Module 04: Critical Thinking
Collaborative Technologies and the Internet of Things (IoT) (105 points)
The Internet of Things (IoT) is becoming increasingly popular in both business and everyday life.
should meet the following requirements:
Writing rules
· Use a standard sample format for responses to all questions (i.e., an introduction, middle paragraphs, headline (and conclusion).
· Make sure to include all the key points within conclusion section, which is discussed in the assignment. Your way of conclusion should be logical, flows from the body of the paper, and reviews the major points.
· I would like to see more depth for the question
· Responses must be submitted as a MS Word Document only, typed double-spaced, using a standard font (i.e. Times New Roman) and 12 point type size.
· Plagiarism All work must be free of any form of plagiarism.
· Written answers into your own words. Do not simply cut and paste your answers from the Internet and do not copy your answers from the textbook
Module 04: Critical Thinking
Collaborative Technologies and the Internet of Things (IoT) (105 points)
The Internet of Things (IoT) is becoming increasingly popular in both business and everyday life.
· Explain what the Internet of Things (IoT) is and provide a brief history, in your own words, of the IoT.
· Discuss the potential impact that IoT can have on how people live.
· Select a company and explain how the organization has benefited from the IoT. Detail specific examples of how the company benefited.
· How has the IoT been impacted by the pandemic? Explain specific examples.
Essay should meet the following requirements:
· Be 5 pages in length, which does not include the title page, abstract, or required reference page, which is never a part of the content minimum requirements.
· Use APA (7th ed) style guidelines.
· Support your submission with course material concepts, principles, and theories from the textbook and at least seven scholarly, peer-reviewed journal articles.
· Please include in the answer Appendix ( Graph or table …)
Writing rules
· Use a standard essay format for responses to all questions (i.e., an introduction, middle paragraphs, headline (and conclusion).
· Make sure to include all the key points within conclusion section, which is discussed in the assignment. Your way of conclusion should be logical, flows from the body of the paper, and reviews the major points.
· I would like to see more depth for the question
· Responses must be submitted as a MS Word Document only, typed double-spaced, using a standard font (i.e. Times New Roman) and 12 point type size.
· Plagiarism All work must be free of any form of plagiarism.
· Written answers into your own words. Do not simply cut and paste your answers from the Internet and do not copy your answers from the textbook
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First page/
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Main section heading
Subsection of Level 1
Subsection of Level 2
Centered
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Flush left
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Bolded italic
Title Case
Indented
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End with period
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Subsection of Level 3
Subsection of Level 4
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10
1
CHAPTER 4
Networks, Collaborative
Technology, and the
Internet of Things
C H A P T E R O U T L I N E
Case 4.1 Opening Case: Sony Builds an IPv6
Network to Fortify Competitive Edge
4.1 Network Fundamentals
4.2 Internet Protocols (IP), APIs,
and Network Capabilities
4.3 Mobile Networks
4.4 Collaborative Technologies and
the Internet of Things (IoT)
Case 4.2 Business Case: Google Maps API for
Business
Case 4.3 Video Case: Small Island Telecom
Company Goes Global
L E A R N I N G O B J E C T I V E S
4.1 Describe the different types of networks and the basic
functions of business networks.
4.2 Understand the purpose of IPs and APIs and compare wireless
3G, 4G, and 5G networks and how they support businesses.
4.3 Describe the growth in mobile data traffic and understand the
components of the mobile infrastructure including near-field
communication. List the business functions that near-field
communication supports.
4.4 Evaluate performance improvements gained from
collaborative technology and understand concept of the
Internet of Things (IoT)
102 C H A P T E R 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 con-
tinues 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 col-
lection efforts from “things” rather than from people.
Case 4.1 Opening Case
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Sony Builds an IPv6 Network to Fortify
Competitive Edge
Sony’s Rapid Business Growth
In the early 2000s, Sony Corporation had been engaged in strate-
gic 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.
Expansion efforts were taking too long because of the complicated
structure of the network, and total cost of ownership (TCO) was increas-
ing. Also, a number of technical limitations were blocking internal com-
munications. 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 compara-
ble to users having duplicate telephone numbers—making it impossi-
ble 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 fol-
lowing problems:
1. Sony’s employee communication options were severely limited,
which harmed productivity.
