UNIT 2: Information Technology

Structure
2.0 Learning Objectives
2.1 Data Resources
2.2 Impact of Internet Revolution in Business
2.3 Managing E-Transformation
2.4 Introduction to Telecommunications and Computer Network for Business
2.5 Summary
2.6 Keywords
2.7 Exercise
2.8 References

2.0 Learning Objectives

After studying this unit, you will be able to
 Understand about the different types of data resources
 The concept of e-transformation
 Understand the concept of networks and the different types

2.1 Data Resources:

Data
Data is the collection of raw facts representing events occurring in organization or the
physical environment before they have been organized and arranged into a form that people
can effectively understand and use.
Information
Information is the data that have been shaped into a form that is meaningful and useful to
human beings. Processed data is Information.

29
Ex:
Data Information
Information
331 Soap 10 Sales region: North
system
836 Salt 22   Store: Super Bazaar 122
331 Soap 12 Item no Description Quantity Units sold
331 Soap 10 7156

Fig: Data and Information

Raw data from super market checkout counter can be processed and organized to produce
meaningful information, such as total units of sale.
Data Manipulation
• Data is manipulated to make useful information
• Survey is common method of collecting data
• Raw data is hard to read
• Information is more useful to business than data
Generating Information
• A process is manipulation of data
• Process usually produces information
• Process may produce more data
• A piece of information in one context may be considered data in another context

30
Information in Context
• Not all information is useful
• Useful information is
– Relevant
– Complete
– Accurate
• Useful information is
– Current
– Obtained economically (in business)

31
2.2 Impact of Internet Revolution in Business

Worldwide influence of the internet is well-established and acknowledged. Penetration rate

of the internet has been phenomenal; almost 1/3rd of Human population are accessing the
internet. The way business is conducted in this digital age has changed due to so many
people logged on to the internet.
Advancement in communication and information technology has further strengthen the role
of the internet in business. The internet is widely used in organization for marketing and
promotion of products and services. The internet is used to deliver customer support, share
information and provide training to employees.
With the internet becoming a powerful tool for employees, the impact on business is
undeniable.

32
Internet and Porter’s Five Force Model
Porter‘s five force model is a framework for industry analysis, business strategy
development and study competition. The five forces of the model are the threat from
upcoming and future competition, threat from existing substitute, bargaining power of
consumers, negotiating power of suppliers and threat of competition. Internet has great
Impact on all five force of the model:
Threat of new entrants: The internet has considerably lowered entry barrier in setting up
new enterprise. The setting up of a new company does not require much capital investment,
for example, online retail sites, etc. Ever increasing competition has lowered the margins.
Threat of new substitute: The Internet has reduced the product life cycle; shelf life of
products and encouraged innovation is customer serving.
Bargaining power of customers: The internet has made the customer well informed about
products and available substitute. Companies have to be careful in presenting
differentiation and pricing.
Bargaining power of suppliers: Suppliers are well informed about happening in the
industry thanks to the internet.
Threat of competition: The internet has made transparency and honest important factor in
success of the company. Customers tend to know more about the company. The internet has
lowered the cost of searching new available products.
Internet and the way business is conducted
The internet has changed the face of business. It has opened up new avenues of conducting
business. Below are some impacts of the internet on business:
Communication: communication technology combined with the internet has given a new
dimension to connectivity and dispersion of information. Employees are in constant touch
through email, instant messaging, office intranet, etc.
Collaboration: The internet has facilitated collaboration among employees of organization.
Geographical boundaries no longer hamper project work and sharing of information.
Business Transaction: The internet has encouraged the culture of online business or e-
commerce. In recent years many players have opened shops through e-commerce. Internet
banking, payment gateways, etc. are part of normal supply chain transaction.

33
Work Flexibility: The internet has enabled workers to log in from remote location and
home. It has helped on the move employees by remaining in touch with happenings of
work.
Web based application: The internet has facilitated the development of concept like cloud
computing, which has enabled process and storing of data in large proportion. The internet
has helped reduce infrastructure cost of the company.
The internet thus has made a big impact in the way the business gets conducted in both
positive as well as a negative way. The internet has made many business obsolete example
post offices. Online security issues like hacking, identity theft, etc. are a constant threat to
internet users.

