HEXCO · Polytechnic · NC Accountancy

Business Computing and Digital Literacy: Data Communication, Networks and the Internet

Learning Outcome 1 of 6

Free HEXCO NC Accountancy notes on Data Communication, Networks and the Internet, learning outcome 1 of 6 in Business Computing and Digital Literacy. Data communication, file management, word processing, spreadsheets, databases and multimedia. Semester 1, module 310/22/M04.

Here we learn what data communication and computer networks are, the types, topologies and devices of networks, how to use the internet and email safely in business, and how cloud computing, virtual teams and telecommuting work.

Almost every business today depends on connected computers, from a supermarket till linked to head office to an accounts clerk emailing invoices, so understanding networks and the internet is a basic office skill.

1.1 Data Communications and Computer Networks

When one computer sends information to another, data communication is taking place.

When many computers are linked so they can share information and resources, they form a network.

Data Communications

Data communications is the transfer of data from one device to another through a transmission medium, such as a cable, fibre or radio waves, using agreed rules called protocols.

It always involves a sender, a receiver, a message, a medium and a protocol, so for example, when a cashier swipes a bank card, the card details travel from the point-of-sale machine to the bank and back.

Computer Network

A computer network is two or more computers and other devices linked together so that they can communicate and share data, software and hardware such as printers and internet connections.

A business network may be as small as three computers sharing one printer, or as large as a bank linking all its branches across the country.

Advantages and Disadvantages of Networking

The table compares the main advantages of networking computers with the disadvantages that come with them.

Advantages	Disadvantages
Sharing of resources One printer, scanner or internet line serves many users, which saves money.	Cost of setting up Cables, switches, servers and installation are expensive at first.
Sharing of data Staff work on the same files and database, so information is consistent.	Security risks Viruses and hackers can spread through the network to every computer.
Faster communication Email and messaging replace memos and walking between offices.	Dependence on the network If the server or network fails, everyone may be unable to work.
Central backup and control Data is stored and backed up on the server, and software is updated centrally.	Need for skilled staff A network administrator is needed to manage and maintain it.

1.2 Network Functionality

Networks differ in the area they cover, the way devices are connected, and the devices used to link them.

These choices affect the cost, speed and reliability of the network.

Types of Networks

A local area network (LAN) links computers within a small area, such as one office or building, and is usually owned by the business. A metropolitan area network (MAN) covers a town or city, linking offices in different parts of it, such as a council's offices across Harare. A wide area network (WAN) covers a large area, such as a country or the world, linking LANs through telecommunications links; the internet is the largest WAN. For example, a bank's branch has a LAN, and all its branches are joined by a WAN.

Network Topologies

A topology is the layout in which the devices of a network are connected.

Topology	Explanation
Star Every device connects to a central switch or hub.	Most common in offices. One cable failing affects only one computer, but if the central device fails, the whole network stops.
Bus All devices connect to one main cable called the backbone.	Cheap and simple, but a break in the backbone stops the network, and it slows down as more devices are added.
Ring Each device connects to two others, forming a circle.	Data travels in one direction around the ring. It performs well under load, but one failed device or cable can break the ring.
Mesh Devices connect to many or all other devices.	Very reliable, because data can take another route if one link fails, but it needs many cables and is expensive.

The Client-Server Set-up

In a client-server network, one or more powerful computers called servers store data and programs and provide services, while ordinary workstations called clients request those services. For example, the accounting package and its database sit on the server, and clerks at their client computers log in to capture invoices. This set-up gives central control, easier backups and better security, because access is managed on the server, which is why modern businesses use it.

Common Network Devices

A server provides data and services to other computers, and a client is a computer that uses them. A router connects different networks together, such as the office LAN to the internet, and chooses the best path for data. A switch connects devices within a LAN and sends data only to the device it is meant for. A hub also connects devices but sends data to every device, so it is slower and now rarely used. A bridge joins two separate LANs or network segments so they work as one.

