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UNIT 33 : P1+P2

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Antony Davies

on 23 October 2012

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Transcript of UNIT 33 : P1+P2

Trends in internet development How the internet works Unit 33: Impact of communication technology on business Increasing speeds Over the last 15 years, internet speeds have increased dramatically as technological capabilities have improved. 1990's Dial-up 2000's Broadband Fibre optic 2010's These improvements in internet speeds have increased the functions and capabilities of the world wide web and other internet capable devices. Examples Online gaming Video streaming Downloads These increases in internet speed are not limited to standard home and business connections but also mobile internet connections. Dongles Mobile phones Falling cost Over-saturation of the broadband market has driven down the cost of broadband services throughout the UK because of fierce competition between internet service providers. This fall in cost has made broadband more affordable to consumers on lower incomes such as working class families, young adults and the elderly which has created new opportunities for businesses. ■Facebook: 1 billion users; 600 mobile users; more than 42 million pages and 9 million apps
■Youtube: 4 billion views per day
■Google+: 400 million registered users
■Skype: 250 million monthly connected users
Twitter: 140 million users (Tweet this stat)
■Ebay: 100 million active users Increased use of social networking Increased use of netbooks Over the last decade, the number of people using netbooks opposed to the traditional tower devices and laptops has increased significantly. This is because technological advances have increased the capabilities of netbook to handle the majority of basic tasks and is advantageous over other devices because of its mobility and price. P1 + P2 What is the internet? The internet is a global communication system capable of exchanging data through a complex network of computers and servers. However due to the sheer size of the internet, networks have had to be broken down into sub-networks to relieve heavy traffic flow for efficiency and acts as a fail-safe in the event of broken network Servers Servers are key access points for computers or ‘Clients’ and operate by allowing access to data hosted on its own server or relaying requesting data hosted on another server. Example server network The internet is host to countless types of data which is why some servers now specialise in hosting a particular type of data or performing a particular function for efficiency. Examples • Web server
• Online gaming server
• Application server For the biggest companies they will have huge buildings that house a large amount of servers which are known as server farms and companies will use them to house their services. For example, Google search engines have their own server farm in Oregon, America. Types of connections There are now three main types of internet connectivity with each offering different connection speeds and methods of transmitting data. Modem / Dial-up An internet connection with a modem uses analogue signals through a telephone line to create a connection with the internet service provider. Requested information is then sent back through the telephone line in analogue signals which is then converted by the modem into a digital format and accessible by the computer. Broadband A broadband connection transmits digital information through a DSL or cable line and provides constant and fast internet connectivity with no interruptions to the phone line. Fibre Optic Fibre optic broadband uses light emitting signals and refraction to transmit data through fibre optic cables then is converted into digital format at the router so the computer can understand the information. Fibre optic broadband is quickly replacing the traditional broadband connection because of its vastly increased down/upload speeds. Internet Service Providers (ISP's) An ISP is an organisation which provides access to the internet using either a dial-up, broadband or fibre optic connection. Currently there are a large number of ISP’s in the UK who deal with both B2C and B2B customers (BT, Virgin, Talk-Talk) and a smaller number who specialise with B2B(Zen Internet). World Wide Web (WWW) The world wide web is a system which allows users to exchange files and information over the internet through websites. Websites and their pages are displayed in a file format called HTML which was created by Tim Berners-Lee in the early 1990’s whilst employed at Swedish research centre CERN. To access the internet and view web pages, users require internet browsing software such as Internet Explorer or Firefox which displays HTML coded files and specialist files which may require a plug-in e.g flash, pdf's, Divx. Advances in browser technology and the open coding of HTML has vastly increased the types of content we can access on the internet which is why the web is now a powerful media and entertainment tool. Protocols Protocols are a set of rules that internet users and devices must follow to maintain the internet's efficiency and functionality. There are three protocols that must be followed which are: Internet Protocol (IP) Internet protocols designate a unique 10 digit identification number to every device, network, host and organisation connected to the internet. This acts as an address so information can be easily sent to and from the particular device, network, host or organisation. Transmission Control Protocol (TCP) Transmission control protocols ensures data sent through the internet is initially broken down into smaller binary code clusters called ‘packets’ to the intended IP address. After reaching its destination, TCP rebuilds the packets of data into its original order and becomes a format which is then recognised on the receiving device. Hypertext transfer protocol (HTTP) Hypertext transfer protocol is the coding in which web browsers and servers communicate data to one another and dictates the order of the communication pattern and format of the data being exchanged. This ensures data exchanged on the world wide web flows in an organised pattern and is comprehensible when the data exchange is complete Domain names Domain names are an alternative method of entering a websites address which uses alphabetic and numerical symbols opposed to an IP address which are a random sequence of numbers. These names are highly advantageous over IP addresses as domain names are created rather than generated and are much more memorable than a set of random numbers. Worldwide Web Consortium (W3C) The world wide web consortium are the leading governing body in ensuring the world wide web develops in a manner which is accessible and is beneficial in some way. The main objective of the W3C is to ensure industry members adhere to certain core principles and structures and operate using compatible HTML coding to maximise the accessibility and benefits of the material. Internet Society (ISOC) The Internet Society is a global organisation which focuses its efforts on internet related standards and supports a number of smaller governing bodies. The Internet Society are similar to W3C in way which they both want the internet to develop in beneficial way, although ISOC’s are more concerns are more focused on educational, scientific and charitable developments. Networking of computers What is a network? Networks are a system consisting of two or more computer devices which are linked and can communicate with each other in some manner. There are number of different network connections which include:

