Search in book...
Toggle Font Controls
Create new playlist

Name your new playlist

Playlist description (optional)
Sign In

Email address

Password

Forgot Password?

or

Continue with Facebook

Continue with Google
Sign Up

Full Name

Email address

Confirm Email Address

Password

or

Continue with Facebook

Continue with Google

CHAPTER 4
Networks, Collaborative Technology, and the Internet of Things

Introduction

Across all types and sizes of organizations, the Internet and networks have changed the way that business is conducted. Twenty years ago, computers were glorified typewriters that could not communicate with one another. If we wanted to communicate we used the telephone. Today computers constantly exchange data with each other over distance and time to provide companies with a number of significant advantages. The convergence of access technologies, cloud, 5G networks, multitasking mobile operating systems, and collaboration platforms continues to change the nature of work, the way we do business, how machines interact, and other things not yet imagined. In this chapter you will learn about the different types of networks, how they affect the way that businesses communicate with customers, vendors, and other businesses, and how the largest network, the Internet, is enabling massive automatic data collection efforts from “things” rather than from people.

Case 4.1 Opening Case

Sony Builds an IPv6 Network to Fortify Competitive Edge

Sony’s Rapid Business Growth

In the early 2000s, Sony Corporation had been engaged in strategic mergers and acquisitions to strengthen itself against intensifying competition (Figure 4.1). By 2007 Sony’s enterprise network (internal network) had become too complex and was incapable of supporting communication, operations, and further business growth (Table 4.1). The enterprise network was based on IPv4. A serious limitation was that the IPv4 network could not provide real-time collaboration among business units and group companies.

FIGURE 4.1 Sony Corporation overview.

TABLE 4.1 Opening Case Overview

Company	Sony Corporation, Sony.com
Location	Headquartered in Tokyo, Japan. Over 700 total network sites worldwide.
Industries	One of the largest consumer electronics and entertainment companies in the world, including audio/video equipment, semiconductors, computers, and video games. Also engaged in production and distribution of recorded music, motion picture, and video.
Business challenges	Network expansion required too much time due to complexity of enterprise network. Networking TCO (total cost of ownership) was continually increasing. Numerous constraints on networks obstructing communication between companies in Sony Group.
Network technology	Integrated its IPv4 networks with new IPv6 solutions from Cisco. The integrated IPv4/IPv6 network has been used by Sony as infrastructure for the development of new products and enterprise-wide collaboration. Sony also upgraded its Cisco switches at the corporate data center, campuses, and remote offices to handle concurrent IPv4 and IPv6 traffic.

Expansion efforts were taking too long because of the complicated structure of the network, and total cost of ownership (TCO) was increasing. Also, a number of technical limitations were blocking internal communications. To eliminate these limitations, Sony decided to invest in IPv6-based networks.

Network Limitations

Many of the Sony Group companies had developed independently—and had independent networks. Devices connected to the independent networks were using the same IP addresses. That situation is comparable to users having duplicate telephone numbers—making it impossible to know which phone was being called. Also, phones with the same number could not call each other.

Once these networks were integrated, the duplicate IP address caused traffic-routing conflicts. Routing conflicts, in turn, led to the following problems:

Sony’s employee communication options were severely limited, which harmed productivity.
File sharing and real-time communication were not possible.
Introducing cloud services was difficult and time-consuming.

Migration to IPv6 Networks: An Investment in the Future

With its virtually unlimited number of IP addresses, IPv6 would support Sony’s long-term, next-generation information and communications technology (ICT) infrastructure strategy and improve collaboration and productivity.

Migrating from IPv4 to IPv6 involved 700 sites, hundreds of thousands of networking devices, and hundreds of thousands of network users spread around the globe. During the transition, Sony realized that it was necessary to support both IP protocols. That is, while Sony wanted to eventually completely migrate to IPv6, the IPv6 would supplement and coexist with the existing enterprise IPv4 network, rather than replace it. Running both protocols on the same network at the same time was necessary because Sony’s legacy devices and apps only worked on IPv4.

Sony selected Cisco as a key partner in the migration and integration of IPv4 and IPv6 traffic because of the maturity of its IPv6 technology. The integrated network has been used by Sony as infrastructure for product development. Sony also upgraded its Cisco network switches at the corporate data center, campuses, and remote offices to handle concurrent IPv4 and IPv6 traffic.

Business Results

The use of IPv6 eliminated the issue of conflicting IP addresses, enabling Sony employees in all divisions to take advantage of the productivity benefits of real-time collaboration applications. Other business improvements are as follows:

Flexibility to launch new businesses quickly.
Reduced TCO of enterprise network.
Network without communications constraints, supporting “One Sony” through information systems:
- Decreased lead time of connecting a new group to the enterprise network.
- Automated network processes by ridding of manually configured NAT devices.

However, Sony’s networks are far from perfect, especially when it comes to its PlayStation Network Service. Unfortunately for gamers, the PSN consistently crashes without warning and for relatively long periods of time. The first crash of 2016 on January 4th caused the service to be down for about 8 hours for all users. During that time, many users could not play their games, use streaming services, or access the online store.

Questions

Explain how Sony’s IPv4 enterprise network was restricting the productivity of its workers.
What problems did duplicate IP addresses cause at Sony? Give an analogy.
Why did Sony need to run both protocols on its network instead of replacing IPv4 with IPv6?
Describe the strategic benefit of Sony’s IPv6 implementation.
Do research to determine the accuracy of this prediction: “Today, almost everything on the Internet is reachable over IPv4. In a few years, both IPv4 and IPv6 will be required for universal access.”

Sources: Cisco (2016) and Neal (2016).

4.1 Network Fundamentals

Today’s managers need to understand the technical side of computer networks to make intelligent investment decisions that impact operations and competitive position. Enterprises run on networks—wired and mobile—and depend upon their ability to interface with other networks and applications. Computer networks are changing significantly in their capacity and capabilities.

Network Types

Computers on a network are called nodes. The connection between computers can be done via cabling, most commonly through Ethernet, or wirelessly through radio waves. Connected computers share resources, such as the Internet, printers, file servers, and other devices. The multipurpose connections enabled by a network allow a single computer to do more than if it were not connected to other devices. The most well-known network is the Internet.

Computer networks are typically categorized by their scope. Common types of networks are shown in Table 4.2. Of these, LAN and WAN are the two primary and best-known categories of networks.

TABLE 4.2 Types of Networks

Acronym	Type	Characteristics	Example
LAN	Local Area Network	Connects network devices over a relatively short distance Owned, controlled, and managed by one individual or organization	Office building School Home
WAN	Wide Area Network	Spans a large physical distance Geographically dispersed collection of LANs Owned and managed by multiple entities	Internet Large company
WLAN	Wireless Local Area Network	LAN based on Wi-Fi wireless network technology	Internet Large company
MAN	Metropolitan Area Network	Spans a physical area larger than a LAN but smaller than a WAN Owned and operated by a single entity, e.g., government agency, large company	City Network of suburban fire stations
SAN	Storage Area Network Server Area Network	Connects servers to data storage devices	High-performance database
CAN	Campus Area Network Cluster Area Network	Spans multiple LANs but smaller than a MAN	University Local business campus
PAN	Personal Area Network	Spans a small physical space, typically 35 feet or less Connects personal IT devices of a single individual	Laptop, smartphone, and portable printer connected together

Intranets, Extranets, and Virtual Private Networks

Intranets are used within a company for data access, sharing, and collaboration. They are portals or gateways that provide easy and inexpensive browsing and search capabilities. Colleges and universities rely on intranets to provide services to students and faculty. Using screen sharing and other groupware tools, intranets can support team work.

