Week seven

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

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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?

E-mail

Web

Fax

Call Centre

Mail

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