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CHAPTER 3

COMMUNICATION THROUGH COMPUTERS

Learning Objectives:
• Impact of computers in communications and the role of telecommunication.
• Characteristics of the different types of communication channels.
• Transmission characteristics, such as: mode, synchronisation, direction and techniques.
Hardware equipments, softwares and associated technologies in data transmission.
• Computer network — meaning, types, structural details (topology) and architecture.
Shift in networking model (from centralised to data processing model and cooperative
processing in future).
• Client/server architecture — one-tier, two tier, etc.
• Executives and their responsibilities in business functions with examples.
• Networking techniques — LAN, WAN, MAN, etc.; usage, installation, legal,
administrative details, etc. with special importance to LAN.
• The science and art of decision making process. Role of Information Systems in
decision-making process and other business activities.
• Communication Standards.
• Information Technology — purpose, function, usage arena.
• Internet — origin, working procedures, components, addressing techniques,
management and administration and applications. Difference between meaning of
“internet” and “Internet”;
• Understanding the difference between Intranet and Extranet.
• Impact of Internet in our life-styles, shaping our psychology, habits and hobbies.
3.2 MANAGEMENT INFORMATION SYSTEMS IN MODERN BUSINESS

9.0 Telecommunication and Networking


Communication is ‘the exchange of thoughts or make known information/feelings by speech, writing or other
means to transmit’.
Communication is more than just messaging or swapping information. We live in the age of communication,
characterized by speed, efficiency, and the ability to transcend physical or geographical limitations.
Communication requires the support of technology to encapsulate the message and to send it through the media,
cost effectively, speedily, error-freely to the receiver. Communication that uses technology is enormously valuable.
Thus, communication involves, transfer of message from the initiator (sender) to the initiated (receiver).
Communication takes place over a channel or communication media. There may be several media required for a
communication to complete. Examples of communication media may be: paper, air/vacuum (wireless), sound, light,
electronic (e.g. computer communication), telephonic links (telecommunication), etc.
Hence, we see that there are many channels available for communication. Normally, this section of this chapter will
throw light only on telecommunication and related topics of Internet and e-communication.
Factors for selecting a data transmission system
o Speed of transmission
o Volume of data to be processed
o Transmission direction (i.e. one way transmission or two way transmission)
o Accuracy and reliability
o Type of transmission — online or offline
o Cost and accuracy of transmission
Computer Communications: IT is quite rare today for an organisation to use individual computers in isolation.
Most systems involve some form of connection (network) between computer hardware. Any system that requires
computers to communicate with each other will need specialised hardware and software such as:
• Modems
• Communication programs
• Network cards, hubs, bridges and routers and networking softwares.
Communication software involves some form of e-mail application, although voice mail, intranets and video-
conferencing may all be included within this system. An intranet involves the provision of information in internet
style format, with access being restricted to users within one organisation. Video conferencing allows workers to
communicate via video with meetings being arranged worldwide, saving on traveling costs. Communications
software is written to work with a wide variety of protocols.
Communication software manages the flow of data across a network. It performs the following functions:
♦ Access control
Links and disconnects the different devices; automatically dialing and answering telephones;
restricting access to authorised users; and establishing parameters such as speed, mode and
direction of transmission.
♦ Network management
It takes care of searching for devices to see whether they are ready to send or receive data,
queuing input and output, determining system priorities, routing messages and logging network
activity and error handling.
♦ Data and file transmission
Controls the transfer of data, files and messages among the various devices
Chapter 3 COMMUNICATION THROUGH COMPUTERS 3.3
♦ Error detection and control
Ensures that the data sent was indeed the data received
♦ Data security
Protecting data during transmission from unauthorized access
Communication architecture describes the infrastructure required for the application, data and technology
architecture.

9.1 Telecommunication
Telecommunication is the transmission of data between computer systems and/or terminals at different locations
through telephone facilities.
Data communication on the other hand, is a more specific term that describes the transmitting and receiving data
over communication link between one or more computer system and variety of input/output terminal.
The purpose of telecommunication is to reduce or eliminate time delays and other impacts of geographical
separation. Telecommunication reduces the effect of geographical separation.
Data transmission is concerned with the problem of communication between the place at which data is prepared
and the computer center, and between the computer center and the place at which results are required.

9.2 Communication channels


A communication channel is the medium that connects the sender and the receiver in the data communications
network. Common communications channels include telephone lines, fiber optic cables, terrestrial microwaves,
satellite and cellular radios. A communications network often uses several different media to minimize the total
data transmission costs. Regardless of its type, the communication medium or channel degrades the transmitted
signal because of an imperfect response of the channel.
There are two categories of communication channels — Physical channels and Cable-less channels.

9.2.1 Physical Channels


Data is transmitted through channels, the existence of which can be seen and felt, and hence falls under the
category of physical channels. Physical channels are of three types —
1. Twisted Pair. An insulated pair of wires twisted around each other, can be packed into bundles of a
thousand or more pairs, commonly used as telephone lines for transmission of voice, but also can be used
for data/text transmission as in the case of fax and internet connections through telephone lines. These
wires are easily available, having moderate cost. However, these wires are susceptible to various types of
electrical interference and due to this reason, quality of data transmission falls. Moreover, the strength of
signal gradually falls over distance and as a result of which, signal needs to be boosted by using ‘repeaters’
at specific gaps.
2. Coaxial Cable. Coaxial cable consists of one or more central wire conductors surrounded by an insulator
and encased in either a wire mesh or metal sheathing. These wires are more expensive than twisted pair
cables, but have more than 80 times the transmission capacity of twisted-pair cable and are less subject to
electrical interference. There are two types of co-axial cable:
a. Baseband cable, which carries a single communication or message at very high megabit speed,
used in case of LAN, etc.
b. Broadband cable, which carries multiple signals simultaneously and each signal can be of a
different speed.

9.2.2 Cable-less Channels


In the absence of cable, data transmission takes place though wireless or cable-less channels. When data is
transmitted through air, two things come into existence, the ‘frequency’ of the transmission and the ‘type of signal’.
3.4 MANAGEMENT INFORMATION SYSTEMS IN MODERN BUSINESS
Frequency is the number of cycles per second, i.e., the number of times the particles vibrate per unit of time
(second). Frequency determines ‘wave length’ and wave length determines the type of signal. Greater wave length
means lower frequency, which means the signal is less powerful to travel longer distances; and vice versa.
Following are the types of cable-less transmission techniques—
1. Microwave. Microwaves are electronic (radio) signals in the radio frequency of about one billion cycles
per second or 20 billion cycles per second. Microwave transmission uses high frequency radio signals to
send data and information through the air without wire or cable. Microwave signals can be transmitted
using terrestrial stations or communication satellites, set up in straight line with one another, more or less
30 miles apart. Since microwave transmissions are over radio waves, they are subject to unauthorised
interception.
2. Satellite. In case of the data traversing long (huge) distances, with inevitable obstruction in the path of data
transmission, satellite communication is needed. In satellite communication, data is beamed from the
microwave station on earth, into the communication satellite stationed in the orbit of 22,000 miles above
Earth. Satellites can send the signals back to a small geographical area, to a spot on the Earth, to all of the
Earth’s service stations that are in line of sight of the satellite, to another Satellite. Often satellite services
are encrypted to prevent or protect from unauthorised interception. VSAT is one of the important
components of this category of communication.
3. Infrared. Data, in coded form, are beamed from one transceiver to another. Infrared communications are
limited to a single area where transmitter and receiver are in sight of one another.

9.2.3 Integrated Service Digital Networks (ISDN)


Integrated Services Digital Network (ISDN) is a system for transmitting audit (voice), video and data over lines
with digital transmission.
There are two types of ISDN services —
• Basic Rate ISDN (BRI)
Total bandwidth is of 144 kbps. A BRI has two channels: B-channels (used to transmit and receive
voice or data), D-Channels used to call setup and control. With proper equipment and software,
both B-channels and D-channels can be combined into single virtual channel with a data
transmission speed of 128 kbps.
• Primary Rate ISDN (PRI)
The PRI targets service providers in large organisations. It uses full T1 line with 23 B-channels
and a single 64kbps D-Channel.

9.3 Communication parameters


9.3.1 Bandwidth
The characteristics of communication channels affect the network’s reliability, cost and security. One of the most
important characteristics of a channel is its bandwidth.
Bandwidth refers to a channel’s information carrying capacity. Technically, bandwidth represents the difference
between the highest and lowest frequencies that can be used to transmit data and is measured in terms of bits per
second (bps). In other words, bandwidth is data carrying capacity of the communication channel. The greater the
bandwidth, the faster is the transmission of information.
Types of Bandwidth
♦ Narrow band Service
This service is used where data volume is relatively low, the transmission rate usually ranges from
45 to 300 bps.
Chapter 3 COMMUNICATION THROUGH COMPUTERS 3.5
♦ Voice band Service
This channel is a standard telephone line over which transmission of data takes place at the rate of
1,000 characters per second.
♦ Wideband Service
These channels are used when large volumes of data to be transmitted at high speed, say, in the
range of 1,00,000 characters per second. Such capacity can be achieved only with transmission
through co-axial cables, microwave and satellite.

9.3.2 Baud Rate


Baud Rate is a binary event representing a signal change from positive to negative or vice versa. Bandwidth is the
difference between the highest and lowest frequencies that can be accommodated on a single channel.

9.3.3 Word Length


‘Word Length’ is the number of bits which make up a character or the numbers of bits that a computer can process
at a time in parallel. Typical word lengths are 7 or 8 bits per character.

9.3.4 Parity
It is single digit transmitted along with the data for error detection.

9.4 Transmission Mode


9.4.1 Serial Transmission
In Serial transmission, bits are sent along a single path, one after another. Although Serial Transmissions are cheap,
reliable and suitable for long distance, they are slow (because, data transfer takes place bit-by-bit) and hence
inefficient. Mouse, Modem, etc. uses Serial Transmission.

9.4.2 Parallel Transmission


In Parallel Transmission, group of bits travels simultaneously through separate and parallel paths corresponding to
each bit to be transferred.

9.5 Transmission Synchronisation


Another aspect of data transmission is synchronisation (relative timing) of the pulses when data is transmitted.
When a computer sends the data bits and parity bit down the same communication channel, the data are grouped
together in predetermined but patterns for the receiving devices to recognize when each byte (character) has been
transmitted.

9.5.1 Synchronous Transmission


In this method, bits are transmitted at fixed rate. The transmitter and receiver, both use the same clock signals for
synchronisation.
o allows characters to be sent down the line without start-stop bits
o allows data to be send as a multi-word blocks
o uses a group of synchronisation bits, which is placed, at the beginning and at the end
o timing determined by a MODEM
For the reason that the start and stop bits are removed, more data words per second thereby making data
transmission faster and efficient. However, synchronous devices are more expensive.
3.6 MANAGEMENT INFORMATION SYSTEMS IN MODERN BUSINESS

9.5.2 Asynchronous Transmission


In Asynchronous Transmission, each data word is accompanied by stop-bit (1) and start-bit (0), that identifies the
beginning and ending of the word. The start/stop bit increases the reliability of communication, and at the same
time leads to huge volume of information transmission.

