IT for Management: On-Demand Strategies for

Performance, Growth, and Sustainability

Eleventh Edition
Turban, Pollard, Wood

Chapter 4

Networks, Collaborative Technology, and

The Internet of Things
Learning Objectives (1 of 4)
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Network Fundamentals Defined
• A computer network is a set of computers connected
together for the purpose of sharing recourses.

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Common Network Types
Acronym Type Characteristics Example
LAN Local Area Network Short distance Office
connection School
Home
WAN Wide Area Network Spans large physical Internet
distance Large company

WLAN Wireless LAN LAN based on Wi-Fi Internet

technology Large company

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Intranets, Extranets, and Virtual Private
Networks
• Intranets are used within a company for data access,
sharing, and collaboration.
• Extranets are private, company-owned networks that
can be logged into remotely via the Internet.
• Virtual Private Networks (VPNs) are used where
security of transmissions is a concern, because they
encrypt the packets before they are transferred over
the network.

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Virtual Private Networks

A virtual tunnel routed through the Internet with software and hardware
encryption.

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Network Terminology
• Modem: a device that modulates/demodulates signal
for transportation
• Modulation and Coding: Techniques used by modem to
adapt the signal to the media
• Signal: Binary information we want to send.
• Signal Frequency Spectrum: All the frequency
components of a signal
• Media Bandwidth: Limit in range of frequency signals
• Capacity Bandwidth: Maximum bits per second that
can be transmitted

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Figure 4.4 Basic functions of business networks

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Quality of Service (QoS)
• Latent-sensitivity: data such as real-time voice and
high-quality video.
• Prioritized Traffic: data and apps that are time-delay-
sensitive or latency-sensitive apps.
• Throttle Traffic: gives latency-sensitive apps priority,
other types of traffic need to be held back (throttled).
• Traffic Shaping: the ability to prioritize and throttle
network traffic.

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The Net Neutrality Debate
• Net neutrality is the principle that Internet Service
Providers (ISPs) and their regulators treat all Internet
traffic the same way.
• Traffic shaping prioritizes the flow of traffic by delaying
the flow of less important network traffic.
• In 2010, the FCC ruled in favor of “net semi-neutrality”,
not explicitly forbidding paid prioritization.
• The FCC under the current administration may take
further steps to roll back net neutrality rulings, which
could favor the cable companies over consumers.

Copyright ©2018 John Wiley & Sons, Inc. 10

Network Fundamentals
1. Name different types of networks.
2. What is meant by “bandwidth”?
3. What is the difference between an intranet and an extranet?
4. How does a virtual private network (VPN) provide security?
5. What is the purpose of a modem?
6. Describe the basic functions of business networks.
7. How do investments in network infrastructure impact an
organization?
8. Name the two tiers of traffic to which Quality-of-Service is
applied.

Copyright ©2018 John Wiley & Sons, Inc. 11

Learning Objectives (2 of 4)
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Internet Protocols, APIs, and Network
Capabilities
• Internet Protocol (IP) is the basic technology that
makes global communication possible. Each devise
attached to a network has a unique IP address that
enables it to send and receive files made up of packets.

Copyright ©2018 John Wiley & Sons, Inc. 13

IP Addresses and Packets

Figure 4.5: IPv4 addresses have four groups of four alphanumeric characters,
which allows for 232 or roughly 4.3 billion unique IP address. IPv6 addresses have
eight groups of alphanumeric characters, which allows for 2128 , or 340 trillion,
trillion addresses. IPv6 offers also enhanced quality of service that is needed by
the latest in video, interactive games, and e-commerce.

Copyright ©2018 John Wiley & Sons, Inc. 14

Broadband Technology: 3G/4G/5G
• 3G networks support multimedia and broadband
services over a wider distance and at faster speeds than
prior generation networks. They use large satellite
connections to telecommunication towers.
• 4G networks are digital, or IP, networks that enable
even faster data transfer rates. 4G delivers average
realistic download rates of 3 Mbps or higher (as
opposed to theoretical rates, which are higher).
• 5G networks, the coming generation of broadband
technology. 5G will dramatically increase the speed at
which data is transferred across the network.
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Network Technology Standards
• WiMAX
o IEEE 802.16
o 30-mile range
o 70 Megabits per second (Mbps)
o Line-of-site not required
o Same principles as Wi-Fi (using radio signals)
• Long-Term Evolution (LTE)
o GSM deployed by Verizon, AT&T, and T-Mobile
o 100 Mbps downlink, 50 Mbps uplink

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Circuit vs. Packet Switching
• Circuit switching
o Older technology that originated with telephone calls
o Inefficient for digital transmission
• Packet Switching
o Transfers data or voice
o Files are broken into packets, numbered sequentially, routed
individually to their destinations
o When received at the destination, the packets are
reassembled into their proper sequences

Copyright ©2018 John Wiley & Sons, Inc. 17

Application Programming Interfaces and
Operating Systems
• Application Program Interface (API) consists of a set of
functions, commands, and protocols used by
programmers for OS-interactivity without having to
write a program from scratch.
• Can be automated for simplified usability
o Twitter
o Facebook
o Amazon

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Figure 4.7 API value chain in business.

