Computer Networks

Together with computer technology, data communications technology has had a very significant impact on organizational information processing. There have been tremendous increases in the bandwidths (i.e., signal-carrying capacities) of all data communications media, including coaxial cables, fiber-optic cables, microwave transmission, and satellite transmission. Wide area networks (WANs) provide access to remote computers and databases, thus enabling organizations to gain access to global markets, as well as increase their information sources for decision making purposes.

The Internet in particular the worldwide network of computer networks has greatly facilitated this globalization phenomenon by making it possible to connect any computer to virtually any other computer in any part of the world. Advances in networking technologies have also enabled organizations to connect their in-house personal computers to form local area networks (LANs). This greatly facilitates organizational communication and decision-making processes.

The combination of computer and networking technologies has also changed the way basic work is done in many organizations. For example, telecommuting and virtual offices are commonplace in several organizations. Telecommuting refers to the practice of doing office work from home (i.e., without physically being in the office). The term ‘‘virtual office’’ acknowledges the fact that a person’s office does not necessarily have to be a physical location. A person can do productive ‘‘office work’’ (including the making of managerial decisions) on the go, for example, at the airport while waiting for a flight, on the airplane, or from a beach half-way around the world. These practices are made possible through modem-equipped computers that can access a remote computer (the office computer) via a data communications network.

An organization’s overall performance can be greatly enhanced by strategically planning for, and implementing, information systems that optimize the inherent benefits of information technology to the benefit of the organization. This requires effective leadership and vision, as well as knowledge of both information technology and the organization’s (business) environment.