An extranet is a private, company-owned network that can be logged into remotely via the Internet. Typical users are suppliers, vendors, partners, or customers. Basically, an extranet is a network that connects two or more companies so they can securely share information. Since authorized users remotely access content from a central server, extranets can drastically reduce storage space on individual hard drives.

A major concern is the security of the transmissions that could be intercepted or compromised. One solution is to use virtual private networks (VPNs), which encrypt the packets before they are transferred over the network. VPNs consist of encryption software and hardware that encrypt, send, and decrypt transmissions, as shown in Figure 4.2. In effect, instead of using a leased line to create a dedicated, physical connection, a company can invest in VPN technology to create virtual connections routed through the Internet from the company’s private network to the remote site or employee. Extranets can be expensive to implement and maintain because of hardware, software, and employee training costs if hosted internally rather than by an application service provider (ASP).

Image described by caption and surrounding text. — FIGURE 4.2 Virtual private networks (VPNs) create encrypted connections to company networks.

Network Terminology

To be able to evaluate the different types of networks and the factors that determine their functionality, you need to be familiar with the following network terminology:

Modem It is a device designed to adapt/modify the information signals in a way that can be transported by the media. The word modem is composed of two terms: Modulator and Demodulator, the modulator adapts the information signal in order to be transported by the media and the demodulator does the inverse process at reception. Digital modems are called “CSU/DSU” (Channel Service Unit/Data Service Units).
Modulation and coding These are the specific techniques used by the modem to adapt the signal to the media. There are several ways to do this process like Amplitude Modulation, Phase modulation, Frequency Modulation. In a few words modulation/coding is to decide how the “1s” and “0s” are represented in terms of voltages and/or frequencies.
Signal It is the information we want to send, every signal is composed of a combination of 1s and 0s. Every signal has a frequency spectrum.
Signal frequency spectrum These are all the frequency components of a signal. The more 1s and 0s are transmitted per unit of time (i.e., per second) the highest will be the frequency components of a signal. The bandwidth of the signal is measured in hertz or number of variations per second. The more 1s and 0s are transmitted within one second the higher will be the frequency spectrum or signal bandwidth.
Media bandwidth Every media (i.e., Copper, Coaxial, and Fiber Optics) has a limitation in the range of frequency signals that can move through it without significant attenuation. The bandwidth of the media varies by type, is limited, and typically can’t accept the entire signals frequency spectrum (Figure 4.3). The range of frequencies that can move through the media without significant attenuation is called bandwidth and it is also measured in hertz.

FIGURE 4.3 Bandwidth variation by media type.

The mission of a modem/DSU-CSU is to adapt the information signal so that it can move through the media without significant attenuation. Typically “significant attenuation” means that the signal has not lost more than half of its original power.

Generally speaking, the media bandwidth (in hertz) can be defined as the range of frequencies (i.e., fmax − fmin) at which the signal has not lost more than 50% of its power. Upon coding-modulation techniques, it is possible to pack many binary symbols in one hertz (many binary symbols per second), for example, it is possible to pack 5 bits in each hertz of the signal. So if the bandwidth is 200,000 hertz then up to 1,000,000 bits/s (2000,000 hertz *5 bits/hertz) can be transmitted.

A different modulation/coding technique (i.e., for the same signal and the same media) might pack 10 bits per every hertz of bandwidth and up to 2 Mbits/s (200,000 hertz *10 bits/hertz = 2 Mbits/s). The media bandwidth provided should be capable of transporting this coded-modulated signal without significant attenuation.
Capacity or digital bandwidth It is the maximum amount of bits/second that can be transmitted over the media. Upon ideal conditions, it is possible to reach the maximum capacity in a connection although this seldom happens (see Figure 4.4).

FIGURE 4.4 Bandwidth capacity monitor.

Functions Supported by Business Networks

Figure 4.5 describes the basic business functions supported business networks: communication, mobility, collaboration, relationships, and search. These functions depend on network switches and routers—devices that transmit data packets from their source to their destination based on IP addresses. A switch acts as a controller, enabling networked devices to talk to each other efficiently. For example, switches connect computers, printers, and servers within an office building. Switches create a network. Routers connect networks. A router links computers to the Internet, so users can share the connection. Routers act like a dispatcher, choosing the best paths for packets to travel.

Illustration of Basic functions of business networks. — FIGURE 4.5 Basic functions of business networks.

Investments in network infrastructure, including data networks, IP addresses, routers, and switches are business decisions because of their impact on productivity, security, user experiences, and customer service.

Quality of Service

An important management decision is the network’s quality of service (QoS), especially for delay-sensitive data such as real-time voice and high-quality video. The higher the required QoS, the more expensive the technologies needed to manage organizational networks. Bandwidth-intensive apps are important to business processes, but they also strain network capabilities and resources. Regardless of the type of traffic, networks must provide secure, predictable, measurable, and sometimes guaranteed services for certain types of traffic. For example, QoS technologies can be applied to create two tiers of traffic:

Prioritize traffic Data and apps that are time-delay-sensitive or latency-sensitive apps, such as voice and video, are given priority on the network.
Throttle traffic In order to give latency-sensitive apps priority, other types of traffic need to be held back (throttled).

The ability to prioritize and throttle network traffic is referred to as traffic shaping and forms the core of the hotly debated Net neutrality issue, which is discussed in IT at Work 4.1.

Net neutrality is a principle that Internet service providers (ISPs) and their regulators treat all Internet traffic the same way. It’s essentially equal opportunity for Internet speeds and access to website—no unfair fast or slow lanes and no blocking of anything that’s legal on your phone, computer, or table.

IT at Work 4.1

Net Neutrality Debate Intensifies

In 2016, the battle over the complicated issue of net neutrality heated up due to AT&T’s purchase of Time-Warner. However, with AT&T’s takeover of Time-Warner, which owns HBO and DC Comics, it is almost certain that AT&T will give priority to customers who try to access its newfound property (Pachal, 2016). On the opposing side of that issue is traffic shaping. Traffic shaping creates a two-tier system for specific purposes such as:

Time-sensitive data are given priority over traffic that can be delayed briefly with little-to-no adverse effect. Companies like Comcast and AT&T argue that Net neutrality rules hurt consumers. Certain applications are more sensitive to delays than others, such as streaming video and Internet phone services. Managing data transfer makes it possible to assure a certain level of performance or QoS.
In a corporate environment, business-related traffic may be given priority over other traffic, in effect, by paying a premium price for that service. Proponents of traffic shaping argue that ISPs should be able to charge more to customers who want to pay a premium for priority service.

Specifically, traffic is shaped by delaying the flow of less important network traffic, such as bulk data transfers, P2P file-sharing programs, and BitTorrent traffic.

Traffic shaping is hotly debated by those in favor of Net neutrality. They want a one-tier system in which all Internet data packets are treated the same, regardless of their content, destination, or source. In contrast, those who favor the two-tiered system argue that there have always been different levels of Internet service and that a two-tiered system would enable more freedom of choice and promote Internet-based commerce.

Federal Communications Commission’s 2010 Decision

On December 21, 2010, the Federal Communications Commission (FCC) approved a compromise that created two classes of Internet access: one for fixed-line providers and the other for the wireless Net. In effect, the new rules are Net semi-neutrality. The FCC banned any outright blocking of and “unreasonable discrimination” against websites or applications by fixed-line broadband providers. But the rules do not explicitly forbid “paid prioritization,” which would allow a company to pay an ISP for faster data transmission. Net neutrality supporters include major internet companies who provide the content you read and watch online, including AOL, Facebook, Netflix, Twitter, and Vimeo who don’t want to be discriminated against by network owners. Those against it include AT&T, Comcast Time Warner Cable, Verizon, and other internet service providers who own the networks and fear price controls.

