Data Communications or Telecommunications

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Data Communications or
Telecommunications

• By
• Inez Smith
• Brian Agee
• Beverly Williams
• Evelyn Ellington

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http//www.internetweek.com/netresults/net082100.h
tm
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IT Overview

• Began in 1994 as an experiment at the request of
  MIT
• Suppliers were asked to participate by building
  websites that MIT would make purchases from

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IT Overview - Continued

• Due to the success of the MIT project
• B2B web channels were then developed for other
  corporate customers - generating more than 60
  million dollars in three years

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IT Overview - Continued

• In 1998 OfficeDepot.Com was launched
• It was a full scale e-commerce site for small
  business and individual customers
• In 1999 company revenues from web based sales
  topped 350 million

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IT Overview - Continued

• In 2000 Office Depot chose to marshal its IT
  resources and unify its channels Superstores,
  catalogs, toll-free numbers and the web site
• Millennia
• Business in a Box

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IT Overview - Continued

• Millennia
• allows in-store employees real-time information
  over the web about
• inventory
• pricing
• orders
• customer accounts

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IT Overview - Continued

• Business in a Box
• preconfigured Windows NT servers that will allow
  small businesses plug-and-play DSL connectivity
  and interfaces with Office Depots key
  applications, such as the order entry system via
  XML

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IT Overview - Continued

• 2000 web site revenues were 850 million
• IT improvement plans for 2001
• Assistance for people trying to select the best
  wireless plans
• The availability of website access by mobile
  devices

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Project Question

• Is Office Depots mode of communication an
  example of Telecommunications or Data
  Communications ?

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Telecommunication

• General Industry Definition
• "telecommunication" means any transmission,
  emission or reception of signs, signals, writing,
  images or sounds or intelligence of any nature by
  wire, radio, visual or other electromagnetic
  system

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Data Communication

• General Industry Definition
• The collection and distribution of the electronic
  representation of information from one point to
  another via a network

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Answer

• Provided by Office Depot CIO Bill Seltzer
• in the February 1, 2001 issue of
• CIO Magazine

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• Mr. Seltzer tells us that the system does not
  distinguish between an order that is placed by
  phone, fax or internet. The system is fully
  integrated. He further states that, The data
  architecture is bedrock and weve spent a lot of
  time doing it right. Furthermore..

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• He states that,It (the system) brings value in
  that it gets information into our system without
  the need for human interface. For us, it
  means labor savings and accuracy. For the
  vendors, they no longer have to sit down, write
  us a letter and mail it, or convey information
  through a sales call. The feedback were getting
  is that they love it.

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Therefore

• Office Depot is an example of Telecommunications
  as a whole, but due to the heavy integration of
  databases, networks and reduced human interface
  it is a primary example of data communications at
  its best.

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For more information Visit

• OfficeDepotMedia.Com
• OfficeDepot.Com

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Student Question

• What is the bedrock foundation of Office
  Depots IT system and how does it enhance the
  companies productivity ?

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Student Answer
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Student Answer Continued
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Harley-Davidson Is Going Into Overdrive
http//www.internetwk.com/case/study120798-2.htm
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Harley-Davidson Is Going Into Overdrive

• In 1998 Harley-Davidson set a goal of increasing
  their production from approximately 150,000
  motorcycles that year to 200,000 motorcycles by
  2003, the companies centennial.
• To accomplish this goal Harley-Davidson budgeted
  50 million for the IT budget.

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Harley-Davidson Is Going Into Overdrive

• More than half of that budget is dedicated to new
  development
• Funding an IP-based corporate network
• Data warehouse project
• Standardizing on Microsoft desktop and server
  software

Officials also expect IT to cut 40 million from
production costs and inventory
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Harley-Davidson Is Going Into Overdrive

• Some examples of Harley-Davidsons new IT
  advances
• Customers meet on the companys website.
• Dealerships execute warranty-claim transactions
  and parts order entry over an extranet known as
  H-D.Net.

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Harley-Davidson Is Going Into Overdrive

• Last summer, the company opened its newest
  manufacturing plan in Kansas City, MO., which is
  expected to produce bikes 30 more efficient than
  its York, PA., plant.

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Harley-Davidson Is Going Into Overdrive

• The Kansas City plant runs American Software
  Inc.s IBM AS/400-based materials management
  system, the same one used at four other
  manufacturing plants. Although Harley-Davidson
  has increased its use of Windows NT as a server
  platform, the company plans to keep its base of
  AS/400 for manufacturing and use them to support
  the data warehouse that is under development.

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Harley-Davidson Is Going Into Overdrive

• Harley also streamlined its purchasing systems as
  well.
• In 1995 Harley-Davidson dealt with nearly 1,000
  suppliers to obtain motorcycle components, parts
  and accessories, and general merchandise.

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Harley-Davidson Is Going Into Overdrive

• The number was cut to 425, and Sterling Software
  Inc.s e-commerce application was implemented to
  the 1 billion annual spending with suppliers.
• Their strategy of using IT deployment has paid
  off in productivity and efficiency.

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Harley-Davidson Is Going Into Overdrive

• Harley-Davidson VP of purchasing Garry Berryman
  said
• Using IT to make its spending and supplier
  relationships as efficient as possible is
  essential for maintaining growth. Weve got to
  have good information or we cannot grow at
  projected rates.

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Harley-Davidson Is Going Into Overdrive

• In 1994 the company realized that it was severely
  out of date. The building was 84 years old the
  lift truck, Fork truck and other pieces of
  materials-handling equipment were 30 years old or
  older.

