Chapter Two: An Overview of Information and Communication Technologies

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Chapter Two: an overview of Information and

Communication Technologies

Learning objectives
•To highlight on the hardware and software components of
IS
•To impart insight on key infrastructural requirements
•To identify major features and functions of ICT
infrastructure
•To sensitize the need for optimal use of the system
•To shed light on major capabilities, threats and remedies
of the ICT infrastructure
IT Infrastructure and Business Capabilities
EVOLUTION OF IT INFRASTRUCTURE

•Five Stages elapsed over the past 50 years

1. General-Purpose Mainframe and Minicomputer Era:


(1959 to Present)

•Centralized business data processing


•Infrastructure provided by a single vendor, the manufacturer of
the hardware and the software.
2.Personal Computers Era 1981 to date

Individuals start owning


computers
Office machines such as type
writers replaced by PCs
Office automation began
PCs were operating standalone
3.Client/Server Era (1983 to Present)
•Desktop or laptop computers called clients are
networked to powerful server computers that provide the
client computers with a variety of services and capabilities.

•The client is the user point of entry, whereas the server typically
processes and stores shared data, serves up Web
pages, or manages network activities.
4. Enterprise Computing Era (1992 to
Present)
• Firms started using networking standards and software tools
that integrate disparate networks and applications throughout
the firm into an enterprise-wide infrastructure.
•Transmission Control Protocol/Internet Protocol
(TCP/IP) networking standard to tie their disparate
networks together
•link different types of computer hardware, including
mainframes, servers, PCs, and mobile devices, and it
includes public infrastructures such as the telephone
system, the Internet, and public network services.
5.Cloud and Mobile Computing Era (2000 to Present)

•Cloud computing refers to a model of computing that


provides access to a shared pool of computing resources
(computers, storage, applications, and services) over a
network, often the Internet.
• Enabled on demand service access
INFRASTRUCTURE COMPONENTS

•IT infrastructure today is composed of seven major


components

•These components constitute investments that must

be coordinated with one another to provide the


firm
with a coherent infrastructure.
INFRASTRUCTURE COMPONENTS

•IT infrastructure today is composed of seven major


components

•These components constitute investments that must be


coordinated with one another to provide the firm with a
coherent infrastructure.
Software Systems
• Systems software: coordinates the activities of hardware and
programs and act as an interface with applications. Server, PC,
and Mobile OS are widely in use.
• Microsoft Windows Server comprises about 35 percent of the
server operating system market
• Enterprise software applications: integrates firm’s business
processes, such as ERP and various DBMS
• Common hardware functions
– Get input (e.g., keyboard)
– Retrieve data from disks and store data on disks
• Display information on a monitor or printer
Communication and Networks

Rationale for Computer Networking & Communication


• Communicate electronically and share hardware, software, and data resources
• Enhance collaboration & communication among individuals both inside & outside an
organization
• Process transactions (sales) immediately from many remote locations
• Exchange business documents electronically with its customers and suppliers
• Control & monitor production processes.
Terminologies and Network Components
• Telecommunications: the electronic transmission of signals for communications
• Telecommunications medium: anything that carries an electronic signal and
interfaces between a sending device and a receiving device ( Cables, Microwave,
Satellite etc)
Network Terminologies....

• Computer network: the communications


media, devices, and software needed to
connect two or more computer systems or
devices
• Network nodes: the computers and devices on

the networks
Telecommunications Network
Model
A telecommunications network is any

arrangement where:
◦ A sender transmits a message
◦ To a receiver
◦ Over a channel
◦ Consisting of some sort of medium
Components

Terminals
◦ Any input/output device that uses networks
to transmit or receive data
Telecommunications processors
◦ Devices that support data transmission,
reception
Telecommunications channels
◦ Media over which data are transmitted,
received
Network Types

• Local area network (LAN)


• Metropolitan area network (MAN)
• Wide area network (WAN)
• International network
Figure 4.7: A Typical LAN

Fundamentals of Information Systems, Third Edition 18


Inter-Network Processors
Router… intelligent communications processor that
interconnects networks based on different protocols.
A router is a device that forwards data packets along
networks
Switch… makes connections between telecommunications
circuits in a network. receive, process and forward data to the
destination device
Hub… a port-switching communications processor. It is a device
for connecting multiple devices together and making them act
as a single network segment.
Gateway… connects networks with different communications
architectures or protocols opposed to router where they help
to connect different networks using same protocols
Figure 4.8: A Wide Area Network
Fundamentals of Information Systems, Third Edition 19
Communications Software and Protocols

• Communications software: software that


provides a number of important functions in a
network, such as error checking and data
security
• Network operating system (NOS)
• Network management software
• Communications protocol: a standard set of
rules that controls a telecommunications
connection
Each layer is functionally independent of the others, but
provides services to the layer above it and receives services from
the layer below it.
Network Topologies
Topology is the physical arrangement of interconnected computers in the network.

