be best for

GROUP ASSIGNMENTS Divide the class into two groups: one group
advocating commercial development and
Each member of the group is to be assigned to a management of a U.S. information superhighway,
company, government agency, or other organization. and the other group advocating government
Each member will conduct an interview and identify development and management (either federally or
the current and future applications of wireless locally). Have group representatives give the
communication. The group will compile the respective business benefits of each option.
applications and make a class presentation.

Minicase 1

Full-Featured Network Connects a City

Community leaders in Cupertino, California, have software development, and initial deployment.
launched plans to build what may be the nation’s first
citywide computer network linking residents, Questions for Minicase 1
government, schools, and local corporations. For a
$20 annual fee, any of Cupertino’s residents with a 1. Could security or privacy problems arise through
computer and phone line will be able to shop, job use of the Cupertino network?
hunt, or obtain information about city programs and
services. Local residents will no longer have to visit 2. How could town managers effectively manage
a city office in person to pick up a form or the information available over the
communicate with local officials. The network will networkmaking sure that it is accurate,
also provide a channel for the city to disseminate complete, and timely?
information to citizens.
While a handful of U.S. communities have 3. How could town businesses use the network?
established electronic networks, these have been
limited to single applications such as electronic 4. People go to city offices for more than just
bulletin boards. Cupertino’s network, however, will information (e.g., driver’s license renewal,
be full featured. Cupertino schools are expected to marriage certificates, and building permits).
be the first on-line with access to database services Could these public transactions also take place
and the Internet. The plan will eventually include all over the network? What about civic equivalents
key institutions that people generally consult for of bank automatic teller machines for those
informationschools, libraries, city government, the without home computers?
chamber of commerce, and major employers in the
area. Costs?about $20,000 including hardware,
SOURCE: Adapted from “Town Crier Goes On Line,” Information Week, May 10, 1993.

Minicase 2

Should the Hotel Chain Go Open System?

Eurotel is a large chain of hotels in Europe. Its hotels he considered.

are scattered all over the continent. The company is
using an aged IBM mainframe at its headquarters. 1. Scrap the old system, and move to an enterprise
Most of its 68 hotels use regular telephones to open system environment. This option will
transmit information. Fax and express mail are used require finding a Unix-based hotel management
frequently. Headquarters feels that it needs to track system (several exist), a Unix-based DBMS, and
numerous individual hotel functions closely. The 4GL modeling language, and Unix-based
existing system was found to be ineffective since data hareware (minicomputers, mainframe) for both
arrived too late, information is incomplete, and e- the individual cities and the hotels. The problem
mail communication is incompatible with some with this option is that it will be necessary to
hotels. rewrite all the applications, including the
Stephen Class, the IS director, was looking for reservation system. The connectivity problems
an improvement. Here are some of the possibilities in the existing components are just too big, so
 scraping is the only solution. A large investment problem.
will be required, and the projected time for the
completion of the project is three to four years. Questions for Minicase 2

2. Upgrade the existing mainframe system. This What kind of telecommunications system would you
solution will not solve the problem completely, suggest to build for alternative #1? (Provide a
but there will be some improvements. In a few figure.)
years, there will be a need for more
improvements. The cost is minimal, and What are the major differences between alternatives
upgrading can be done within a month. #2 and #3?

3. Develop a corporate telecommunications Prepare a list of the major advantages and

network using LAN, WAN, and so on; use as disadvantages with each alternative.
much of the old equipment as possible; and
invest money in solutions for the connectivity

REFERENCES AND BIBLIOGRAPHY

1. Black, U., Data Networks, Englewood Cliffs,
NJ: Prentice Hall, 1989. 11. Rockart, J. F., “The Line Takes the
LeadershipIS Management in a Wired
2. “Culture of Urgency,” Forbes ASAP, September Society,” Sloan Management Review, Summer
13, 1993. 1988.

3. Derfler, F. J., Jr., “Linking LANs,” PC 12. Rowe, S. H. II., Business Telecommunications,
Magazine, March 16, 1993. New York: Macmillan, 1991.

4. Fitzgerald, J., Business Data Communications: 13. Schroth, R., et al., “Wireless and the Untethered
Basic Concepts, Security, and Design, 4th Ed., Organization,” Insights Quarterly, Summer
New York: John Wiley & Sons, 1993. 1993.

5. Gilder, G., “Into the Telecosm,” Harvard 14. Singleton, J. P., and M. M. Schwartz, “Data
Business Review, March/April 1991. Access Within the Information Warehouse
Framework,” IBM Systems Journal, Vol. 33, No.
6. Harvey, G., “Making the Information Highway 2, 1994.
Work,” Business Quarterly, Spring 1994.
15. Springs, J. D., et al., Telecommunications
7. “The Heavy Burden of LAN Costs,” Protocols and Design, Reading, MA: Addison-
Datamation, June 1, 1993. Wesley, 1992.

8. Keen, P. G. W., Shaping the Future: Business 16. Stewart, T. A., “Managing in a Wired company,”
Design Through Information Technology, Fortune, July 11, 1994.
Cambridge, MA: Harvard Business School
Press, 1991. 17. Strauss, P., “Write Your Own Wireless
Applications,” Datamation, September 15, 1994.
9. “Quick Response to Nervous Tummies,”
Information Week, June 15, 1992. 18. “Town Crier Goes On Line,” Information Week,
May 10, 1993.
10. Roche, E. M., Telecommunications and Business
Strategy, Chicago: The Dryden Press, 1991.