9.6 Transmission Direction


9.6.1 Simplex Transmission
In a simplex transmission mode, data is permitted to flow in only one direction. A terminal connected to such a
transmission line, is either a send-only or a receive-only device. Hence, feedback/acknowledgement, etc. cannot be
sent back to the information sender, by this type of transmission. An example of simplex transmission includes
Radio Transmission, Television Broadcasting, etc.

9.6.2 Half Duplex Transmission.


In a Half-Duplex transmission, along one transmission channel, at one point of time, data either can be sent or can
be received, but simultaneously not both. Examples of Half Duplex Transmission may include Walky-talky used by
Police/Security-guards, etc.

9.6.3 Duplex Transmission


Duplex Transmission is also known Full Duplex Transmission.
In Duplex Transmission, along one transmission channel, at one point of time, data can simultaneously be received
and sent. Duplex transmission is faster because it avoids the delay that occurs in a half-duplex mode, at each
changeover of direction. This is the most commonly used data transmission. Examples of Duplex Transmission
include Telephone-communication, etc.

9.7 Transmission Techniques


‘Message’ is a logical unit of information, which can be of any length. The transmission techniques are as follows.

9.7.1 Circuit Switching


Circuit switching establishes a physical connection between two devices and the physical path that is established
remains until the end of the session. Thus, at any point of time during the connection, only the two communicating
hosts can transmit information to each other.

9.7.2 Message switching


When the sender needs send message to the destination, before sending the message the sender needs to append to
the message, the address of the receiver. Message switching does not require physical connection between the
source and destination, and the length of the message is unlimited. However, this method is too slow for
interactive/real-time applications.

9.7.3 Packet switching


A message is split up into ‘packets’ of a fixed size. Each packet has a header. The header contains: source address,
destination address, control information, message number, serial number of current message, serial number of last
message, synchronisation bits, acknowledgement and error bits, etc. Unlike messages, packets are of small and
fixed size. Packet switching is faster because the routing is done on packet basis and the intermediate nodes do not
have to wait for the entire message.
Chapter 3 COMMUNICATION THROUGH COMPUTERS 3.7

9.8 Data Transmission equipments


Transmission equipments include:
• Modem (MOdulator/DEModulator) converts code format of computers in digital form to those of
communication channels for transmission, then reverse the procedure when data are received.
Communication channels include normal Telephone Wires, Broadband Wires, Satellite Transmission, etc.
Thus, MODEM modulates (by converting digital signals to analogue) and demodulates (by reversing the
process).
• Multiplexer is a device that enables several devices to share one communication line (i.e. one transmission
channel is shared by several communication devices).
• Gateway is a collection of hardware and software facilities that enables devices on one network to
communicate with devices on another, dissimilar network.
• Bridge is the same as gateway, with the difference that they connect networks that employ similar
protocols.
• Router is a complicated device that stores the routing information for the networks.
• Switch consists of hardware devices used to direct messages across a network.
• Hub is a hardware device that provides a common wiring point in a LAN. Each node is connected to the
hub by means of simple twisted pair wires. The hub then provides a connection over a high speed link to
other LAN/WAN/Internet, etc.

10.0 Computer Networks


One meaning of “Network” involves the technologies that are used to set up circuit paths for communication
networks (e.g. circuit, message, switching techniques, etc.). Another meaning of “Network” relates to transmission
services that are provided for public or private network.
Computer is defined in the Oxford Dictionary as “An automatic electronic apparatus for making calculations or
controlling operations that are expressible in numerical or logical terms”.
A computer network is a collection of computers and terminal devices connected together by a communication
system. The set of computers may include large-scale computers, medium scale computers, mini computers and
microprocessors. The set of terminal devices may include intelligent terminals, ‘dumb’ terminals, workstations of
various kinds and miscellaneous devices such as the commonly used telephone instruments.
Computer networks not only increase the reliability of computer resources and facilitate overall system
developments, but also satisfy the primary objective of resource sharing which include device sharing, file sharing,
program sharing and program segmentation.
Benefits of using a Network.
A network connects computers so that they can communicate, exchange information and share resources. The main
benefits of using a network are as follows:
♦ Simultaneous access
Data and programs can be simultaneously accessed by many users and can be centrally stored.
System administrator can assign specific rights to users of such data/storage.
♦ Shared Peripheral Devices
Through a process of ‘spooling’, several users can send multiple documents to one networked
printer at the same time, which is to be printed in turn according to priority-list set-up by
administrator.
♦ Personal Communication
3.8 MANAGEMENT INFORMATION SYSTEMS IN MODERN BUSINESS
Teleconferencing and videoconferencing are two most commonly used communication systems
for inter/intra network communication.
♦ Easier Backup
Backup is the term used to create a duplicate set of program or data files, in case the original
becomes damaged. Networks enable managers to easily back up important data, since data is
stored centrally and also because data can be accessed centrally.

11.0 Network Topology


Network structure (or better known as ‘Network Topology’), refers to layout of the cabling in connecting devices
in a net. To be more precise, Network Topology refers to the geometrical arrangement of computer resources,
remote devices and communication facilities.
A Computer Network is comprised of nodes and links.
Node is the end point of any branch in a computer, a terminal device, work station or an interconnecting equipment
facility.
Link is a communication path between two nodes.
A network topology determines which element in a computer network can communicate with each other. There are
multiple ways to organize communication networks. The two broad classification methods are: (i) Network by
Topology, and (ii) Network by Geographic scope

11.1 Network by Layout


11.1.1 Star Network
The star network consists of central host computer connected to a number of smaller computers or terminals.
In a Star Network, processing nodes in a star network interconnect directly with a central system and thus,
individual nodes communicate with each other via the central system.

T e rm in a l 7
T e rm in a l 5

T e rm in a l 2
T e rm in a l 3

SE RV E R T e rm in a l 1

T e rm in a l 6
T e rm in a l 4

Fig. 11.1 — Star Network Topology


Advantages:
o easy to add/delete new nodes
o failure of one node does not put down the entire network
o easier to diagnose network problems, even through a central hub
Chapter 3 COMMUNICATION THROUGH COMPUTERS 3.9
Disadvantages:
o the whole network ceases to function if the central hub fails
o more cable is required for star topology and hence the cost of setting up a star network is high

11.1.2 Bus Network


The bus network links a number of nodes by a single circuit made of twisted wire, coaxial cable or Fiber Optic
Cable. All of the signals are broadcasted in both direction of the entire network. This topology is commonly used in
LAN.

T e rm in a l 7

T e rm in a l 2

T e rm in a l 3

T e rm in a l 6
T e rm in a l 4
T e rm in a l 5

T e rm in a l 1

Fig. 11.2 — Bus Network Topology


Advantages
o reliable and easy to understand
o less costlier, since one single cable is required to connect nodes
o easy to extend
o repeater can also be used to extend a bus configuration
Disadvantages
o heavy network traffic can slow a bus considerably
o connection between two cables weakens the electrical signal
o a cable break or malfunctioning-node can cause be a cause of the whole network to shut down and it may
also be difficult to identify

11.1.3 Ring Network


Nodes are connected (using twisted-wire, coaxial cable or fiber optics) such that the network cable passes from one
node to another until all nodes are connected in the form of a loop or ring; and hence the name Ring Network.
3.10 MANAGEMENT INFORMATION SYSTEMS IN MODERN BUSINESS

T e rm in a l 3

T e rm in a l 7
T e rm in a l 2

T e rm in a l 5
T e rm in a l 6

T e rm in a l 4
T e rm in a l 1

Fig. 11.3 — Ring Network Topology


Advantages
o ring networks can span longer distances
Disadvantages
o relatively expensive and difficult to install
o adding or removing nodes can disrupt the network
o failure of one node on the network can affect the whole network
o difficult to trouble shoot

11.1.4 FDDI Networks


FDDI stands for Fiber Distributed Data Interface. These networks use Fiber Optic Cables which offer high speed
(more or less 100 megabit per second), which makes them very expensive. FDDI Network has limited usage,
especially for high tech purposes such as electronic imaging, high resolution graphics, digital video, etc.

11.1.5 Hybrid Networks


Every network topology has its own set of advantages, followed by disadvantages. In real life situation in an
organisation, it is very difficult to implement one of this topology purely. These networks are a combination of star,
ring and bus networks.

11.2 Network by Geographic Scope


11.2.1 LAN
LAN stands for Local Area Networking. This is the most common type of networking used in practice and hence
very important from wide usage and acceptance point of view; and therefore dealt with elaborately in this chapter.

11.2.2 WAN
Wide Area Network (WAN) includes all the networks, which are involved in transporting information from one
geographic location to another. The scale of area covered for information transfer is much greater than in local
networks. The distances involved will be from around 1 km to possibly thousands of km. Error detection
procedures are essential in WAN.
Chapter 3 COMMUNICATION THROUGH COMPUTERS 3.11
A WAN will almost always be employed whenever the information in electronic form on cables leaves the site,
even if it is only to cross over the street to another building.
In a WAN, nodes have their local resources such as data, programs, etc. But they still need to share resources
amongst each other. To accomplish this feat of resource sharing, the company can attach routers connected over
public utilities (such as telephone lines). To transmit data across great distances however, WAN-based organisation
typically lease many of the components used for data transmission — such as high speed telephone lines or
wireless technologies such as satellite, etc. Regardless of whether the network is made up from private circuits, it
uses the public telephone network or a special-purpose data transmission system. The data transmission system,
which may be owned by private/public, becomes the controlling authority to formulate, impose and monitor framed
rules.
Although WAN can be made up of one or more LAN, however, WAN does not compulsorily have to include LAN.
Putting geographical distances aside, the chief distinction between a WAN and a LAN is the cost associated with
transmitting data. In a LAN, all components are typically owned by the organisation that uses them. For instance, if
a company connects its networked PCs with cable, it owns the cabling and therefore pays a fixed cost to transmit
data across network.

11.2.3 VAN
Value Added Network (VAN) are public data networks which add value to basic communication services that
common carriers provide. VAN offers specialised services such as access to commercial databases and software,
correction of transmission errors, establishing compatibility between previously incompatible computers and
terminals, email, video conferencing. They allow companies to derive the full benefits of telecommunication
because they facilitate the smooth flow of information which in turn can lead to good decisions.

11.2.4 MAN
Metropolitan Area Network (MAN) can be referred to as a group of LANs with high-speed, seamless
interconnection within a ‘metropolitan’ area. The latter is not necessarily a city; it normally means any area which
is spread out but in some sense a single entity; for instance, two company buildings on opposite sides of the road or
on a large site.
Theoretically, MAN is a set of networks that work together to provide access and services in a metro region.
Specifically, a MAN is a single, separate identifiable “metro area network” that is owned and run by a single
network operator, usually a service provider or carrier.
MAN is a network, or set of networks, that picks up traffic from the LAN and passes it to the Wan or to another
LAN in the same metro area. In terms of function, the purpose of a MAN is to provide secure distributed broadband
access to end users. In addition, metro networks are being designed to support cutting-edge.

