This short guide will explain the basics of computer networking, outline the potential business benefits of the different solutions available and highlight the need for effective security measures whatever network is used.

Benefits of using networks

As your business grows, good communication between employees is needed. You can improve efficiency by sharing information such as common files, databases and business application software over a computer network.

With improvements in network capacity and the ability to work wirelessly or remotely, successful businesses should regularly re-evaluate their needs and their IT infrastructure. Properly planned, an efficient network brings a wide range of benefits to a company.

You can improve communication by connecting your computers and working on standardised systems, so that:

·              staff, suppliers and customers are able to share information and get in touch more easily

·              sharing information can make your business more efficient – e.g. networked access to a common database can avoid the same data being keyed multiple times, which would waste time and could result in errors

·              staff are better equipped to deal with queries and deliver a better standard of service as a result of sharing customer data 

You can reduce costs and improve efficiency by storing information in one centralised database and streamlining working practices, so that:

·              staff can deal with more customers at the same time by accessing customer and product databases

·              network administration can be centralised, less IT support is required

·              costs are cut through sharing of peripherals such as printers, scanners, external discs, tape drives and Internet access

You can reduce errors and improve consistency by having all staff work from a single source of information, so that standard versions of manuals and directories can be made available, and data can be backed up from a single point on a scheduled basis, ensuring consistency.

Office networks

For many businesses, the first computer network they need will be confined to a single building. This type of network is called a local area network (LAN). There are two common kinds of LAN - peer-to-peer and client/server.

Peer-to-peer networks connect two or more computers directly, allowing them to share files or programs. They are particularly suitable for collaborative work, fairly straightforward and relatively cheap to create.

However, peer-to-peer networks can be much slower than server-based networks and are unsuitable for very complex networks. Also, peer-to-peer systems connect users through other users' computers, so a failure at one point in the network will affect every computer connected to that network. 

Client/server networks use one computer as a server - where shared files and programs are kept - which other PCs connect to. This central machine can be a normal PC, although it is best to use a powerful computer or a purpose-built server computer.

Client/server networks have a number of advantages. As files are stored centrally, these systems are more efficient at backing up and handling data. For example, users cannot modify files simultaneously. You can also link to different types of computer, and support more users more reliably than you can with a peer-to-peer network.

Unlike peer-to-peer systems, a failure at a single point in a client/server network will not affect other computers on the network, as long as the server remains intact.

Wireless networking technology can replace all, or some, of the cabling requirements for a network.

Choosing cable or wireless

Local area networks (LANs) were traditionally implemented using cabling. However, wireless LANs have become easier and often cheaper to create and maintain and are now providing flexible networking options for many businesses. As with most technology solutions there are pros and cons for both approaches.

Wireless networking frees the user from being physically attached to a network. It also offers much greater flexibility and mobility - office-based wireless workers can be networked without sitting at dedicated computers, and can continue to work while off-site.

In most cases a wireless network costs less to install and maintain than a cabled network. It eliminates cabling, so you don't need to drill holes through walls and floors to lay cables, and you don't need to rewire the office if, for instance, a department moves.

Occasional difficulties with signal quality may be experienced with wireless networks - for example where neighbours in the same building use the same wireless channels, or where other sources of radio interference are present. In addition, it can be difficult to get consistent coverage in some buildings, leading to "black spots" where no signal is available.

Wireless networks are generally slower than cabled networks, and so in larger wireless networks the "backbone" network will usually be cabled.

Keeping wireless networks secure can be difficult. They are more vulnerable to attack than traditional cabled networks, as wireless transmissions can be intercepted.

Other types of computer network

As your business develops, you might wish to consider other networks such as wide area networks (WANs), virtual private networks (VPNs), intranets and extranets. These networks each offer different business benefits, such as linking together systems in different offices, allowing remote workers to access your office systems securely, or providing up-to-date information for your staff and business partners.