2. File sharing and real-time communication were not possible.
3. 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 thou-
sands 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 sup-
plement 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 inte-
gration of IPv4 and IPv6 traffic because of the maturity of its IPv6
Introduction 10
3
technology. The integrated network has been used by Sony as infra-
structure for product development. Sony also upgraded its Cisco net-
work 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, ena-
bling Sony employees in all divisions to take advantage of the produc-
tivity 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 config-
ured 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 ser-
vice 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
1. Explain how Sony’s IPv4 enterprise network was restricting the
productivity of its workers.
Sony Corporation
Global Reach
Network Solution
Sony aims to accelerate global
collaboration and business across
business units to achieve goal of
“One Sony.”
Cisco Enterprise IPv6 network
integrated with IPv4 network.
Consumer electronics equipment
and services; music, pictures,
computer entertainment.
More versatile network
Network without communications
constraints, supporting “One Sony”
through information systems.
Brand
Business Results
FIGURE 4.1 Sony Corporation overview.
TA B L E 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 com-
panies 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.
104 C H A P T E R 4 Networks, Collaborative Technology, and the Internet of Things
4.1 Network Fundamentals
Today’s managers need to understand the technical side of computer networks to make intel-
ligent investment decisions that impact operations and competitive position. Enterprises run
on networks—wired and mobile—and depend upon their ability to interface with other net-
works 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.
Computer networks are a set of
computers connected together for
the purpose sharing resources.
TA B L E 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
2. What problems did duplicate IP addresses cause at Sony? Give
an analogy.
3. Why did Sony need to run both protocols on its network instead of
replacing IPv4 with IPv6?
4. Describe the strategic benefit of Sony’s IPv6 implementation.
5. 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).
Network Fundamentals 105
Intranets, Extranets, and Virtual Private Networks
Intranets are used within a company for data access, sharing, and collaboration. They are por-
tals 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 shar-
ing 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 compro-
mised. 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 net-
work 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).
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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 func-
tionality, 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.
106 C H A P T E R 4 Networks, Collaborative Technology, and the Internet of Things
• 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 attenua-
tion. 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 mea-
sured in hertz.
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 attenua-
tion” 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 transport-
ing 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).
Functions Supported by Business Networks
Figure 4.5 describes the basic business functions supported business networks: communica-
tion, mobility, collaboration, relationships, and search. These functions depend on network
switches and routers—devices that transmit data packets from their source to their destina-
tion 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
1 Gbps Ethernet
100 Mbps Ethernet
Gigabit Passive Optical Network (GPON)
Ethernet Passive Optical Network (EPON)
CableDSL
ISDN
FIGURE 4.3 Bandwidth variation by media type.
Network Fundamentals 107
to the Internet, so users can share the connection. Routers act like a dispatcher, choosing the
best paths for packets to travel.
Investments in network infrastructure, including data networks, IP addresses, routers, and
switches are business decisions because of their impact on productivity, security, user experi-
ences, 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, pre-
dictable, measurable, and sometimes guaranteed services for certain types of traffic. For exam-
ple, 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.
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Current Bandwidth Usage – Last 5 Minutes
Enterprise Current Policy Threshold
Bandwidth Monitor
Current Policy Threshold(06:51:55): 300
FIGURE 4.4 Bandwidth capacity monitor.
Communication
Mobility
Provides secure, trusted,
and reliable access from any
mobile device anywhere at
satisfactory download and
upload speeds.
Relationships
Manages interaction with
customers, supply chain
partners, shareholders,
employees, regulatory
agencies, and so on.
Search
Able to locate data, contracts,
documents, spreadsheets, and other
knowledge within an organization
easily and efficiently.
Collaboration
Supports teamwork
that may be synchronous
or asynchronous;
brainstorming; and
knowledge and
document sharing.
Provides sufficient capacity for human
and machine-generated transmissions.
Delays are frustrating, such as when
large video files pause during download
waiting for the packets to arrive.
Buffering means the network cannot
handle the speed at which the video is
being delivered and therefore stops to
collect packets.