Net Neutrality Overturned in 2014

In January 2014, an appeals court struck down the FCC’s 2010 decision. The court allowed ISPs to create a two-tiered Internet, but promised close supervision to avoid anticompetitive practices, and banned “unreasonable” discrimination against providers.

On April 24, 2014 FCC Chairman Tom Wheeler reported that his agency would propose new rules to comply with the court’s decision. These new rules were approved by the FCC in 2015. Wheeler stated that these rules “would establish that behavior harmful to consumers or competition by limiting the openness of the Internet will not be permitted” (Wheeler, 2014). But Wheeler’s proposal would allow network owners to charge extra fees to content providers. This decision has angered consumer advocates and Net neutrality advocates who view Wheeler with suspicion because of his past work as a lobbyist for the cable industry and wireless phone companies.

Rolling Back Net Neutrality Protections in 2017

The process to overhaul how the Internet is regulated is now officially underway. On May 18, 2017 the FCC voted 2-1 to move forward with a proposal to roll back net neutrality protections. The controversial vote is the first step in a lengthy process to overturn the rules put into place during the Obama administration. Longtime net neutrality advocates predict there will be negative consequences for businesses and consumers if net neutrality is overturned. Michael Cheah, general counsel at Vimeo, summed it up by saying that net neutrality is about “allowing consumers to pick the winners and losers and not [having] the cable companies make those decisions for them” (Fiegerman, 2017).

IT at Work Questions

What is Net neutrality?
What tiers are created by traffic shaping?
Why did the battle over Net neutrality intensify in 2014?
Did the FCC’s 2015 net neutrality rules favor either side of the debate? Explain.
What consequences may occur when the 2015 net neutrality rules are overturned?

Sources: Compiled from Federal Communications Commission (fcc.gov, 2017), Fiegerman (2017), Pachal (2016), Wheeler (2014), and various blog posts.

Concept Check 4.1

Computers can be connected on a network via:

Correct or Incorrect?

A ______________________ is a set of computers connected together for the purpose of sharing resources:

Correct or Incorrect?

The type of computer network most suitable for use in a large company is referred to as a:

Correct or Incorrect?

In addition to communication, collaboration and mobility, the basic function of business networks include:

Correct or Incorrect?

4.2 Internet Protocols (IP), APIs, and Network Capabilities

The basic technology that makes global communication possible is a network protocol commonly known as an Internet Protocol (IP). Each device attached to a network has a unique IP address that enables it to send and receive files. Files are broken down into blocks known as packets in order to be transmitted over a network to their destination’s IP address. Initially, networks used IP Version 4 (IPv4). In April 2014 ARIN, the group that oversees Internet addresses, reported that IPv4 addresses were running out—making it urgent that enterprises move to the newer IP Version 6 (IPv6) (Figure 4.6).

The IPv6 Internet protocol has features that are not present in IPv4. For example, IPv6 simplifies aspects of how addresses are assigned, how networks are renumbered and places responsibility for packet fragmentation when packets are processed in routers. The IPv6 protocol does not offer direct interoperability with IPv4, instead it creates a parallel, independent network. Fortunately, several transition mechanisms, such as NAT64 and 6rd, have been developed to allow IPv6 hosts to communicate with IPv4 servers.

Network protocols serve the following three basic functions:

Send data to the correct recipient(s).
Physically transmit data from source to destination, with security protected as needed.
Receive messages and send responses to the correct recipient(s).

The capacity and capabilities of data networks provide opportunities for more automated operations and new business strategies. M2M communications over wireless and wired networks automate operations, for instance, by triggering action such as sending a message or closing a valve. The speed at which data can be sent depends on several factors, including capacity, server usage, computer usage, noise, and the amount of network traffic. Transfer rate or speed is an instantaneous measurement.

Comparing 3G, 4G, 4G LTE, and 5G Network Standards

Over the past 20 years, networks have evolved from 3G networks designed for voice and data to 4G and 5G networks that support broadband Internet connectivity. In its 2016 report, SNS Research, a major market analysis and consulting firm, announced its forecast of 5G network contribution to the world economy. Experts predict that by 2020, “LTE and 5G infrastructure investments are expected to account for a market worth $32 billion” (PRNewswire, 2016).

3G networks support multimedia and broadband services over a wider distance and at faster speeds than prior generation networks. 3G networks have far greater ranges than 1G and 2G networks since 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 much higher). In contrast, today’s 3G networks typically deliver average download speeds about one-tenth of that rate.

5G networks—the coming generation of broadband technology. 5G builds on the foundation created by 4G. 5G will dramatically increase the speed at which data is transferred across the network.

Unlike its predecessors, 2G and 3G that have a circuit-switched subsystem, 4G is based purely on the packet-based IP. Users can obtain 4G wireless connectivity through one of the following standards:

WiMAX is a technology standard for long-range wireless networks. WiMax is based on the IEEE 802.16 standard. IEEE 802.16 specifications are as follows:
- Range: 30 miles (50 km) from base station.
- Speed: 70 megabits per second (Mbps).
- Line-of-sight not needed between user and base station.
WiMAX operates on the same basic principles as Wi-Fi in that it transmits data from one device to another via radio signals.
Long-Term Evolution (LTE) is a GSM-based technology that provides the fastest and most consistent download speeds and most closely follows the United Nation technical standard for 4G networks. In the United States, LTE is deployed by Verizon, AT&T, and T-Mobile. LTE capabilities include the following:
- Speed: Downlink data rates of 100 Mbps and uplink data rates of 50 Mbps.

Improved network performance, which is measured by its data transfer capacity, provides fantastic opportunities for mobility, mobile commerce, collaboration, supply chain management, remote work, and other productivity gains.

5G mobile networks will offer huge gains in both speed and capacity over existing 4G networks—along with opportunities at the operations and strategic levels. In the short term, the 5G infrastructure build-out will create new jobs. In the longer term, 5G will create entirely new markets and economic opportunities driven by superior mobile capabilities in industries ranging from health care to automotive.

5G networks are designed to support the escalation in mobile data consumption, with users demanding higher data speeds and traffic volumes expected to increase by hundreds or even thousands of times over the next 10 years. It is likely that 5G networks will have to deliver baseline data speeds of 100 Mbit/s and peak speeds of up to 10 Gbit/s. 5G will make it easier to send texts, make calls, and download and upload Ultra HD and 3D videos. 5G operates with a 5-Ghz signal and is set to offer speeds of up to 1 gigabyte per second for tens of thousands of connections or tens of megabytes per second for tens of thousands of connections.

The move to 5G is being driven by the significant increase in the number of devices to be supported. Mobile networks will no longer be concerned primarily with person-to-person communications, as the Internet of Things (IoT) creates billions of new devices for remote sensing, telemetry, and control applications which will lead to huge numbers of machine-to-machine and person-to-machine interactions. Although 5G isn’t expected until 2020, many organizations are already investing in the infrastructure required to run this new mobile wireless standard.

