Introduction to Communication Systems
In the modern business landscape, information is the most valuable asset. The ability to move this information quickly, accurately, and securely is not just an IT function; it’s the backbone of every business operation. A communication system is the collection of hardware, software, and protocols that enables this flow of information. From a manager sending an email to a customer making an online payment, every action relies on a communication system. For future business leaders, understanding these fundamental elements is crucial for making informed decisions about technology investment, process improvement, and security.
The Core Elements of a Communication System
Every act of communication, whether it’s a simple conversation or a complex data transfer between global offices, can be broken down into a set of fundamental elements. Think of it as the grammar of digital conversation.
1. Source (Sender)
The Source is the originator of the message or information. It is the person, device, or application that creates the data to be sent.
- Examples: A person typing an email, a sensor collecting temperature data, a point-of-sale (POS) terminal generating a sales record.
2. Message
The Message is the actual information or data being communicated. It can be in various forms.
- Examples: Text, numbers, images, audio, video, or a combination of these.
3. Transmitter
The Transmitter is a device that converts the message from the source into a signal suitable for the transmission medium. For example, a computer’s modem converts digital data (0s and 1s) into analog signals that can travel over a telephone line or digital signals for fiber optic cables.
- Examples: Modem, network interface card (NIC), smartphone’s cellular radio.
4. Transmission Medium
The Transmission Medium is the physical path through which the signal travels from the transmitter to the receiver. It is the channel that connects the sender and receiver.
- Guided Media: Physical cables (e.g., Twisted-Pair Cable, Coaxial Cable, Fiber-Optic Cable).
- Unguided Media: Wireless transmission (e.g., Radio waves, Microwaves, Wi-Fi, Bluetooth).
5. Receiver
The Receiver is a device that captures the signal from the transmission medium and converts it back into a form that the destination can understand. A modem at the receiving end, for instance, converts incoming analog signals back into digital data for the computer.
- Examples: Modem, network interface card (NIC), a Wi-Fi adapter in a laptop.
6. Destination (Recipient)
The Destination is the intended recipient of the message. It is the device, user, or application that the message is for.
- Examples: A server receiving a data request, a colleague’s computer receiving an email, a printer receiving a document to print.
7. Protocol
A Protocol is a set of rules and conventions that govern the communication process. Both the sender and receiver must follow the same protocol to ensure the message is understood correctly. It manages aspects like error checking, data compression, and security.
- Analogy: Think of it as the language and grammar rules. If one person speaks only English and another only Nepali, they cannot communicate effectively without a shared protocol (a translator or a common language).
- Key Examples: TCP/IP (Transmission Control Protocol/Internet Protocol) is the foundational protocol of the internet. HTTPS (Hypertext Transfer Protocol Secure) ensures secure communication for websites.
Figure: A simplified model of a communication system.
How Communication Systems Power Modern Business
Understanding these elements is not just a technical exercise. It helps in diagnosing problems, planning new systems, and appreciating how technology underpins every business function.
Finance
- Online Banking: When you transfer funds using your bank’s app, your phone (Source) sends a transaction request (Message) over the internet (Medium) using a secure protocol (HTTPS) to the bank’s server (Destination). A failure in any element can lead to a failed transaction.
- Financial Data Feeds: Stock exchanges continuously transmit real-time price data (Message) to trading firms worldwide. The speed and reliability of the transmission medium (often high-speed fiber optics) are critical for making timely investment decisions.
Human Resources (HR)
- Recruitment: An HR manager posts a job opening on a portal like MeroJob. Their computer (Source) sends the job description (Message) to the MeroJob server (Destination).
- Internal Communications: Company-wide announcements sent via email rely on the corporate network (Medium) and email protocols (SMTP) to ensure every employee’s device (Destination) receives the message.
Operations and Supply Chain
- Inventory Management: A barcode scanner (Source) in a warehouse sends data about a product (Message) over a Wi-Fi network (Medium) to the central inventory management system (Destination). This allows for real-time tracking of stock levels.
- ERP Systems: Enterprise Resource Planning (ERP) systems connect different departments. The sales department’s system (Source) can automatically send an order confirmation (Message) to the production department’s system (Destination), streamlining the entire process.
Marketing and Sales
- Customer Relationship Management (CRM): A salesperson updates a customer’s contact information on their tablet (Source). This data (Message) is sent over the internet (Medium) and synchronized with the central CRM database (Destination), making it instantly available to the marketing team for their campaigns.
- E-commerce: A customer placing an order on a website initiates a complex communication process involving their browser, the e-commerce server, and the payment gateway, all governed by strict protocols to ensure security.
Case Studies from Nepal
Example 1: Paying an Electricity Bill via Khalti
Let’s break down a common transaction in Nepal using the elements of a communication system.
- Scenario: A user pays their NEA electricity bill using the Khalti digital wallet app.
- Source: The user’s smartphone running the Khalti app.
- Message: The user’s credentials, NEA customer ID, and the payment amount (e.g., “Pay Rs. 1,200”).
- Transmitter: The smartphone’s Wi-Fi or cellular (4G/5G) modem, which converts the data into radio waves.
- Transmission Medium: The internet, provided by an ISP like WorldLink, NTC, or Ncell.
- Receiver: The web server at Khalti’s data center, which receives the radio waves and converts them back into digital data.
- Destination: Khalti’s backend application server, which processes the payment, deducts the amount from the user’s wallet, and communicates with the NEA’s system to clear the bill.
- Protocol: HTTPS is used to encrypt the entire communication, ensuring that sensitive information like the user’s PIN and transaction details are secure from eavesdroppers.
Example 2: Ordering Groceries from Daraz
- Scenario: A customer in Pokhara orders groceries for delivery using the Daraz website.
- Source: The customer’s laptop or desktop computer.
- Message: The list of items in the shopping cart, delivery address, and payment information.
- Transmitter: The computer’s Network Interface Card (NIC) and the home router.
- Transmission Medium: The customer’s home internet connection (fiber optic or cable).
- Receiver: Daraz’s web servers, likely hosted on a cloud platform like Alibaba Cloud.
- Destination: The Daraz order processing system, which logs the order, sends a confirmation to the customer, and forwards the order details to the relevant warehouse or seller for fulfillment.
- Protocol: The entire session is governed by TCP/IP for reliable data transfer and secured by HTTPS to protect customer data.
Key Takeaways
- A communication system is a combination of hardware and software that facilitates information exchange.
- The five most critical components are the Source/Sender, Message, Transmission Medium, Receiver/Destination, and Protocol.
- Every business function—from finance and HR to operations and marketing—is fundamentally dependent on the effective and reliable operation of communication systems.
- Protocols like HTTPS are not just technical details; they are essential business enablers that provide the security and trust needed for e-commerce and online banking.
Review Questions
- List and briefly describe the five core elements of a communication system.
- Imagine an ATM in Nepal fails to connect to the bank’s central server. Which element of the communication system is most likely the point of failure? Explain your reasoning.
- Using the example of a marketing manager sending a promotional SMS to a customer list via a platform like Sparrow SMS, identify the:
- Source
- Message
- Transmission Medium
- Destination
- Why is ‘Protocol’ a crucial element for a business using an online payment gateway like eSewa or ConnectIPS? What could happen if the protocol fails?