FIGURE 4.5 Basic functions of business networks.
108 C H A P T E R 4 Networks, Collaborative Technology, and the Internet of Things
• 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:
1. 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 con-
sumers. 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.
2. 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 pro-
grams, and BitTorrent traffic.
Traffic shaping is hotly debated by those in favor of Net neu-
trality. They want a one-tier system in which all Internet data
packets are treated the same, regardless of their content, destina-
tion, or source. In contrast, those who favor the two-tiered system
argue that there have always been different levels of Internet ser-
vice 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 Inter-
net 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 offi-
cially underway. On May 18, 2017 the FCC voted 2-1 to move forward
with a proposal to roll back net neutrality protections. The contro-
versial vote is the first step in a lengthy process to overturn the rules
put into place during the Obama administration. Longtime net neu-
trality 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
1. What is Net neutrality?
2. What tiers are created by traffic shaping?
3. Why did the battle over Net neutrality intensify in 2014?
4. Did the FCC’s 2015 net neutrality rules favor either side of the
debate? Explain.
5. 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.
Internet Protocols (IP), APIs, and Network Capabilities 109
Questions
1. Name the 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.
4.2 Internet Protocols (IP), APIs,
and Network Capabilities
The basic technology that makes global communication possible is a network protocol com-
monly 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. Ini-
tially, 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 pro-
tocol 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 devel-
oped to allow IPv6 hosts to communicate with IPv4 servers.
Network protocols serve the following three basic functions:
1. Send data to the correct recipient(s).
2. Physically transmit data from source to destination, with security protected as needed.
3. 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
Internet Protocol (IP) is the
method by which data are sent
from one device to another over
a network.
IP address is a unique
identifier for each device that
communicates with a network
that identifies and locates
each device. An IP address is
comparable to a telephone
number or home address.
Packet is a piece of a message
that is collected and re-assembled
with the other pieces of the same
message at their destination.
To improve communication
performance and reliability, each
larger message sent between
two network devices is often
subdivided into packets.
IP Version 4 (IPv4) has been
Internet protocol for over three
decades, but has reached the
limits of its 32-bit address design.
It is difficult to configure, it is
running out of addressing space,
and it provides no features for site
renumbering to allow for an easy
change of Internet Service Provider
(ISP), among other limitations.
IP Version 6 (IPv6) is the most
recent version of the Internet
Protocol. IPv6 is replacing IPv4
because of IPv4’s limitations in
number of IP addresses it can
generate. IPv6 has a 128-bit address
and allows 7.9 × 1028 times as many
addresses as IPv4, which provides
about 4.3 billion addresses.
IPv4
IPv6
32 bit address
0000.0000.0000.0000
128 bit address
0000.0000.0000.0000.0000.0000.0000.0000
FIGURE 4.6 IPv4 addresses have 4 groups of four alphanumeric
characters, which allow for 232 or roughly 4.3 billion unique IP
addresses. IPv6 addresses have 8 groups of alphanumeric characters,
which allows for 2128, or 340 trillion, trillion, trillion addresses. IPv6
also offers enhanced quality of service that is needed by the latest
in video, interactive games, and e-commerce.
110 C H A P T E R 4 Networks, Collaborative Technology, and the Internet of Things
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 infra-
structure investments are expected to account for a market worth $32 billion” (PRNews-
wire, 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 telecommunica-
tion 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:
1. 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.
2. 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 stand-
ard 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, pro-
vides 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 net-
works—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 rang-
ing 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
Internet Protocols (IP), APIs, and Network Capabilities 111
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 net-
works. 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 conven-
tional 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 spe-
cific 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.
Application program interface
(API) An interface is the
boundary where two separate
systems meet. An API provides a
standard way for different things,
such as software, content, or
websites, to talk to each other in
a way that they both understand
without extensive programming.
112 C H A P T E R 4 Networks, Collaborative Technology, and the Internet of Things
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 adver-
tisements 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 cus-
tomer 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.
API Developers
Provides quick,
easy access to
business assets.
Applications
created using
APIs
Use APIs to
create new
business.
