NETWORKING THE ENTERPRISE

Businesses are becoming networked enterprises.  The Internet and Internet-like networks inside the enterprise (Intranets), between an enterprise and its trading partners (extra-nets), and other types of networks have become the primary information technology infrastructure of many organizations.  Telecommunications networks enable managers, end users, teams, and work groups to electronically exchange data and information anywhere in the world with other end users, customers, suppliers, and business partners.  By using such networks, companies can:

·         Collaborate more creatively

·         Manage their business operations and organizational resources more effectively

·         Compete successfully in today’s fast changing global economy

Many organizations today could not survive without a variety of interconnected computer networks to service their information processing and communications needs.

Analyzing FedEx versus UPS

We can learn a lot about the role that wireless telecommunications technologies can play in e-business.  Take a few minutes to read it, and we will discuss it (See FedEx versus UPS in Section IX).

TRENDS IN TELECOMMUNICATION

Major trends occurring in the field of telecommunications have a significant impact on management decisions in this area.  Informed managerial end users should thus be aware of major trends in telecommunications industries, technologies, and applications that significantly increase the decision alternatives confronting their organizations.

Industry Trends:

·         Telecommunications networks and services are available from numerous large and small telecommunications companies.

·         Explosive growth of the Internet and the World Wide Web has created a host of new telecommunications products, services and providers.

·         Business firms have dramatically increased their use of the Internet and the Web for electronic commerce and collaboration.

Technology Trends:

·         Open systems with unrestricted connectivity, using Internet networking technologies as their technology platform, are becoming the primary telecommunications technology drivers.

·         Increased industry and technical moves towards building client/server networks based on open system architecture.  Open systems are information systems that use common standards for hardware, software, applications, and networking.  Any open systems provide greater connectivity, that is, the ability of network computers and other devices to easily access and communicate with each other and share information.  Open systems architecture also provides a high degree of network interoperability.  That is, open systems enable the many different applications of end users to be accomplished using the different varieties of computer systems, software packages, and databases provided by a variety of interconnected networks.

·         Change from analog to digital network technologies.  Local and global telecommunications networks are rapidly converting to digital transmission technologies that transmit information in the form of discrete pulses, rather than waves.    Digital transmission offers:

a.       Higher transmission speeds (transmits with pulses)

b.    Movement of greater amounts of information

c.       Greater economy

d.      Much lower error rates than analog systems

e.       Telecommunications networks to carry multiple types of communications (data, voice, and video) on the same circuits.  (Integrated Services Digital Network (ISDN) technology)

·         Change in communications media. Many telecommunications networks are changing from copper wire-based media and land-based microwave relay systems to fiber optic lines and communications satellite transmissions.  Fiber optic transmission, which uses pulses of a laser-generated light, offer significant advantages in terms of:

a.       Reduced size and installation effort

b.      Greater communication capacity

c.       Faster transmission speeds

d.      Freedom from electrical interference

Business Application Trends:

·         The trend toward more vendors, services, Internet technologies, and open systems, and the rapid growth of the Internet, the World Wide Web, and corporate Intranets and extra-nets, dramatically increases the number of feasible telecommunications applications.

·         Telecommunications networks are playing a vital and pervasive role in electronic commerce, enterprise collaboration, and internal business applications that support the operations, management, and strategic objectives of both large and small companies.

·         Telecommunications functions have become an integral part of local and global computer networks that are used to dramatically:

a.       Cut costs

b.      Shorten business lead times and response times

c.       Support electronic commerce

d.      Improve the collaboration of workgroups

e.       Develop online operational processes

f.       Share resources

g.      Lock in customers and suppliers

h.      Develop new products and services.