2.3 Managing E-Transformation

Transformation of Business Enterprises.

Along with rapid changes in markets and competitive advantages are changes in the firm
themselves. The internet and new markets are changing the cost and revenue structure of
the traditional firms and are hastening the demise of traditional business models. In addition
to the above some more transformations are also caused due to the technological
convergence in the traditional business in terms of its structure, management, technology
adoption etc. These transformations are presented in the encapsulated manner below.
 Organizations are becoming Flattening
 Organizations are becoming Decentralization
 Organizations are becoming Flexibility
 Location independence
 Low transaction and coordination costs
 Empowerment
 Collaborative work and teamwork
Globalization
Globalization results various organizations to distribute core business functions in product
design, manufacturing, finance and customer supports to locations in other countries where

34
the work may be performed cost effectively. The Globalization leads the management and
control in a global marketplace, competition in world markets, global workgroups and
global delivery systems which essentially based on digital technology.
The Emerging Digital Firm
A digital firm is one in which nearly all of the organization‘s significant business
relationships with customers, suppliers and employees are digitally enabled and mediated.
Core business which involve set of logically related tasks and behaviors that organizations
develop over time to produce specific business results and the unique manner are organized
and coordinated. Core processes are accomplished through digital networks spanning the
entire organization or linking multiple organizations. In a digital firm, any piece of
information required to support key business decisions is available at anytime and
anywhere in the firm. Key Corporate Assets of digital firm are Intellectual property, core
competencies, and financial and human assets – are managed through digital means. A
frame work of Digital Firm is presented in Figure

Fig: Framework of Digital Firm

35
Key benefits of digital firms may be listed as below.
1. They sense and respond to the changing business environments more rapidly than
traditional firms, giving them flexibility to survive in turbulent times.
2. The firms offer extraordinary opportunities for more flexible global organization and
management.
3. Time shifting (business being conducted 24x7) and space shifting (business being
conducted globally or beyond traditional geographic boundaries) are the norms in the
organizations.
The characteristics of digital firm
A digital firm usually possesses the flowing characteristics.
1. Digitally enabled relationships with customers, suppliers, and employees
2. Core business processes accomplished using digital networks
3. Digital management of key corporate assets
4. Agile sensing and responding to environmental changes
5. Seamless flow of information within the firm, and with strategic partners

2.4 Introduction to Telecommunications and Computer Network for Business

Network
A computer network is a connection of two or more computers/devices. Ex: Mobile
connected to Computer, Mouse connected to Computer. It can also be defined as a group of
stations (computers, telephones or other devices) connected by communication facilities for
exchanging information. A network can be connected to other network thus making a
bigger network. For example, local telephone exchanges connect to the city main exchange,
which itself connects to the main national telephone exchange. Computer networks allow
the user to access remote programs and remote databases either of the same organization or
from other enterprises or public sources.
Why we use Network?
 Communication: To send E-mails, Video Conferencing, Chatting etc.

36
  To share Hardware: If we have one printer in the lab, then we can connect all
computers to one printer instead of connecting one printer to each computer.
 To share Software: Some expensive software can be installed in one machine and
then by using a network we can share the software with other machines.
Ex: In an organization, HRM software which consists of all information about employees is
connected to one machine. By using network we can connect to other machines and access
information.
 To share Files: Files can be shared from one computer to another by using
network. There is no necessity of taking files in pendrive.
Types of Networks
Depending on the size and coverage area of the network, it can be classified into following
groups:
 Local Area Network (LAN)
 Metropolitan Area Network (MAN)
 Wide Area Network (WAN)

 Local Area Network (LAN)

 A network that connects a group of computers in a small geographical area such as
in a building, college or office is called Local Area Network (LAN).
 LAN is the most common type of network used in an organization. LANs are
typically high speed networks that connect computers, printers and other network
devices together in an organization.

Fig: Example of an Office LAN

37
As shown in the Figure all computers in an office are connected to each other by cable. All
computers can communicate, share information and hardware resources.

