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Unit 4: Computer Networks

Types of Computer Networks

ICT 110: IT for Business

Learning Objectives

By the end of this lecture, you will be able to connect network concepts to real-world business strategy.
  • ✅ Differentiate network types (LAN, WAN, MAN) and their specific roles in business operations.
  • ✅ Analyze how network scale impacts functions like finance, HR, and supply chain management.
  • ✅ Evaluate the pros and cons of Client-Server vs. Peer-to-Peer models for different business sizes.
  • ✅ Relate network choices to business strategy, security, and resource allocation.

What is a Computer Network?

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

Think of it as the central nervous system of a modern business.

It enables:

  • ⚡ Instant Communication (Email, Messaging)
  • 📊 Seamless Data Sharing (Files, Databases)
  • ⚙️ Efficient Resource Sharing (Printers, Servers)

Classifying Networks by Geographic Scale

The most common way to classify networks is by the physical area they cover. This directly relates to the scale of the business operation.


LAN

Local Area Network

Single building or campus

MAN

Metropolitan Area Network

Across a city

WAN

Wide Area Network

Across countries or the globe

LAN: Local Area Network

A high-speed network confined to a small geographic area, like a single office building or a university campus. It is privately owned and managed.

Business Applications (Inside Your Office Walls):

Finance & HR

  • 💰 Finance: Securely access shared accounting software (like Tally) on a local server.
  • 🤝 HR: Internal network for payroll systems and confidential employee file storage.

Operations & Collaboration

  • ⚙️ Operations: Connect office printers, scanners, and local inventory databases.
  • 💼 General: Fast file sharing for team projects without using the internet.

WAN: Wide Area Network

A network that spans a large geographical area, such as a country or the entire globe. The Internet is the world's largest WAN.

Business Applications (Connecting Your Empire):

Operations & Finance

  • ⚙️ Supply Chain: A head office in Kathmandu connects to branch offices in Pokhara and Biratnagar for real-time inventory tracking.
  • 💰 Finance: A multinational company centralizes financial reporting from its global branches.

Marketing & HR

  • 🎯 Marketing: Access a cloud-based CRM (Customer Relationship Management) system to manage a global customer base.
  • 🤝 HR: Conduct video conference interviews with candidates from different countries.

MAN: Metropolitan Area Network

A network that interconnects users with computer resources in a geographic area or region larger than a LAN but smaller than a WAN. Think "city-wide."

Business Scenario: A Commercial Bank in Kathmandu

A bank needs to connect all its branches (e.g., in Patan, Bhaktapur, Thamel) with high-speed, secure links.

A MAN provides a dedicated, reliable network for:

  • Real-time ATM transaction processing.
  • Instant sharing of customer data between branches.
  • Centralized monitoring and security.

Scale at a Glance: A Business Perspective

LAN

Scope: Single Office

Business Use: Internal operations, sharing printers, local file access.

Example: A law firm's office network.

MAN

Scope: City-wide

Business Use: Connecting multiple branches within the same city.

Example: A grocery chain connecting all its city stores.

WAN

Scope: National/Global

Business Use: Connecting geographically dispersed offices, cloud computing.

Example: An international NGO coordinating projects globally.

Beyond Scale: Network Architecture

Now that we know the "where," let's look at the "how." Network architecture defines how devices communicate and share resources.


The Two Primary Models:

  • Client-Server Model
  • Peer-to-Peer (P2P) Model

Architecture 1: Client-Server Model

A centralized model where one or more "Servers" provide services (e.g., storing files, hosting applications) to multiple "Clients" (e.g., laptops, PCs).
This is the standard for most businesses.

Why it's a Business Staple:

  • Centralized Control: All important data (financial records, customer lists, HR files) is in one secure, managed place.
  • Enhanced Security: Easier to enforce security policies and control access.
  • Scalability: Easy to add more clients without affecting the network structure.

Architecture 2: Peer-to-Peer (P2P) Model

A decentralized model where all computers on the network are equal ("peers") and can share files and resources directly with one another without a central server.

Business Use Cases (and Cautions):

  • Simple & Cheap: Ideal for very small businesses (e.g., < 10 people) or temporary project teams with no IT budget.
  • ⚠️ Security Risk: No central point of control makes data less secure.
  • ⚠️ Management Headache: Data backups and user management become complex as the team grows.

Practical Application in Nepal 🇳🇵

Let's see how these concepts apply to familiar Nepali businesses.

🛒 Daraz (E-commerce / Operations)

Uses a massive WAN (the internet) to connect buyers and sellers. Their internal data centers run a powerful Client-Server model to manage millions of products, user accounts, and orders securely.

💰 eSewa (FinTech / Finance)

Relies on a highly secure WAN to connect with partner banks and merchants. The entire transaction system is a robust Client-Server architecture, where your phone is the 'client' requesting a service from eSewa's 'server'.

⚙️ A Manufacturing Company (e.g., CG Foods)

The factory floor uses a LAN for machinery control and quality checks. A WAN connects the factory to the head office for supply chain and financial data synchronization, all managed via a Client-Server network.

Choosing the Right Network: A Strategic Decision

Choose Client-Server if...

  • Data security is critical (Finance, HR).
  • You need centralized backups.
  • Your business is growing or has many users.
  • You use central apps like ERP or CRM.

Consider Peer-to-Peer if...

  • You are a small startup with a tight budget.
  • You have simple file-sharing needs.
  • The data being shared is not sensitive.
  • You have no dedicated IT staff.
This is a business decision, not just a technical one. It impacts cost, security, and your ability to scale operations.

Summary & Key Takeaways

What's the bottom line for your future business career?

  • Network type (LAN/WAN) is driven by business scale. An office needs a LAN; a multi-branch company needs a WAN to connect its operations.
  • 📊 Network model (Client-Server/P2P) dictates control, security, and cost. Most businesses rely on the Client-Server model for secure management of financial, HR, and operational data.
  • 🎯 The right network is a strategic asset. It's the foundation for efficient operations, data-driven decision-making, and secure communication across ALL business functions.

Thank You!

Any Questions?


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