Business Assets
Data
information
products
services
Customers, employees,
and end-users use the
business apps that give
them access to assets.
FIGURE 4.8 API value chain in business.
Android
iOS
Windows Phone
Common Mobile OS
Windows
Mac OS X
Linux
Common Desktop OS
FIGURE 4.7 Common mobile and desktop operating systems.
Each computer OS provides an API for programmers. Mobile OSs are
designed around touchscreen input.
Mobile Networks and Near-Field Communication 113
Questions
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?
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 devel-
oped 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 advan-
tage 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 organiza-
tion that owns the business asset may or may not be the same as
the organization that builds the APIs. Different people or organiza-
tions 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.
TA B L E 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
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 prosper-
ous, 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
114 C H A P T E R 4 Networks, Collaborative Technology, and the Internet of Things
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.
More Mobile
Connections
• Over 11.6
billion
Faster Mobile
Speeds
• 3Megabits
per second
(Mbs)
More Mobile
Users
• Appx. 6.1
billion
More Mobile
Video
• 75% of
mobile traffic
FIGURE 4.9 Four drivers of global mobile traffic through 2020.
Busy-hour Internet
Traffic
Increase by factor of 4.6
Average traffic will only increase by factor of 2
29% of network traffic
30% of network traffic
67% of total network traffic
Three times the entire global population
Increase 100%
Equivalent to 95 times the volume of the entire global
Internet in 2005
It will take an individual 5 million years to watch the amount of
video that will cross global IP networks EACH month!
PCs
Smartphones
Wireless & Mobile
Global Internet
Traffic
Devices connected to
IP networks
Broadband Speeds
Video
FIGURE 4.10 Mobile Data Traffic Milestone by 2020.
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 technol-
ogy 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 wire-
lessly 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.
Exabyte is one quintillion bytes
(1,000,000,000,000,000,000 Bytes)
which is the equivalent of 1,000
petabytes of data or 7 trillion
online video clips. Five Exabytes is
equal to all words ever spoken by
human beings.
Zettabyte is one sextillion bytes
(1,000,000,000,000,000,000,000
Bytes) which is approximately
equal to 1,000 Exabytes.
Mobile Networks and Near-Field Communication 115
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 trans-
missions 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 infra-
structure to a more strategic planning build-out of their mobile capabilities. As technologies
that make up the mobile infrastructure evolve, identifying strategic technologies and avoid-
ing 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 com-
munications, 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.
Wi-Fi Networking Standards
• 802.11ac This is the newest generation of Wi-Fi signaling in popular use. 802.11ac uti-
lizes 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.
Bluetooth is a short-range
wireless communications
technology.
Wi-Fi is the standard
way computers connect to
wireless networks.
116 C H A P T E R 4 Networks, Collaborative Technology, and the Internet of Things
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 wire-
less generation, which determines which services are available. The two components of wire-
less infrastructures are wireless LANs and WiMAX.
WLANs Wireless LANs use high-frequency radio waves to communicate between com-
puters, 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.
Wireless Network
Access Point
Cable/DSL
Modem
Antenna
Radio
Waves
Directional Antenna
and PC Card
Laptop(s) or Desktop(s)
1
2
3
Radio-equipped access point connected to the Internet
(or via a router). It generates and receives radio waves
(up to 400 feet).
Several client devices, equipped with PC cards, generate
and receive radio waves.
Router is connected to the Internet via a cable or
DSL modem, or is connected via a satellite.
Wireless Network
PC Card
2
1 3
Satellite
Internet
PC
Router
FIGURE 4.11 Overview of Wi-Fi.
Mobile Networks and Near-Field Communication 117
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 exam-
ples 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 technolo-
gies 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 pur-
chases 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
Mashup is a general term
referring to the integration of two
or more technologies.
Near-field communication
(NFC) enables two devices
within close proximity to establish
a communication channel and
transfer data through radio waves.
Notebook with
built-in
WiMAX adapter
Wi-Fi
Hotspots
Base Station
WiMAX
Hub
InternetWiMAX
Network
FIGURE 4.12 WiMAX/Wi-Fi network.