Circuit versus Packet Switching

All generations of networks are based on switching. Prior to 4G, networks included circuit switching, which is slower than packet switching. 4G was first to be fully packet switched, which significantly improved performance. The two basic types of switching are as follows:

Circuit switching A circuit is a dedicated connection between a source and destination. In the past, when a call was placed between two landline phones, a circuit or connection was created that remained until one party hung up. Circuit switching is older technology that originated with telephone calls; it is inefficient for digital transmission.
Packet switching Packet switching transfers data or voice in packets. Files are broken into packets, numbered sequentially, and routed individually to their destination. When received at the destination, the packets are reassembled into their proper sequence.

Wireless networks use packet switching and wireless routers whose antennae transmit and receive packets. At some point, wireless routers are connected by cables to wired networks. The first real network to run on packet-switching technology was ARPAnet described in Tech Note 4.1.

Tech Note 4.1

Origin of the Internet, E-mail, and TCP/IP

The Advanced Research Projects Agency network (ARPAnet) was the first real network to run on packet-switching technology. In October 1969, computers at Stanford University, UCLA, and two other U.S universities connected for the first time—making them the first hosts on what would become the Internet. ARPAnet was designed for research, education, and government agencies. ARPAnet provided a communications network linking the country in the event that a military attack or nuclear war destroyed conventional communications systems.

In 1971 e-mail was developed by Ray Tomlinson, who used the @ symbol to separate the username from the network’s name, which became the domain name.

On January 1, 1983, ARPAnet computers switched over to the transmission control protocol/Internet protocols (TCP/IPs) developed by Vinton Cerf. A few hundred computers were affected by the switch. The original ARPAnet protocol had been limited to 1,000 hosts, but the adoption of the TCP/IP standard made larger numbers of hosts possible. The number of Internet hosts in the domain name system (DNS) topped 1.05 billion in 2016, almost double the number reported in 2010.

Application Program Interfaces and Operating Systems

When software developers create applications, they must write and compile the code for a specific operating system (OS). Figure 4.7 lists the common OSs. Each OS communicates with hardware in its own unique way; each OS has a specific API that programmers must use. Video game consoles and other hardware devices also have application program interfaces (APIs) that run software programs.

Illustration of Common mobile and desktop operating systems: Android, iOS, Windows Phone, Windows, Mac OS X, and Linux. — FIGURE 4.7 Common mobile and desktop operating systems. Each computer OS provides an API for programmers. Mobile OSs are designed around touchscreen input.

What Is an API?

An API consists of a set of functions, commands, and protocols used by programmers to build software for an OS. The API allows programmers to use predefined functions or reusable codes to interact with an OS without having to write a software program from scratch. APIs simplify the programmer’s job.

APIs are the common method for accessing information, websites, and databases. They were created as gateways to popular apps such as Twitter, Facebook, and Amazon and enterprise apps provided by SAP, Oracle, NetSuite, and many other vendors.

Automated API

The current trend is toward automatically created APIs that are making innovative IT developments possible. Here are two examples of the benefits of automated APIs:

Websites such as the European Union Patent office have mappings of every one of their pages to both URLs for browser access and URLs for REST APIs. Whenever a new page is published, both access methods are supported.
McDonald’s, along with Unilever and Gatorade, are using automated API’s to bring advertisements to Snapchat users. The social network app is using an auction-based system and targeting to choose which users see which advertisements (Joseph, 2016).

API Value Chain in Business

APIs deliver more than half of all the traffic to major companies like Twitter and eBay. APIs are used to access business assets, such as customer information or a product or service, as shown in Figure 4.8. IT developers use APIs to quickly and easily connect diverse data and services to each other. APIs from Google, Twitter, Amazon, Facebook, Accuweather, Sears, and E*Trade are used to create many thousands of applications. For example, Google Maps API is a collection of APIs used by developers to create customized Google Maps that can be accessed on a Web browser or mobile devices. Tech Note 4.2 describes a new API that Amazon developed for its Internet assistant, Alexa.

Tech Note 4.2

Amazon Develops New API for Alexa

Online retail giant Amazon announced in 2016 its new and improved API for its voice-automated speaker Alexa, along with other developed applications. The new API allows software developers to increase the efficiency of Alexa’s list feature, which allows users to add items to their lists within Alexa. For example, a user can ask Alexa to “add buy soccer cleats” to their to-do lists (Zeman, 2016). This application extends to shopping lists, buy lists, and even music playlists.

The new API called the List Skills API means that developers will have a standardized voice interaction model instead of having to create one of their own. In other words, applications like Alexa will all have standardized instructions that users can take advantage of universally. Similarly, Apple developed Siri for iPhones, Apple compuers, and iPads. List Skills API gives customers the ability to add anything to their lists or give commands across any device or application that uses it.

The API value chain takes many forms because the organization that owns the business asset may or may not be the same as the organization that builds the APIs. Different people or organizations may build, distribute, and market the applications. At the end of the chain are end-users who benefit from the business asset. Often, many APIs are used to create a new user experience. The business benefits of APIs are listed in Table 4.3.

TABLE 4.3 Business Benefits of APIs

Characteristic	Benefit
APIs are channels to new customers and markets	APIs enable partners to use business assets to extend the reach of a company’s products or services to customers and markets they might not
APIs promote innovation	Through an API, people who are committed to a challenge or problem can solve it themselves
APIs are a better way to organize IT	APIs promote innovation by allowing everyone in a company to use each other’s assets without delay
APIs create a path to lots of Apps	Apps are going to be a crucial channel in the next 10 years. Apps are powered by APIs. Developers use APIs and combinations of APIs to create new user experiences

Concept Check 4.2

The basic functions of an Internet protocol are all of the following, EXCEPT:

Correct or Incorrect?

____________________ is a unique identifier for each device that communicates with a network that identifies and locates each device.

Correct or Incorrect?

The latest network standard that is expected in 2020 is:

Correct or Incorrect?

_________________ switching is a dedicated connection between the source and a destination.

Correct or Incorrect?

A(n) ___________ is a set of functions, commands and protocols used by programmers to build software for an operation system.

Correct or Incorrect?

4.3 Mobile Networks and Near-Field Communication

In the 21st-century global economy, advanced wireless networks are a foundation on which global economic activity takes place. Current 4G and 5G networks and technologies provide that foundation for moving entire economies. For any nation to stay competitive and prosperous, it is imperative that investment and upgrades in these technologies continue to advance to satisfy demand. Cisco forecasts that the average global mobile connection speed will more than double from the current 1.4 to 3 Mbps and 5G networks are promising speeds that will be 100 times faster than current speeds. The factors that are driving global mobile traffic are shown in Figure 4.9.

Illustration of Four drivers of global mobile traffic: More Mobile Connections, Faster Mobile Speeds, More Mobile Users, and More Mobile Video. — FIGURE 4.9 Four drivers of global mobile traffic through 2020.

Select the caption to view an interactive version of this figure online.

Increase in Mobile Network Traffic and Users

In its most recent Visual Networking Index Forecast (VNI), Cisco reported that mobile data traffic has grown 400 million times over the past 15 years. They also predict that by 2020 monthly global mobile data traffic will be 30.6 Exabytes; number of mobile-connected devices will exceed 11.6 billion (exceeding the world’s projected population of 7.8 billion) and smartphones will account for 81% of total mobile traffic. This includes a major increase in machine-to-machine communications and the number of wearable technology devices.

Smartphone users are expected to rise from the 2.6 billion reported in 2014 to 6.1 billion in 2020 and 80% of these new smartphone users will be located in Asia Pacific, the Middle East, and Africa. Much of that traffic will be driven by billions of devices talking to other devices wirelessly and consumers’ growing demand for more and more videos.

