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Data Communications & Networks :

The following are major components of a data communication systems.

Hard ware : All types of computer & communications equipment.

Communication software : Software that controls telecommunication system and the

entire transmission process.

Communication media : The physical media to which electronic signals are transmitted,
including wireless media.

Communication networks : The linking among computer and communication devices.

Data communication provider : Regulated utilities are private forms that provide data
communication services.

Communication protocol : The rules for transmiting information across the system.

Communication applications : Electronic data inter changing, teleconferencing , video

conferencing, mail etc.

Communicaton processors : there are Hardwar devices that support data transmission
and reception using a telecommunication system.

Modem : the conversion from digital to analog is called modulation, and the reverse is
called modulation. The device that performs these two processors is called a modem.
Typical modem speeds range from 14400 to 56600 ps.

Communications Media & channels : The foolowing various communications media.

1. Twisted pair cables

2. Coaxil cables
3. Fibre optic cables
4. Microwave transmission
5. Satellite transmission

1. Twisted Pair Cables: This is the most prevalent from of communication. It is

used for all most all business telephone wiring. Twisted pair wire consists of
strands of copper wire twisted in pairs. It is relatively inexpensive to purchase
widely available and easy to work with however twisted pair cables have
significant disadvantages. It emits electro magnetic interference, is relatively slow
per transition data, is subject to interference from other electrical sources and can
be easily tapped for gaining theorized access by UN intended receivers.
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2. Coaxial Cable: It consists of Insulated copper wire. It is much less susceptible to
electrical wire and can carry much more data. For these reasons it is commonly
used to carry high speed data traffic as well as television signals. However coaxial
cable is more expensive and more difficult to work with than twisted pair wire.

3. Fiber optic cables: Fiber optic technology provides the means to transmit
information through clear glass fibbers in the form of light ways, instead of
electric current. Fiber optic cables consist of 1000 of very thin filaments of glass
fiber that conduct light pulses generated by laser at very high speed transmission
frequencies. The fiber optic cable is surrounded by cladding, a coating that
prevents the light from leaking out of the fiber.

Wireless Media: These are two types

1. Micro Wave 2. Satellite transmission

Common wireless data Trans mission. Includes microwave, satellite transmissions. The
fact that microwave requires line a sight transmission severely limits its usefulness to
data communication needs, especially over very long distances. Additionally microwave
transmissions are susceptible to environmental interference during server whether such as
heavy line are slow stores.

Satellite: As with microwave transmission, satellites must relieve and transmit via line of
sight However, the enormous foot print of a satellites coverage area overcomes the
limitations of micro wave data relay stations.

Mobile Computing: It occurs on radio based networks that transmit data to and from
mobile. Computers. Computers can be connected to the network through wire less
connections.

A mobile device with this capability such as the PDA (personal digital assistant) can be
using these applications. Using mobile computing sales persons in a retail environment
can enter an order for goods. A sales person can use a mobile network connection to
check an item„s availability or. The status of an order.

Networks: Computer network consists of communication media. Devices and soft ware
needed to connect two are more computer systems and/or devices. Computer networks
are essential for modern business for many reasons.

1. Networked computer systems enable organization to be more flexible.

2. Net work enables companies to share hard ware, computer applications, and
databases across the organization.
3. Networks make it possible for geographically dispersed employees and work
groups, to share documents, ideas and work innovation and more efficient and
effective interaction.
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There are two general network sites LAN and WAN. A MAN (metro polite area network)
falls these two types.

1. LAN : It connects two or more communicating devices with in 2000 feet. Every
device on the network has the potential to communicate with any other device. A
LAN allow large no. of users to share corporate resources. Storage devices,
printers, programes and data files and intigrate a wide range of functions into a
single system. In an office a LAN can give users fast and efficient access to a
common bank of information while also allowing the office to pool resources
such as printers. A well constructed LAN can also eliminate the need to circulate
paper documents by distributing electronic.

LAN s come in an assortment of topologies. The topology of a network is the

physical layout and connectivity of a network. To pology refers to the ways that
channels connect the nodes. There are 5 basic network topologies star, bus ring ,
Hierarchical , High brid.

LAN Technology : The LAN file server is a repository of various softwares and data files
of the network. The server determines who gets access and in what sequence. Servers
may be powerful micro computers with large fast access hard drive are they may be a
mini computer or mainframe. The server typically houses the lan‟s network operating
system which manages the server. And the nodes.