11.3 Network Architecture


In IT, Architecture means the physical appearance of the system and the way in which its component parts relate
to one another.
Network Architecture discusses the scheme of organising nodes, which affects the manner in which individual
nodes on a network interact with other nodes on that network.

11.3.1 Mainframe architecture


With mainframe software architectures, all intelligence remains with the central host computer. Users interact with
the host through a dumb (non-intelligent) terminal which does not have any processing power. Centralized models
allow many users to share one single application/database/etc. residing on the host of central computer. The
limitation of mainframe is that they are too costly to implement and may face traffic overload problem if there are
many users simultaneously needs to access the traffic. Thus, mainframe architecture is unsuitable for GUI
applications.
3.12 MANAGEMENT INFORMATION SYSTEMS IN MODERN BUSINESS

11.3.2 Peer-to-peer architecture


In peer-to-peer architecture, there are no dedicated servers. All computers are equal and therefore are termed as
peer. Normally, each of these machines functions both as a client and a server. This arrangement is suitable for
environments with a limited number of users (usually ten or less). Moreover, the users are located in the same area
and security is not an important issue while the network is envisaged to have a limited growth. At the same time,
users need to freely access data and programs that reside on other computers across the network.
The basic advantage of this architecture is simplicity of design and maintenance. Since there is no server, all nodes
on the network are fully employed. In other types of networks, which use server computers, the server computer is
usually dedicated in its role. In other words, the server is not used for anything else.
Secondly, the network is not totally reliant on a particular computer. With a single server-based system, which is
what most PC LANs consist of, a server malfunctioning can result in the network shutting down. In contrast, a
failure of a node on a peer to peer network means that the network can no longer access the applications or data on
that node but other than this it should continue to function.
Thirdly, linking computers in a peer to peer network is significantly more straightforward. The reason being that
there is no central server to which all the computers have to be connected. The computers can be connected to the
network cable at any convenient point. This can lead to a considerable saving.

11.3.3 File sharing structure


In file sharing approach, the user is allowed to download files from shared locations onto his desktop, to be
executed in the desktop or local environment. Even though few records of a file are needed, the whole file is to be
downloaded in order the extract relevant data/records. Thus, the server directs data while the workstation processes
the directed data. Essentially this is a dumb server smart workstation relationship. The server will send the entire
file over the network even though the workstation only requires a few records in the file to satisfy the information
requests. In addition, an easy to use Graphic User Interface (GUI) adds ease of operation as well as network traffic
congestion, thereby limiting response time and etc. Here, simultaneous use by multiple users to the same set of data
is not possible.

11.3.4 Client-Server Architecture


Client-server architecture in concise, is a form of shared/distributed computing in which tasks and computing
power are split between servers and clients. This topic is dealt with further details, in the rest of the chapter.

11.4 Client-Server Architecture


In the client server approach, the processing task is divided between server and workstation. The global tasks are
handled by the server whereas workstation handles all the local tasks. The workstation receives required data from
the server which are needed by the user instead of the whole file as in the case of file sharing approach. This results
in reduction of network traffic and thereby making the system fast and easy to use. Moreover, this approach allows
multiple users to access the same data simultaneously. The client/server model is used to describe not only the
sharing of disk storage but also the sharing of other resources such as print server, database server, etc. Many
Information Systems are designed so that some parts of the system use a server in the network and other parts use
personal computer attached to the network. These personal computers, with which users interact directly, are called
clients. For example, a server may store data for use by all client computers. The client computers allow any user to
retrieve the data.

11.4.1 Paradigm Shift — Past, Present and Future


♦ Centralized processing (Past networking technique)
A host computer (often a mainframe) handles all processing, including input/output/data
storage/data retrieval.
♦ Distributed processing (Present state of affairs)
A number of computers (mini-computers, workstations, PCs, etc.) handling all processing. They
are distributed physically and connected through a communications network.
Chapter 3 COMMUNICATION THROUGH COMPUTERS 3.13
♦ Cooperative processing (Future model)
A number of computers (mini-computers, workstations, PCs, etc.) handling all processing. They
are distributed physically and connected through a communications network. Processing is done
by sharing of resources, the method remains transparent to the users. 
The limitations of traditional computing architectures have lead to shift in paradigm, of which Client/Server
architecture is currently in wide usage.

11.4.2 Origin of Client/Server architecture


Client-server architecture in concise, is a form of shared/distributed computing in which tasks and computing
power are split between servers and clients. Client/Server technology process advanced over a period of time and,
like hardwares/softwares, have generation.
1st Generation (mid 1980), application software was in-house program, used to connect the clients and database
server.
2nd Generation (1990s), during this era, Client/Server technology was based on integrated enterprise application
suites. During this period, custodians of corporate information were Information Systems department. Also,
information was available to everyone and was used for integrated applications.
3rd Generation (Presently), Client/Server computing is based on Internet, allowing users to interact with
Information System in new ways, enabling dynamics, subject centric in sharp contrast with traditional Client/Server
computing. This present era computing lays more emphasis on analysis of decentralization and addressing
problems in security of information and management of information storage.

11.4.3 Building blocks of Client/Server technology

11.4.3.1 S
erver
Server in a hardware sense is simply a computer with a powerful processor and lots of random access memory.
The term ‘server’ refers to a running program (a process) on a networked computer that accepts requests from
programs running on other computers to perform a service and respond appropriately. The requesting processes are
referred to as ‘client’.
A network server is a computer (system) used for the purpose of managing the file system, servicing the network
printers, handling network communications and other functions. A server may be dedicated (in which case all of its
processing power is allocated to network functions), or it may be non-dedicated (in which case a part of the servers
functions may be allocated as a workstation).
Following are the different types of servers required in a network. These server-functions may reside in a single
computer or can be distributed among the computers.
1. File Server. The file server stores various data files and programs for network users, and also determines
the access rights and other privileges (such as disk quota, etc.), assigned by the administrator.
2. Print Server. A print server controls one or more printers.
3. Communication Server. Communication server manages e-mail and other communication facilities such
as Modem, etc.
4. Application Server. Provides access to application logic, allowing an application’s function processing to
be distributed among more than one computing system.
5. Database Server. Database server provides access to databases stored on a computing system which
separate from the server running the (application) program/s.
6. Transaction Server. Provides facilities for coordinating the processing of distributed transactions in which
entire units of work, possibly involving the updating of multiple databases, must be either executed in their
entirety or not executed at all.
3.14 MANAGEMENT INFORMATION SYSTEMS IN MODERN BUSINESS
7. Workgroup computing Server. Provides access to applications, sometimes called groupware applications,
which support the business activities of groups of end users. Such applications include compound
document management, workflow processing, e-mail, conferencing and scheduling.
8. Object Server. In a object-oriented computing environment, object server provides access to objects so
that a client object can invoke a server object without having to know on which computing system the
server object resides.

11.4.3.2 C
lient
The term ‘server’ refers to a running program (a process) on a networked computer that accepts requests from
programs running on other computers to perform a service and respond appropriately. The requesting processes are
referred to as ‘client’.
When the client sends a request for an operation to be carried out, it is said that the client invokes an operation upon
the server. A complete interaction between a client and a server, from the point of sending its request to the point
when response is received from the server is called remote invocation.

11.4.3.3 M
iddleware
Middleware is software that resides between two or more types of softwares and translates information between
them. Middleware is the distributed software needed to allow clients and servers to interact.
o Middleware performs the following functions:
o Middleware is a software layer that interacts between an application and system software
o Middleware manages interactions among multiple applications across multi-vendor computer systems
o It is a key element in helping integration of heterogeneous computing environments
o It enables application developers to build their product without overriding concern for the intricacies of
Operating Systems and underlying networks

11.4.4 Distinguishing Client from Server


The client/server model requires that application programs be written as two or more separate software components
that run on different machines but appear to operate as a single application.
The terms ‘client’ and ‘server’ refer to process rather than the computers that they operate upon.
The exact division of tasks depends on the requirements of each application including processing needs, the number
of users, and the available sources. The same process may be both a ‘client’ and ‘server’ because server at times
invokes operations on the other servers. For example, client tasks for a large corporate payroll may include
inputting data, submitting queries to the server, screen or even directly printing on printer. On the other hand, server
tasks may include fetching of the entered data and processing of the payroll. In addition access control, security is
also the function of server. It should not allow unauthorised users to view or update the data.
The terms ‘client’ and ‘server’ apply only to the roles played in a single request. The distinction between client and
server is as follows.
Client Server
Clients are active Servers are passive
Clients last only as long as the application lasts Servers run continuously

LANs are generally used for Client/Server computing. In this approach a database server computer in the LAN
store database for the use by many client computers. The server contains database software for storing and
accessing data on the server. The client computers are usually personal computers of the user with application
Chapter 3 COMMUNICATION THROUGH COMPUTERS 3.15
software that processes data and provides a user interface. The steps involved in Client/Server computing are as
follows:
1. A user enters a request for data processing through the user interface on the client computer.
2. The client software determines what data is needed and sends a request for the data over the LAN to the
database server.
3. The server’s database software then locates the requested data and sends it back to the client over the LAN
4. The client software processes the data and presents the results of processing through the user interface to
the user.

11.4.5 Components of a Client/Server system


In a Client/Server computing, client device and user device interact with each other. Although, both the devices are
on the network, the functions are assigned to each processor for which it is best suited. In a Client/Server approach,
the various components of an application are distributed over the enterprise, rather being centrally located.
The various components of an application which can be distributed are:
♦ Presentation component
Presentation component is the application interface, showing how the application appears to the
user. The presentation component contains the logic which presents information to an external
source and obtains input from that source. In most cases, this external source is a human end-user
working at a terminal or workstation, although the external source might also be a robotics system,
a telephone or some other input device. The presentation logic generally provides menus of
options to allow the user to navigate through the different parts of the application, and it
manipulates the input and output fields on the display device. Frequently, the presentation
component also performs a limited amount of input data validation.
♦ Application (processing) logic component
The processing logic is created by the business rules applicable to the application. An application
(processing) logic component contains the application logic which governs the business function
and processes performed by the application. These functions and processes are invoked either by a
presentation component when a user requests an option, or by another business function. The
business functions generally perform some type of data manipulation, analysis, etc..
♦ Data Management Components.
It consists of the storage and management of the date used by the application. Thus, data
management component contains the logic which interfaces either with a data storage system such
as database systems and hierarchical file system or with some other type of external data source
such as a data feed or an external application system. Data access functions are generally invoked
by a business function, although in simple applications they may be invoked directly by a
presentation component.
These three processing tasks are divided between client and server processors on the basis of requirements of each
application which may include the processing needs of the application, the number of users of the application, and
the resources available.
On the basis of division of these three processing components between the server and client, the following
Client/Server models may be implemented:
• Distributed presentation. In distributed presentation, all the three processing components reside on the
server, but the presentation logic is divided between the Client and the Server.
• Remote presentation. Here, application logic component and data management component reside on the
server, but the presentation component resides on the client.
3.16 MANAGEMENT INFORMATION SYSTEMS IN MODERN BUSINESS
• Distribution logic. In distribution logic, data management component resides on the server and the
presentation component resides on the client. The application logic component is distributed between the
client and the server.
• Remote data management. In the remote data management, database management component resides on
the server while presentation component and application logic components reside on the client.
• Distributed database. In the distributed database, all three processing components reside on the client, but
the database management component is distributed between the client and the server.
The above mentioned distribution of processing components gave rise to the ideas of ‘fat’ and ‘thin’ clients:
• Fat Clients have large storage and processing power in which all the 3 components of an application can
be processed (2-Tier System).
• Thin Clients have limited processing capability with no local storage and can handle only the presentation
component.
• Fat Server is a server machine that performs most of the processing with little or none performed by the
client. Application logic and data reside on the server and the presentation layers are handled by the client
(3-Tier System).