1.Star
•Ties end user computers to a central hub.
The hub is the focal point of the star
•Easier to setup
•Higher dependency on the central
computer/device
Ring

• media
Bus
Internet, Intranet, and Extranet Systems

• Use and Functioning of the Internet


• Internet: a collection of interconnected networks, all freely
exchanging information
• ARPANET
– The ancestor of the Internet
– A project started by the U.S. Department of Defense (DoD) in 1969
• Internet Protocol (IP): communication standard that enables traffic
to be routed from one network to another as needed
• How the Internet Works
• The Internet transmits data from one computer (called a host) to
another
• If the receiving computer is on a network to which the first computer
is directly connected, it can send the message directly, otherwise
the message will be transmitted in a form of relay
Internet Application Categories
• Discovery: Searching and retrieving
information
• Communication: Provides inexpensive
communication channel
• Collaboration: Enhances collaboration
between individuals and groups
• Product Delivery: Made possible online sale of
books and services
•If the receiving computer is not on a network to which the sending computer is
connected, the sending computer relays the message to another computer that
can forward it
•Data is passed in chunks called packets
Internet Protocol (IP): communications standard that enables traffic to be
routed from one network to another as needed
Transmission Control Protocol (TCP): widely used transport-layer protocol
that is used in combination with IP by most Internet applications
Uniform Resource Locator (URL): an assigned address on the Internet for
each device
Internet and Telecommunications Services

• E-mail and instant messaging


• Chat rooms: enable two or more people to engage in interactive
“conversations” over the Internet
• Internet phone and videoconferencing services
• Shopping on the Web, e-commerce. Virtually all activities that people
undertake in the physical world
Intranets and Extranets
• Intranet
– Internal corporate network built using Internet and World Wide Web standards
and products
– Used by employees to gain access to corporate information
– Slashes the need for paper
• Extranet
– A network based on Web technologies that links selected resources of a
company’s intranet with its customers, suppliers, or other business partners
•Virtual private network (VPN): a secure connection between two
points across the Internet

Tunneling: the process by which VPNs transfer information by


encapsulating traffic in IP packets over the Internet

Figure 4.12: Virtual Private Network

Fundamentals of Information Systems, Third Edition 43


The E-Commerce System

E-Commerce
• E-commerce is a new way of conducting business, and as with any other new
application of technology, it presents both opportunities for improvement and
potential problems.
• E-commerce requires the careful planning and integration of a number of
technology infrastructure components.
Forms of Electronic Commerce
• Business-to-consumer (B2C) e-commerce: customers deal directly with the
organization, avoiding any intermediaries
• Business-to-business (B2B) e-commerce: participants are organizations
• Consumer-to-consumer (C2C) e-commerce: participants are individuals, with one
serving as the buyer and the other, the seller
• Collaborated commerce (c-commerce): typical example is supply chain
management
• Intra-organizational commerce: Business to Employee (B2E) to improve operation
• Government to Citizens (G2C): Enhances
government services and citizens
participation
• Mobile Commerce (M-C): Using cell phone
to access Internet and transact
E-Commerce Applications: Retail and Wholesale

• Electronic retailing (e-tailing): the direct sale from business to consumer


through electronic storefronts, typically designed around an electronic
catalog and shopping cart model
• Cybermall: a single Web site that offers many products and services at one
Internet location
• Manufacturing, repair, and operations (MRO) goods and services
E-commerce Technology,
Infrastructure, and Development

Figure 5.4: Key E-Commerce Technical Components


Fundamentals of Information Systems, Third Edition 17
Hardware

• Storage capacity and computing power required of the Web server depends on:
– Software that will run on the server
– Volume of e-commerce transactions
• Web site hosting
Software

•Security and identification


•Retrieving and sending Web pages
•Web page construction
-Static Web page
-Dynamic Web page
E-commerce software must support:

•Product configuration
•Shopping-cart facilities
•Catalog management
Electronic Payment Systems
Digital certificate: an attachment to an e-mail message
or data embedded in a Web page that verifies the identity
of a sender or a Web site
Electronic cash: an amount of money that is
computerized, stored, and used as cash for
e-commerce transactions
Electronic wallet: a computerized stored value that holds
credit card information, electronic cash, owner
identification, and address information
•Credit card
•Charge card
•Debit card
•Smart card
Discussion questions
• Discuss the challenges and opportunities of e-commerce for business
organizations in Ethiopia
• Discuss the potential benefit of Intranet system for organizations
• Discuss and describe how online banking companies operate

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