 Metropolitan Area Network (MAN)

 Metropolitan Area Network (MAN) is a backbone network that connects Local
Area Networks (LANs) in a metropolitan area such as a city or town.
 It handles many communication activities or traffic.
 Typically a MAN includes one or more LANs, covering a larger geographical
area than LAN but smaller geographical area than a Wide Area Network
(WAN).
 Bigger than LAN and smaller than WAN

Fig: Example of MAN

Ex: Large universities and colleges such as VTU Head Office have their own networks
spread over city or town connecting all the branch campuses (VTU Regional Office).

 Wide Area Network (WAN)

 A Wide Area Network (WAN) is a computer network covering broad
geographical areas such as state or country
 The largest and most well-known example of a WAN is the Internet.

38
 Fig: Example of WAN

Components of Communication Network / How two Computers Communicate with

each other

Terminals
Terminals are any input/output devices that use telecommunications networks to transmit or
receive data. They include Computers, Telephones.
Communications Processors
Support data transmission and reception between terminals and computers.

39
They include Modems, Switches, Routers.
Communications Channels/Transmission Media
 Telecommunications channels are the part of a telecommunications network that
connects the message source with the message receiver.
 They include the physical equipment used to connect one location to another for the
purpose of transmitting and receiving information.
 Transmission media can be categorized into two: Guided Transmission Media
(Wires/Cables). Ex: Twisted Pair Cable, Coaxial Cable, Fibre Optic and Unguided
Transmission Media (Wireless) Ex: Electromagnetic waves in form of radio,
microwave, infrared or others.
Explaining with an example, in the fig, 1 represents End User or Terminal, 2 represents
Communication Processors (Modem), 3 represents Communication Channels which can be
wired or wireless and 4 represents Server.
The end user sends request. The modem receives digital signal and converts to analog
signal and passes through communication channel which can be cable or wire. The second
modem that is connected to server receives analog signal and converts to digital signal and
is received by the server.
The server again sends reply to modem which converts digital signal to analog and passes
through media which is received by modem of end user. This modem again converts analog
signal to digital and delivers the reply to end user.

2.5 Summary

This unit briefs about data resources and e-transformation, the different types of networks
used and also how two computers interact with each other.

2.6 Key Words

Data, Information, Network, Telecommunication System.

40
2.7 Exercise

1. What is Network? Explain the different types of Networks.

2. Explain how two systems interact with each other.
3. What are the advantages of using network resources in business?
4. Explain telecommunication network model.

2.8 References

1. Management Information system by Effy Oz

2. Management Information System by James A O‘Brien
3. Waman S.Jawadekar ,‖Management Information Systems‖,IIIrd Edition,
4. Gordon B.Davis & Margrethe H.Olson ―Management Information systems, 2nd
edition Tata MC-Graw HILL.

41
 UNIT 3: Business Networks and Telecommunication
Structure
3.0 Learning Objectives
3.1 Competitive edge of computer Network‘s
3.2 Networking for people
3.3 Evolution of computer Network
3.4 Technological foundation of a computer network
3.5 Types of architecture
3.6 Network media
3.7 Network protocols
3.8 Summary
3.9 Key Words
3.10 Exercise
3.11 References

3.0 Learning Objectives

After studying this unit, you will be able to
 Understand the basics of computer networks.
 Know different types of network and communication media used for
communication.
 Highlight the different types of network protocols.
 A clear understanding of usage of network in business is also key area discussed in
this unit.

42
3.1 Competitive edge of computer Networks
Telecommunications Strategic Capabilities
Time Barriers. Strategic use of information systems helps overcome time barriers by
focusing on interval reduction and just-in-time operations. The goal is to shorten the
response time to customer demands and reduce inventory investment to a minimum.
Operating in real time means no time lag between the identification and fulfillment of a
need.
Geographic Barriers. Telecommunications and computing technologies make it possible
to distribute key business activities to where they are needed most, where they are best
performed, or where they best support the competitive advantage of a business.
Telecommunication networks allow instantaneous access to all members and resources of
the organization, however remote, so that the best combination of talent and ability can be
brought to bear on problems or opportunities.
Cost Barriers. Information systems help reduce costs in many areas: production,
inventory, distribution, or communications. For example, decentralized decision making
can be combined with centralized implementation of those decisions for greater economy
without sacrificing the efficiency of the process.