118 C H A P T E R 4 Networks, Collaborative Technology, and the Internet of Things
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 tech-
nology. 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 min-
utes 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 advan-
tages for shoppers and businesses, NFC is emerging as a major
technology.
IT at Work Questions
1. 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.
2. How can NFC be applied to create an interesting user
experience at a sporting event? At a retail store or coffee
shop?
3. Refer to your answers in Question 2. What valuable informa-
tion 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.
1. Simple Easy to deploy, manage, and use.
2. Connected Always makes the best connection possible.
3. Intelligent Works behind the scenes, easily integrating with other systems.
4. Trusted Enables secure and reliable communications.
Collaborative Technologies and the Internet of Things 119
Questions
1. What are the factors contribute to mobility?
2. Why is mobile global traffic increasing?
3. What accounts for the increased 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 mobile networks?
SIMPLE
• Easy to deploy, manage, and use
CONNECTED
• Always makes the best connection possible
INTELLIGENT
• Works behind the scenes
• Easily integrated with other systems
TRUSTED
• Enables secure and reliable communications
FIGURE 4.13 Four important factors to consider when choosing a mobile
network solution.
4.4 Collaborative Technologies and the
Internet of Things
Now more than ever, business gets done through information sharing and collaborative plan-
ning. Business performance depends on broadband data networks for communication, mobil-
ity, 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 prob-
lems before they occur, Ford realized a $1 billion reduction in vehicle inventory and $125 mil-
lion reduction in inventory carrying costs annually.
More and more people need to work together and share documents over time and dis-
tance. Teams make most of the complex decisions in organizations and many teams are geo-
graphically 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. Yam-
mer 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 enter-
prises worldwide. Yammer functions as a communication and problem-solving tool and is rap-
idly replacing e-mail. You will read about Yammer in detail in Chapter 7.
120 C H A P T E R 4 Networks, Collaborative Technology, and the Internet of Things
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
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 pro-
tocol 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 car-
riers 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 man-
agers, salespeople, and technical staff. To solve the problem, Caterpillar connected its engi-
neering and manufacturing divisions with its active suppliers, distributors, overseas factories,
and customers through an extranet-based global collaboration system. By means of the collab-
oration 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 pro-
cesses emerge, referred to as group dynamics, and those processes can be productive or dys-
functional.
Group Work and Dynamics Group work can be quite complex depending on the fol-
lowing factors:
• Group members may be located in different places or work at different times.
• Group members may work for the same or different organizations.
Collaborative Technologies and the Internet of Things 121
• 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 exam-
ples of online brainstorming apps:
• Evernote is a cloud-based tool that helps users gather and share information, and brain-
storm 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 down-
load 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. manufac-
turers 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 cell-
phones, 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 com-
puting 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).
Internet of Things 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.
122 C H A P T E R 4 Networks, Collaborative Technology, and the Internet of Things
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 perfor-
mance and support decision processes across a variety of industries and consumer channels.
Smart Grid and Smart Cities With a combination of smart meters, wireless tech-
nology, 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 gar-
bage 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 smart-
phones 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. Thou-
sands 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
1. What are the benefits of a smart city?
2. What are the potential abuses of data collected in this way?
3. Consider the dark side of smart. Are you skeptical of the ben-
efits of a smart city?
4. Would you want to live in a smart city? Explain.
5. How would you prevent Santander from becoming a police
state?
Sources: Compiled from Eggers (2016), Frangoul (2016), O’Connor (2013),
and Edwards (2014).
Collaborative Technologies and the Internet of Things 123
Security and Privacy in the IoT Network security and data privacy are manufac-
turers’ 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 tag-
ging 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:
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 service
7. 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:
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
Questions
1. Why has group work becoming more challenging?
2. What might limit the use of face-to-face 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 the 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.
