MANAGEMENT INFORMATION SYSTEMS
Week Seven
Telecommunications and Networks
A communication network is any arrangement in which a sender transmits a message to a receiver over a channel consisting of some type of medium
Five basic components of Telecommunications Network Terminals – Any input/output device that is used to transmit or
receive data Telecommunication Processors – Devices which support data
transmission and reception between terminals and computers e.g. modems, switches, routers. These devices perform many functions such as:
Convert data from digital to analog or back Code and decode data Control speed Monitor accuracy and efficiency
Telecommunication channels over which data are transmitted and received. Usually a combination of media is used such as: coaxial cables, copper wires, fiber-optic, wireless systems, communications satellites, radio and cellular systems
Computers Telecommunications software e.g. networking programs of all kinds
TELECOMMUNICATIONS NETWORK MODEL
Wide Area Networks – telecommunications networks covering large geographical area are called wide area networks. Networks covering a city or metropolitan area are called metropolitan networks
Local Area Networks – connect computers and other communication devices within limited physical area such as: an office, building, classroom, labs etc.
To communicate over the network, usually a PC has a circuit board called a network interface card
Most LANs use a more powerful microcomputer with a large hard drive called a file server or network server. Usually networking operating system is installed on such machines that controls telecommunications along with sharing network resources
Virtual Private Network (VPN) – it is used to establish secure intranet and extranet
VPN is a secure network that uses the internet as its main backbone but relies on firewalls, encryption and other security features
VPN helps to establish a private and secured connection without having to spend a lot of money on networking infrastructure
TYPES OF TELECOMMUNICATIONS NETWORKS
Client/Server Networks – End user computers or PCs are the clients and these are interconnected by LAN and are connected to the network servers which also manage the networks. Local area networks are also connected to other LANs and WANs.
Peer to peer Networks Central Server Architecture – a central server has directory of all
users on the network In case a file is required, server searches for file on the network
and then send you the user name, you connect to the required PC and get your file transferred
Pure Peer to peer Network – it does not have any central directory Software connects your PC to one of the online users in the
network Then an active link to your user name is transmitted from peer
to peer to all online users in the network This way active links to more and more peers spread throughout
the network When you request a file, the software searches every online user,
and sends you a list of active file names related to your request. Clicking on one of these links automatically transfer the file
TYPES OF TELECOMMUNICATIONS NETWORKS CONTINUED
WIDE AREA NETWORK (WAN)
LOCAL AREA NETWORK (LAN)
VIRTUAL PRIVATE NETWORK
CLIENT SERVER NETWORKS
PEER TO PEER NETWORK
Wired Technologies Twisted-Pair Wire – Copper wires twisted into pairs and are used
for both voice and data transmission Transmission speeds can range from 2 million bits to 100
million bits per second Coaxial Cable – copper or aluminum wire wrapped with spacers
to insulate and protect. This minimizes interferences and distortion of signals
Speed varies between 200 million bits to 500 million bits per second
Fiber Optics – cables consist of one or more hair-thin filaments of glass fiber wrapped in a protective jacket. These cables conduct pulses of visible light elements (photons) generated by lasers at a transmission speeds of as high as trillions of bits per second
A half inch fiber optic cable can carry more than 500000 channels as compared to 5000 of coaxial cables
These cables are not affected by or generate electromagnetic radiation allowing multiple fibers to be placed in the same cable
Has less data error rate
TELECOMMUNICATIONS MEDIA
TELECOMMUNICATION MEDIA
Twister Pair Wire Coaxial Cable
Fiber Optic Cable
Wireless Technologies - rely on radio waves, microwaves, infrared to transmit digital communications without wires
Terrestrial Microwave – involves earthbound microwave systems that transmit high speed radio signals in a line-of-sight path between relay stations spaced approximately 30 miles
Antennas are placed on top of buildings, hills, towers etc. Communications Satellites – Use microwave radio as
telecommunication medium High earth orbit(about 22,000 miles above the equator)
communication satellites These satellites communicate with stations on earth
through dish antennas Such stations were used only for voice and video
transmissions, however large volume of data is also being transmitted now
Cellular and PCS Systems – use several radio communication technologies
Large area gets divided into small geographical areas, each has its own lower power transmitters
TELECOMMUNICATIONS MEDIA CONTINUED
Wireless Technologies Continued … Wireless LANs – Using wires in a building is often costly
and difficult affair Wireless LANs can easily be installed without having
any physical connections through cable using wireless technologies
Bluetooth - A wireless technology being used to connect devices from 10 to 100 meters range
Normally a standard radio chip is plugged into devices that facilitates communication between two devices
Wireless Web
TELECOMMUNICATIONS MEDIA CONTINUED
TELECOMMUNICATIONS MEDIA CONTINUED
Modems – Convert digital signal to analog that can be transmitted through telephone line and then at the other end a reverse process takes place