•home-area networks (HANs): A network contained within a user's home that connects a person's digital devices e.g printers, scanners ect.

•local-area networks (LANs) : Connects devices in a close geographical area

•wide-area networks (WANs) : The computers are farther apart and are connected by telephone lines or radio waves.

•metropolitan-area networks MANs): A data network designed for a town or city. Example A wireless network uses a LAN connection via radio waves to connect different devices and are quickly overtaking wired connections because of the benefits they hold. Current related technologies Technological advances have increased the number of devices and mediums which can connect to a computer network. Wi-Fi Wi-Fi allows wireless connections between various devices using specific radio signals. It allows access to the internet and other computers on a network. This is useful as it allows internet access without any cables and can be carried around as long as you are within range of the wireless router. Bluetooth Bluetooth is connecting devices wirelessly over small distances. This can be used to send small amounts of data and is typically used by mobile phones and cameras. It can also be used by laptops and computers as long as they have a Bluetooth chip plugged or installed inside. 4G 4G is the fourth generation of a cellular network. This allows for faster network speed and better network coverage. This uses the WAP (Wireless Application Protocol) to allow an always on connection to the internet. This will be slower than a typical broadband connection. Personal Digital Assistant (PDA) PDA’s are a handheld computer devices which are capable of storing and organising personal data, connecting to the internet and transferring data via bluetooth and Wi-Fi. Smartphones Similar to PDA’s, smartphones can be used to organise personal data, browse the internet and have Bluetooth and Wi-Fi capabilities. However, smartphones have more sophisticated software than PDA’s and are capable of running advanced applications and utilise other technology such as 4G Use of the internet and world-wide web by business organisations To better explain the use of the internet and world wide web in a businesses operations, we have selected two organisations to include in our examples which are: Procurement The internet allows businesses to procure materials and products it requires to operate online from suppliers around the world Example Asda will need to buy a large amount of produce from suppliers outside the country such as tropical fruit and out-of-season vegetables. This method is advantageous over traditional procurement mediums as it allows businesses to compare the cost vs quality of different suppliers from around the globe which can improve the businesses profitability. Research The internet has quickly become the most commonly used research tool used on the UK because of it accessibility and wide-range of information. Businesses like BT can use the internet for numerous research purposes such as: Primary and secondary market research
Market industry developments
Monitoring competitors activities. Development of online presence for sales Many businesses have now begun operating online to some degree in an attempt to remain competitive as consumer trends stray away from the high street and consumers utilise the internet more for their shopping needs. It is crucially important that existing businesses adapt to the shift from the high street to an online presence as this trend is predicted to continue growing and eventually make aspects of the high street unprofitable. Example Asda operates online with Asda Direct which allows the supermarket to better compete with rivals Tesco and Sainsburys. Promotion The internet has provided businesses with an entirely new medium in which to promote their products/services on a global level and at a relatively low cost. Examples • Social networks (Facebook)
• Videos (Youtube)
• Banners
• Pop-ups
• (Audio promotions) Podcasts
• Direct emails
• Google ads
• Product suggestions (Amazon)
• Online gaming (bt xbox live) Customer service The internet has changed the method in which many businesses perform their customer service duties as it has the potential to increase consumer convenience whilst saving costs. Examples FAQ’s
e-mails
Instant messaging
Video messaging However most businesses will still likely have an address or telephone number customers can contact them on. Public relations A businesses own website is an efficient method of publishing its P.R material due to the low cost, wide coverage and is constantly accessible to internet browsers. Example BT may publish its press releases on a section of the BT website in an attempt to improve its image. Providing information Many businesses use the internet to provide various information to their consumers and other stakeholders for numerous purposes. Examples Consumers

