Impact On Wide Area Network Essay Research

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Impact On Wide Area Network Essay Research

Impact On Wide Area Network Essay, Research Paper

PACT OF WIDE AREA NETWORKS ON BUSINESS

Introduction

Where does one start when discoursing the impact of Wide Area Networks ( WANs ) on concern? It & # 8217 ; s been immense! WANs have created an wholly new section in the concern market and revolutionized many of the current 1s. A individual could compose for yearss or months about all the impacts and effects WANs have had. This essay will concentrate on three primary countries to depict the impact of WANs on concern. First, some specific types of applications will be discussed and how they can better daily concern operations. WANs enable assorted communicating mediums to be that significantly better the velocity of concern communications. The telephone and electronic mail are a twosome of illustrations. WANs besides allow assorted selling and fiscal applications to better concern operations. Next, some existent universe illustrations will be provided to demo the existent impact WANs are holding. The travel industry, JCPenney, Varsity Books, and Wal-Mart are merely some of literally 1000s of companies that have capitalized on the capablenesss WANs provide. Finally, the importance of WANs and the benefits they can bring forth will be discussed. Specifically, the strategic purchase and competitory advantages that can be created and maintained by implementing the usage of WANs will be addressed.

Business APPLICATIONS

Before acquiring into specific concern applications, allow & # 8217 ; s rapidly reexamine what a broad country web ( WAN ) is. Ray Hunt and John Vargo specify a WAN as, & # 8220 ; A telecommunication web leting connexion of computing machines, peripherals, and other devices, such as telephone and facsimile, that are at a distance from one another & # 8221 ; ( 1996, p. 463 ) . WANs extend across geographic boundaries such as streets, metropoliss, provinces, and even states, into the & # 8220 ; public & # 8221 ; domain where anybody can utilize them ( Hunt & A ; Vargo, 2000 ) . By leting anybody and everybody into the & # 8220 ; public & # 8221 ; sphere, WANs opened a wholly new market for concerns that was antecedently non available to them. As a consequence, WANs grew larger and new communicating methods and concern applications were developed to capitalise on the WAN engineering and architecture.

The telephone system is an illustration of a broad country web. Its impact on concern, and on most people & # 8217 ; s lives in general, is instead obvious. It is one of the primary methods of communicating we use today. Other, and comparatively newer methods based on WANs include electronic mail ( E-mail ) , voice mail, facsimile machines, and teleconferencings. These applications/technologies have improved concern communications by:

1 ) Reducing the consequence of & # 8220 ; telephone ticket & # 8221 ;

2 ) Minimizing clip spent in telephone conversations

3 ) Supplying the ability to direct and/or receive files

4 ) Supplying the ability to retain a lasting record of the communicating

5 ) Minimizing jobs associated with geographic and clip differences

6 ) Reducing paper handling and associated costs ( Hunt & A ; Vargo, 2000 )

The impact of concern communications can non be understated. One senior executive provinces, & # 8220 ; Good communications are the lifeblood of any endeavor, big or little. Communicationss are indispensable to maintain our full organisation operation at maximal degrees and to do the most of our greatest direction resource-our people & # 8221 ; ( Blanchard, Hersey, & A ; Johnson, 1996, p. 338 ) . Communication is non the lone concern activity WANs can significantly impact.

Assorted selling applications can be implemented utilizing WANs. A reserve system is a good illustration of the manner companies can market a place on an aeroplane or a room in a hotel. The broad country web provides the nexus between the client and the database that maintains up to the minute handiness information. Customers can move as their ain travel agent in the convenience of their ain place or concern. Companies can publicize and advance their services to a big section of the market ; the online market.