Inter-Network Processors – devices such as switches, hubs, routers, gateways
Switches – makes connections in communications circuits Bridge – is a device that connects two or more LANs using the same
communications rule or protocol Router – connects networks with different rules or protocol so that a
transmitted message can be routed to its intended destination Hub – is a port-switching device. Workstations, servers, printers and
other networking resources are connected to ports. Modern hubs do automatic switching
Gateway – Networks using different communication architectures are connected through gateways
Multiplexers – a communication processor that allows a single channel to carry simultaneous data transmission from many channels. It is achieved in two ways:
Frequency Division multiplexing - a multiplexer divides a high-speed channel into multiple slow speed channels
Time Division Multiplexing – divides the time each terminal can use the high speed into very short time slots or time frames
TELECOMMUNICATIONS PROCESSORS
TELECOMMUNICATION PROCESSORS
Hub
Router
Multiplexer
Programs built to manage telecommunication activities fall under the umbrella of telecommunication software
Activities managed by these packages are: Traffic Management – Manage resources and network
traffic to avoid congestion and optimize telecommunication services for users
Security – must provide: Authentication Encryption Firewall Auditing functions Enforce security policies And any other networking defenses
TELECOMMUNICATION SOFTWARE
Ring – Each node connects to exactly two other nodes, thus forming a single continuous pathway. Data travels from node to node where each node handles every packet of data
Advantages: Very orderly network where each node has access and opportunity to transmit Performs better than Bus topology under heavy network load Does not require a central node to manage networking traffic
Disadvantages: One malfunction can create problems for rest of the network Moves, additions and change of devices affect the networking traffic Communication delay is directly proportion to number of nodes in the network Bandwidth is shared on all links between devices
Star – one central devices i.e. hub, switch or computer to which all other computer/devices are connected, thus provides a common connection point
Advantages: Better performance - a lot of load on central device but a good device can easily
manage the workload Isolation of devices Easy to find faults and can easily be corrected No disruptions to the network when connecting or removing devices
Disadvantages: High dependence on the central device Failure of central device makes network inoperable More difficult to configure than star
Bus – Devices are connected via a shared communication line, very uncommon and care must be taken as communication collision is quite possible
NETWORKING TOPOLOGIES
NETWORKING TOPOLOGIES
Bus
StarRing
NETWORK PROTOCOLS Until quite recently, standards were lacking for interfaces
among hardware, software and communication channels. This resulted in:
Increased costs Reduced efficiency Less effectiveness
Protocols – Standard set of rules and procedures for the control of communications in a network
Protocols might be limited to one type of equipment or one manufacturer's equipment
One of the goals of communication standardization is to increase compatibility among different protocols e.g.:
Physical characteristics of terminals, computers, modems and other communication lines
Handshaking i.e. the process of exchanging predetermined signals and characters to establish a communication session
The goal of architecture is to promote: open, simple, flexible and efficient communication environment by the use of standard protocols, software and hardware interfaces
Open Systems Interconnection (OSI) is a standard description or “reference model” that explains how messages should be transmitted between any two points
There are seven layers to OSI: The physical Layer – Provide the hardware means of sending and receiving
data on a carrier The data link layer – Supports error-free organization and transmission of
data in a network The network layer – It handles the routing of data i.e. sending it to the
intended destination. Does routing and forwarding The transport layer – It manages end-to-end control i.e. (determining if all
packets have been arrived) and error checking. It ensures complete data transfer
The session layer – It sets up, coordinates and terminates conversations, exchanges and dialogues between applications at each end i.e. it deals with connections and sessions
The presentation layer – it usually is part of an operating system and converts incoming and outgoing data from one format to another i.e. a text stream into a pop-up window
Application layer – Communication partners are identified, quality of service is identified, user authentication and privacy
NETWORK ARCHITECTURE
Transmission Control Protocol/Internet protocol The addressing, routing, transport protocols, objective is
to ensure that a user gets to the right website or e-mail reaches the intended recipient
TCP/IP can be related to a mailing system where TCP regulates the postal system, various processes and protocols to move the mail and IP refers to finding ZIP code and house number
IP was first standardized in Sep 1981 and was developed on 32 bit internet address value
The first part of an internet address identifies a number where a host resides and the second part identifies a particular host
Valid addresses can be between 0.0.0.0 to 255.255.255.255, the combination gives us around 4.3 billion addresses
Internet2 increases IP addresses from 32 to 128 bits
THE INTERNET TCP/IP
e-Business Systems
CHAPTER 7
What is e-business ?
