Transcript Chapter 15 The Third Component: Powerful Networks 15 - 1

Chapter 15
The Third Component:
Powerful Networks
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The First Networks
• Internet - inexpensive web site - gives a small firm
a global presence - hundreds of millions of people
can access
• Used by businesses for
– electronic linking and communications
– electronic customer-supplier relationships
• Proprietary networks
• Electronic data interchange customers and suppliers agree on standards for
exchanging information
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The First Networks
• Until the advent of the Internet all data networks
were private
– The Internet provides an international network that is
available at low cost - information superhighway
– Tie together people and organizations
– Remove constraints of time and place
– ‘netcentric’ - understands potential of networks and
incorporate them into structure and operations
– Model of the future
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The Impact of Communications
Technology
• Ubiquitous computing - method of enhancing computer
use by making many computers available throughout the
physical environment, but making them effectively invisible
to the user.
• Transparency - uses different networks or resources
without user knowledge
• The telephone system is an example of a large
international network that has been developed based on
published standards
• Private networks
– EDI
– Proprietary data networks
• Private networks have greater security than the Internet
and can provide guaranteed levels of service
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EDI
• Networks in which multiple parties agree to follow
a standard for exchanging data electronically
• Most EDI takes place in batch mode
• EDI networks can lower costs while increasing
accuracy and quality in purchasing goods
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Require expertise and resources - expensive
Have no common telecommunications infrastructure
Proprietary - no industry standard
Will eventually move to the internet
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The Virtual Private Network
• A company replaces leased lines with interfaces to
the Internet
• VPN communication equipment convert user data
to packets, encrypts the packets, and send them
to their desired destination
– Secure
– To the user communications appear to be traveling over
a dedicated network
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Typology of a Network
• Huge, global network
• Internet Service Providers
• Backbone Service Providers
– Global fiber optic networks
• Metropolitan Area Exchange (MAE)
– Helps traffic from one backbone network get onto
another backbone network
• The Internet can create a revolution in the
telephone business
– Voice over IP
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An Example of a Global Backbone
Network
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A North American Backbone
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The Internet Transforms Business and
Commerce
• The Internet is a world wide connection of
networks
– Started in 1969 as the Arpanet
– Allows heterogeneous computers to connect using a
number of communication options
• Based on two core protocols
– TCP: Transmission control protocol
• Responsible for flow of packets and data accuracy
– IP: Internet protocol
• Responsible for getting packets from the sender to
the receiver in the shortest time
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The Internet
• Internet domain names identify the type of
organization
– Common suffixes
• edu: educational institutes
• com: a commercial firm
• gov: the government
• mil: the military
• The World Wide Web and graphical browsers
made the Internet easy to use
• The http protocol and client-server architecture
have enabled devices on the Internet to
communicate
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Internet Technologies
• Browsers and search engines help navigate the
Internet using uniform resource locators (URLs)
• Interaction with the Web can be
– User initiative vs. push technology
• The Internet’s open, decentralized, extendible
architecture and open culture encourages users
and providers to participate
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Intranets and Extranets
• Intranets are build on Internet protocols but
contain proprietary information
– Offers the potential to tie employees and disparate
information systems together
• Customers and others can also access the
company’s internal servers if given permission to
do so
– Such extranets use Internet technology to provide
online access to internal servers
– Utilizes the existing worldwide Internet
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A Variety of Ways to Access the
Internet
• Wireless (WiFi Networks)
– Based on IEEE 802.11x standards
• Cell phones, PDAs, and Refrigerators
• Other devices and applications
– Home security systems
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The Impact of the Internet
• Helped remove the constrain of time and space on
communications
• Leveled the playing field for small businesses
• Created new business models
• Established an open network infrastructure
• Enabled companies to dramatically reduce
transaction costs
• Provided the means for companies to more
closely integrate their supply chains
• Fostered information sharing among business
partners
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The Impact of the Internet
• Provided communication links encouraging
companies to outsource and create value
networks
• Encouraged the creation of alternative forms of
organizations such as the T-Form
• Created new businesses such as eBay as well as
network service providers
• Allowed businesses to open a new channel to
their customers
• Provided new convenience and service to
individuals
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The Impact of the Internet
• Created a virtual library of information on a host of topics
• Widened the divide between industrialized and developing
countries
• Created a source of uncensored ideas that are difficult for
a government to control
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•Assign #8: Ch 10: - Discussion Questions, pg. 206-207: #1, 6, 9,
12, 14, 17, 19;
•Assign #9: Ch 11: - Discussion Questions, pg. #1, 5, 6, 11, 12, 19,
24, 25.
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