3.2 Networking for people

In a short period of time computer networks have become an indispensable part of business,
industry, entertainment as well as a common-man's life. These applications have changed
tremendously from time and the motivation for building these networks are all essentially
economic and technological. Initially, computer network was developed for defense
purpose, to have a secure communication network that can even withstand a nuclear attack.
After a decade or so, companies, in various fields, started using computer networks for
keeping track of inventories, monitor productivity, communication between their different
branch offices located at different locations. For example, Railways started using computer
networks by connecting their nationwide reservation counters to provide the facility of

43
reservation and enquiry from anywhere across the country. And now after almost two
decades, computer networks have entered a new dimension; they are now an integral part of
the society and people. In 1990s, computer network started delivering services to private
individuals at home. These services and motivation for using them are quite different. Some
of the services are access to remote information, person-person communication, and
interactive entertainment. So, some of the applications of computer networks that we can
see around us today are as follows:

Marketing and sales: Computer networks are used extensively in both marketing and sales
organizations. Marketing professionals use them to collect, exchange, and analyze data
related to customer needs and product development cycles. Sales application includes
teleshopping, which uses order-entry computers or telephones connected to order
processing network, and on line-reservation services for hotels, airlines and so on.
Financial services: Today's financial services are totally depended on computer networks.
Application includes credit history searches, foreign exchange and investment services, and
electronic fund transfer, which allow user to transfer money without going into a bank (an
automated teller machine is an example of electronic fund transfer, automatic pay-check is
another).
Manufacturing: Computer networks are used in many aspects of manufacturing including
manufacturing process itself. Two of them that use network to provide essential services are
computer-aided design (CAD) and computer-assisted manufacturing (CAM), both of which
allow multiple users to work on a project simultaneously.
Electronic data interchange (EDI): EDI allows business information, including
documents such as purchase orders and invoices, to be transferred without using paper.
Electronic mail: probably it's the most widely used computer network application.
Teleconferencing: Teleconferencing allows conference to occur without the participants
being in the same place. Applications include simple text conferencing (where participants
communicate through their normal keyboards and monitor) and video conferencing where
participants can even see as well as talk to other fellow participants. Different types of
equipments are used for video conferencing depending on what quality of the motion you

44
want to capture (whether you want just to see the face of other fellow participants or do you
want to see the exact facial expression).

3.3 Evolution of computer Network:

Today, computer networks are the core of modern communication. All modern aspects of
the public switched telephone network (PSTN) are computer-controlled. Telephony
increasingly runs over the Internet Protocol, although not necessarily the public Internet.
The scope of communication has increased significantly in the past decade. This boom in
communications would not have been possible without the progressively advancing
computer network. Computer networks, and the technologies that make communication
between networked computers possible, continue to drive computer hardware, software,
and peripherals industries. The expansion of related industries is mirrored by growth in the
numbers and types of people using networks, from the researcher to the home user.

History of Computer Networks

1950s - 1960s: Terminal Oriented Computer Networks
1960s – 1970s: Computer-to-Computer Networks: the ARPANET –first Wide Area
Network (WAN)
1980s: Local Area Networks (LANs)
1980s: The Internet
1) Terminal-Oriented Computer Networks of 1960s and 1970s: early computers
were extremely expensive, so time-sharing techniques were developed to allow
them to be shared by many users.
• through use of video terminals multiple users were able to simultaneously input
instructions and obtain results from the host computer.
• modem devices further enabled that terminals reach the host computer via telephone
network, over a greater distance.

45
 2) Computer-to-Computer Networks
As cost of computers dropped and new applications emerged, it became necessary to enable
mainframe computers to interconnect and communicate over long geographic distances.
Application examples:
 file transfer between computers
 multiprocess operation over multiple computers
ARPANET (1960s) - 1st major effort at developing a network to interconnect computers
over a wide geographic area – first major WAN
Internet (1970s) - emerged from ARPANET –network of interconnected networks

3) Local Area Networks

In 1980s affordable computers become available. Subsequently, need for low-cost, high
speed, and low error-rate networks arose
 to interconnect local workstations over small radius < 1km

46
  to enable sharing of local resources (printers, servers, etc.) variety of LAN
topologies emerged.