WANs are used by companies with offices at different locations. The WAN connects different local area networks together, into a more complex network. You will need to use client/server networks, which are based around central server computers, so that you can connect the various servers over a telecommunications network. WANs use cables/lines that are leased from a telecoms company.

A VPN allows the user to connect across the Internet to the business' private network. It creates a secure link between the remote worker's computer and the central system. A VPN can be cheaper to use than leased lines or domestic-type broadband connections.

Many businesses now build internal networks more commonly known as an intranet. These intranets store information on a central system at a private Internet address. Employees can access business information by connecting to the Internet, making it particularly useful for employees who travel or work from home.

You will need to invest in the design and management of the intranet. The information in it must be accurate and up-to-date so users will have confidence in it. One way of ensuring this is to use a content management system to update information on the intranet

Businesses can also open up certain areas of their intranets to partners, such as suppliers and customers, typically with a password. This is an extranet. For example, a business can let clients track the progress of their orders, and the payment of suppliers online can be linked directly to the business accounts system.

Assess your networking needs

Consider what you want the system to do and what results you want.

Express your requirements in business terms, not computer terms - for example you might consider the value remote workers can provide customers by having immediate access to stock levels.

Consider the following issues to help assess your needs:

Analyse your system

·              Consider your business processes. Do any depend on producing or accessing information - could you benefit from storing this centrally and letting staff access it via individual PCs?

·              Consider which processes networking could support, eg staff might need access to centralised customer records to create sales quotations.

·              Estimate your future computing requirements. If your business takes on more staff your IT system will need to expand to support them - this is called scalability.

·              Audit your existing equipment.

·              Consider how many people will use the network - staff, suppliers and customers.

·              Assess your printing requirements and the best locations for equipment such as scanners and disk drives.

·              Decide how much you can spend on computer networks.

·              Calculate costs - include purchase, installation, support, maintenance and training as well as lost business due to staff involvement.

·              Calculate potential savings - replacing manual and paper-based processes, reducing hardware costs by sharing facilities, and capital allowances.

Consider security

·              Consider who will use the network.

·              Identify what access controls you will require, such as passwords.

·              Outline back-up procedures – e.g. take regular back-ups of your data in case your system crashes.

Select products

·              Research the available technology through networking suppliers' websites, specialist exhibitions, or discussing your requirements with PC and networking companies. Networking magazines - often online - include features on the latest developments.

·              Do you want a peer-to-peer network - which you could install in-house - or do you need an expert to help set up a client/server system?

·              Prepare a shortlist of suitable products from different vendors.

·              Talk to people using these products or read magazine reviews.

·              Consider the support facilities for each product.

Network security issues

The increase in businesses connecting their systems and using the Internet has its drawbacks. When all computers are networked, one user's problems may affect everyone. You should consider the greater potential for data loss, security breaches and viruses when creating a network.

It is important to ensure data security through regular housekeeping such as backing up files, password routines and system logs. It is important to remove access from employees who leave, otherwise they may still be able to access customer records.

As your data will be stored in one location on the server, physical security is very important.

You should enhance your system security to protect your business from potential virus attacks and hacking. This should include anti-virus software and a firewall or software barrier.

As your data will be stored in one location s up to date and download relevant patches - updates to software that fix security threats - because new viruses are frequently released. If you are affected by a virus your employees could lose data and have difficulties using their computers, and your business could come to a standstill.

If your staff need to access the network while off-site, consider a virtual private network. This creates a secure link and protects information sent and received.

If you opt for a wireless networking solution then be aware that they can be insecure unless you take appropriate precautions. Typical threats include people being able to eavesdrop on your business activities, or a hacker using a wireless connection to gain access to your key business systems.

Irrespective of the technology solution you select, you should seek expert advice when your system is installed - from your Internet service provider, system provider, installer or an adviser. As when seeking any type of professional guidance, you should find out whether any adviser is familiar with businesses of your size or in your sector, or follow personal recommendations.