According to the Cisco Visual Networking Index (VNI): Forecast and Methodology 2015–2020. (Cisco 2016), annual global IP traffic will reach 2.3 Zettabytes or 194 Exabytes per month and smartphone traffic will exceed PC traffic by 2020. Figure 4.10 lists the milestones that mobile data traffic will reach by 2020.

Illustration of Mobile Data Traffic Milestone. — FIGURE 4.10 Mobile Data Traffic Milestone by 2020.

Higher Demand for High-Capacity Mobile Networks

This increase in mobile networks capacity and use is increasing the demand for high-capacity mobile networks. The four drivers of the increase in global mobile traffic demand are shown in Figure 4.10. Demand for high-capacity networks is growing at unprecedented rates. Examples of high-capacity networks are wireless mobile, satellite, wireless sensor, and VoIP (voice over Internet Protocol) such as Skype. Voice over IP (VoIP) networks carry voice calls by converting voice (analog signals) to digital signals that are sent as packets. With VoIP, voice and data transmissions travel in packets over telephone wires. VoIP has grown to become one of the most used and least costly ways to communicate. Improved productivity, flexibility, and advanced features make VoIP an appealing technology.

Mobile Infrastructure

Enterprises are moving away from the ad hoc adoption of mobile devices and network infrastructure to a more strategic planning build-out of their mobile capabilities. As technologies that make up the mobile infrastructure evolve, identifying strategic technologies and avoiding wasted investments require more extensive planning and forecasting. Factors to consider are the network demands of multitasking mobile devices, more robust mobile OSs, and their applications. Mobile infrastructure consists of the integration of technology, software, support, standards, security measures, and devices for the management and delivery of wireless communications, including the following.

Wi-Fi and Bluetooth

Bluetooth is a short-range—up to 100 meters or 328 feet—wireless communications technology found in billions of devices, such as smartphones, computers, medical devices, and home entertainment products. When two Bluetooth-enabled devices connect to each other, this is called pairing.

Wi-Fi is the standard way computers connect to wireless networks. Nearly all computers have built-in Wi-Fi chips that allow users to find and connect to wireless routers. The router must be connected to the Internet in order to provide Internet access to connected devices.

Wi-Fi technology allows devices to share a network or Internet connection without the need to connect to a commercial network. Wi-Fi networks beam packets over short distances using part of the radio spectrum, or they can extend over larger areas, such as municipal Wi-Fi networks. However, municipal networks are not common because of their huge costs. See Figure 4.11 for an overview of how Wi-Fi works.

Illustration of Overview of Wi-Fi. — FIGURE 4.11 Overview of Wi-Fi.

Wi-Fi Networking Standards

802.11ac This is the newest generation of Wi-Fi signaling in popular use. 802.11ac utilizes dual-band wireless technology and support simultaneous connections on both the 2.4 and 5 GHz Wi-Fi bands. 802.11ac offers backward compatibility to 802.11b/g/n and bandwidth rated up to 130 Mbps on 5 GHz, plus up to 450 Mbps on 2.4 GHz.
802.11b This standard shares spectrum with 2.4-GHz cordless phones, microwave ovens, and many Bluetooth products. Data are transferred at distances up to 100 meters or 328 feet.
802.11a This standard runs on 12 channels in the 5-GHz spectrum in North America, which reduces interference issues. Data are transferred about 5 times faster than 802.11b, improving the quality of streaming media. It has extra bandwidth for large files. Since the 802.11a and b standards are not interoperable, data sent from an 802.11b network cannot be accessed by 802.11a networks.
802.11g This standard runs on three channels in the 2.4-GHz spectrum, but at the speed of 802.11a. It is compatible with the 802.11b standard.
802.11n This standard improves upon prior 802.11 standards by adding multiple-input multiple-output (MIMO) and newer features. Frequency ranges from 2.4 to 5 GHz with a data rate of about 22 Mbps, but perhaps as high as 100 Mbps.

Two Components of Wireless Infrastructure

There are three general types of mobile networks: wide area networks (WANs), WiMAX, and local area networks (LANs). WANs for mobile computing are known as wireless wide area networks (WWANs). The range of a WWAN depends on the transmission media and the wireless generation, which determines which services are available. The two components of wireless infrastructures are wireless LANs and WiMAX.

WLANs

Wireless LANs use high-frequency radio waves to communicate between computers, devices, or other nodes on the network. A wireless LAN typically extends an existing wired LAN by attaching a wireless AP to a wired network.

WiMAX

Wireless broadband WiMAX transmits voice, data, and video over high-frequency radio signals to businesses, homes, and mobile devices. It was designed to bypass traditional telephone lines and is an alternative to cable and DSL. WiMAX is based on the IEEE 802.16 set of standards and the metropolitan area network (MAN) access standard. Its range is 20–30 miles and it does not require a clear line of sight to function. Figure 4.12 shows the components of a WiMAX/Wi-Fi network.

Mashup of GPS and Bluetooth

The mashup of GPS positioning and short-range wireless technologies, such as Bluetooth and Wi-Fi, can provide unprecedented intelligence. These technologies create opportunities for companies to develop solutions that make a consumer’s life better. They could, for example, revolutionize traffic and road safety. Intelligent transport systems being developed by car manufacturers allow cars to communicate with each other and send alerts about sudden braking and will even allow for remote driving in the future. In the event of a collision, the car’s system could automatically call emergency services. The technology can also apply the brakes automatically if it was determined that two cars were getting too close to each other or alert the driver to a car that is in their blind spot in the next lane.

Advancements in networks, devices, and RFID sensor networks are changing enterprise information infrastructures and business environments dramatically. The preceding examples and network standards illustrate the declining need for a physical computer, as other devices provide access to data, people, or services at anytime, anywhere in the world, on high-capacity networks.

Business Use of Near-Field Communication

If you’ve used AirDrop on your smartphone you’ve engaged in near-field communication. NFC is a location-aware technology that is more secure than other wireless technologies like Bluetooth and Wi-Fi. And, unlike RFID, NFC is a two-way communication tool. An NFC tag contains small microchips with tiny aerials which can store a small amount of information for transfer to another near-field communication (NFC) device, such as a mobile phone.

Location-aware NFC technology can be used to transfer photos and files, make purchases in restaurants, resorts, hotels, theme parks and theaters, at gas stations, and on buses and trains. Here are some examples of NFC applications and their potential business value.

The Apple iWatch wearable device with NFC communication capabilities could be ideal for mobile payments. Instead of a wallet, users utilize their iWatch as a credit card or wave their wrists to pay for their Starbucks coffee. With GPS and location-based e-commerce services, retailers could send a coupon alert to the iWatch when a user passes their store. Consumers would then see the coupon and pay for the product with the iWatch.
The self-healthcare industry is being radically transformed by the growing use of NFC technology. Wearable devices such as Fit-Bits, smart glucose monitors, and electrical nerve stimulators are becoming increasingly cheap and popular due to the proliferation of NFC tech. These devices can not only monitor, but they also can provide “automated or remote treatment” to users (Patrick, 2016). Remote control with health-care devices allow for smarter preventive care without the need for doctor or hospital visits and can increase the well-being of those living with chronic illnesses.
Passengers on public transportation systems can pay fares by waving an NFC smartphone as they board.

Another interesting near-field application is described in IT at Work 4.2 when technology was used as an incentive in a marketing campaign by Warner Music.

IT at Work 4.2

NFC-Embedded Guitar Picks

Fans attending gigs by The Wild Feathers were given guitar picks embedded with an NFC tag. Warner Music had distributed the guitar picks for fans to enter a competition, share content via social media, and vote at the gig simply by tapping with an NFC phone. NFC-embedded picks were inserted into the band’s promotional flyers at six European venues. Each pick was encoded with a unique URL and also printed with a unique code for iPhone users to enable tracking and monitoring.