Teleshopping is another country where selling applications have experienced enormous growing. Teleshopping, or electronic commercialism ( E-commerce ) means shopping or conducting concern electronically over WANs. Countless new companies have started that sell their merchandises entirely over the Internet. Many other established companies have started selling their merchandises over the Internet in add-on to their traditional locations. The construct is simple. Customers can shop the company & # 8217 ; s merchandises over the Internet. If they find something they want, they can order it and pay with a recognition card ( besides over the Internet ) . The company will transport the merchandise ( s ) straight to the client & # 8217 ; s place or concern. A client ne’er has to go forth their place or topographic point of concern to carry on minutess. This capableness attracts an wholly new market and gross potency for companies.

Similar fiscal services and applications are available. Use of WANs to carry on fiscal minutess is now platitude in our society. We use machine-controlled Teller machines ( ATMs ) every twenty-four hours to retreat hard currency, reassign financess, and execute enquiries. Electronic financess transfer ( EFT ) is an indispensable capableness WANs provide to the finance and banking industry. The ability to reassign financess electronically enables legion concern and personal minutess to be performed easy and virtually instantly. Buying merchandises, paying measures, directing money to a friend or comparative are merely a few illustrations of EFT minutess. Hunt and Vargo say that without webs, fiscal services throughout the universe would discontinue ( 1996 ) .

Another effectual WAN application involves Point of Sale ( POS ) information. Networks are used to associate gross revenues registries at retail mercantile establishments to centralise databases that maintain stock list balances, merchandise descriptions and monetary values, and other meaningful records. As gross revenues minutess occur, the database is updated in existent clip to reflect those minutess. By keeping current and historical informations, companies can maintain stock degrees down, do better demand projections, and bring forth merchandise and client profiles ( Hunt & A ; Vargo, 1996 ) . This effectual usage of information direction can be really of import when important determinations must be made. Most would hold WANs and associated applications are decidedly impacting concern today.

Real WORLD EXAMPLES

In the old subdivision, some general WAN applications impacting the concern universe were provided. Following, are some specific illustrations of these applications. Let & # 8217 ; s start with the service industry. Expedia.com ( hypertext transfer protocol: //msn.expedia.com ) and Travelocity.com ( hypertext transfer protocol: //www.travelocity.com ) are merely two of many companies that provide travel reserve systems utilizing WANs. They both enable clients to do air hose, hotel, rental auto, and cruise reserves online in the convenience of their ain place or concern and on their agenda. Their sites provide maps and driving waies. Customers can set up their ain histories and penchants. They can compare menus and rates to happen the lowest competitory monetary values. At the same clip, companies are organizing partnerships to market assorted bundle trades. Buying air hose tickets and hotel adjustments for one monetary value is a popular combination bundle.

Now let & # 8217 ; s move to the selling industry. In a recent interview with Paul Pappajohn, the president of JCPenney E-Commerce, Elizabeth Blakey revealed the success JCPenney has experienced since get downing to sell ware over the Internet. JCPenny is a 98-year-old retail company that historically sold its ware through traditional retail shops. They started selling over the Internet in 1994 and initiated secure online telling in 1996. In November 1999, JCPenney began offering their full catalog mixture of ware ( over 250,000 alone merchandises ) online and now average over 40,000 client orders per hebdomad over the Internet. Revenue generated from Internet gross revenues were $ 15 million in 1998, $ 102 million in 1999, and are expected to make $ 300 million in 2000 ( Blakey, 2000 ) .

VarsirtyBooks.com ( hypertext transfer protocol: //www.varsitybooks.com ) is an illustration of a little concern that is besides capitalising on WAN capablenesss. Joshua Wilner of the E-Commerce Times reveals their background in an interview with Eric Kuhn, President, CEO, and Co-Founder of Varsi

tyBooks.com. Varsitybooks.com was started in 1997. The company began operations by marketing text editions to college pupils over the Internet since pupils are rather comfy utilizing it. VarsityBooks.com’s gross revenues are strictly on-line ; nevertheless, they besides market their merchandises with a strong peer referral plan. VarsityBooks.com recruited more than 2,000 pupil leaders at over 500 colleges and universities countrywide to work as on-campus pupil selling representatives. Today, VarsityBooks.com sells over 350,000 rubrics of text editions, study/reference ushers, and best-selling fiction and non-fiction. Harmonizing to Student Monitor ( the merely nationally syndicated market research survey of the college pupil market ) , VarsityBooks.com is the most-visited and most often-visited Web site for the college market ( Wilner, 2000 ) .