11.4.6 One-Tired Applications


In traditional mainframe and mini-computer environments, applications are not decomposed into their fundamental
components, and it is frequently difficult to delineate the component logic. Instead, all three components are
combined into a tightly integrated single executable program which runs on a single machine, co-resident with its
associated data files. These applications run either as batch jobs or as time-shared online applications driven by
users sitting at character-based terminals.
The one-tired approach provides a number of significant advantages. Because the application is centralised in a
single well-known environment, it is easy to manage, control and secure these applications. The online transaction
processing environments provided in mini and mainframe systems are dependable and reliable. They support
24×365 application availability and given a large enough processor, they can support extremely large numbers of
users performing very high transaction rates. Among several disadvantages, the most significant disadvantage
associated with the one-tired approach, is its lack of flexibility. Since there is little or no distinction between the
various application components in a one-tired application, it is difficult to make modifications to the application
systems in response to the changing business requirements. Because the application logic is only accessible through
the application’s integrated presentation logic, it is very difficult to integrate separate application systems or to
access the application functions from outside the application systems. In older systems, it is also very difficult for
outside applications to obtain access to the data maintained by the application. The challenge associate with
maintaining and integrating these legacy applications is universal.

11.4.7 Two-Tired Applications


The two-tired Client/Server architecture splits an application into two parts and divides the processing between the
desktop workstation and a server machine. The desktop workstation can be any type of intelligent desktop device,
such as Windows, etc. whereas the Server can have any processing power, from Intel-based LAN, etc.
Chapter 3 COMMUNICATION THROUGH COMPUTERS 3.17

D ata M an ag em en t
D ata M an ag em en t SER VE R C o mponent
C omponent

A p p licatio n (lo g ic)


co m po n en t

A p p licatio n (lo g ic)


t com p o n en t
C lie n

P re s e n ta tio n P re s e n ta tio n
C omponent C o mponent

C ase 1 C ase 2
Fig. 11.4 — Two-tired Architecture
The division point between the client and the server within the application can vary depending on the capabilities of
the tools used. At one extreme, the workstation may be used only to perform the display portion of the presentation
component, whereas the server may be used to perform the presentation logic and all the business and data access
logic. At the other extreme, most of the application may reside on the workstation and the server may perform only
thee actual data access services.

11.4.8 Three-Tired Applications


The three-tired architecture provides an environment which supports all the benefits of both the one-tired approach
and the two-tired approach, and also supports the goals of a flexible architecture.
The tree tiers refer to the three logical component parts of an application, not to the number of machines used by
the application. The three-tired application model splits an application into its three logical component types:
presentation component, logic component and data component. There may be any number of each of the
component types within an application. Application components can be shared by any number of application
systems. Each application component is developed using the best tool for the job. The application components can
be deployed across one or more physical systems. The application components communicate with each other using
an abstract interface which hides the underlying function performed by the component.
3.18 MANAGEMENT INFORMATION SYSTEMS IN MODERN BUSINESS
SER VE R
f u n c tio n
D ata
M anag em en t
C o mp o nen t

A p p lic a tio n (lo g ic )


co mp on ent

P res en tatio n
C o mp o nen t
C L IE N T
f u n c tio n

Fig. 11.5 — Three-tired Architecture


Integral to the workings of the three-tired architecture is a Distributed Computing System. A distributed
computing infrastructure provides the services which allow the application components to be transparently
distributed across any number of physical systems, a concept often referred to as partitioning. A distributed
computing infrastructure provides location, security and communication services for the application components.

11.4.9 Examples of Client/Server computing


Client/Server computing is extensively used in IS. For example, inventory may be controlled with the use of
Client/Server computing. The inventory database would be on the database server in the network and the client
computers in the network would have access to the inventory data, processing it and presenting the results to the
user.
In Client/Server computing, client device and user device interact with each other. Although, both the devices are
on the network, but functions are assigned to each processor for which it is best suited.
Following may be other areas of Client/Server implementation
o E-business
o for on-line shopping
o for inquiring customer accounts
o on-line banking
o to process credit card purchases
o for money transfers
o for credit checks
o call centre

11.5 Local Area Networking (LAN)


11.5.1 Emergence of LAN
The advent of IBM PCs in the early 1980s set a whole new standard in both business and personal computing.
Along with PCs came a new operating system called DOS. DOS provided an easy programming environment for
software vendors developing and publishing software. The significance of the DOS standard is that it stimulates
growth of new products by providing software and hardware vendors with an open development platform to build
both accessories and software products. Since this brought in an abundance of software, the use of personal
Chapter 3 COMMUNICATION THROUGH COMPUTERS 3.19
computers increased. As more and more people began to use computers, it became obvious that a way of
connecting them together would provide resource sharing facilities. This gave birth to the LAN concept.

11.5.2 The Concept of LAN


In the mainframe and mini environment, the data required by individual departments was often controlled by the
MIS or similar department. Each user was connected to the main system through a dumb terminal. A dumb terminal
is unable to perform any of its own processing tasks. In the mainframe and minicomputer environment, processing
and memory are centralised.
The host computer became the centre of the computing environment. Apart from merits, the demerit of these
computer systems was that the system could easily get overloaded with the increase in number of
users/terminals/processing, etc. Since most of the information was centralised to the system administrator than to
the end user. This is an example of centralised processing system.
LANs mostly use distributed processing systems, where most of the processing is done in the memory of the
individual PC, workstations, etc. The file server or host system becomes the central point for storing files,
connecting and sharing printers or other network resources and for managing the network.
LAN can be defined as a data transmission system intended to link computers and associated devices within a
restricted geographical area (i.e. a building, the site of a company/university, etc. varying from maximum 1 km to
10 km).
Since a LAN is confined to a small area, it is possible to employ vastly different transmission methods from those
commonly used on other telecommunication systems. Inexpensive line-driving equipment can be employed instead
of the relatively complex modems needed for public analogue network. High data transmission speed can be
achieved by utilising the advantages of short distances and the latest electronic circuits.

11.5.3 Attributes of LAN


The main attributes of present-day LAN can be summarised by:
• inexpensive transmission media
• inexpensive devices (modems, repeaters and transceiver) to interface to the media
• easy physical connection of devices to the media
• high data transmission rates
• network data transmissions are independent of the rates used by the attached devices, making it easier for
devices of one speed to send information to devices of another speed
• a high degree of interconnection between devices
• every attached device having the potential to communicate with every other device on the network
• there is seldom a central controlling processor which polls the attached devices on the network

11.5.4 Reasons for using LAN


The major reasons for using LAN was distributed processing and resource sharing. However, more critical reasons
have emerged for users to increasingly move towards LAN solutions, which include:
o Security for programs/data achieved using servers that are locked through both software and by physical
means. Other devices (such as CD, etc.) can be locked to avoid unauthorised data duplication, etc.
o Expanded PC usage through inexpensive workstation. Once a LAN has been set up, it actually costs less to
automate additional employees through diskless PCs. Existing PCs can be easily converted into nodes by
adding network interface cards.
3.20 MANAGEMENT INFORMATION SYSTEMS IN MODERN BUSINESS
o Distributed processing
o Email and Message broadcasting
o Data management benefits
o Other organisational benefits.

11.5.5 Components of a LAN

11.5.5.1 N
etwork Cabling
LAN does not use telephone or other public network for data transmission, because whenever a network uses
public utility for data transmission, it no longer remains LAN. The most popular type of LAN cable consists of
shielded twisted-paid, co-axial and fibre-optic cables. Wireless connectivity also may be possible by infrared or
radio wave transmission.

11.5.5.2 N
etwork Interface Cards
Every device connected to a LAN needs a Network Interface Card (NIC) to plug into the LAN. For example, a PC
may have an Ethernet card installed in it to connect to an Ethernet LAN.

11.5.5.3 S
ervers
A network server is a computer (system) used for the purpose of managing the file system, servicing the network
printers, handling network communications and other functions. A server may be dedicated (in which case all of its
processing power is allocated to network functions), or it may be non-dedicated (in which case a part of the servers
functions may be allocated as a workstation).
Following are the different types of servers required in a network. These server-functions may reside in a single
computer or can be distributed among the computers.
1. File Server. The file server stores various data files and programs for network users, and also determines
the access rights and other privileges (such as disk quota, etc.), assigned by the administrator.
2. Print Server. A print server controls one or more printers.
3. Communication Server. Communication server manages e-mail and other communication facilities such
as Modem, etc.

11.5.5.4 W
orkstations
Workstations are intelligent terminal or nodes, possessing processing power. They are often called Active Device.
Workstations fetch programs/files from the server to process them using its own processing power and then send
back relevant file/data to be stored on the server. A workstation can also be diskless, wherein loading of operating
system takes place from the file server.

11.5.5.5 N
etwork Operating Systems
Network OS is an Operating Software developed to manage, monitor and control network activities. Depending on
the type of each network, the OS software may be stored on the file server or on each microcomputer on the
Network.
Chapter 3 COMMUNICATION THROUGH COMPUTERS 3.21

11.5.5.6 G
ateways and Bridges
The network gateway connects the LAN to the public networks, such as the telephone network, or to other
corporate networks so that the LAN can exchange information with networks external to it.
A gateway is a communication processor that can connect dissimilar networks by translating from one set of
protocols to another. On the other hand, a bridge is an interface that enables similar network to communicate.

11.5.6 Types of LAN


LAN can be broadly classified into following two types: Client-server LAN and Peer-to-Peer LAN; already
discussed in Network architecture.

11.5.7 LAN Technologies


There are several technologies for physically connecting clients:
1. Ethernet. Ethernet, developed by Xerox Digital Equipment Corporation and Intel, is the most widely used
form of LAN data link technology. Ethernet is a LAN data link technology attached to a common
transmission facility, such as a coaxial or twisted-paid cable to form a bus or tree structure configuration. A
system typically attempts to transmit whenever it has data to send.
2. Token Ring. Systems are connected to one another using a point-to-point twisted-paid cable segments to
form a ring structure.
3. Token Bus. Systems are connected to a common transmission medium in a similar manner as an Ethernet
LAN.
4. Fibre Distributed Data Interface (FDDI). High speed LAN data link technology to connect systems
using point-to-point Fibre-optic cable segments to form a ring structure. (Discussed previously).
5. Local Talk. Local Talk is a low-speed LAN data link technology.
6. Wireless LAN technologies. Local area network infrastructure vendors have developed various
technologies for implementing LAN communication over wireless transmission media, such as radio and
infrared signals.

