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Management Information Systems

Notes But from a management point of view, the challenge is to retain as much of the benefit of
systems in vestments as is feasible in current market conditions.
The worth of systems from a financial perspective essentially revolves around the question of
return on invested capital. The value of systems comes down to one questions: Does a particular
IS investment produce sufficient returns to justify its costs? There are many problems with this
approach, not the least of which is how to estimate benefits and count the costs. The business
values of wireless networking are:

1. Wireless communication helps businesses easily stay in touch with customers, suppliers,
and employees.
2. Wireless networking increases worker productivity and output, as workers take less time
to establish contact with people and to access information.
3. Companies can save on wiring offices, moving, and making network changes by using
wireless networks.
4. Wireless technology has also been the source of new products, services, and sales channels
in a variety of industries, e.g. OnStar, Starbucks “hot spots”.

Self Assessment

Fill in the blanks:

3. The worth of systems from a ................................ perspective essentially revolves around
the question of return on invested capital.
4. ................................ communication helps businesses easily stay in touch with customers,
suppliers, and employees.

9.3 WIMAX

WiMAX is a wireless digital communications system also known as IEEE 802.16, that is intended
for wireless “metropolitan area networks”. WiMAX can provide broadband wireless access up
to 30 miles (50 km) for fixed stations, and 3 - 10 miles (5 - 15 km) for mobile stations. In contrast,
the WiFi/802.11 wireless local area network standard is limited in most cases to only 100 - 300
feet (30 - 100 m).

With WiMAX, WiFi like data rates are easily supported, but the issue of interference is lessened.
WiMAX operates on both licensed and non-licensed frequencies, providing a regulated
environment and viable economic model for wireless carriers.
WiMAX can e used for wireless networking in must the same way as the more common WiFi
protocol. WiMAX is a second generation protocol that allows for more efficient bandwidth use
interference avoidance and is intended to allow higher data rates over longer distances.
The IEEE 802.16 standard define the technical features of the communications protocol. The
WiMAX Forum offers a means of testing manufactures’s equipment for compatibility as well as
an industry group dedicated to fostering the development and commercialization of the
technology.
WiMAX is defined as “Worldwide Interoperability for Microwave Access” by the WiMAX Forum,
formed in June 2001 to promote conformance and interoperability of the IEEE 802.16 standard,
officially known as Wireless MAN. The Forum describes WiMAX as “a standards-based
technology enabling the delivery of last mile wireless broadband access as an alternative to
cable and DSL”.

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