The network gate way connects the LAN to public networks or other computer
networks so that LAN can exchange Information. . A gate way is a communication
processor that can connect dissimilar networks, working depending on different protocols
a bridge connects two networks of the same time.

A router route messages through several connected LAN‟s

A LAN consists of cables, network interface card and software to control LAN
activities. The NIC specifies the data transfer rate, size of messaging unit etc.

LAN‟s can be classified into two categories Base band and Broad Band.
1. Base band uses entire capacity of the connection to carry a single signal.
2. Broad band LAN the capacity of the cable is devided into several frequencies to
permit to carry several signals at the same time.

Private Branch Exchanges [PBX] : A PBX is a special purpose computers that controls
telephone switching at a company sight. PBX can carry both voice and data to perform a
wide variety of functions to make communication more convenient and effective. These
functions include call waiting, call forwarding and voice mail.
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Wide Area Network [WAN] : Wide are networks are long – hall, brand band (Analog)
networks covering wide geographic areas. They generally are provided by common
carriers. WAN „s Include regional networks such as telephone companies. They usually
have very large capacity circuits, with many communications processors that make it
possible to use these circuits efficiently. WAN‟s may combine switched and dedicated
lines, micro wave and satellites communications.

WAN‟s can be any one of the 5 basic types of the topologies, but they most generally use
star topology in order to more tightly control the nteork.

Value Added Networks : This is a type of . WAN. They are private data only networks
managed and used by multiple organizations to provide economy in the cost of servise
VAN „s can add message storage and services as well as teleconferencing services.

VAN‟S offer value through the telecommunications and computing

services to the sub scribers. Some of these VAN‟s are maintained third parties. The
customs do not have to invest in network hard ware and software nor perform their own
error checking, edition routing and protocol conversion.

Virtual private network : A VPN is a WAN operated by common carrier. VPN‟s allow in
organization to the robust communication capabilities of the Internal to hook up with
remote users , branch officers and business partners world wide, without paying the
distance sensitive fees.

Network Communication software : the following are the functions of communication

software.
 error checking
 Message formatting
 Communication logs
 Data communication security & privacy
 Translation capabilities

Network operating systems : Nos is a systems software that controls the hardware
devices, software , and communication media across a network. The Nos allows various
devices to communicate with each other. Netware by NOVEL and WIENDOWS - NT
from Micro soft are popular network operating systems for LAN‟s.

Protocols : Computing devices that are connected to the network access and share the
network to transmit are receive data . these components work together to a common set
of rules that enable them to cumunicate to each other. This set of rules and procedures
governing transmission across network is a protocols .

The principal functions of protocols in network are line access and collision avoidance
line access concerns how the sending device gains access to the network to send a
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message. Collision avidance refers to managing message transmission. So that two
messages do not collied with each other on the network

Network Processing Stategies :

Type of organizational distribute processing : Oraganizations typically use multiple

computer systems across the form. Distributed processing enables computers in different
locations to communicate with each other via telecommunications links. There are 3
alternative ty0pes of distributed processing.
1. Terminal – To - Host
2. File server
3. Client server

1. Terminal – To – Host Processing : This type of processing the applications and

data bases decide on the host main computer. The users instruct with the
applications with dump terminals . the device has no processing capability of its
own.

2. File server processing : The applications and databases decide on host computer,
called “File server”. The Data Base Management Systems runs on the users
personal computer. When the user needs data form the file server. The file server
sends to the user the entire file with the data requested. The down loaded data can
be analised and manipulated on the users personal computer.

3. Client Server Architecture & processing : This architecture links two are more
computers in an arrangement in which some machines [servers] perform
computing functions for end user PC’S [Clients]. Some times either machine can
perform processing and store applications. The client requests applications, data
or processing from the server, cwhich acts on these request by serving the desired
commodity with clinet server architecture, organizations can make their systems
faster and save money, primarily by gaining the efficiency by seeing that
appropriate the machine handles the appropriate action.
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ECommerce
Electronic Transactions on the Internet are becoming
common place. Books, software and even groceries can
be bought and sold with the click of a button (and a
credit card). The biggest problem with doing business
over the Internet is the lack of common standards
around security. There are dozens of different standards
involving hundreds of different methods.

The Internet, by it's nature, is an open system which

means that information can flow freely from one computer to the next. Information
transmitted through the Internet can be intercepted and copied as any point along the
path. For this reason it is not a good idea to send confidential information like credit card
numbers through the Internet the same way you might send an email to a friend. In order
to send confidential information you must be sure that your private information can not
be intercepted along the way.