11.6 Communication standard


‘Communication standards’ and ‘standard communication’ are two different terms. Standard communication means
communication which is followed in general practice. For example, sending greetings (such as happy birthday,
happy wedding, etc.) are for standard or normal or commonly used communications.
Then again, ‘communication standards’ means something different. Communication standards are standards used in
the communication procedure. For example, official letters have a certain format; same in case of personal letters;
etc. These are communication standards.
In IT, ‘communication standard’ refer to the industry-set standards or principles that are used in all areas of
communication (viz. from software to hardware).
Now we will discuss about some of the organisations dealing with setting standards:
3.22 MANAGEMENT INFORMATION SYSTEMS IN MODERN BUSINESS
♦ ASCII
ASCII stands for American Standard Code for Information Interchange. ASCII is a standard
computer character set consisting of 96 upper-case and lower-case letters along with 32 non-
printing control characters.
♦ ANSI
American National Standards Institute (ANSI) is a non-profit organisation of the US Government,
founded in 1918. ANSI controls encoding schemes and signaling definitions for data
communications. ANSI represents US at International Standards Organisation (ISO). ANSI
developed the Open System Interconnect (OSI) model for networking.
♦ CCITT
CCITT stands for Consultative Committee for International Telephone and Telegraph. CCITT is a
committee of United Nations International Telecommunications Union (ITU) based in Geneva
(Switzerland). The Standards promulgated by the CCITT are also known as ITU Standards.
♦ EIA/TIA
Electronic Industry Association/Telecommunications Industries Association (EIA/TIA) has
developed wiring standards for all aspects of the communications and electronic industries,
including the RS-232C specification.

12.0 Information Technology (IT)


Information Technology can be defined as — the use of computers, microelectronics and telecommunications to
help producing (data capturing, processing, manufacturing), store (data storage) and send information (data
transmission) in the form of pictures/words/numbers (i.e. data/information display); more reliably, securely, quickly
and economically.
IT has a deep influence on the economy, communication, culture, educational system and a social interaction in all
countries, bringing them closer in a world transformed into a global village and laying the foundation for a new
civilization. IT has revolutionized life on Earth.
Information systems extensively use Information Technology. In fact, if IS is compared to a train, then IT is its
‘electric engine’: fast, reliable and comparatively cheaper. However, this does not mean that an IS cannot exist
without IT. Instead, IS needs IT to be fully efficiently and function effectively. Thus, IT fuels IS, so much so that it
dominates IS to some extent.
This chapter aims at discussing the involvement of IT in setting-up, developing and operating of IS.

12.1 Purpose of IT
IT is used to serve the following purposes —
1. Efficiency. Efficiency can be defined as ‘doing right things’. Humans are known for making most errors
and consuming maximum time in routine type of monotonous jobs. IT (i.e. computers) are used to
automate routine/monotonous jobs, by fast processing and storage of huge quantity of data with accurate
precision and confidentiality. Computers are efficient for all types of businesses, except for very small
business — where the cost of recruiting a personnel to operate the computer and the cost of installation/use
of a computer and its associated software(s); may jointly exceed the cost of one personnel being appointed
to do the job manually.
2. Effectiveness. Effectiveness can be defined as doing right things. The difference between efficiency and
effectiveness is that efficiency is concerned with cutting costs, whereas effectiveness is concerned with
doing only the right things. To do right things, a correct decision has to be taken. Only humans can take
decision — computers cannot. Computers can be used to assist humans in the decision making process by
using complex analytical tools (through application of suitable software as DSS, etc.); by performing huge
calculations (in a second or less), from huge quantity of data (stored inside the computer, or extracted via
network from remote database).
Chapter 3 COMMUNICATION THROUGH COMPUTERS 3.23
3. Transformation. Paper-based offices are now becoming less-paper offices, encouraged by the
implementation of new laws to give electronic transactions (e.g. e-mails, electronic payment and related
instructions, etc.) legal validity. These days, share transfer cannot take place without a De-Matt Account.
Such is not in case of India only, but all other countries around the Globe. New business products have
been introduced, such as softwares, e-newsletter, e-magazines, etc., which were impossible without using
IT and computers. Business processes have also undergone severe change. These days, there are electronic
transaction, where items are ordered/purchased/paid online and then hand-delivered. Filling up exam forms
or submitting Income Tax returns, now just needs a mouse click. Students can earn foreign degrees sitting
at home, by e-learning and e-examinations. More examples can be given to establish that we have
undergone a ‘transformation’ from our tradition business methods/products and lifestyles.

12.2 Basic functions of IT


1. Data Capture. Captures data, available in human understandable format and converts them into computer-
understandable format for storage/processing/usage/presentation. There are certain input devices such as
mouse, keyboard, bar code reader, etc.
2. Data Storage. Data can be stored in storage media attached with computer (hard drive, etc) or detachable
media (CD, etc.). To enhance data access/retrieval, several storage methodologies are used, such as
Sequential, Random, Indexed-sequential, etc.
3. Data Retrieval. Data retrieval is the process of recovering data from a media on which it is stored, for the
purpose of processing/display. Speed of data retrieval depends on the method used to store data. Exactness
if data depends on the media on which it has been stored.
4. Data Manipulation. Data manipulation is concerned with data processing to obtain information.
5. Data Transmission. With the help of communication technology, IT transmits data in electronic form,
from one computer to another, irrespective of the distance between these computers.
6. Display. Display of data/information is the activity concerned with presentation of information to the users
of information.

12.3 Power of IT
IT enables users to:–
♦ routine, structured jobs can be automated, thereby involving least human involvement
♦ ease in data transfer (just by a click, no need of sealing and filling up form of courier/post)
♦ data can be transferred between places situated far apart, even in to edges of the World, in least cost and
super-fast speed, as compared to the traditional method
♦ accurate data storage is guaranteed (unless technical error is encountered, which may be by chance)
♦ data can be accessed from any point on globe (when data is uploaded to a web-server, with proper
authentication, it can be accessed from any place on the globe)
♦ huge data can be processed/presented in almost no time, when compared to manual procedure
♦ complex analytical methods can be applied on data to perform jobs
♦ authentication of identity can be established for accessing/altering of data/information
♦ multiple tasks can be carried out at the same time (e.g. printing a report, processing a database as well as
viewing a presentation)
♦ involves initial (huge) investment, but over time, it is recovered (because revenue expenditure is lessened)
3.24 MANAGEMENT INFORMATION SYSTEMS IN MODERN BUSINESS

12.4 Usage of Information Technology


1. IT reduces cost of operations. IT requires initial investment. But, it saves cost in the operating phase,
which helps to recoup the initial investments made.
2. Develop alliances. IT helps to develop alliances, overcoming the difficulties of space & time. One can sit
at home and take part in a foreign university’s examination. Similar is the case for relationships with
customers, suppliers, etc.
3. Improve quality and efficiency. IT has been extensively used in the designing phase (fashion industry,
civil architecture industry, etc.). In the research and development department, IT is used in simulation, etc.
which has not only reduced time and cost, but also improved quality. Customers can make online
complaints and track their complaints online, without the need for a public relation officer. This system
makes the business operations transparent, even in case of complaints; which in turn helps the business in
customer satisfaction and quality development.
4. To promote growth. For the purpose of extensive business expansion, IT is the most reliable, cost-
effective and quick method.
5. To develop strategies. Inter-organisation information systems are used to develop strategies and to create
switching costs that lock in customers and suppliers.

13.0 The Internet


The term internet is used in two separate contexts —
 If the word has an upper-case ‘I’, it refers to the network, which in the past, was administered by the U.S.,
Government, and which operates with the TCP/IP suite of protocols. It now refers to the public Internet
used by the general populace.
 In contrast, if the word beings with a lower case ‘i’, it refers to a network that uses the TCP/IP suite of
protocols, but does not belong to the public Internet. These internets are usually privately owned.

13.1 Origin of Internet


The origin of Internet lies in the research and development network ARPANET, established in 1969 by the US
Department of Defense. The objectives of ARPANET were to facilitate the sharing of research findings and
resources between Governments, (defense) scientists, researchers, academicians, and universities.
During the early years of this network, other academic institutions were also sharing research resources via the
Joint Academic Network (JANET). With the growth of the home PC market through the 1990s and the advances in
telecommunications technology over the same period, universal access to the vast networks was inevitable. With
the creation of the World Wide Web to aid navigation across the networks, that access became possible, and not
only researchers and information seekers were able to use them; providers of telecommunications products,
commercial services, leisure products and their customers quickly found that this infrastructure could be exploited
easily, profitably and enjoyably.

13.2 ‘Internet’ — what it is


Internet is a global computer network connecting Governments, Companies, Universities and many other networks
and users.
Internet is an abbreviation for International network. It is a voluntary, almost unregulated collection of hardware
and software owned by private individuals and organisations.
The Internet refers to the physical aspects of the system, such as the communication lines, computers (often known
as ‘web servers’) and the software required for communication.
The Internet facilitates “many to many” communication. Modern technology has, so far made possible
communication, “one to many” (as in broadcasting); “one to one” (as in telephony); “a few to a few” (as in
telephone conferencing) and “many to one” (as in polling).
Chapter 3 COMMUNICATION THROUGH COMPUTERS 3.25