Marketing Campaign Success Shows an Exciting Future for NFC

The tags generated a high response rate. Over 65% of the NFC guitar picks had registered in the competition. And 35% of the fans had shared content on social media—spending an average of five minutes on the site.

NFC is being used in marketing campaigns because the technology offers slick one-tap interaction. NFC allows brands to engage with their customers in unique ways and create exciting user experiences. With millions of NFC-equipped smartphones set to reach users over the next few years and the technology’s advantages for shoppers and businesses, NFC is emerging as a major technology.

IT at Work Questions

Assume you attended a concert and were given a brochure similar to the one distributed to fans at The Wild Feathers concert. Would you use the guitar pick or comparable NFC-embedded item to participate in a contest? To post on Facebook or tweet about the concert? Explain why or why not.
How can NFC be applied to create an interesting user experience at a sporting event? At a retail store or coffee shop?
Refer to your answers in Question 2. What valuable information could be collected by the NFC tag in these businesses?

Bluetooth and Wi-Fi seem similar to near-field communication on the surface. All three allow wireless communication and data exchange between digital devices like smartphones. The difference is that near-field communication utilizes electromagnetic radio fields while technologies such as Bluetooth and Wi-Fi focus on radio transmissions instead.

Choosing Mobile Network Solutions

When you are choosing a mobile network solution, it’s important to carefully consider the four factors shown in Figure 4.13.

Illustration of Four important factors to consider when choosing a mobile network solution: Simple, Connected, Intelligent, and Trusted. — FIGURE 4.13 Four important factors to consider when choosing a mobile network solution.

Select the caption to view an interactive version of this figure online.

Simple Easy to deploy, manage, and use.
Connected Always makes the best connection possible.
Intelligent Works behind the scenes, easily integrating with other systems.
Trusted Enables secure and reliable communications.

Concept Check 4.3

A major reason for the exponential rise in mobile data traffic is the proliferation of:

Correct or Incorrect?

Mobile infrastructure components include all of the following EXCEPT:

Correct or Incorrect?

________________ networks beam packets over short distance using part of the radio spectrum or can extend over larger area.

Correct or Incorrect?

Near-field communication (NFC) is used in business to:

Correct or Incorrect?

4.4 Collaborative Technologies and the Internet of Things

Now more than ever, business gets done through information sharing and collaborative planning. Business performance depends on broadband data networks for communication, mobility, and collaboration. For example, after Ford Motor Company began relying on UPS Logistics Group’s data networks to track millions of cars and trucks and to analyze any potential problems before they occur, Ford realized a $1 billion reduction in vehicle inventory and $125 million reduction in inventory carrying costs annually.

More and more people need to work together and share documents over time and distance. Teams make most of the complex decisions in organizations and many teams are geographically dispersed. This makes it difficult for organizational decision-making when team members are geographically spread out and working in different time zones.

Messaging and collaboration tools include older communications media such as e-mail, videoconferencing, fax, and texts—and blogs, Skype, Web meetings, and social media. Yammer is an enterprise social network that helps employees collaborate across departments, locations, and business apps. These private social sites are used by more than 400,000 enterprises worldwide. Yammer functions as a communication and problem-solving tool and is rapidly replacing e-mail. You will read about Yammer in detail in Chapter 7.

Virtual Collaboration

Leading businesses are moving quickly to realize the benefits of virtual collaboration. Several examples appear below.

Information Sharing Between Retailers and Their Suppliers

One of the most publicized examples of information sharing exists between Procter & Gamble (P&G) and Walmart. Walmart provides P&G with access to sales information on every item Walmart buys from P&G. The information is collected by P&G on a daily basis from every Walmart store, and P&G uses that information to manage the inventory replenishment for Walmart.

Retailer–Supplier Collaboration: Asda Corporation

Supermarket chain Asda (www.asda.com) has rolled out Web-based electronic data interchange (EDI) technology to 650 suppliers. Web EDI technology is based on the AS2 standard, an internationally accepted HTTP-based protocol used to send real-time data in multiple formats securely over the Internet. It promises to improve the efficiency and speed of traditional EDI communications, which route data over third-party, value-added networks (VANs).

Lower Transportation and Inventory Costs and Reduced Stockouts: Unilever

Unilever’s 30 contract carriers deliver 250,000 truckloads of shipments annually. Unilever’s Web-based database, the Transportation Business Center (TBC), provides these carriers with site specification requirements when they pick up a shipment at a manufacturing or distribution center or when they deliver goods to retailers. TBC gives carriers all of the vital information they need: contact names and phone numbers, operating hours, the number of dock doors at a location, the height of the dock doors, how to make an appointment to deliver or pick up shipments, pallet configuration, and other special requirements. All mission-critical information that Unilever’s carriers need to make pickups, shipments, and deliveries is now available electronically 24/7.

Reduction of Product Development Time

Caterpillar, Inc. is a multinational heavy-machinery manufacturer. In the traditional mode of operation, cycle time along the supply chain was long because the process involved paper—document transfers among managers, salespeople, and technical staff. To solve the problem, Caterpillar connected its engineering and manufacturing divisions with its active suppliers, distributors, overseas factories, and customers through an extranet-based global collaboration system. By means of the collaboration system, a request for a customized tractor component, for example, can be transmitted from a customer to a Caterpillar dealer and on to designers and suppliers, all in a very short time. Customers also can use the extranet to retrieve and modify detailed order information while the vehicle is still on the assembly line.

Group Work and Decision Processes

Managers and staff continuously make decisions as they develop and manufacture products, plan social media marketing strategies, make financial and IT investments, determine how to meet compliance mandates, design software, and so on. By design or default, group processes emerge, referred to as group dynamics, and those processes can be productive or dysfunctional.

Group Work and Dynamics

Group work can be quite complex depending on the following factors:

Group members may be located in different places or work at different times.
Group members may work for the same or different organizations.
Needed data, information, or knowledge may be located in many sources, several of which are external to the organization.

Despite the long history and benefits of collaborative work, groups are not always successful.

Online Brainstorming in the Cloud

Brainstorming ideas is no longer limited to a room full of people offering their ideas that are written on a whiteboard or posters. Companies are choosing an alternative—online brainstorming applications, many of them cloud-based. An advantage is the avoidance of travel expenses if members are geographically dispersed, which often restricts how many sessions a company can afford to hold. The following are two examples of online brainstorming apps:

Evernote is a cloud-based tool that helps users gather and share information, and brainstorm ideas. One function is Synch, which keeps Evernote notes up-to-date across a user’s computers, phones, devices, and the Web. A free version of Evernote is available for download from www.evernote.com.
iMindmap Online, from UK-based ThinkBuzan, relies on mind mapping and other well-known structured approaches to brainstorming. iMindmap Online helps streamline work processes, minimize information overload, generate new ideas, and boost innovation.

The Internet of Things (IoT)

The Internet of Things has the potential to impact how we live and how we work. The IoT is a subset of the Internet which dictates that objects we interact with everyday send and receive signals to and from each other to exchange data about almost everything. The IoT can best be described as a collection technology in that it collects data from millions of data sensors embedded in everything from cars to refrigerators to space capsules. This aggregation of data points through smart meters, sensors, etc. contribute to the “Internet of Things” (IoT).