•Displaying current product/service range
•Contact information
•General updates
•Upcoming events
•Product/service developments
Other stakeholders

• Annual reports
• Financial information
• Company announcements
Influencing others The world wide web is an efficient tool when being utilised by the public or organisations to influence other peoples opinions or decisions. What are these methods? Reviews Reviews of a product/service can have a major influence on potential consumers behaviour and therefore can affect the success of a product or service. Reviews can come in the form of consumer reviews where existing customers leave their thoughts and opinions on a particular products/services or can be performed by a professional reviewer on behalf of a magazine, website or television show. Forums Similar to consumer reviews, forums allow users to comment their thoughts and opinions on particular topics or subjects which can open a debate/discussion with other members. These can be potentially more influential than consumer reviews as forum users can be long standing members who build an online relationship with other users and therefore will be more likely influenced by their opinions. Activist/Pressure groups There are a number of activist/pressure groups who use the internet to influence the public and other organisations in aide of their own agenda. These websites are usually more formal and fact based than forums and reviews and aim to influence people on a mass scale and for a particular purpose. Communications The internet has become a key tool in business communication and has been utilised in a number of way to improve an organisations efficiency. E-mail E-mails are a quick and cheap method of sending digital text, images and other files around the world and have become an intrinsic part of some businesses operations. Web based meeting/conferences Webinar technology is becoming an increasingly popular communication tool in businesses as operations become more globalised and face to face communication become increasingly difficult and expensive. Intranet and Extranet Many businesses now use intranet and extranet technology which allow registered users to access files and information stored on the organisations servers remotely. These access points are usually secure so require a user name and password from a registered user to access sensitive information. Currently, there are around 37.4 million people in the UK who use some form of social networking in their day-to-day lives and is predicted to continue growing. Global Statistics This sheer number of users has provided businesses with a number of opportunities including advertising, P.R and recruitment. Growing concerns over data security There has been a sharp rise in the number of internet security issues over the last decade relating to cyber crime. The primary concern among general users and businesses is the security of their data as attacks become more frequent and the software more sophisticated.

•Virus
•Malware
•Spyware
•Trojans
•Adware
•Keyloggers
•Worms
Online threats U.S statistics 57 million adults have experienced phishing (extracting data) attack
1.78 million victims have fallen for scams
Costs the economy 1.2 billion dollars This software is created to either extract, modify or destroy data when installed on a computer system and are usually designed to spread to other systems without the users knowledge. Increasing world-wide internet usage Global usage of the world wide web has increased rapidly since its introduction to general public in 1993 and has increased dramatically year on year since then. Global internet growth This trend is estimated to continue growing as technological advances allow more countries to gain access to the world wide web and global ISP prices fall. Use of related mobile technology in business organisations Wi-Fi Businesses can use this to create a freer office space by removing the need for wires and to be more mobile while still accessing the internet anywhere in the office. Devices used are laptops, smartphones and iPads anything with wireless network card can access the wireless connection. VoIP VoIP (voice over internet protocol) is phone service over an internet connection. This can be useful as you can have one connection doing services rather than an internet connection and a phone connection. There is also a lower cost with many international calls priced at about 10% of current phone rates or depending on the service may be free. Another feature is that of virtual phone numbers. VoIP does not rely on one geographical location so the company can assign any area code to their numbers even if they are not in that location. Conferencing phone calls are available on a VoIP connection, these are also available on traditional phone line but it is cheaper to do on a VoIP line. A Smartphone is a phone with boosted internet and computing abilities. The most popular example would be the Blackberry which is used by many professionals. The size makes it useful for sales and field work. It can be used to create and edit documents, sync up as a presentation tool (changing slides) and create spread sheets. Smartphones 4G 4G is the fourth generation of a cellular network. This allows for faster network speed and better network coverage. This uses the WAP (Wireless Application Protocol) to allow an always on connection to the internet. This will be slower than a typical broadband connection. A business can use this for emails and sending small files to one another and performing research. This would also be useful for field work. IPad An iPad is a tablet computer. A piece of technology that has the capabilities of computer but in smaller and more mobile form. This is produced by technology company Apple. Due to its use of applications that are downloadable it offers a more creative experience and due to its mobility it can be used anywhere. In business you can do many things that you can on a workstation such as edit office documents, prep presentations and reports and even use web communication to have face to face meetings over the internet. Bluetooth is connecting devices wirelessly over small distances. This can be used to send small amounts of data and is typically used by mobile phones and cameras. It can also be used by laptops and computers as long as they have a Bluetooth chip plugged or installed in. This is slower than broadband and cannot send large files but could be useful as a backup in case the internet connection fails. Bluetooth END
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