The most common method is Secure Sockets Layer (SSL). A transaction computer with
an order form for the product that you wish to purchase creates a secure connection
which ensures that all the information that you send to it is not accessible to anyone else.
If information from a secure connection is intercepted it will be encrypted making it
useless to persons with malicious intent.

Most small businesses will not find it economical to setup their own secure server and
can purchase a service from a third party which offers a transaction service. These
services vary but all require a setup fee and some form of payment for transactions
performed on their secure server. This payment can involve a monthly fee, a transaction
fee, a percentage of the transaction, a credit card company fee or a combination of
some/all of these fees.

When considering hiring a transaction service a company should decide whether they
want to setup their own merchant agreement with the credit card companies or pay the
transaction service to use theirs. Some transaction companies retain a percentage of
receipts for security deposit until a proven transaction record is established anywhere
from 30 to 90 days. Some allow limited outside development of the forms used on the
secure server and other insist that the forms be developed in-house.

Another model is the Secure Electronic Transaction (SET). This model requires that
the customer download and install a wallet into which they enter their password
protected credit card information. The SET system development was promoted by the
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major credit card companies to provide a safe and secure environment for online
transactions.

The SET "wallet" model requires that the customer obtain a Digital Certificate from a
Certified Authority (CA) which they then use to perform the transaction. The Certified
Authority, usually the bank or financial institution that the customer deals with, verifies
the validity of the Certificate to the merchant. The customer enters their personalized
password to verify that they have the authority to use the Certificate and the transaction is
made. This model allows customers to use their credit cards to purchase items from
merchants without transmitting their actual credit card details to the merchant.

The merchant uses their merchant agreement with the credit card company to complete
transactions, process refunds and verify the validity of the customers credit card
information.

Though still in its infancy, many billing companies have begun Internet transaction
projects using the SET model to allow their customers to pay their bills, check their
account status and much more.

This document marks the end of the section on the Internet. Try the Internet Quiz or
click the Next button to skip it!

E-Commerce and E-usiness/Introduction

Introduction

In the emerging global economy, e-commerce and e-business have increasingly become a
necessary component of business strategy and a strong catalyst for economic
development. The integration of information and communications technology (ICT) in
business has revolutionized relationships within organizations and those between and
among organizations and individuals. Specifically, the use of ICT in business has
enhanced productivity, encouraged greater customer participation, and enabled mass
customization, besides reducing costs.

With developments in the Internet and Web-based technologies, distinctions between

traditional markets and the global electronic marketplace-such as business capital size,
among others-are gradually being narrowed down. The name of the game is strategic
positioning, the ability of a company to determine emerging opportunities and utilize the
necessary human capital skills (such as intellectual resources) to make the most of these
opportunities through an e-business strategy that is simple, workable and practicable
within the context of a global information milieu and new economic environment. With
its effect of leveling the playing field, e-commerce coupled with the appropriate strategy
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and policy approach enables small and medium scale enterprises to compete with large
and capital-rich businesses.

On another plane, developing countries are given increased access to the global
marketplace, where they compete with and complement the more developed economies.
Most, if not all, developing countries are already participating in e-commerce, either as
sellers or buyers. However, to facilitate e-commerce growth in these countries, the
relatively underdeveloped information infrastructure must be improved. Among the areas
for policy intervention are:

 High Internet access costs, including connection service fees, communication

fees, and hosting charges for websites with sufficient bandwidth;

 Limited availability of credit cards and a nationwide credit card system;

 Underdeveloped transportation infrastructure resulting in slow and uncertain

delivery of goods and services;

 Network security problems and insufficient security safeguards;

 Lack of skilled human resources and key technologies (i.e., inadequate

professional IT workforce);

 Content restriction on national security and other public policy grounds, which
greatly affect business in the field of information services, such as the media and
entertainment sectors;

 Cross-border issues, such as the recognition of transactions under laws of other

ASEAN member-countries, certification services, improvement of delivery
methods and customs facilitation; and

 The relatively low cost of labor, which implies that a shift to a comparatively
capital intensive solution (including investments on the improvement of the
physical and network infrastructure) is not apparent.

It is recognized that in the Information Age, Internet commerce is a powerful tool in the
economic growth of developing countries. While there are indications of e-commerce
patronage among large firms in developing countries, there seems to be little and
negligible use of the Internet for commerce among small and medium sized firms. E-
commerce promises better business for SMEs and sustainable economic development for
developing countries. However, this is premised on strong political will and good
governance, as well as on a responsible and supportive private sector within an effective
policy framework. This primer seeks to provide policy guidelines toward this end.