13.3 ‘Internet’ — how it works


♦ Protocol — TCP/IP
Protocol is a set of rules that allows communication between non-identical platforms
(hardware/software). Thus, Protocol is the base-platform or the hand-shaking rules.
Every computer and network on the Internet uses the same protocol to control timing and data
format. If it so happens that different networks are operating using different protocols, then a
conversion is needed, in order to use a common protocol.
The protocol used by the Internet is the Transmission Control Protocol/Internet Protocol or
TCP/IP. TCP/IP removes all hindrances and makes it possible for different computer system(s) to
be interconnected for interaction.
♦ Routing Traffic across the Internet
A route is information on how to relay traffic to a physical location, based on the address of the
physical location.
The Internet provides many host computers or servers, which provides data and services as
requested by client systems. Thus, when ever one connects to internet, a request his sent to the
server, which replies with the required information. Almost all computers connect to a smaller
network that is connected to the Internet backbone.
♦ Addressing schemes
Every house in an area has ‘address’ and hence can be addressed or communicated. Internet is the
network of networks. Thus, internet contains several small/medium/large-sized networks, each
containing multiple computers (or nodes). Sometimes, individual computer (i.e. standalone
computer) is connected to the Internet. These standalones not independently and individually
attached to the Internet. Whatsoever be the configuration, each and every computer needs to be
distinctly identifiable in the Internet, such that they can be referred to for communication and
interaction, by a unique address.
Every computer on the Internet has a unique numeric identifier, called and Internet Protocol
Address (or IP address). This IP address may be permanently assigned to that computer/network
(referred to hereinafter as ‘node’); even if the node is switched off (i.e. not actively using the
Internet service). Such types of addresses are called ‘Static addresses’. Whereas, the IP address
assigned to a node may be withdrawn because of its non-active state and re-assigned to some other
node which has become active or alive (i.e. is using Internet service). These are known as
‘Dynamic addresses’.
A name is an identification of an entity (independent of its physical location), such as a person, an
applications program, or even a computer.
An address is also identification that it reveals additional information about the entity, principally
information about its physical or logical placement in a network.
TCP/IP networks use a 32-bit layer 3 address to identify a host computer and the network to which
the hoist is attached. Since, it is a large address; it is broken down into four parts of 8 bit each.
These parts are discriminated from each other by using a dot (‘.’). Hence there are four dots in an
IP address, where each part takes up one byte or 8bit. Hence, each part is capable of containing a
number between 0 and 255. An IP address might look like this: 205.46.117.104. IP addresses are
classified into classes, by their formats. The first bits of the address specify the format of the
remainder of the address field in relation to the network and host subfields. The host address is
also called the local address.
Network ID identifies systems located on same physical network boundary. Host ID (host address)
identifies a workstation, server router or other TCP/IP host within a network; the address for each
host must be unique to the network ID.
Class A
3.26 MANAGEMENT INFORMATION SYSTEMS IN MODERN BUSINESS
The class A addresses provide for networks that have a large number of hosts. There are
24 bits of the host ID field; and therefore, 224 numbers of hosts are possible. The Network
ID contains 8 bits; of which, the highest bit is set to zero; thereby permitting a maximum
of 27 combinations.

N e tw o rk ID H o s t ID

Fig. 13.6 — Class A addressing Scheme


Class B
Class B addresses are used for networks of intermediate size. Network ID uses 16 bits, of
which, high order bits are always set to 10, leaving 2 14 different combinations to use. Host
ID uses 16 bits, resulting to 216 combinations.

N e tw o rk ID H o s t ID

1 0

Fig. 13.7 — Class B Addressing Scheme


Class C
These networks contain fewer than 256 hosts (28). Network ID consists of 24 bits, of
which, high order bits are always set to 110, leaving 221 bits. The Host ID uses 8 bits
resulting to 28 combinations.

N e tw o rk ID H o s t ID

1 1 0

Fig. 13.8 — Class C Addressing Scheme.


Class D
Class D addresses is reserved for multicasting, which is a form of broadcasting but
without a limited population. Details addressing for this class is beyond the scope.
A network usually provides a service which allows a network user to furnish the network with a
name of something (another user, an application, etc.) that is to receive traffic. A network name
server then uses this name to determine the address of the receiving entity. This address is then
used by a forwarding protocol to determine the physical route to the receiver. That is, the name
server correlates a name (such as http://www.yahoo.co.in) to an address (such as 122.3.24.7).
♦ Domains and Sub-domains
In addition to an IP address, most Internet hosts or servers have a Domain Name System (DNS)
address. The principal function of DNS is to map (or correlate) a ‘user-friendly’ e-mail name to a
route-able address. The user only needs to know the user-friendly address, such as
http://www.yahoo.com to open the web page. The task of the DNS is to map and find out the
address of the server storing this page (which may be supposing 12.3.456.189). Now, if the user
was to remember that numerical address, then it would have been too difficult; and suppose, he
had in mind 122, instead of 12, then it was almost impossible for him to find out the actual
number.
Chapter 3 COMMUNICATION THROUGH COMPUTERS 3.27
Some enterprises have multiple servers, and identify them with sub-domains, such as
http://mail.yahoo.com

13.4 ‘Internet’ — how it is managed


The Internet is managed by the Internet Society of Computers (ISOC). This professional society promotes the
overall Internet structure and growth. The oversight of the Internet is performed by the Internet Advisory Board
(IAB). The IAB consists of a number of volunteers and subsidiary organisations. Their main function is to
coordinate the Internet Task Forces, which are responsible for developing the protocols for the Internet. The
Internet Engineering Task Force (IETF) is responsible for ongoing research activities, and concerns itself with
issues such as implementation and engineering problems.
The original IAB was formed in 1983 by the Defense Advanced Resource Projects Agency (DARPA). Its original
charter was relatively simple: Coordinate research information exchange between researchers and encourage
intercommunications through the Internet. A 1989 re-organisation reflected the growing complexity of the Internet
systems and the need for better coordination of its many activities. The Internet Activities Board was formed to
help coordinate matters.
During the early 1990s, it became apparent that further coordination was needed in the light of the movement of the
Internet to a commercially-based system. In 1991, the Internet Society was formed, and in 1992, the IAB was
reorganized and renamed the Internet Architecture Board.

13.5 Components of ‘Internet’


13.5.1 World Wide Web
The www was created in 1989 at the European Particle Physics Laboratory in Geneva, Switzerland, as a method for
incorporating footnotes, figures and cross-reference into online hypertext documents.
www (World Wide Web) is the collection of data held on the internet and the tools to allow retrieval and analysis of
that data. It links the computers on the Internet, like a spider web, facilitating the user to go from one computer to
another directly.
The www is a menu-driven, following hypertext links between related sources rather than files related to one
another by server identification.
www works on ‘multi-media’, where the information can be accessed and transmitted in text, voice, sound and/or
video. Graphics and interactive communication are two distinctive features of the Internet and www.

13.5.2 Web Page


A web page is a document encoded with hypertext markup language tags, which allows designers to ling content
via hyperlink. Every Web page has an address, a Uniform Resource Locator (URL).

13.5.3 Hypertext
Hypertext is basically text, which can be stored, read, edited and searched. However, over and above these
features, it also contains connections to other documents within the text. The connections are known as hyperlink.
Hyperlink allows users to jump from document to document as they browse through the web.

13.5.4 Hyper Text Markup Language (HTML)


HTML provides a way of displaying Web pages with text, images or multimedia content. HTML is not a
programming language but a markup language, which means that programming techniques such as looping,
decision making, etc. is not supported by HTML. Thus, ‘language’ in the name, is a fallacy. HTML file is a text file
containing small markup tags. The markup tags tell the Web browser, such as Internet Explorer or Netscape
Navigator, how to display the page. An HTML file must have .htm or .html extensions. These files are stored on a
web server, to be viewed whenever requested.
3.28 MANAGEMENT INFORMATION SYSTEMS IN MODERN BUSINESS
HTML allows web publishers to create complex pages of text and images that can be viewed by anyone on the
Web, regardless of what kind of computer or browser is being used. HTML pages are of two types:
♦ Static Page
Static pages, as the name indicates, comprise static content (text/multimedia). Thus, only the
contents of a web page can be viewed without being able to have any kind of interaction.
♦ Dynamic Page
Dynamic pages are those where the content of the web page depend on user input. So interaction
with the user is required in order to display the web page. The interaction of the user with the web
page is monitored/validated/stored/updated/formatted, etc. by the web server. Since, HTML does
not allow any kind of programming, ‘scripting’, ‘client-server architecture’, etc are used, which
we will explore later.

13.5.5 Web browser


Web browser is a piece of software that allows access to the Internet and use of search facilities. The browser is
normally provided by the PC operating system of the ISP. Common examples are Netscape Navigator, Internet
Explorer, etc.
There are two basic categories of Web browser:
♦ Text-only Browser
A text-only browser such as Lynx allows viewing of web pages without showing art or page
structure. The advantage of such browser is that it displays web pages very fast, since no time
holdup is required for multimedia downloads.
♦ Graphical Browser
Netscape Navigator or NCSE Mosaic, are graphical browsers that can show pictures, play sounds,
run video clips, etc. Since multimedia files takes larger storage place, downloading them is time
consuming. With heavy online traffic, this download time-delay is further increased.

13.5.6 Web Server


Web Server are computers with huge storage space and adequate processing power, capable to handle many
request in limited time, are used to store web-pages, databases and other data required by the user while surfing the
internet.

13.5.7 Universal Resource Locator


Universal Resource Locator is a unique address which describes the location of individual web page.

13.5.8 Internet Service Provider


Internet Service Provider is an organisation that provides connection to the internet in return for a fee. Thus, ISP
is an intermediary service between the Internet backbone and the user, which provides access to web servers by
providing connection to local area telecommunication links, thereby avoiding long distance connectivity and
International call charges.

13.5.9 Gateway
Gateway is a computer system that can translate one network protocol into another so that data can be transmitted
between two dissimilar networks.
In 1973, several of the Internet designers and planners met in San Francisco to discuss how to connect different
networks together, essentially through the APRAnet. These discussions revolved around the need for a gateway —
a machine that would be a routing computer operating between the different networks. It would hand off messages
between networks and perhaps perform some conversion of the formats of the traffic. During meeting, the concept
of encapsulation and de-capsulation were developed. These terms meant that there would be a common header that
Chapter 3 COMMUNICATION THROUGH COMPUTERS 3.29
was used between all the gateways attaching the networks. The specific traffic indigenous to the network would be
encapsulated behind that header and the header would be used to route the traffic between the networks. When the
traffic arrived at the final destination, the routing header would be discarded (de-capsulated) — it had done its job
and was no longer needed.

13.5.10 Search Engine


Search Engine is the software which is used to search web pages for a particular keyword supplied by the user, to
display results in the form of web-page from where the user can pick and choose.

13.6 Surfing the Internet


Many of the servers on the Internet provide information, specializing on a topic or subject. There is a large number
of such servers on the Internet. When a user is looking for some information, it may be necessary for him/her to
look for such information from more than one server. www links computers on the Internet, like a spider web,
facilitating users to go from one computer to another directly. When a user keeps hopping from one computer to
another, it is called ‘surfing’.

13.7 Uses of Internet


The use of Internet depends on the innovation capability of the user(s). However, the common uses of the Internet
are discussed below.

13.7.1 Communication
Communication on the Internet can be online or offline. When some users connect to a single server or an on-line
service at the same time, they can communicate in an ‘online chat’. This can be truly ‘any to many’ as in a room
full of people talking to each other on peer to peer basis. Alternatively, the users send e-mail to each other which
can be read by the receiver whenever he/she finds the time. This ‘one to one’ or ‘one to many’ communication; is
off-line communication. Similarly, it is possible for user to get together electronically with those sharing common
interests in ‘UseNet’ group. The users post messages to be read and answered by others at their convenience, in turn
all of which can be read and replied to by others and so on.

