COMPUTER NETWORKING:NETWORKING IN THE PRODUCTION AND SERVICE INDUSTRIES

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NETWORKING IN THE PRODUCTION AND SERVICE INDUSTRIES

The application of computer networks in the production and service industries should be fitted to the required complexity and coverage.

As far as complexity of network usage, two main aspects should be taken into consideration:

1. What kind of infrastructure is built within the organization (including internal structure and technology as well as connectivity towards the outside world)? The spectrum goes from con- necting a few workplaces (PCs) to each other, and possibly to the Internet, by the simplest LAN techniques and telephone modems, respectively, to using the most complex high-speed intranet and / or extranet applications with high-end workstations, or even large computer cen- ters, together with broadband connections to the global Internet.

2. What kinds of services are applied? In this respect, the simplest solutions make possible only the simple exchange of messages between workplaces, while the other end is characterized by the exchange of the most complex multimedia information by using World Wide Web tech- niques, accessing large databases, applying distributed information processing, utilizing virtual environments, exploiting network-based long-distance collaboration, and so on.

Coverage of network usage also involves two important aspects:

1. What kinds of applications within the organization are introduced? The low end is simple word processing with possible electronic document handling. The other extreme is characterized by a complex system of network-based planning, computer-based distributed decision making, network-based integrated management, computer aided design, manufacturing, and testing, distributed financing by the use of computer networking, computerized human resource man- agement, networked advertising, promotion, marketing, retailing, online sales transactions, pub- lic relations, and so on.

2. What amount and complexity of information content are generated, processed, and stored by the networked system of the organization? Here the levels are very much company specific, but it can be said that companies in both the production and the service industries can start with applications using elementary sets of information and may get ahead until virtually the entire information and knowledge base about the full spectrum of activities within the company (and also about the related outside world) are appropriately stored and processed by a well- established system of networked services and applications.

The basic principle here is that introducing computers and computer networks amplifies the strengths as well as the weaknesses of the organization. Well-organized companies can gain a lot from computerized and networked applications. However, those with considerable organizational problems mustn’t look for a miracle: they will rapidly realize that these tools increase rather than decrease the problems of operating the related production or service activities.

The full process (from the first elementary steps until completing the implementation of the network-based system) is a combination of two basic components:

1. Introducing and integrating network technology (infrastructure and services) inside the com- pany

2. Introducing and integrating networked applications into the activities within the company (to- gether with continuously building up the information content).

If careful introduction and integration of the new technologies and methods is performed in a systematic manner and by appropriately restructuring and re-forming all the related activities within the company, the results will be higher efficiency, better performance, and lower costs, provided that good management exploits the opportunities that are made available.

Moreover, properly introduced and appropriately applied computer techniques and network tech- nologies will not only help in getting ahead with enhancing efficiency and performance as well as cost cutting, but also result in elevated competitiveness. This way, survival against the increasing worldwide competition is supported, too.

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