Wi-Fi and Hotspots

Wi-Fi is a wireless technology that connects devices to a network using radio waves through a wireless access point or router, so laptops and phones can join without cables. A hotspot is a place or device that provides Wi-Fi internet access, such as a café, an airport or a phone sharing its mobile data. Both make networks flexible, but they must be protected with strong passwords and encryption, because anyone nearby can try to connect.

Intranet and Extranet

An intranet is a private network that uses internet technology but is open only to the organisation's own staff, for example to share policies, forms, notices and the staff directory. An extranet is part of the intranet opened to selected outsiders, such as suppliers, customers or agents, who log in to check orders, invoices or stock. For a business, the intranet improves internal communication, while the extranet speeds up dealings with partners; both must be protected by passwords and access rights.

1.3 The Internet in Business

The internet has changed how businesses find information, sell goods and communicate.

Using it well means knowing its uses and risks, how to browse and search, and how to email safely and responsibly.

The Internet and its Uses

The internet is a worldwide network of interconnected computer networks that communicate using common protocols.

Businesses use it for email and messaging, research on markets, prices and laws, online banking and payments, e-commerce selling through websites and social media, advertising, video meetings, online tax returns and cloud storage.

Advantages and Disadvantages of the Internet

The internet gives fast, cheap communication, access to vast information, a worldwide market, online services 24 hours a day and reduced paperwork. On the other hand, it brings security threats such as viruses, hacking and fraud, unreliable or false information, time wasting by staff, costs of data and equipment, and dependence on connectivity, which is a real problem during power cuts or network outages.

Requirements for Corporate Internet Connectivity

A business connecting to the internet needs hardware: computers, a modem or router, a switch, cabling or Wi-Fi access points, a firewall device, and backup power such as a UPS or solar. It needs software: an operating system, a web browser, email software, antivirus and firewall software. It also needs a subscription with an internet service provider (ISP), with enough bandwidth for the number of users, and an acceptable use policy telling staff how the internet may be used.

Browsers, URLs and Searching

A web browser is a program used to view web pages, such as Chrome, Edge, Firefox or Safari. Its main functions are the address bar, back and forward buttons, refresh, home, tabs, bookmarks, history and downloads.

A URL (uniform resource locator) is the address of a web page, such as https://www.zimra.co.zw, made up of the protocol (https), the domain name (zimra.co.zw) and sometimes a path to a page. To search, type keywords into a search engine such as Google, use quotation marks for exact phrases, and check the source of the information before relying on it.

Favourites and Bookmarks

A bookmark or favourite saves the address of a useful page so it can be opened again with one click. To bookmark a page, click the star icon in the address bar, choose a name and folder, and save. Bookmarks can be organised into folders, such as 'Banking', 'Tax' and 'Suppliers', renamed, moved and deleted, and placed on the bookmarks bar for quick access.

Protecting Privacy Online

To protect privacy, users should use strong, different passwords and two-step verification, check that sites use https and show a padlock before entering details, avoid public Wi-Fi for banking, log out of shared computers, clear browsing data on public machines, limit personal information shared on social media, keep software and antivirus updated, and read privacy settings on websites and apps.

Choosing Communication Tools

Different tools suit different messages. Email suits formal messages and documents that need a record. Instant messaging, such as WhatsApp or Teams chat, suits quick informal questions. Video calls suit meetings and discussions where people need to see each other. Phone calls suit urgent matters. Social media suits marketing and customer contact. Choosing the right tool means considering how urgent, formal, confidential and lasting the message needs to be.

Creating an Email Address Safely

To create an email address, go to a provider such as Gmail or Outlook, choose a professional address such as firstname.surname@..., set a strong password, and add a recovery phone number and two-step verification. In line with personal data protection, give only the information needed, avoid using birthdays or ID numbers in the address, and keep work and personal email separate.

Unwanted Email and Phishing

Spam is unwanted bulk email, and phishing is a fake email pretending to come from a trusted source, such as a bank, to trick people into giving passwords or money. Warning signs include urgent threats, spelling mistakes, strange sender addresses, requests for passwords or PINs, and unexpected links or attachments. Never click such links, mark the email as spam, report it to IT, and delete it.