124 C H A P T E R 4 Networks, Collaborative Technology, and the Internet of Things
Key Terms
3G 110
4G 110
5G 110
application program interface (API) 111
Bluetooth 115
circuit switching 111
computer networks 104
Exabyte 114
extranet 105
fixed-line broadband 108
group dynamics 120
information and communications
technology (ICT) 102
Internet of Things 121
Internet Protocol (IP) 109
Intranet 105
IP address 109
IP Version 4 (IPv4) 109
IP Version 6 (IPv6) 109
latency-sensitive apps 107
local area network (LAN) 116
Long-Term Evolution (LTE) 110
mashup 117
near-field communication (NFC) 117
Net neutrality 108
Net semi-neutrality 108
packet 109
packet switching 111
protocol 109
quality of service (QoS) 107
router 106
sensors 122
smart grid 122
smart city 122
switch 106
traffic shaping 108
transmission control protocol/Internet
protocols (TCP/IPs) 111
virtual private networks (VPNs) 105
voice over IP (VoIP) 115
wide area network (WAN) 116
Wi-Fi 115
WiMAX 116
Zettabyte 114
Assuring Your Learning
Discuss: Critical Thinking Questions
1. Explain how network capacity is measured.
2. How are devices identified to a network?
3. Explain how digital signals are transmitted.
4. Explain the functions of switches and routers.
5. QoS technologies can be applied to create two tiers of traffic. What
are those tiers? Give an example of each type of traffic.
6. Typically, networks are configured so that downloading is faster
than uploading. Explain why.
7. What are the differences between 3G, 4G, and 5G networks?
8. What are two 4G wireless standards?
9. How is network performance measured?
10. Discuss two applications of near-field communication (NFC).
11. What are the benefits of APIs?
12. Describe the components of a mobile communication in-
frastructure.
13. What is the range of WiMAX? Why does it not need a clear
line of sight?
14. Why are VPNs used to secure extranets?
15. How can group dynamics improve group work? How can it disrupt
what groups might accomplish?
16. What are the benefits of using software to conduct brainstorming
in the cloud (remotely)?
Explore: Online and Interactive Exercises
1. Visit the Google apps website. Identify three types of collaboration
support and their value in the workplace.
2. Compare the various features of broadband wireless networks
(e.g., 3G, Wi-Fi, and WiMAX). Visit at least three broadband wireless
network vendors.
a. Prepare a list of capabilities for each network.
b. Prepare a list of actual applications that each network can
support.
c. Comment on the value of such applications to users. How can
the benefits be assessed?
Case 4.2 125
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 restau-
rant. 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 infor-
mation 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 lim-
ited 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 demograph-
ics 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, hit-
ting 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 imple-
mentation. The API also cuts the time and cost of IT support for the
mapping platform.
Questions
1. Describe Google Maps API.
2. Why do you think Google provides free noncommercial use of
its Maps API?
3. 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?
4. 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.
Analyze & Decide: Apply IT Concepts to Business Decisions
1. Visit www.Youtube.com and search for tutorials on the latest ver-
sion of iMindMap. Watch a few of the tutorials. As an alternative, watch
the video at http://www.youtube.com/watch?v=UVt3Qu6Xcko&list
=PLA42C25431E4EA4FF. Describe the potential value of sharing maps
online and synching maps with other computers or devices. What is
your opinion of the ease or complexity of the iMindMap interface?
2. Visit the AT&T website and read the article “What you Need to
Know about IoT Wide Area Networks.” Write a short report discussing
the benefits of each type of network that can be used in an organiza-
tion’s IoT and make a choice for your “business.”
126 C H A P T E R 4 Networks, Collaborative Technology, and the Internet of Things
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 Neutral-
ity. 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 Neutral-
ity.” Mashable, October 23, 2016.
Patrick, M. “How Will the Internet of Medical Things Change Health-
care?” 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 Mar-
kets.” 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.” Programma-
bleWeb, October 13, 2016.
Case 4.3
Video Case: Small Island Telecom Company
Goes Global
Go online to research the Isle of Man, a small island in the Irish Sea
off the coast of Great Britain. Visit the Cisco website. Search for
the video “Island Telecom Competes on a Global Level.” Watch the
video to learn how this small telecom company was able to evolve
from a traditional local service provider to a global cloud services
innovator thanks to Cisco’s networking technology (video runs
2:09 minutes).
Questions
1. Describe the benefits that Island Telecom achieved through using
Cisco’s networking product.
2. What factors allowed Island Telecom to make the transition from
local to global?