Wal-Mart is another company that capitalized on WAN engineering. Aquilano, Chase, & A ; Jacobs explain Wal-Mart & # 8217 ; s history of Point of Sale ( POS ) systems. Wal-Mart started in 1987 with their award winning Satellite Network. It maintained real-time gross revenues and stock list information and supported informations, voice, and picture. They implemented electronic informations interchange in 1990 that issued electronic purchase orders and received bills to/from their sellers. In 1991, Wal-Mart installed Retail Link, which enabled sellers to see real-time POS information. Sellers could so do improved prognosiss and manage stock lists better. Retail Link besides included electronic mail and Microsoft Excel to ease other supply activities ( 1998 ) . Not surprisingly, Wal-Mart has been a really successful company. As these illustrations show, WANs are act uponing the operations of a assortment of companies. They impact service companies like the air hoses and hotels, established companies like JCPenney, new companies like VarsityBooks.com, and industry giants like Wal-Mart.

BENEFITS AND IMPORTANCE

Why is the impact of WANs on concern so important? One portion of the reply to that inquiry is & # 8220 ; purchase & # 8221 ; . More specifically, & # 8220 ; strategic purchase & # 8221 ; . Hunt and Vargo define & # 8220 ; strategic purchase & # 8221 ; as the usage webs and information engineering ( IT ) to increase the advantage from an organisation & # 8217 ; s strengths, and to capture chances non available without the usage of usage webs and IT. Integrating webs and IT can assist guarantee organisations successfully respond to client demands with quality merchandises and services in a competitory concern environment ( 1996 ) .

Another portion of the reply to inquiry is & # 8220 ; advantage & # 8221 ; . Successful integrating may give a competitory advantage over the organisation & # 8217 ; s primary rivals. Consequences can include the creative activity of new concern chances, improved reactivity, and minimized failings. Look at what JCPenney has done in the old illustration to derive a competitory advantage over those that have non capitalized on Internet gross revenues.

WANs can assist organisations achieve a competitory advantage, but today, usage of WANs is about compulsory merely to remain in concern. The cost nest eggs associated with communicating, selling, minutess, and other concern activities make the usage of WANs a & # 8220 ; must hold & # 8221 ; in order to guarantee efficient fiscal direction and competitory in their several industries. Hunt and Vargo province, & # 8220 ; A company in the travel industry can non stay competitory without entree to networks & # 8221 ; ( 1996, p. 41 ) . This can be applied to other industries excessively. Again, JCPenney & # 8217 ; s entry in the Internet market gained a competitory advantage over their rivals that didn & # 8217 ; T, but they besides maintained their fight with those that did.

To derive an apprehension of the unbelievable growing and impact WANs are holding on the economic system, the undermentioned statistics and prognosiss are provided:

– Americans online is expected to be 194 million ( 68 % ) in 2005, from 122 million ( 44 % ) in 2000

– U.S. workers with Internet entree at work is expected to be 85 % in 2005, from 63 % in 1999

– U.S. business-to-business e-commerce will lift to $ 6.3 trillion in 2005, from $ 336 billion in 2000

– U.S. consumer e-commerce is expected to lift to $ 269 billion in 2005, from $ 45 billion in 2000

– E-commerce this vacation season is expected to lift to $ 11.6 billion, from $ 7 billion in 1999

– Online little concerns with e-commerce are expected to be 49 % in 2003, compared to 34 % in 2000

– E-commerce is expected to stand for 4.4 % of the U.S. gross domestic merchandise by 2002 ( Carr, 2000 ) .

