62 Part I • Information Technology
headquarters need to be able to retrieve summary data on
sales and expenses from each of the company’s divisional
computer centers. The chief executive officer, using an
executive information system (see Chapter 6), needs to be
able to access up-to-the-minute data on business trends
from the corporate network. In some instances, data may
be retrieved from a commercial, public database external
to the firm, such as LexisNexis and Dow Jones Newswires.
Of course, the ultimate sharing of data is now occur-
ring via the World Wide Webon the Internet. By conser-
vative estimates, there are now at least 1.7 billionusers
of the Web at sites around the world, and this number
continues to grow rapidly. Each of these users has easy
(and often free) access to an incredible array of informa-
tion on any topic. The user begins by using a search engine
such as Google or a favorite reference site and then
follows hypertext-based links to seek out the desired data.
In short, the Web has created a new and exciting way of
sharing data.
Distributed Data Processing and Client/Server Systems
With distributed data processing, the processing power
is distributed to multiple computers at multiple sites,
which are then tied together via telecommunications lines.
Client/server systemsare a variant of distributed systems
in which the processing power is distributed between a
central server system, such as a midrange computer or a
mainframe, and a number of client computers, which are
usually desktop microcomputers. Distributed and client/server
systems tend to reduce computing costs because of
their reliance on more cost-effective microcomputers and
workstations.
There are many examples of distributed systems.
One is the use of laptop computers by a company’s sales
force, where orders and sales data are transmitted over the
Internet (using a virtual private network, to be discussed
later in this chapter) to the corporate computer center. A
second example is the use of a client/server application for
general ledger accounting, with desktop microcomputers
as the clients and a high-powered workstation as the server.
In most cases, such a package is implemented over a LAN
in a single building or a cluster of buildings (a campus).
A third example, also a client/server system, involves the
creation of a commercial real estate database on a server
located at the real estate firm’s main office. The client
machines are microcomputers located in the firm’s branch
offices or customer offices, with the clients and server
linked via the Internet. In any case, it is the existence of a
telecommunications network that makes distributed data
processing a feasible and attractive arrangement.
Enhanced Communications
Networks enhance the communications process within an
organization (and between organizations) in many important
ways. The telephone network has long been a primary
means of communication within and between organizations.
Electronic mail over the corporate computer network has
become a mainstay of communication in most major organ-
izations in the past two decades, and the development of the
Internet has extended the reach of these electronic mail sys-
tems around the world. Electronic bulletin boards (including
internal, regional, and national bulletin boards), blogs, and
mass electronic mailing lists for people with common inter-
ests permit multiparty asynchronous communication on an
incredible array of topics. Instant messaging permits syn-
chronous text communication over the Internet. And video
communication, especially videoconferencing, provides a
richer medium to permit more effective communication.
Direct data communication links between a company
and its suppliers or customers, or both, have been successful-
ly used to give the company a strategic advantage. The
SABRE airline reservation system is a classic example of a
strategic information system that depends upon communica-
tion provided through a network. Recent developments to be
discussed later in this chapter—such as DSL and IP
telephony (voice over IP)—permit both voice and data com-
munications to occur over the same telecommunications line
at the same time. Starting with “plain old telephone service”
(POTS) networks and continuing with today’s LANs, WANs,
and the Internet, networks have enhanced the communication
process for individuals and organizations.Marketing Outreach
In the last 20 years, the Internet has become an important
marketing channel for a wide variety of businesses.
Marketing is communication, of course, but it is a very
specialized type of communication. Most midsized and
larger business firms have a major presence on the World
Wide Web, with extensive Web sites providing information
on the firms’ products and services and, in many cases, an
online ordering capability. Many smaller firms are also
using the Web for marketing outreach, perhaps by creating
a Yahoo! store. Chapter 7 will consider the wide variety of
marketing activities undertaken on the World Wide Web.An Overview of Telecommunications and Networking
Networking—the electronic linking of geographically
dispersed devices—is critical for modern organizations.
To participate effectively in the ongoing communications