Analytics, big data, and sensor integrations are revolutionizing how we live and work. A recent study conducted by IndustryWeek (2016), reported that more than half of U.S. manufacturers report they are currently using IoT technology to collect machine data, and a significant but smaller percentage (44%) are collecting data from sensors embedded in their products.

Several things have created the “perfect storm” for the creation and growth of the IoT. These include more widely available broadband Internet, lower cost of connecting, development of more devices with Wi-Fi capabilities and embedded sensors, and the overwhelming popularity of the smartphone. In layperson’s terms, the IoT is the concept of connecting any device that has an on/off switch to the Internet or each other. This includes everything from everyday items such as cellphones, coffee makers, washing machines, lamps, and headphones to airplane jet engines or an oil rig drill, smart traffic signals, smart parking, traffic congestion monitoring, air pollution sensors, potable water monitoring, and river, dam, and reservoir water level monitors. In other words, if it can be connected, it will be connected. Just think of the IoT as a giant network of connected “things” with relationships between people-to-people, people-to-things, and things-to-things.

The primary driver for IoT is the broader adoption and deployment of sensors and smart devices. Some industries have had IoT in place for quite some time, but for others it is an entirely new concept. Lately, IoT has been gaining in popularity and use. The use of the smaller sensors, as compared to the traditional IT infrastructure, enables companies to gain more computing capacity and reduce power consumption for less cost. All in all, it’s a win-win situation.

IoT Sensors, Smart Meters, and the Smart Grid

It has been estimated that the number of network-connected sensors and devices could triple to 21 billion by 2020 (IndustryWeek, 2016).

Sensors

The heart of IoT resides in the source of the data, that is, the sensors. Sensors generate data about activities, events, and influencing factors that provide visibility into performance and support decision processes across a variety of industries and consumer channels.

Smart Grid and Smart Cities

With a combination of smart meters, wireless technology, sensors, and software, the smart grid allows utilities to accurately track power grids and cut back on energy use when the availability of electricity is stressed. And consumers gain insight into their power consumption to make more intelligent decisions about how to use energy.

A fully deployed smart grid has the potential of saving between $39.69 and $101.57, and up to 592 pounds of carbon dioxide emissions, per consumer per year in the United States, according to the Smart Grid Consumer Collaborative (SGCC).

On a broader scale, the IoT can be applied to things like “smart cities” that can help reduce waste and improve efficiency. IT at Work 4.3 describes how a town in Spain is using the IoT to improve everyday life for its’ citizens, or is it?

IT at Work 4.3

Smart City or Police State?

In the small city of Santander on Spain’s Atlantic coast, Mayor Iñigo de la Serna raised $12 million, mostly from the European Commission, to launch SmartSantander. SmartSantander is a smart city experiment that is improving the quality of life, reducing energy consumption, and engaging its citizens in civic duties.

20,000 Sensors Embedded

The city implemented wireless sensor networks and embedded 20,000 sensors in its streets and municipal vehicles to monitor garbage collection, crime, and air quality and manage street lighting for better energy efficiency. “The internet of Things unites all the data coming from sensors, along with the data the city already has and data provided by citizens,” says Joaquin Gonzalez, director of Telefonica in Cantabria (Frangoul, 2016). Sensors communicate with smartphone apps to inform drivers and commuters on parking availability, bus delays, road closures, and the current pollen count in real time. Parking apps direct drivers to available spaces via cell phone alerts. Drivers benefit from a reduction in the time and annoyance of finding parking spots. Anyone can feed his or her own data into the system by, for example, snapping a smartphone photo of a pothole or broken streetlight to notify the local government that a problem needs to be fixed. Users can even point their smartphones at landmarks in the city to learn more about them and events happening around the city.

Build-Out of Smart City Applications

This mobile technology can help cities contribute to a greener planet. Municipal landscape sprinklers can send facts to city agencies for analysis to conserve water usage. Sensors can monitor weather and pollen counts as well as water and power leaks. City officials also claim that the development has saved money through automated and data driven applications such as dimming street lights at optimal times, resulting in 25% savings on electricity bills and 20% on garbage.

Police State

The data streams and mobile apps that keep citizens informed also keep the government informed. What is the difference between a smart city and a police state? Many see the new sensor saturation as a sort of “Big Brother” experiment. Consider how data collected from sensors mounted outside a bar to track noise levels might be used.

Scenario #1: Instances of loud noises and squealing tires are transmitted to local police. The city uses the information to enforce public nuisance laws and make arrests.
Scenario #2: People who live in the neighborhood show civic leaders what is keeping them up at night and receive help in resolving the problem.
Scenario #3: Landlords could use data showing less noise and cleaner air to promote their apartments or office buildings.

The Dark Side of Smart

The wireless networks and sensors need to be maintained. Thousands of batteries embedded in roadways could have expensive and disruptive maintenance requirements.

Parking space alerts might create other annoyances. If everyone becomes aware of a parking spot up the street, the rush of cars converging on a few open locations could lead to rage and defeat the purpose of such an alert.

IT at Work Questions

What are the benefits of a smart city?
What are the potential abuses of data collected in this way?
Consider the dark side of smart. Are you skeptical of the benefits of a smart city?
Would you want to live in a smart city? Explain.
How would you prevent Santander from becoming a police state?

Sources: Compiled from Eggers (2016), Frangoul (2016), O’Connor (2013), and Edwards (2014).

Security and Privacy in the IoT

Network security and data privacy are manufacturers’ top concerns about IoT technology. With billions of devices connected together there are a multitude of end-points where security breaches can occur and individuals or organizations can be hacked.

Advantages and Disadvantages of IoT

Organizations are struggling with the advantages and disadvantages associated with the IoT and seeking to understand how it will impact their business.

Wireless hospitals and remote patient monitoring, for example, are growing IoT trends. Tracking medical equipment and hospital inventory, such as gurneys, is done with RFID tagging at a number of hospitals. Remote monitoring apps are making health care easier and more comfortable for patients while reaching patients in remote areas.

Organizations can expect to gain from using the IoT in a number of ways, for example, expected benefits from using IoT include the following:

Monitoring performance, quality, and reliability of products and services
Gaining insight into potential new products and service
Support sales
Better understand product use
Remote troubleshooting of products
Deliver revenue-generating post-sales service
More efficiently deliver post-sales services

Similarly, there are concerns around using the IoT and the ability to collect and analyze the massive amounts of data that it enables. Main disadvantages that organizations have about the use of IoT include the following:

Network security
Data privacy
Data analysis capabilities
Data collection capabilities
Realistic efficiency opportunities
Realistic new revenue opportunities
Cost

Concept Check 4.4

Growth in the use of collaborative technologies has been fueled by:

Correct or Incorrect?

According to the textbook all of the following companies have realized the benefits of virtual collaboration, EXCEPT:

Correct or Incorrect?

The more widely available broadband Internet, lower cost of connecting, development of more devices with Wi-Fi capabilities and sensors, and the overwhelming popularity of smartphones has led to the perfect storm for the creation and growth of the:

Correct or Incorrect?