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Harley-Davidson Is Going Into Overdrive

• The information systems were extremely
  paper-intensive and described by one employee as
  error-prone and held productivity at very low
  levels. The worst part, it took as long as 12
  days to fulfill parts ordered. Competitors could
  deliver in three days or less.

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Harley-Davidson Is Going Into Overdrive

• So Harley decided to start from scratch and
  redesign their processes and implement new and
  efficient IT services. When the 18 million dollar
  construction and implementation effort was
  completed in 1996 productivity doubled, and order
  fulfillment time was cut to two days. With the
  help of IT Harley-Davidson hopes to keep its
  customer base satisfied and growing.

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Harley-Davidson Is Going Into Overdrive

• Data communication vs Telecommunication

According to this article, data communications
made the biggest contribution to Harleys recent
success.
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Harley-Davidson Is Going Into Overdrive

• Although Harley uses the telecommunication
  services I mentioned earlier (Customers meeting
  other customers on the company web site and the
  H-D.Net for the dealers) Harley reports that so
  far, only one tenth of the dealers take advantage
  of the extranet.

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Harley-Davidson Is Going Into Overdrive

• Student Question
• What are some of the benefits Harley saw with the
  new communication services?

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Harley-Davidson Is Going Into Overdrive
Student Answer
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Saab Drives to Thinner Clients
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Saab Drives to Thinner Clients

• Internetweek November 16, 1998
• http//www.internetwk.com/case/study111698-2htm

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Saab Drives to Thinner Clients

• Saab is driving its nationwide dealerships to
  thin client/server computing. Saab will use a
  new, high-speed satellite network to remove their
  data communication and telecommunication
  deficiency.

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Saab Drives to Thinner Clients

• Saab Cars USA Inc. is changing their network.
  Changing independent dealers from terrestrial
  lines and onto satellite connections will
  facilitate and give them centralized systems.

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Saab Drives to Thinner Clients

• Internal Retail Information System (IRIS), the
  standard system for a Saab dealership, gives
  dealers browsers access from PCs to Saab
  Headquarters' IBM AS/400.
• This also gives them access to Java, within the
  parts database that is maintained on an IBM
  System/390 mainframe.

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Saab Drives to Thinner Clients

• IRIS relies on the Jacada Java-based middleware
  server from Client/Server Technologies Inc. to
  translate them to a Java-based applet on the
  local client.

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Saab Drives to Thinner Clients

• Scientific Atlanta Inc. will provide the
  satellite equipment, which is capable of a much
  faster connection of 128Kbps with bursts to
  512Kbps and allows constant online access for
  dealers, which is 3 times lower than terrestrial
  high speeds

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Saab Drives to Thinner Clients

• Centralizing Saabs computing will avoid the
  complexities of distributing databases to remote
  dealers, enabling Saab to focus on issues like
  synchronizing supply and demand.

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Saab Drives to Thinner Clients

• To centralize computing is the main goal behind
  IRIS. To ultimately give the dealership more
  than a browser-based window on Saab applications
  and by driving to the new, high-speed satellite
  network, dealerships will access a local database
  of parts graphics and repair guides.

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Saab Drives to Thinner Clients

• Saab uses both data communications and.
• telecommunications.
• Data communications because the dealerships are
  accessing databases.
• Telecommunications because the dealerships are
  accessing graphics through satellite connections,
  etc.

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Saab Drives to Thinner Clients

• Question
• What type of application will the Saab
  dealerships use when accessing Saab Databases?

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Saab Drives to Thinner Clients

• Answer

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GOP Aims To Create More Telecom Competition
http//www.internetweek.com/story/INW20010202S0001
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GOP Aims To Create More Telecom Competition

• Incoming legal counsel for the House Energy and
  Commerce Committee says that Congress may need to
  reopen the 1996 Telecommunication law.

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History of Telecommunications

• Telegraph and telephone
• Hush-a-phone
• Carterphone
• Invention of Internet
• All lead to the necessity of laws

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1996 Telecommunications Act

• More competition among intrastate and interstate
  communication services
• Provision of long-distance services
• The deregulation of cable television company
  rates
• The combining of cable television companies and
  telephone companies

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1996 Telecommunications Act

• Removed limits on how many radio stations a
  single company could own.
• E-rate program was created. (Has contributed
  approximately 47.7 billion to help subsidize
  Internet access)
• Bars dominant local carriers from the
  long-distance markets.

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Widespread Competition

• The key telecommunications issue of the telecom
  acts goal was to make widespread competition a
  reality.
• Will have to reopen the statute or have faster
  deregulation.

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Competition by Cable Broadband

• Encourage local carriers to deploy their
  high-speed technology and digital subscriber
  lines.

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Wireless

• Advanced wireless networks.
• Use of cell phones nationwide

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FCC reviewing policy on open access

• Many telecoms grew out of the
  Telecommunications Act of 1996
• However
• The act has failed to bring the competition
  that was intended.

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Technology overtakes legislation

• The Act has become outdated by the new kinds of
  services and technology
• It is time for congress to revise it.

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Student Question

• Should the 1996 Telecommunications Act be
  revised to accommodate today's new technology or
  should there be new laws made to cover all fields
  of technology?

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Student Answer
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The End
http//www.internetweek.com/netresults/net082100.h
tm
http//www.internetwk.com/case/study120798-2.htm
http//www.internetwk.com/case/study111698-2htm
http//www.internetweek.com/story/INW20010202S0001