4) The Internet
Internet = Internetwork – two or more interconnected networks – network
of networks.

3.4 Technological foundation of a computer network:

Networking Hardware
Networks use a variety of devices to connect computers and peripheral devices (such as
printers) to each other, and to connect networks to each other. Each computer or device
connected to a network must have a network interface card (NIC) or proper networking
circuitry, which connects through a cable or a wireless antenna to a hub, switch, bridge, or
router, which in turn connects to a LAN or WAN. A hub is a common device often used as
a central location to connect computers or devices to a local network. A switch is like a
hub, except that it is more ―intelligent.‖ Communications that go through a hub are
broadcast to all devices attached to the hub; communications through a switch go only to
designated devices on the network. A bridge is a device that connects two networks, such
as a LAN, to the Internet. A router routes data packets to the next node on their way to the

47
final destination. It can connect dissimilar networks and can be programmed to also act as a
firewall to filter communications. Routers keep tables of network addresses, known as
Internet Protocol (IP) addresses, which identify each computer on the network, along with
the best routes to other network addresses. You are not likely to see a WAN router, but you
might have seen a router used to support a LAN in a small office or in a household. A
repeater amplifies or regenerates signals so that they do not become weak or distorted.
Another type of networking hardware that might be familiar to home computer users is the
modem. A modem—a word contracted from modulator-demodulator—in traditional usage
is a device whose purpose is to translate communications signals from analog to digital, and
vice versa. For many years the only way to link to the Internet was to dial up, meaning
connecting over regular telephone lines. These lines were originally designed for analog—
continuous—signals rather than for digital signals, which consist of discrete bursts. A
modem turns the digital signal from your computer into an analog signal that can go out
over the phone lines. A modem on the receiving computer transforms the analog signal
back into a digital signal the computer can understand. The former transformation is called
modulation and the latter is called demodulation.
A dial-up connection with a modem is very slow (usually no faster than 56 Kbps), so most
users and small businesses have turned to faster connections that use digital signals
throughout the connection, such as DSL and cable connections. Even though the medium
transfers digital signals, the word ―modem‖ is now used for the devices that connect
computers to the Internet with these technologies. Thus, for example, if you use a cable
company to link to the Internet, the device connecting your computer‘s network card to the
cable is called a cable modem. If you use a DSL service, the device used is called a DSL
modem, and if you use a power line, the device is called a BPL modem.

Virtual Private Networks

A LAN is a private network, because it only provides access to members of an
organization. Though a firm does not own the lines it leases, the network of leased lines
might be considered a private network, because only members authorized by the
organization can use it. Many companies cannot afford or do not wish to pay for a private

48
network. By implementing special software (and sometimes also hardware) they can create
a virtual private network (VPN). A virtual private network (VPN) can be thought of as a
―tunnel‖ through the Internet or other public network that allows only authorized users to
access company resources. The ―virtual‖ in VPN refers to the illusion that the user is
accessing a private network directly, rather than through a public network. VPNs enable the
use of intranets and extranets.

Switching Techniques
Imagine that your telephone could connect to only one other telephone. Of course, this
limitation would render the telephone impractical. The same is true of communications
when using computers. You want to be able to link your computer to every other computer
on a network. Or, imagine that you can link to any other computer, but you have to wait for
a specific communications path to open to conduct a conversation; no other path is
available to you. So you might wait a long time until no one is using any segment of that
path to make your call. Obviously, this wait would be very inconvenient. To avoid such
inconveniences, data communications must have mechanisms to allow your messages to be
routed through any number of paths: if one is busy, then another can be used. These
mechanisms, called switching techniques, facilitate the flow of communications and specify
how the messages travel to their destination. The two major switching techniques are circuit
switching and packet switching.