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Internet Protocols (IP), APIs, and
Network Capabilities
1. Why has IPv6 become increasingly important?
2. What is the difference between IPv4 and IPv6?
3. What is the purpose of an IP address?
4. What are the benefits of using an API?
5. What is the difference between 4G and 5G?
6. What is the most current network standard?
7. What benefits will the upcoming 5G network standard offer
businesses?
8. What is the difference between circuit switching and packet
switching?

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Learning Objectives (3 of 4)
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Figure 4.8 Four drivers of global mobile traffic through 2020

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Mobile Data Traffic Milestone by 2020

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Wireless Networks and Mobile
Infrastructure
• Mobile Networks
o Bluetooth: short-range wireless communication technology
allowing device pairing
o Wi-Fi: standard way to wirelessly connect computing devices
through routers commonly connected to the Internet
o WiMax: transmits voice, data, and video over high-frequency
radio signals designed as alternative to cable and DSL

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Data Networks, IP Addresses, and APIs:
A mashup of GPS and Bluetooth
• General term referring to the integration of two or
more technologies such as Bluetooth and Wi-Fi
o Provide intelligence
o Inter-Automobile collision avoidance
o Sudden braking
o Can automatically call emergency services

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Data Networks, IP Addresses, and APIs:
Near-Field Communication (NFC)
• Enables two devices within close proximity to establish
a communication channel and transfer data using radio
waves
• More secure than other wireless technologies
• Examples:
o Apple iWatch
o Digital tickets providing access to concerts
o Transmit public transport payment through phones

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Four Important Factors When Choosing a Mobile Network
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Mobile Networks
1. What factors are contributing to mobility?
2. Why is mobile global traffic increasing?
3. What accounts for the increase in mobile traffic?
4. Give some examples of VoIP networks.
5. How is NFC different from RFID?
6. What are the two components of a wireless network
infrastructure?
7. What is Near Field Communication and how is it used in
business?
8. What factors should be considered when evaluating a mobile
network?

Copyright ©2018 John Wiley & Sons, Inc. 28

Learning Objectives (4 of 4)
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Collaborative Technologies: Virtual
Collaboration--Benefits
• Information sharing between retailers and suppliers
(Example: Walmart and Proctor & Gamble)
• Retailer-supplier collaboration (Example: Asda Corp.)
• Lower transportation and inventory costs and reduced
stockouts (Example: Unilever’s Transportation Business
Center)
• Reduction of product development time (Example:
Caterpillar, Inc.)

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Collaborative Technologies: Group Work

• Group Work and Dynamics can be quite complex

• Group workers can be located in different places or
work at different times
• Group members may work for the same or different
organizations
• Data, information, or knowledge may be located in
many sources that may be external to the organization

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Collaborative Technologies:
Brainstorming in the Cloud
• Companies are now using cloud-based online
brainstorming applications
• Avoids travel expenses if members are geographically
dispersed
• No restriction to number of sessions
• Examples
o Evernote—features function to synchronize user’s notes
o iMindmap Online—relies on mind mapping and other
structured approaches to help streamline work processes

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The Internet of Things (IoT)
Internet of Things (IoT) is the network of physical objects or
“things” embedded with electronics, software, sensors, and
network connectivity, that enables these objects to collect and
exchange data.
• Objects we interact with send signals to and from each other,
collecting data
• IoT collects that data from millions of sensors embedded in
everything from cars, to refrigerators, to space capsules
• Half of U.S. manufacturers report they are currently using IoT
technology to collect machine data (Industry Week study,
2016)
• A smaller percentage (44%) are colleting data from sensors
embedded in their products
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Advantages of IoT
1. Monitoring performance, quality, and reliability of products and
services
2. Gaining insight into potential new products and service
3. Support sales
4. Better understand product use
5. Remote troubleshooting of products
6. Deliver revenue-generating post-sales services
7. More efficiently deliver post-sales services

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Disadvantages of IoT
1. Network security
2. Data privacy
3. Data analysis capabilities
4. Data collection capabilities
5. Realistic efficiency opportunities
6. Realistic new revenue opportunities
7. Cost

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Collaboration Technologies and the Internet
of Things (IoT)
1. Why is group work challenging?
2. What might limit the use of in-person brainstorming?
3. How can online brainstorming tools overcome those limits?
4. List ways in which virtual collaboration can be used in business.
5. What devices do you have that take advantage of the IoT?
Describe how they impact the way that you live and work.
6. What is driving the rise of IoT?
7. What is the main concern that organizations have about the IoT?
8. Do you think the advantages outweigh the disadvantages of the
IoT? Explain.

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Copyright
Copyright © 2018 John Wiley & Sons, Inc.
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