Key Terms

application program interface (API)

Bluetooth

circuit switching

computer networks

Exabyte

extranet

fixed-line broadband

group dynamics

information and communications technology (ICT)

Internet of Things

Internet Protocol (IP)

Intranet

IP address

IP Version 4 (IPv4)

IP Version 6 (IPv6)

latency-sensitive apps

local area network (LAN)

Long-Term Evolution (LTE)

mashup

near-field communication (NFC)

Net neutrality

Net semi-neutrality

packet

packet switching

protocol

quality of service (QoS)

router

sensors

smart grid

smart city

switch

traffic shaping

transmission control protocol/Internet protocols (TCP/IPs)

virtual private networks (VPNs)

voice over IP (VoIP)

wide area network (WAN)

Wi-Fi

WiMAX

Zettabyte

Assuring Your Learning

Discuss: Critical Thinking Questions

Explain how network capacity is measured.
How are devices identified to a network?
Explain how digital signals are transmitted.
Explain the functions of switches and routers.
QoS technologies can be applied to create two tiers of traffic. What are those tiers? Give an example of each type of traffic.
Typically, networks are configured so that downloading is faster than uploading. Explain why.
What are the differences between 3G, 4G, and 5G networks?
What are two 4G wireless standards?
How is network performance measured?
Discuss two applications of near-field communication (NFC).
What are the benefits of APIs?
Describe the components of a mobile communication infrastructure.
What is the range of WiMAX? Why does it not need a clear line of sight?
Why are VPNs used to secure extranets?
How can group dynamics improve group work? How can it disrupt what groups might accomplish?
What are the benefits of using software to conduct brainstorming in the cloud (remotely)?

Case 4.2

Business Case: Google Maps API for Business

A restaurant owner has a website where customers can place orders for delivery. When a customer inputs a delivery address, a software script verifies whether the address is within the delivery range of the restaurant. If the address is not in the delivery range, the site does not let the customer check out and sends a message informing the customer that he or she is outside of the delivery range. The script requests information from Google Maps via an API to calculate whether or not the address was in the range. The free version, called Google Maps API, allows up to 2,500 requests per day from a single IP address and is limited to noncommercial purposes.

The owner needs to purchase a Google Maps API for Business license because any requests in excess of 2,500 will be ignored. The Google Maps API for Business provides better resolution, scale, and enhanced features and support to businesses that add maps to their websites, mobile apps, or asset-tracking applications.

Directions and Routing Features

The Google Maps API delivers the full power of Google’s routing engine to applications. Among other features, it:

Generates routes between up to 23 locations for driving, walking, or cycling.
Generates routes to avoid toll roads or highways.
Reduces travel time by calculating the optimal order to visit each location.
Calculates travel time and distance between locations, for example, to offer users a way to filter search results by drive time.

Data Visualization

The Google Maps API lets managers visualize data using heat maps, symbols, and custom styles. For U.S. maps, companies have access to a demographics layer containing up-to-date census data provided by Nielsen and five-year projections of many data fields. The demographics layer may only be used on intranets or internal websites.

Advanced Analytics

The Google Maps API for Business offers an analytics tool that shows how visitors interact with the maps—for example, how many visitors switched to satellite view, what they zoomed, and which map features were used the most. Using this information, businesses can customize the user experience based on their preferences and better engage with customers.

Automobile Association

Google Maps is the most widely used online mapping service in the world, with more than 800,000 sites using the Google Maps API and over 250 million active users on mobile devices alone. In the United Kingdom, the Automobile Association (AA) provides roadside assistance and directions to motorists. AA invested in the Google Maps API for Business to offer interactive route planning and improve visitors’ experiences. The value AA derived from the API was a 12% increase in the number of routes downloaded, hitting an average of 4 million downloads per week of its routing or trip-planning service. Approximately 20% of site visitors remained on the site for at least five minutes—up from only 6% prior to implementation. The API also cuts the time and cost of IT support for the mapping platform.

Questions

Describe Google Maps API.
Why do you think Google provides free noncommercial use of its Maps API?
How many times have you used a website’s mapping feature for directions or to calculate distance? How did having a familiar interface improve your experience?
Google claims that its Maps API helps a company’s customers and employees make better business and purchasing decisions by visualizing important information on a familiar map. Explain how data visualization provides these benefits. Give two examples in your explanation.

References

Cisco. “Sony Adopts Cisco Solution for Global IPv6 Project.” Cisco Public Information, Customer Case Study. October 28, 2014.
Cisco. “Cisco Visual Networking Index: Forecast and Methodology, 2015–2020,” 2016.
Edwards, J. “The Connected Life.” Teradata Magazine, Q1, 2014.
Eggers, W. D. “8 Ways Digital is Transforming Governments around the World.” The Huffington Post, July 18, 2016.
Fiegerman, S. “Trump’s FCC May Try to Roll Back Net Neutrality. Here’s Why it Matters.” 2017. Accessed at: http://money.cnn.com/2017/01/24/technology/fcc-net-neutrality/index.html
Frangoul, A. “Thousands of Sensors are Making This Famous City Smarter.” CNBC, May 5, 2016.
IndustryWeek. “The Internet of Things: Finding the Path to Value.” IndustryWeek. 2016.
Joseph, S. “McDonald’s, Unilever and Gatorade Among the First to Run Snapchat API Campaigns.” TheDrum, October 6, 2016.
Neal, D. “Sony’s Playstation Network Is Down in the UK, Again.” The Inquirer, October 26, 2016.
O’Connor, M. C. “Santander: Test Bed for Smart Cities and Open Data Policies.” SmartPlanet.com, May 8, 2013.
Pachal, P. “How the AT&T-Time Warner Deal Threatens Net Neutrality.” Mashable, October 23, 2016.
Patrick, M. “How Will the Internet of Medical Things Change Healthcare?” Electronic Design, October 20, 2016.
PRNewswire. “LTE and 5G Infrastructure Investments are Expected to Account for a Market Worth $32 Billion by 2020—Research and Markets.” October 20, 2016.
Wheeler, T. “Setting the Record Straight on the FCC’s Open Internet Rules.” FCC blog, April 24, 2014.
Zeman, E. “Amazon Opens Beta for Alexa List Skills API.” ProgrammableWeb, October 13, 2016.

..................Content has been hidden....................

You can't read the all page of ebook, please click here login for view all page.

Table of Contents for CHAPTER 4: Networks, Collaborative Technology, and the Internet of Things

Create new playlist

Sign In

Sign Up

Introduction

4.1 Network Fundamentals

Network Types

Intranets, Extranets, and Virtual Private Networks

Network Terminology

Functions Supported by Business Networks

Quality of Service

Concept Check 4.1

4.2 Internet Protocols (IP), APIs, and Network Capabilities

Comparing 3G, 4G, 4G LTE, and 5G Network Standards

Circuit versus Packet Switching

Application Program Interfaces and Operating Systems

What Is an API?

Automated API

API Value Chain in Business

Concept Check 4.2

4.3 Mobile Networks and Near-Field Communication

Increase in Mobile Network Traffic and Users

Higher Demand for High-Capacity Mobile Networks

Mobile Infrastructure

Wi-Fi and Bluetooth

Wi-Fi Networking Standards

Two Components of Wireless Infrastructure

WLANs

WiMAX

Mashup of GPS and Bluetooth

Business Use of Near-Field Communication

Choosing Mobile Network Solutions

Concept Check 4.3

4.4 Collaborative Technologies and the Internet of Things

Virtual Collaboration

Information Sharing Between Retailers and Their Suppliers

Retailer–Supplier Collaboration: Asda Corporation

Lower Transportation and Inventory Costs and Reduced Stockouts: Unilever

Reduction of Product Development Time

Group Work and Decision Processes

Group Work and Dynamics

Online Brainstorming in the Cloud

The Internet of Things (IoT)

IoT Sensors, Smart Meters, and the Smart Grid

Sensors

Smart Grid and Smart Cities

Security and Privacy in the IoT

Advantages and Disadvantages of IoT

Concept Check 4.4

Key Terms

Assuring Your Learning

References

Table of Contents for
CHAPTER 4: Networks, Collaborative Technology, and the Internet of Things