STRATEGIC IMPACT OF MULTIMEDIA ON BUSINESS AND PUBLIC SECTOR SERVICES:
Multimedia Applications on the California Research and Education Network


                      Andreas Hoffmann
    Imperial College of Science, Technology and Medicine
                   (University of London)
                       September 1994


                          ABSTRACT


The subject of this work is the  strategic  impact  of  mul-
timedia applications and technology on both business and the
public sector. It commences with a review of related  Infor-
mation  Management  literature, including discussions on how
to effectively plan and control IT projects. The  impact  of
Information  Technology on functional and structural aspects
of organizations  is  investigated.  Policy  guidelines  are
given that help management and staff to harness the inherent
potential of IT for enhancing organizational effectiveness.

A brief summary of the computing and  communications  evolu-
tion  introduces  the  technological  cornerstones  of  this
dissertation: computer protocols  (OSI),  computer  networks
(LAN,  WAN,  Internet),  communications  technology  (Fiber,
SONET, ATM), and networking applications (Multimedia). It is
concluded  that  there is a need for broadband services that
resolve the  bandwidth  bottleneck  created  by  the  steady
increase of networking applications.

Having introduced the technological terms that  characterize
the  different  service  requirements and transport options,
the  crucial  elements  of  future  broadband  networks  are
explained: optical fiber technology, the Synchronous Optical
Network (SONET) standard,  and  Asynchronous  Transfer  Mode
(ATM).  The  strategic impact of these technologies on busi-
ness and residential customers is  discussed,  supported  by
experiences  of early adopters. The Open System Interconnec-
tion (OSI) protocol, to  which  these  technologies  can  be
related, is also covered.

The work proceeds with an analysis of  different  communica-
tion  media  and  how they relate to ATM. It presents a mul-
timedia system model and standards and evaluates  the  stra-
tegic  impact  of  multimedia.  Multimedia market trends and
virtual reality, which is seen as an  proliferation  of  the
multimedia concept, are discussed.

Pacific Bell has created a trust, known  as  the  California
Research and Education Network (CalREN), to promote develop-
ment of applications that are expected to  a  create  market
demand  for ATM. These applications are typically multimedia



                      October 1, 1994





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based. The primary part of this dissertation  describes  the
Bay  Area Gigabit Network (BAGNET) and the Health Care Imag-
ing projects that are supported by CalREN awards.  The  pro-
ject  description includes both technological and managerial
aspects, with focus on the  strategic  impact  of  the  mul-
timedia  applications  envisaged as running as part of these
projects. Applications are expected  to  improve  education,
health  care delivery and governmental processes, facilitate
business development and job creation, and  provide  a  com-
petitive edge to commercial users.