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 discussing the impact of Wide Area Networks (WANs) on business. It’s been huge! WANs have created an entirely new segment in the business market and revolutionized many of the current ones. A person could write for days or months about all the impacts and effects WANs have had. This essay will focus on three primary areas to describe the impact of WANs on business. First, some specific types of applications will be discussed and how they can improve day-to-day business operations. WANs enable various communication mediums to exist that significantly improve the speed of business communications. The telephone and e-mail are a couple of examples. WANs also allow various marketing and financial applications to improve business operations. Next, some real world examples will be provided to show the actual impact WANs are having. The travel industry, JCPenney, Varsity Books, and Wal-Mart are just some of literally thousands of companies that have capitalized on the capabilities WANs provide. Finally, the importance of WANs and the benefits they can generate will be discussed. Specifically, the strategic leverage and competitive advantages that can be created and maintained by implementing the use of WANs will be addressed.

BUSINESS APPLICATIONS

Before getting into specific business applications, let’s quickly review what a wide area network (WAN) is. Ray Hunt and John Vargo define a WAN as, “A telecommunication network allowing connection of computers, peripherals, and other devices, such as telephone and fax, that are at a distance from one another” (1996, p. 463). WANs extend across geographic boundaries such as streets, cities, states, and even countries, into the “public” domain where anybody can use them (Hunt & Vargo, 2000). By allowing anybody and everybody into the “public” domain, WANs opened a completely new market for businesses that was previously not available to them. As a result, WANs grew larger and new communication methods and business applications were developed to capitalize on the WAN technology and architecture.

The telephone system is an example of a wide area network. Its impact on business, and on most people’s lives in general, is rather obvious. It is one of the primary methods of communication we use today. Other, and relatively newer methods based on WANs include electronic mail (E-mail), voice mail, fax machines, and teleconferences. These applications/technologies have improved business communications by:

1) Reducing the effect of “telephone tag”

2) Minimizing time spent in telephone conversations

3) Providing the ability to send and/or receive files

4) Providing the ability to retain a permanent record of the communication

5) Minimizing problems associated with geographic and time differences

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

The impact of business communications can not be understated. One senior executive states, “Good communications are the lifeblood of any enterprise, large or small. Communications are essential to keep our entire organization functioning at maximum levels and to make the most of our greatest management resource-our people” (Blanchard, Hersey, & Johnson, 1996, p. 338). Communication is not the only business activity WANs can significantly impact.

Various marketing applications can be implemented using WANs. A reservation system is a good example of the way companies can market a seat on an airplane or a room in a hotel. The wide area network provides the link between the customer and the database that maintains up to the minute availability information. Customers can act as their own travel agent in the convenience of their own home or business. Companies can advertise and promote their services to a large segment of the market; the online market.

Teleshopping is another area where marketing applications have experienced tremendous growth. Teleshopping, or electronic commerce (E-commerce) means shopping or conducting business electronically over WANs. Countless new companies have started that sell their products solely over the Internet. Many other established companies have started selling their products over the Internet in addition to their traditional locations. The concept is simple. Customers can browse the company’s products over the Internet. If they find something they want, they can order it and pay with a credit card (also over the Internet). The company will ship the product(s) directly to the customer’s home or business. A customer never has to leave their home or place of business to conduct transactions. This capability attracts an entirely new market and revenue potential for companies.

Similar financial services and applications are available. Use of WANs to conduct financial transactions is now commonplace in our society. We use automated teller machines (ATMs) every day to withdraw cash, transfer funds, and perform inquiries. Electronic funds transfer (EFT) is an essential capability WANs provide to the finance and banking industry. The ability to transfer funds electronically enables numerous business and personal transactions to be performed easily and virtually immediately. Buying products, paying