The use of internet, other networks and information technologies to support e-commerce, enterprise communication, collaboration, web-enabled business processes both within networked enterprise and within its customers and business partners
INTRODUCTION
Traditional approach was to use separate systems for each function and keep information within an enterprise
Trend has changed now Intenerated cross functional systems in client server
environment are becoming a norm in toady’s business world Sharing information with customers, clients, suppliers and
others is seen as a strategic move
CROSS-FUNCTIONAL ENTERPRISE APPLICATIONS
Customer Feedback
Market Research
MarketTest
Component Design
ProductTest
Product Release
Process Design
Equipment Design
Production Start
MarketingR & D
/Engineering Manufacturing
ENTERPRISE APPLICATION ARCHITECTURE
Suppliers
Customers
Em
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Partn
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Supply Chain ManagementSourcing, Procurement
Enterprise Resource PlanningInternal Business Processes
Customer Relationship ManagementMarketing, Sales, Service
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Enterprise Application Integration (EAI) software being used by enterprises to integrate cross functional applications
ENTERPRISE APPLICATION INTEGRATION
Font OfficeCustomer Service
Field ServiceProduct Configuration
Sales Order Entry
Back OfficeDistribution
ManufacturingScheduling
Finance
Enterprise Application Integration
EAI
Call Centre
HOW DOES EAI WORK?
Web
Fax
Call Centre
EAI
BillingFinance
Routing
ManufacturingShipping
Orders and Fulfillment
1
2
5
3
4
TRANSACTION PROCESSING SYSTEMS Transaction Processing Systems (TPS) are cross-functional information
systems that process data resulting from occurrence of business transactions
Transactions are events that occur as part of doing business, such as: sales, purchases, deposits, withdraws, refunds and payments
Online transaction Processing systems play a strategic role in e-commerce
Transaction Processing Cycle Data Entry – capturing business data Transaction Processing:
Batch Processing – data are accumulated to be processed at a later stage
Real Time Processing – data is processed immediately Database Maintenance – databases need to be updated as and when
required Document and report generation – such as: purchase orders,
paychecks, sales receipts, invoices, credit notes, delivery notes etc. Inquiry Processing – number of inquiries such as stock levels, sales
figures, pricing information etc. are required to be processed by transaction processing systems
ENTERPRISE COLLABORATION SYSTEMS ECS (Enterprise Collaboration Systems) are cross functional
systems that enhance communication, coordination, and collaboration among the members of business teams and work groups
Communicate – share information with each other Coordinate – organize individual work efforts and use of
resources Collaborate – work together cooperatively on joint
projects and assignments
ENTERPRISE COLLABORATION SYSTEMS
Enterprise Collaboration
Systems
Electronic Communications
Tools
Electronic Conferencing
Tools
Collaborative Work
ManagementTools
• e-mail•Instant Messaging•Voice Mail•Faxing•Web Publishing•Paging
• Data Conferencing•Voice Conferencing•Videoconferencing•Discussion Forums•Chat Systems•Electronic Meeting Systems
•Calendaring and Scheduling•Task and Project Management•Workflow Systems•Document Sharing•Knowledge Management
FUNCTIONAL BUSINESS SYSTEMS
Functional Business Systems
Marketing•Customer Relationship•Interactive Marketing•Sales force Automation
Production/Operations•Manufacturing resource planning•Manufacturing execution•Process Control
HR Management•Compensation Analysis•Employee Skills Inventory•Personnel requirement forecasting
Finance•Cash Management•Credit Management•Investment Management•Capital budgeting•Financial forecasting
Accounting•Order Processing•Inventory Control•Accounts Receivables•Accounts Payable•Payroll•General Ledger
Marketing is concerned with: Planning, Promotion, Sale of existing products, Development of new products, Development of new markets
Marketing is an essential part of e-business and any organization Interactive Marketing – Customer focused marketing process that is
based on using internet, extranet, internet to establish two way communication between customers or potential customers
Customers are encouraged to engage interactively to develop new products, delivery and service issues
Targeted Marketing is involved in developing advertising and promotion strategies to strengthen company’s e-commerce activities
Community – Customization of web advertising messages and promotion methods to appeal people in specific communities
Content – Advertising material can be placed in a variety of web sites. The target audience for these adds can vary
Context – Advertising can be aimed to specific web pages where context to products/services is relevant
Demographic/Psychographic - Web advertising can be aimed only at specific type or classes of people
Online behavior – Advertising and promotion effort can be tailored to each visit to a web site. This is achieved through a variety of tracking techniques such as “web cookies”
MARKETING SYSTEMS
SALES FORCE AUTOMATION Many companies are equipping their sales force with:
notebook computers, handheld devices, web browsers, and sales contact management software
This trend: Makes the sales team more productive Speeds up the capture and analysis of sales data It allows marketing and sales management to
improve delivery of information and support they provide to their sales team
It provides strategic advantage to companies
Manufacturing Information Systems support the production/operations that include all activities
Computer Integrated Manufacturing – an overall concept that emphasizes that the objectives of computer based systems in manufacturing must be to:
Simplify (reengineer) – production processes, product designs, and factory organization as a vital foundation to automation and integration
Automate production processes and the business functions with computers, machines and robots
Integrate all production and support processes using computer networks, cross-functional business software, and all other information technologies
Computer-aided manufacturing systems – are those that automate the production process
Manufacturing execution systems – are performance monitoring information systems for factory floor operations such as: production process, materials, equipment, inventories, scheduling, control, machine control etc.