Circuit Switching
In circuit switching, a dedicated channel (a circuit) is established for the duration of the
transmission. The sending node signals the receiving node that it is going to send a
message. The receiver must acknowledge the signal. The receiving node then receives the
entire message. Only then can the circuit be allocated for use of two other communicating
parties.
Packet Switching
In packet switching, a message is broken up into packets. A packet is a group of bits
transmitted together. Each of the message‘s packets is passed from the source computer to

49
the destination computer, often through intermediate nodes. At each node, the entire packet
is received, stored, and then passed on to the next node, until all packets, either kept
together or reassembled, reach the destination. On their way to their final destination, the
packets are transmitted independently to intermediate nodes. Different packets of the same
message might be routed through different paths to minimize delay and are then
reassembled at their destination. At the receiving device, the packet numbers are used to
place each packet in its place so that the file transmitted is reconstructed accurately.

3.5 Types of Architecture

Network architectures are classified into two broad categories:

· Client-server Architectures
· Peer-to-peer Architectures
Client-server Architectures
In the client-server architectural model, a system is decomposed into client and server
processors or processes. Servers provide computational resources (or services), which
clients consume. Typically a server provides services to many clients. It is also common for
clients to consume services from multiple services. Stated otherwise, there is generally a
1:M relationship between a server and its clients, and it is sometimes the case that there is a
1:M relationship between a client and the servers that it uses. The client-server architectural
model supports the separation of functionality based on the service concept.
Client-server architectures are commonly organized into layers referred to as ―tiers‖.
Tiered Architectures
· Two-tier architectures. The system architecture consists of a data server layer and an
application client layer. Data access computation is associated with the data server layer,
and the user interface is associated with the client application layer. If most of the
application logic is associated with the client application logic, it is sometimes referred to
as a ―fat client.‖ If it is associated with the data access server, the application client layer is
sometimes referred to as a ―thin client.‖

50
· Three-tier architecture. The system architecture consists of data server layer, an
application server layer and a client application layer. The application server layer
facilitates the separation of application logic from presentation, and promotes distributed
processing.
· Multi-tier architecture. The system architecture is a superset of a three-tier architecture,
and includes additional layers for data and/or application servers.
Peer-to-Peer Architectures
In a peer-to-peer architecture model, a system is decomposed into computational nodes that
have equivalent capabilities and responsibilities. This division is in contrast to a client-
server architectural model, where client and server nodes are divided into server and client
roles.
An example of a peer-to-peer architecture is a system of intelligent agents that collaborate
to collect, filter, and correlate information.
Sometimes layered (―tiered‖) and peer-to-peer architectures are combined, where the nodes
in particular layers are in peer-to-peer relationships. For example, a multi-tiered
architecture might include an enterprise management layer, consisting of peer nodes for
such things as network management, event management, database management, Web
server management, and workload balancing.

3.6 Network Media

Network media (sometimes referred to as networked media) refers to media mainly used
in computer networks such as the Internet.
Network media is essentially driven by technological development, emerging from the
internet as a non-centralized medium in the late nineties; the term has more recently begun
to be applied to both the arts and industry. The following features distinguish Network
Media from classical media, such as broadcast media and the printed press:
 Network Media is typically democratic and decentralized. The audience can also be
the contributors. Media tells about the right information to the city.

51
  Network Media often requires the involvement of computers as an input/output
device.
 Network media requires a community to participate and consume
With the rapidly increasing digital era, new aspects of digital networking are becoming
more important. Essentially, network media is about co-operative/collaborative practice in
which many can contribute to the production of "media".
The benefits of the development of inter-networking ultimately has allowed for greater
political, social comment and discussion but is also widely thought of in a much broader
context of globalization and the fragmentation of the world.
Network Media Types
 Guided Transmission Media (Wired)
 Twisted Pair
 Coaxial Cable
 Optical Fibre
 Unguided Transmission Media (Wireless)
 Blutooth
 Wi-Fi
 Wi-Max

Guided Transmission Media (Wired Technologies)

 Twisted pair

 Two insulated copper wires twisted together in a regular spiral pattern; one pair
establishes one communication link; it transmits electromagnetic signals.

52
 Twisted pairs are distinguished between shielded and unshielded twisted pairs
according to their protection against electromagnetic fields.
 Used for Telephone Connection.

 Coaxial Cable

• A single insulated inner wire is surrounded by a cylindrical conductor which is

covered with a shield; it transmits electromagnetic signals.
• Coaxial cable is basically a copper cable, mostly used by Cable TV Companies to
distribute TV signals from antenna to users at home.