Sending Email Responsibly

A good business email has a clear subject line, a polite greeting, a short and clear message, a proper sign-off and a signature with contact details. Avoid writing in capital letters, which looks like shouting, check spelling and the recipients before sending, and never send confidential information to the wrong person.

To

The main recipients, who are expected to read and act on the message.

Cc (carbon copy)

People who should be informed but need not act. All recipients can see who was copied.

Bcc (blind carbon copy)

People who receive the message without the others seeing their addresses. It is used when emailing many customers, to protect their privacy.

Attachments

To attach a document, click the paperclip icon, browse to the file and select it, checking that it is the correct and final version and not too large. To open attachments safely, only open files from known senders, scan them with antivirus, be careful of files ending in .exe or unexpected zipped files, and then use 'Download' or 'Save as' to save them to a folder or removable storage device.

Contacts and Contact Groups

A contact list stores names, email addresses and phone numbers so they do not need to be typed each time. Contacts are added from the Contacts or People section, or from a received email. A contact group, such as 'Suppliers' or 'Accounts Team', lets one message be sent to all members at once by typing the group name.

Online Presence and Social Media for Business

A business builds an online presence through a website, a Google Business profile and social media pages on Facebook, Instagram, WhatsApp Business, LinkedIn and TikTok. It can also share knowledge through a blog (regular articles), a wiki (a shared website that many people can edit, often used internally) and podcasts (recorded audio programmes). These tools advertise cheaply, reach many customers and allow two-way communication, but they must be updated regularly and managed professionally.

1.4 Cloud Computing

Instead of keeping all software and files on its own computers, a business can use computing services over the internet.

This is called cloud computing, and it is now used for email, storage and even accounting.

Meaning and Characteristics of Cloud Computing

Cloud computing is the delivery of computing services, such as storage, software, servers and databases, over the internet, on demand, usually paid for by subscription or usage.

Its characteristics are on-demand self-service, access from anywhere with an internet connection, shared resources serving many customers, rapid scaling up or down, and measured service, where the customer pays for what is used.

Storing, Managing and Sharing Data in the Cloud

Data is uploaded to the provider's servers in large data centres, where it is stored in several copies for safety. Users manage it through a website or app, creating folders, setting permissions and restoring older versions. To share, a user sends a link or invites others by email, choosing whether they may view, comment or edit, and several people can work on the same document at the same time.

Advantages and Disadvantages of Cloud Computing

The cloud reduces hardware costs, gives access from anywhere, provides automatic backup and updates, makes collaboration easy and lets the business scale as it grows. However, it depends on internet access, raises security and privacy concerns because data is held by another company, involves ongoing subscription costs, and gives less control over where data is stored. For businesses in areas with unreliable internet, a mix of local and cloud storage is often best.

Cloud Service Providers and their Products

Major providers include Microsoft (Microsoft 365 with Outlook, OneDrive, Teams, and the Azure platform), Google (Google Workspace with Gmail, Drive, Docs and Sheets, and Google Cloud), and Amazon Web Services (AWS). Cloud accounting packages, such as Sage Business Cloud, QuickBooks Online and Xero, let small businesses keep their books online. Cloud services are usually grouped as SaaS (software as a service), PaaS (platform as a service) and IaaS (infrastructure as a service).

1.5 Virtual Teams and Telecommuting

Networks and the cloud allow people to work together without being in the same place.

This has given rise to virtual teams and to working from home.

Virtual Business Tools

A virtual team is a group of people who work together from different locations using technology. Tools such as Zoom and Microsoft Teams provide video meetings, screen sharing, chat, recording of meetings and file sharing, and Teams also links with other Microsoft 365 apps for shared documents and calendars. Other tools include Google Meet and WhatsApp groups and calls.

Telecommuting

Telecommuting means working from home or another place away from the office, staying connected through the internet, email, phone and video calls.

It saves travel time and costs, gives flexibility, can raise productivity, reduces office costs and lets a business employ people from anywhere. However, it can cause isolation, difficulty in supervising staff, blurred lines between work and home, security risks on home networks, and reliance on power and internet, so clear rules and regular check-ins are needed.