Process Control systems – use of computers to control on going physical processes.
Machine control is the use of computers to control actions of machines
MANUFACTURING SYSTEMS
COMPUTER INTEGRATED MANUFACTURING
ProductionForecasting
Production Scheduling
MaterialRequirements
Planning
CapacityPlanning
ProductionCost Control
Quality Control
Shop Floor
Scheduling
ShopFloor
Control
MachineControl
RoboticsControl
Process Control
ComputerAidedDesign
ComputerAided
Engineering
Computer Aided Process
Planning
ProductSimulation and
Prototype
Computer- integrated- manufacturing
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ManufacturingResourcePlanning Systems
ManufacturingExecutionSystems
EngineeringSystems
Human Resource Information Systems are designed to support: Planning to meet the personnel needs of the business Development of employees to their full potential Control of all personnel policies and programs
Originally businesses used computer-based information systems to:
Produce paychecks and payroll reports Maintain personnel records Analyze the use of personnel in business operations
Many businesses have gone beyond traditional personnel management functions and have developed systems that also support:
Recruitment, selection, and hiring Job placement Performance appraisals Employee benefits analysis Training and development Health, safety and security
HUMAN RESOURCE SYSTEMS
HUMAN RESOURCES INFORMATION SYSTEMS
•Human Resources Planning• Labor force
tracking
•Labor cost analysis and budgeting•Turnover analysis
•Recruiting•Workforce planning/ scheduling
•Succession planning•Performance appraisal planning
•Training effectiveness•Career matching
•Skill assessment•Performance evaluation
•Contract costing•Salary forecasting
•Compensation effectiveness and equity analysis•Benefit performance analysis
•Payroll control•Benefits and administration
Staffing Training and Development
CompensationAdministration
StrategicSystems
TacticalSystems
OperationalSystems
Typically accounting systems include transaction processing systems such as:
Order processing – Captures and process customer orders and produce data for inventory control and accounts receivables
Inventory control – Process data reflecting changes in inventory and provides shipping and reorder information
Accounts receivables – Records amounts owed by customers and produces customer invoices, monthly statements, and credit management reports
Accounts payables – Records purchases from, amounts owed to, and payments to suppliers, and produces cash management reports
Payroll – Records employee work and compensation data and produces paychecks, and other payroll documents and reports
General ledger – Consolidates data from other accounting systems and produces the periodic financial statements and reports of the business
ACCOUNTING SYSTEMS
Online Accounting Systems Financial Management Systems – Such systems support
business managers and professionals in: Financing a business Allocation and control of financial resources
Financial analysts make heavy use of tools like spread sheets to analyze data generated by corporate information systems
Business’s present and future financial health can be evaluated by analyzing current data and future realistic forecasts
Examples: Capital budgeting – the process of evaluating the
profitability and financial impact of proposed financial expenditure
Investments can be evaluated using various return on investment techniques
Financial planning i.e. how cash flow and other financial resources are going to be managed
ACCOUNTING SYSTEMS CONTINUED
FINANCIAL MANAGEMENT SYSTEMS
Information Systems in Finance
Cash Management Investment Management Capital Budgeting Finance Planning
Forecast and manage cash
position
Manage short term and other
securities
Evaluate risk/return of
capital expenditure
Forecast financial performance and financing needs
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