13.7.2 Electronic Mail


Electronic Mail is a service on the internet that allows an internet user to send a mail (message) to another internet
user in a near real-time manner (i.e. almost instantly), irrespective of the location of the users.
Messages are written in text. With these messages, other (text/non-text) files may be attached. Apart from the
message and attachment, the sender needs to put in the e-mail address of the recipient(s). During delivery, the
computer server adds certain information (such as date/time, server address, return-path, etc.). This information is
meant for internal use and so are included but prior to the beginning of the message, in a section known as ‘header’.
Users (sender/receiver) have no control over the header information, but they can view or copy the information as
reference while addressing the system administrator (web administrator), in case of need.
Any email messages contains three parts — the first part (from left side up to the symbol ‘@’) is the account name
(i.e. name of the account of the user), the second part (i.e. just after the ‘@’ symbol and up to the ‘.’ Symbol) is the
name of the site and the third part (i.e. after the ‘.’ till the end) is the domain name.
E-mail accounts need space in the server. This space varies from MB to GB, for which a fee is to be paid to the
provider. There are certain web sites, which allow free e-mail accounts. The cost of the e-mail space is recovered by
them through advertisements. Thus, providing of e-mail space is also a form of business.
E-mail provides cheapest, quickest and easiest means of communication. The provision to electrically send files as
attachment makes this service more attractive.
Steps in e-mail delivery
♦ sending ISP picks up the email
3.30 MANAGEMENT INFORMATION SYSTEMS IN MODERN BUSINESS
♦ sending ISP determines a computer system what will route the mail to the recipient, by determining the
address of its web server
♦ each computer (node) on the network determines the address of the next computer (next node), which is
closer to the destination
♦ finally the recipient computer (i.e. recipient web server) receives the email
♦ this recipient web server looks up the user to whom the mail is addressed (i.e. puts the mail into the email-
account it is addressed for)
♦ in case there is error in addressing, or the recipient’s account does not (or ceases to) exist, or there is some
technical error, the error message is sent to the sender, else a positive feedback is sent back
♦ some web servers scans the email by antivirus, before sending or during receiving

13.7.3 Electronic Greeting


Greeting cards are decorative piece of papers used to greet people. When this greeting is made over the Internet,
this procedure is known as Electronic Greeting. Electronic greeting sends the greetings in electronic file, instead of
paper. Thus, it is cheaper and reaches the user at the other end, almost instantly. Deciding the greeting content is
easy because these are displayed on the screen and one can select it with the click of a mouse; instead of physically
searching in a shop, as with the case of greeting cards.

13.7.4 Remote log-in


Telnet is the protocol that establishes an error free rapid link between two computers, allowing one to work ‘as-if’
on the other. Suppose, on is on the road and needs to access his office computer, then he may log-in (i.e. acquire
access rights) to his office computer via telnet protocol. A Telnet program creates a ‘window’ into the host so that
one can access files, issue commands and exchange data. Telnet is widely used by libraries, to allow visitors to look
up information, find articles, and so on.

13.7.5 Video Conferencing


Interactive Video is a computer based system that integrates image processing with text, audio and video processing
technologies, which makes interactive multimedia presentation possible. A person speaking over the microphone
and being captured on Video by a video-camera is seen and heard exactly in the same manner by the person in the
other end. Similarly the person at the remote end is being viewed and heard by the person at the other end.
Likewise, person at two ends interacts with each other.
Interactive video is used mainly in video conferencing.
A type of conferencing in which audiovisual data captured through microphone and video-camera are transmitted
between users networked computers or conference rooms, so as to enable real time conferencing, is known as video
conferencing.
Video conferencing needs high bandwidth. Kindly refer to FDDI network for further relevant information. Video
conferencing is cheaper, when compared with the cost of physically visiting the location.
Nowadays, Courts are conducting trials over video conferencing, where the accused is interrogated by the
lawyers/Judge over video and the whole proceedings are carried out with the help of video conferencing. Using this
technology, trail can proceed even when the parties (i.e. accused, lawyers of the accused, public prosecutor, Judge)
are situated in different places and not inside the same court room.
Video conferencing is used in interviews, group discussions, e-governance, etc.

13.7.6 Data Retrieval


For meaningful data retrieval, availability of data that has been complied from various sources and put together in a
usable form is an essential prerequisite. On the Internet, a large number of databases exist. These have been put
together by commercially run data providers as well as individuals or groups with special interest in particular
areas. To retrieve such data, any user needs to know the address(s) of such Internet servers. Then depending on the
Chapter 3 COMMUNICATION THROUGH COMPUTERS 3.31
depth of information being sought, different databases have to be searched and required information compiled. The
work involved is similar to a search process in a large library; except that this Internet ‘library’ is immense,
dynamic, because of regular updating, and entirely electronic. While some skill is required for searching, the user
will be able to access, search and check a large collection of servers. Conceivably, Internet will have the latest
information available, because all data is transmitted electronically world over.

13.7.7 Data publishing


Data publishing is a new opportunity that Internet has made possible. Information that needs to be made available
to others can be either forwarded to specific addresses/posted in a Usenet site or kept on display in a special site.

13.7.8 Transfer of Data Files


E-mails are capable to send/receive data file to/from a client. For example, at the time of consolidation of accounts
of a client, the data file containing final accounts of the branches of that client can be obtained via E-mail and after
consolidation and finalization, the same can be sent back to the client’s branches for closing entries, etc. This would
result in considerable saving of time, energy and money.

13.7.9 File Transfer Protocol


File Transfer Protocol (FTP) is the Internet tool used to copy files from one computer to another. Using a special
FTP program, or a web browser, the user can log into an FTP host computer over the Internet and copy files onto
his own computer. FTP is handy for finding and copying softwares files, articles and other types of data.
Universities and software companies use FTP servers to provide visitors with access to data.

13.7.10 News
An Internet-based service called news includes many newsgroups. Each newsgroup hosts discussions on a specific
topic. A newsgroup’s name indicates its users’ special topic of interest, such as alt.food.cake or alt.discuss.politics,
etc.
In order to participate in a newsgroup, the user needs a newsreader program that has been posted on a news server.
One can post articles for others to read and respond to it.

13.7.11 Internet Relay Chat


A multi-user system made up of channels, which people can join to exchange messages either publicly or privately.
Messages are exchanged in real time, meaning they are transmitted to other users on the channel as they are typed
in.

13.7.12 Address Book


This is an electronic form of Address Book wherein contact details and other contact-related data are saved.

13.7.13 Webcasting or Push Technology


Another Web-based technology is push technology or Web-casting — which allows users to passively
receive/broadcast in information rather than actively search the Web for information. Push technology allows users
to choose from a menu of sources, specifying what kind of information they want to receive. Once selected, the
information is automatically forwarded to the user. Internet news services, which deliver the day’s activities to the
user’s desktop, are an example of push technology. Users can also download softwares, select the frequency with
which they will receive services, and subscribe to a variety of information sources. There is very little cost to the
user for push service because information is delivered with advertising, and users view their custom-tailored news
off-line. Push technology differs from the traditional uses of the Internet. The Internet is, for most part, a pull
environment where a user opens a browser application and searches for information. While there are millions of
Web pages, these pages are not of much use unless the user finds them and ‘pulls’ the required information. The
Web pages, then, are essentially dormant until they are located and the user successfully navigates his way to the
correct destination. As any current web user knows, this navigation process can sometimes be frustrating and time
3.32 MANAGEMENT INFORMATION SYSTEMS IN MODERN BUSINESS
consuming. Push technology eliminates this frustration. Push Technology is having a major impact on the Internet,
probably the biggest impact since the emergence of the Web.

13.8 Intranet and Extranet


Intranet is a private network inside a company or organisation that uses the same kind of software that one would
find on the public Internet, but that is only for internal use.
As the Internet has become more popular, many of the tools used on the Internet are being used in private networks.
For example, many companies have web servers that are available only to employees. Note that an Intranet may not
actually be an internet – it may simply be a network.
Extranet is an Intranet that makes the Intranet accessible to outside companies or individuals with or without an
Intranet. It is also defined as a collaborative Internet connection with other companies and business partners. Parts
of an Intranet are made available to customers or business partners for specific applications. The Extranet is thus an
extended Intranet, which isolates business communication from the Internet through secure solutions.
Hence we see that, an Intranet is a private network, designed to use Internet technologies to meet the internal
information needs of the private institution, as required by its internal users (e.g. employees, etc.) only. Whereas an
Extranet is an ‘extended intranet’, which is directed to meet requirements of customers or suppliers, apart from the
internal users (i.e. Extranet meets the requirements of internal users such as employees, etc. and as well as the
customers, etc.).
Extranets provide the privacy and security of an Intranet while retaining the global reach of the Internet. The key
characteristics of an Extranet is that it extends the Intranet from one location to another across the Internet by
securing data flows using cryptography and authorization procedures, to another Intranet of a business partner. This
way, Intranets of business partners, material suppliers, financial services, distributors, customers, etc. are connected
to the Extranets by an agreement through strictly controlled mechanisms. This has led to the true proliferation of e-
commerce. It is the combination of Intranets with Extranets that has established the virtual corporation paradigm.
This business paradigm is turning out to be critical for e-commerce, allowing corporations to take advantage of any
market opportunity anywhere, anytime and offering customized services and products.