 Optical Fiber

• Fiber optic cable consists of a centre glass core surrounded by several layers of
protective materials.
• It transfers data in the form of light.

53
 • Fiber optic cable has the ability to transmit signals over much longer distances than
coaxial and twisted pair.
• It also has the capability to carry information at vastly greater speed compared to
other transmission media.
• Cost is high as well as difficulty in installation.
• Used by most Telephone Companies.
Unguided Transmission Media (Wireless Technologies)
Makes use of air for data signals to travel. There is nothing to guide them along a specific
path like wires.
 Bluetooth
• Bluetooth is an open wireless protocol for exchanging data over short distances
from fixed and mobile devices.
• Bluetooth is a standard and a communications protocol primarily designed for low
power consumption, with a short range (1 meter, 10 meters, 100 meters) based on
low-cost transceiver microchips in each device. Bluetooth makes it possible for
these devices to communicate with each other when they are in range.
 Wi-Fi (Wireless Fidelity)
The name of a popular wireless networking technology that uses radio waves to provide
wireless high-speed Internet and network connections.
The Wi-Fi Alliance, the organization that owns the Wi-Fi (registered trademark) term
specifically defines Wi-Fi as any "wireless local area network (WLAN) products that are
based on the Institute of Electrical and Electronics Engineers' (IEEE) 802.11 standards."
Uses of Wi-Fi
• Wi-Fi enabled device such as a PC, video game console, mobile phone, MP3 player
can connect to the Internet when within range (up to 100 meters) of a wireless
network connected to the Internet.
 Wi-Max (Worldwide Interoperability for Microwave Access)
 It is a telecommunications technology that provides wireless transmission of data
using a variety of transmission modes, from point-to-multipoint links to portable
and fully mobile internet access.

54
 • Wi-Max is a wireless digital communications system.
• Wi-Max can provide broadband wireless access (BWA) up to (50 km) for fixed
stations, and (5 - 15 km) for mobile stations.
• For fixed stations, the Wi-Max device will be fixed to a particular room wherein the
signal from service provider is received through the wire and for mobile stations,
the Wi-Max device can be carried wherein the signal from service provider will be
received from nearby towers.

3.7 Network Protocols

 Protocol is a formal rule of behavior which is necessary when two or more
computers communicate.
• Protocol is like human language and basic understanding
• Some protocols designed for WANs, LANs, and wireless communications
• Most important set of protocols called TCP/IP
Types of Network Protocol
1) TCP/IP (Transmission Control Protocol/Internet Protocol)

It is the basic language or protocol used for internet. TCP/IP was first developed by U.S.
Department of Defense, as a research project for its Advanced Research Projects Agency
network (ARPAnet) in the late 1960s. TCP (Transmission Control Protocol) and IP
(Internet Protocol) are two different procedures that are often linked together. The linking
of several protocols is common since the functions of different protocols can be
complementary so that together they carry out some complete task. The combination of
several protocols to carry out a particular task is often called a "stack" because it has layers
of operations. In fact, the term "TCP/IP" is normally used to refer to a whole suite of
protocols, each with different functions. This suite of protocols is what carries out the basic
operations of the Web. TCP/IP is also used on many local area networks. The details of
how the Web works are beyond the scope of this article but I will briefly describe some of
the basics of this very important group of protocols. More details can be found in the
references in the last section.

55
When information is sent over the Internet, it is generally broken up into smaller pieces or
"packets". The use of packets facilitates speedy transmission since different parts of a
message can be sent by different routes and then reassembled at the destination. It is also a
safety measure to minimize the chances of losing information in the transmission process.
TCP is the means for creating the packets, putting them back together in the correct order at
the end, and checking to make sure that no packets got lost in transmission. If necessary,
TCP will request that a packet be resent.