As the statistics and prognosiss show, WANs and associated applications will go on to turn and significantly impact our concern and economic environments. To account for the expected growing and scope of usage, the Internet Corporation for Assigned Names and Numbers ( ICANN ) late added seven new web reference postfixs to the bing dot com, dot-net, dot-org, dot-edu, dot-mil, and dot-gov. The new 1s are dot-biz, dot-aero, dot-coop, dot-info, dot-name, dot-pro, and dot-museum ( McDonald, 2000 ) . Businesss can non disregard these tendencies. Use of WANs and e-commerce via the Internet is going the industry criterion for companies to go and stay competitory.

Decision

This essay attempted to supply a brief description of the impact of broad country webs on concern. A definition of a WAN was provided and assorted concern applications were described. Communication methods such as the telephone and electronic mail were addressed along with selling and fiscal applications. Real universe illustrations from the travel and retail industries were besides discussed. We saw how WANs were utilized by an established company like JCPenney to keep its fight, and how a new company like VarsityBooks.com gained a competitory advantage and a piece of the college text edition market. Finally, we looked at the underlying constructs behind the success of WANs. Strategic purchase was explained and how it can ensue in deriving a competitory advantage and/or merely keeping a company & # 8217 ; s fight. The hereafter of WANs is bright.

A.J. Strickland III and Arthur A. Thompson, Jr. provide a compendious description of the current tendency. They province,

& # 8220 ; Internet enterprisers are presently taking a revolution to revamp the value ironss for supplying traditional mail services, supplying all kinds of information to concerns and families, for carry oning meetings via cameras and computing machines while the attendants sit at their desks in their offices, for supplying long distance telephone services via the Internet, for shopping for goods and services, for trading stocks, and on and on. They are using & # 8220 ; practical value ironss & # 8221 ; and working the new economic sciences of making concern in the marketspace of the World Wide Web and commercial on-line services & # 8221 ; ( 1999 ) .

Their pick of words seems accurate. We are using & # 8220 ; practical value ironss & # 8221 ; , there are & # 8220 ; new economic sciences of making concern in the marketspace & # 8221 ; , and we are sing a & # 8220 ; revolution & # 8221 ; . The statistics revealed earlier support this. The bottom line here sing the Internet and WANs is that use is going more prevailing and diverse every twenty-four hours, so you better gone on board or you will be left behind!

Aquilano, Nicholas J. , Chase, Richard B. , & A ; Jacobs, F. Robert. ( 1998 ) . Production and Operations Management: Fabrication and Services ( Eighth Edition ) . Irwin/McGraw-Hill

Blakey, Elizabeth. ( 2000 ) . & # 8220 ; Exclusive Interview: JCPenney.com. & # 8221 ; E-Commerce Times. November 19, 2000

Blanchard, Kenneth H. , Hersey, Paul, & A ; Johnson, Dewey E. ( 1996 ) . Management of Organizational Behavior: Utilizing Human Resources ( Seventh Edition ) . New Jersey: Prentice Hall.

Carr, Laura. ( 2000 ) . & # 8220 ; 100 Numbers You Need to Know. & # 8221 ; TheStandard.com. November 19, 2000

Hunt, Ray, & A ; Vargo, John. ( 1996 ) . Telecommunications in Business: Scheme and Application. Irwin/McGraw-Hill

McDonald, Tim. ( 2000 ) . & # 8220 ; New Internet Domain Names Approved. & # 8221 ; NewsFactor Network.. November 19, 2000

Strickland, A.J. III & A ; Thompson, Arthur J. Jr. , ( 1999 ) . Strategic Management: Concepts and Cases ( 11th Edition ) . Irwin/McGraw-Hill.

Wilner, Joshua. ( 2000 ) . & # 8221 ; Small Business Success Story: VarsityBooks.com. & # 8221 ; E-Commerce Times. November 23, 2000 & lt ; hypertext transfer protocol: //www.ecommercetimes.com/success_stories/success-varsitybooks.shtml