13.9 Impact of Internet


Internet has deeply affected our life style and working manner.
Welcome to e-office, a term used to denote those offices which relies maximum on electronic means of activities,
rather than paper-based means of activities.
In a few short years, e-mail and the Internet have changed many business practices in many countries around the
Globe. The so called ‘snail-mail communication’ that used to move as fast as planes/ships/trains/motorcars, have
been replaced by e-mails and messengers, which can circle the globe in moments, rather than hours/days/weeks.
Many companies have found it cost-effective and productive to use Internet in business activities. Companies have
found that they have powerful new tools available to them, both for communicating and for obtaining information.
Many companies have allowed their employees to surf the net while on job, forecasting to get more benefit out of
it. In reality however, productivity of certain segments of their employees, if measured very particularly as well as
independently, have decreased. This is because of the fact that surfing net becomes more interesting, which in turn
draws out more attention from the work; and as a result, concentration on the job decreases, leading to a drop in
productivity and work quality.
Now-a-days, companies are providing e-mails to its employees, who are also free to use that id for sending mails.
Debate lies in verifying the content of e-mails send or received by the employee — would the Unions permit such
acts, would not the employee move to Court for his privacy being exposed, and things like that. Companies can be
called to account for emails sent by their employees. For example, US anti-trust hearing against Microsoft, when
the US Justice Department made use of private messages sent by Chairman Bill Gates, as part of its case against the
Company. In India, we can recall the publicizing of e-mail exchange between Ex-Captain Sourav Gangully and
Greg Chapel, just before Mr. Dalmia’s election defeat. We can also recall the event, where Mr. Mukesh Ambani
sent e-mails to each and every employee of his Company, at the time of dispute over ownership and control, with
his younger brother, Anil Ambani, over ownership matters, just after the demise of this Father.
Chapter 3 COMMUNICATION THROUGH COMPUTERS 3.33
E-mails are also a conduit for importing computer viruses. For instance Melissa virus, which was designed to
forward certain message to 1st fifty e-mail addresses in the address book, and then use each of these email-ids and
again repeat the same with their address book.
In domestic life, there is a clear evidence of a digital divide. Adoption of internet and its good facilities remains
highest among higher economic segment, medium for middle and least for lower economic segment of any country.
Take for example, the higher economic segment may find it convenient to book flights over Internet, pay telephone
bills via internet even at a cost, etc. However, for middle segment, Internet may not come to use because they have
ample time/willingness to stand in a queue to pay bill than to pay it via net, incurring additional cost and lots more
of this sort. To the lower segment, they may find it cheaper to buy a second hand book and study, instead of
browsing the Internet.
The digital divide is widening demographically also. Young people find it soothing to surf Internet. Whereas, the
elders perceive Internet as not so useful since, they feel more comfortable in reading paper-books than reading e-
books.
Everyone is free to publish and that is where freedom lacks boundaries. I remember of searching the Internet for
photos of Ginger, an edible plant-root, also used for ayurvedic purposes. Instantly I found 20 pictures in 1 st page, of
which the last few pictures were not suitable for children!
The Internet is not the actual place for learning. Suppose one wants to learn about say, ‘slow worm’ and gives a
search in the ‘search engines’. What he finds, is a list of several pages (say 100 or more). This is known as
‘information overload’ as because, it is neither possible for one to read these many web sites and conclude, nor it is
possible to know at a glance which of these pages will yield the accurate and true knowledge, that which is
required. On the contrary, if the Encyclopedia (in local library), was to be referred to, it would take a maximum of
15 minutes to get a solid knowledge.
Internet neither belongs to nor is controlled by any Government/organisation/person, etc. this lack of control is
sometimes portrayed as unwanted and dangerous. I remember of searching about JEMAT, an entrance examination
for doing MBA. I did receive the required website address, but along with it, I came across another website on the
topic ZEMAT. Curiously I opened the website and read the first 2 lines and immediately closed it, because I
discovered that this site was posted and maintained by some terrorist activity group. But, what is to be noted is that,
until that day, I never knew about the existence of ZEMAT, which I came to know then onwards. There may be
people who due to inquisitiveness, may have again read its contents or have again visited the site; and then, by the
effect of young and/or immature thought or whatever, may have got mentally or sympathetically aligned with the
mission of that organisation. And, the rest need not said.
The Internet is not at all a reliable and trustable place. Users of online activities are concerned mainly with security
aspects.
Internet has brought about elimination of intermediary organisations. Electronic commerce provides the
opportunity for the manufacturer of a good or service to communicate directly with the customer, in so doing, the
role of wholesaler/retailer is either eliminated or reduces to a great extent. E-commerce has the effect of
disintermediation (i.e. removing intermediary organisations from the supply chain), as we will see later.
3.34 MANAGEMENT INFORMATION SYSTEMS IN MODERN BUSINESS

Summary
• Communication is an inevitable occurrence, independent of time,
place and event; happening between whatever society, culture and
thought through some means and techniques having common
interpretation and understanding.

• Modern era puts emphasis on Computer communication, happening


through telecommunication, where communication medium consists of
Physical (Cable) or Cable-less channels. There are certain
parameters which determine capability and capacity of communication,
such as: Bandwidth, etc. Other factors which affect communication
are: transmission mode, transmission synchronisation, transmission
direction, and transmission techniques. Data transmission requires
devices such as Modem, Gateway, Hub, Bridge, Switch, etc.

• Networks are formed to share valuable and limiting resources,


amongst (dispersedly) located users. The meaning of computer network
and, how and where it is similar or different from other networks,
is to be understood. Network Topology or structure defines the
arrangement of computers (or nodes), thereby shaping data-transfer
method, costs and other telecommunication parameters. Such
topologies are: Star, Ring, Bus, Hybrid, FDDI, etc.

• Networks have been classified from the view point of its spread.
LAN, WAN, MAN, etc. are some of the examples of such classification,
done in respect of coverage-area, administrative-aspect, legal, and
technical and other issues or parameters.

• Network architecture discussed the manner in which individual nodes


on a network interact with other nodes on that network. There has
been a shift in the network architecture from the Centralised-
processing to the Distributed-processing (or Client/Server Model)
and the future trend is Co-operative processing.

• Client/Server, due to its flexibility and adaptability, is widely


used at present. Client/server models are in one-tiered
applications, two-tiered applications, three-tired applications.

• Standard communication refers to normal communication taking place.


Whereas, Communication Standard refers to the communication norms or
rules. There are certain organisations (such as ASCII, ANSI, etc.)
to monitor and set-rules for communication standards.

• Information Technology may be defined as the use technology in the


field of computers and telecommunications, so as to help production,
storage and transfer of information in electronic form — more
reliably, securely, quickly and economically.

• The Internet, which is the network of networks, has its own history
of origin and development. The components of Internet are more
important constituents. Internet has eclectic (diverse) usage,
ranging from communication, video conferencing, e-commerce,
Electronic Fund Transfer, data interchange, e-Governance, etc.

• Internet differs from Intranet and Extranet in almost many aspects,


which are to be studied deeply.
Chapter 3 COMMUNICATION THROUGH COMPUTERS 3.35

• Internet has affected our life-styles, thoughts, psychology, culture


and almost every aspect! Internet has made our life easy, as well as
difficult; simple as well as less-secured, etc.

Self-test Questions
1. What do you understand by electronic data communications? What is the role of transmission medium
in electronic data communications and what are the factors that set the communication parameters?
2. What are the various types of network topologies? Explain with the help of illustrative diagram.
3. What are the three types of transmission directions? Give an example of each type.
4. The transmission speed of a communication channel (i.e., medium) is determined by certain factors, list
them.
5. List the factors for deciding upon, in selecting a data transmission system.
6. Explain in a paragraph, the role of communication softwares.
7. What is ISDN
8. What do you understand by Synchronisation, with respect to data transmission?
9. What are the techniques for data transmission?
10. Explain in one or two sentences, the functioning of equipments used in data transmission.
11. Where is FDDI network used?
12. What is network architecture? Explain what do understand by Client/Server architecture.
13. Write brief note on the components of Client/Server system. Give examples of Client/Server computing.
14. What are fat clients, thin clients and fat server?
15. Write notes on one-tired applications, two-tired applications and three-tired applications, as used in a
Client/Server system.
16. What are workstations, gateways & bridges?
17. State in one line, the technologies used in LAN.
18. Differentiate between ‘standard and communication’ and ‘communication standard’, mentioning some of
the organisation dealing with setting standards.
19. What are the advantages of using IT?
20. Differentiate between “internet”, ”Internet”, “Intranet” and “Extranet”.
21. Explain details of Class A, B and C addressing schemes.
22. What are the components of the Internet?
23. Highlight the uses of Internet, in personal life as well as in conducting of a business.
24. Internet has changed our lifestyle to a large extent. Give your opinion regarding the Impact of Internet in
personal life (security/convenience, etc. factors) and in corporate scenario (conducting of business,
authenticity of electronic transactions, etc.).
3.36 MANAGEMENT INFORMATION SYSTEMS IN MODERN BUSINESS

9.0 Telecommunication and Networking------------------------------------------------------------- ------2


9.1 Telecommunication 3
9.2 Communication channels 3
9.2.1 Physical Channels 3
9.2.2 Cable-less Channels 3
9.2.3 Integrated Service Digital Networks (ISDN) 4
9.3 Communication parameters 4
9.3.1 Bandwidth 4
9.3.2 Baud Rate 5
9.3.3 Word Length 5
9.3.4 Parity 5
9.4 Transmission Mode 5
9.4.1 Serial Transmission 5
9.4.2 Parallel Transmission 5
9.5 Transmission Synchronisation 5
9.5.1 Synchronous Transmission 5
9.5.2 Asynchronous Transmission 6
9.6 Transmission Direction 6
9.6.1 Simplex Transmission 6
9.6.2 Half Duplex Transmission. 6
9.6.3 Duplex Transmission 6
9.7 Transmission Techniques 6
9.7.1 Circuit Switching 6
9.7.2 Message switching 6
9.7.3 Packet switching 6
9.8 Data Transmission equipments 7
10.0 Computer Networks------------------------------------------------------- ------------------------------7
11.0 Network Topology-------------------------------------------------------------------- --------------------8
11.1 Network by Layout 8
11.1.1 Star Network 8
11.1.2 Bus Network 9
11.1.3 Ring Network 9
11.1.4 FDDI Networks 10
11.1.5 Hybrid Networks 10
11.2 Network by Geographic Scope 10
11.2.1 LAN 10
11.2.2 WAN 10
11.2.3 VAN 11
11.2.4 MAN 11
11.3 Network Architecture 11
11.3.1 Mainframe architecture 11
11.3.2 Peer-to-peer architecture 12
11.3.3 File sharing structure 12
11.3.4 Client-Server Architecture 12
11.4 Client-Server Architecture 12
11.4.1 Paradigm Shift — Past, Present and Future 12
11.4.2 Origin of Client/Server architecture 13
11.4.3 Building blocks of Client/Server technology 13
11.4.4 Distinguishing Client from Server 14
11.4.5 Components of a Client/Server system 15
11.4.6 One-Tired Applications 16
Chapter 3 COMMUNICATION THROUGH COMPUTERS 3.37
11.4.7 Two-Tired Applications 16
11.4.8 Three-Tired Applications 17
11.4.9 Examples of Client/Server computing 18
11.5 Local Area Networking (LAN) 18
11.5.1 Emergence of LAN 18
11.5.2 The Concept of LAN 19
11.5.3 Attributes of LAN 19
11.5.4 Reasons for using LAN 19
11.5.5 Components of a LAN 20
11.5.6 Types of LAN 21
11.5.7 LAN Technologies 21
11.6 Communication standard 21
12.0 Information Technology (IT)--------------------------------------------- ----------------------------22
12.1 Purpose of IT 22
12.2 Basic functions of IT 23
12.3 Power of IT 23
12.4 Usage of Information Technology 24
13.0 The Internet-------------------------------------------------------------------------------------- --------24
13.1 Origin of Internet 24
13.2 ‘Internet’ — what it is 24
13.3 ‘Internet’ — how it works 25
13.4 ‘Internet’ — how it is managed 27
13.5 Components of ‘Internet’ 27
13.5.1 World Wide Web 27
13.5.2 Web Page 27
13.5.3 Hypertext 27
13.5.4 Hyper Text Markup Language (HTML) 27
13.5.5 Web browser 28
13.5.6 Web Server 28
13.5.7 Universal Resource Locator 28
13.5.8 Internet Service Provider 28
13.5.9 Gateway 28
13.5.10 Search Engine 29
13.6 Surfing the Internet 29
13.7 Uses of Internet 29
13.7.1 Communication 29
13.7.2 Electronic Mail 29
13.7.3 Electronic Greeting 30
13.7.4 Remote log-in 30
13.7.5 Video Conferencing 30
13.7.6 Data Retrieval 30
13.7.7 Data publishing 31
13.7.8 Transfer of Data Files 31
13.7.9 File Transfer Protocol 31
13.7.10 News 31
13.7.11 Internet Relay Chat 31
13.7.12 Address Book 31
13.7.13 Webcasting or Push Technology 31
13.8 Intranet and Extranet 32
13.9 Impact of Internet 32

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