2) Internet Protocol (IP) is the method used to route information to the proper
address. Every computer on the Internet has to have its own unique address known as the IP
address. Every packet sent will contain an IP address showing where it is supposed to go. A
packet may go through a number of computer routers before arriving at its final destination
and IP controls the process of getting everything to the designated computer. Note that IP
does not make physical connections between computers but relies on TCP for this function.
IP is also used in conjunction with other protocols that create connections.
3) Another member of the TCP/IP suite is User Datagram Protocol (UDP). (A
datagram is almost the same as a packet except that sometimes a packet will contain more
than one datagram.) This protocol is used together with IP when small amounts of
information are involved. It is simpler than TCP and lacks the flow-control and error-
recovery functions of TCP. Thus, it uses fewer system resources.
4) A different type of protocol is Internet Control Message Protocol (ICMP). It defines
a small number of messages used for diagnostic and management purposes. It is also
used by Ping and Traceroute.
5) Mail Protocols POP3 and SMTP

Email requires its own set of protocols and there is a variety, both for sending and for
receiving mail. The most common protocol for sending mail is Simple Mail Transfer
Protocol (SMTP). When configuring email clients, an Internet address for an SMTP server
must be entered. The most common protocol used by PCs for receiving mail is Post Office
Protocol (POP). It is now in version 3 so it is called POP3. Email clients require an
address for a POP3 server before they can read mail. The SMTP and POP3 servers may or

56
may not be the same address. Both SMTP and POP3 use TCP for managing the
transmission and delivery of mail across the Internet.

A more powerful protocol for reading mail is Interactive Mail Access Protocol (IMAP).
This protocol allows for the reading of individual mailboxes at a single account and is
more common in business environments. IMAP also uses TCP to manage the actual
transmission of mail.

6) Hypertext Transfer Protocol

Web pages are constructed according to a standard method called Hypertext Markup
Language (HTML). An HTML page is transmitted over the Web in a standard way and
format known as Hypertext Transfer Protocol (HTTP). This protocol uses TCP/IP to
manage the Web transmission.

A related protocol is "Hypertext Transfer Protocol over Secure Socket Layer" (HTTPS),
first introduced by Netscape. It provides for the transmission in encrypted form to provide
security for sensitive data. A Web page using this protocol will have https: at the front of
its URL.

7) File Transfer Protocol

File Transfer Protocol (FTP) lives up to its name and provides a method for copying files
over a network from one computer to another. More generally, it provides for some simple
file management on the contents of a remote computer. It is an old protocol and is used
less than it was before the World Wide Web came along. Today, its primary use is
uploading files to a Web site. It can also be used for downloading from the Web but, more
often than not, downloading is done via HTTP. Sites that have a lot of downloading
(software sites, for example) will often have an FTP server to handle the traffic. If FTP is
involved, the URL will have ftp: at the front.

57
 8) Ethernet

• Ethernet: LAN protocol using coaxial cable

• Gigabit Ethernet: faster Ethernet connections
• Devices on network contend with other devices for transmission time
• CSMA/CD protocol ensures no collisions in transmission

Wireless Protocols

1) IEEE 802.11: known as Wi-Fi

– Supports wireless communication within 100 metres of router
– Max speed 11 Mbps
2) Access point (hotspot): allows Internet access within range of equipment
3) Encryption: ability to scramble and code messages
– Use keys shared between sender and receiver
4) Bluetooth: allows devices to communicate within 10 metres
5) Worldwide Interoperability for Microwave Access (WIMAX): increases range
and speed of wireless communication
– Works with metropolitan area networks
6) Mobile Broadband Wireless Access (MBWA): similar to cell phone
communications
– Compatible with IP services & Compatible with Wi-Fi and Bluetooth

3.8 Summary

This unit briefs about competitive edge of computer network, evolution of computer
network, technology of computer network, architecture and protocols of computer network.

58
3.9 Key Words

Network, communication media, types of network, protocols.

3.10 Exercise

1. Explain strategic advantage of usage of computer network in business.

2. What are the different types of network?
3. Explain the applications of computer network.
4. List out the various network protocols.
5. Explain the different types of communication media.

3.11 References

1. Computer Networks by Forouzhan

2. Waman S.Jawadekar ,‖Management Information Systems‖,IIIrd Edition,
3. Gordon B.Davis & Margrethe H.Olson ― Management Information systems, 2nd edition
Tata MC-Graw HILL.
4. Management Information systems by Effy Oz.

59