Unit 4: Computer Networks

Deck 4.1

Introduction to Networks and Communication Elements

ICT 110: IT for Business

Learning Objectives 🎯

    By the end of this lecture, you will be able to understand how network fundamentals enable modern business operations.
  

✅ Explain the core components of a communication system and their role in business information flow.
✅ Differentiate between various data transmission modes and media, with examples from Finance, HR, and Operations.
✅ Compare different types of computer networks (LAN, WAN) and their strategic importance for businesses of all sizes.
✅ Recognize how network models (Client-Server) underpin critical business applications like ERP and CRM systems.

The Foundation: What is a Communication System?

At its core, a network is a system for communication. Every business communication, from an email to a financial transaction, uses these five components:

1. Source 📤
Creates the data. (e.g., An accountant preparing a sales report)

2. Transmitter 📡
Converts data into a transmittable signal. (e.g., The accountant's computer and its network card)

3. Transmission Medium 🌐
The path the signal travels. (e.g., The office Ethernet cable or Wi-Fi)

4. Receiver 📥
Converts the signal back into data. (e.g., The manager's computer receiving the report)

5. Destination 👩‍💼
The intended recipient. (e.g., The Finance Manager reviewing the report)

The "Why": Business Value of Communication 💼

Why is this critical for a BBA student to understand?

Networks are the central nervous system of a modern business. They enable the real-time flow of information required for decision-making, efficiency, and growth.

⚡ Speed: Instant sharing of sales data, inventory levels, and financial statements.
🤝 Collaboration: Teams across departments (e.g., Marketing and Operations) can work on shared project files simultaneously.
💰 Cost Savings: Sharing resources like high-end printers or a central database server reduces capital expenditure.
📈 Decision Making: Managers get up-to-the-minute data from all business functions to make informed choices.

How Data Flows: Transmission Modes

The "direction" of data flow has major implications for business processes.

Simplex (One-Way)

Data flows in only one direction.

Biz Example: A one-way data feed from a stock exchange to a financial analyst's terminal. 📊

Half-Duplex (Two-Way, Not Simultaneous)

Data can flow in both directions, but only one at a time.

Biz Example: Walkie-talkies used by warehouse staff to coordinate inventory movement. ⚙️

Full-Duplex (Two-Way, Simultaneous)

Data flows in both directions at the same time.

Biz Example: A video conference call between HR in the head office and a candidate. 🤝

The "Pipes": Transmission Media

How does the data physically travel? The choice impacts speed, cost, and security.

Guided (Wired) Media

Twisted-Pair (Ethernet)
Coaxial Cable
Fiber-Optic Cable

Business Case: An accounting firm uses fiber-optic cables for its office backbone to ensure high-speed, secure access to sensitive client financial data.

Unguided (Wireless) Media

Radio Waves (Wi-Fi, Bluetooth)
Microwave
Satellite

Business Case: A large retail store uses Wi-Fi to allow sales associates to check inventory on tablets from anywhere on the shop floor, improving customer service.

What is a Computer Network?

    A computer network is a collection of interconnected computers and devices that can share resources and data.
  

Key Business Purposes:

Resource Sharing 🖨️

Sharing printers, scanners, servers, and storage.

Communication 💬

Email, instant messaging, video conferencing.

Centralized Data Access 📂

Accessing company databases, files, and applications from one place.

This centralization is key for data consistency across the entire business, from HR records to supply chain logistics.

Network Types by Scale: LAN vs. WAN

The geographic scope of a network defines its type and business application.

LAN (Local Area Network)

Covers a small geographical area like a single office, building, or university campus.

Example: The network within your university's BBA department, connecting all computers, printers, and servers. All departments (Finance, Admin, Academics) are on the same LAN for fast internal communication.

WAN (Wide Area Network)

Covers a large geographical area, connecting LANs across cities, countries, or even continents.

Example: A bank's network that connects its head office LAN in Kathmandu with all its branch LANs across Nepal. This WAN is essential for real-time transaction processing.

Network Design: A Quick Look at Topologies

A topology is the physical or logical arrangement of a network. The design impacts reliability and cost.

Bus Topology

All devices on a single cable. Old, not common now.

Ring Topology

Devices connected in a circle. Data passes from one to the next.

⭐ Star Topology

All devices connect to a central hub or switch. Most common in businesses today.

Business Implication: Businesses prefer the Star Topology because if one computer's cable fails, the rest of the network stays operational. This reliability is crucial for business continuity.

The Dominant Model: Client-Server Architecture

This is how most business applications work. Understand this, and you understand modern IT infrastructure.

Client 💻

A computer that requests services or data.

(e.g., Your laptop, a cashier's point-of-sale terminal)

Server 🗄️

A powerful computer that provides services or data to clients.

(e.g., Web server, database server, file server)

🔍 Business Scenario: An HR manager (on a client PC) accesses the company's ERP system (hosted on a central server) to retrieve employee attendance data for payroll processing. The network connects the client to the server.

Alternative Model: Peer-to-Peer (P2P)

In a P2P network, every computer is equal and can act as both a client and a server.

How it works: Computers connect directly with each other without a central server.
Business Use Case: Good for very small businesses (2-5 people) or for temporary project teams needing to share files quickly without setting up a dedicated server.
Business Challenge: Becomes difficult to manage and secure as the business grows. Data backup and user access are not centralized, creating risks.

While P2P has its uses, the Client-Server model is the standard for any business requiring security, scalability, and centralized management.

Practical Application: Networks in Nepal 🇳🇵

Let's see how these concepts power leading Nepali businesses across different sectors.

eSewa (FinTech) 💰

Relies on a highly secure and reliable WAN to connect millions of users, partner banks, and merchants. The Client-Server model processes every transaction securely.

Daraz (E-commerce) 🛍️

Their entire operation, from inventory management (Operations) to customer order processing (Sales), runs on a complex network connecting warehouses, servers, and logistics partners across the country.

CG Foods (Manufacturing) ⚙️

Uses a LAN within its factories to connect production machinery to a central monitoring system. This allows for real-time tracking of output and efficiency, a core Operations function.

Summary & Key Takeaways 📌

What should you remember for your business career?

Networks are the fundamental infrastructure that enables the flow of information, making them a strategic business asset, not just a technical component.
Every business function—Finance, HR, Operations, Marketing—relies on networks to access data, collaborate, and operate efficiently.
The choice of network type (LAN/WAN), media (Wired/Wireless), and model (Client-Server) directly impacts a company's performance, security, and ability to scale.
As a future manager, understanding these basics will help you make better decisions about technology investments and strategy.

Thank You!

Any questions?

Next Topic: Data Transmission Modes and Media

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