Network Design in Business Organizations

Introduction

Network design refers to a process that involves topological design, synthesis of network, and network realization. The main reason behind network design is to ensure that the business acquires a network that meets its business model. Many organizations are now focusing their attention towards designing information system network that aligns with their business structures. In order to gain a competitive advantage in the dynamic market situation, every business organization must be able to match its information systems with its unique business objectives. A network design can be either Local Area or Wide Area Network (Scott, 2006).

Big organizations with numerous and multiple branches normally adopt a wide area network in order to facilitate efficient flow of data from one business unit to the other. With unlimited capacity to accommodate free flow of data and high speed, time and resources are saved. However before an organization designs its information network system, there are quite a number of factors to be considered. Since organizations have become susceptible to competition, cost leadership has become a common practice in each and every business organization. The advantage of designing an optimal network is to ensure those critical firm’s activities are performed speedily and in the most efficient manner that can ensure that maximum rate of returns are achieved (Thomas, 2009).

Factors considered when designing an information network

Important factors to consider include, the nature of the business i.e. whether service oriented or product based, the type of clients, the complimentary infrastructure, the organizations workforce, the needs of the clients, the environmental pressures, the organizational culture, whether to develop from scratch or upgrade the existing network, the total cost, the functionality requirements e.g. reliability, confidentiality, integrity, availability, relevance, and finally security issues (3rd Ed. Stair & Reynolds, 2006).

Security issues: network security becomes critical if the system is to be relied upon by different users including the higher level managers. It is important to design a network that allows only genuine users access to the internet. The situation can be very tricky especially in a case where users need to exchange email with vendors, external consultants, customers or other fellows in different branches. If this is the case then firewall and virus-protection software should be used to bar intruders from falsifying the system (Scott, 2006).

Cost; before designing a network, it’s the responsibility of the organization to carry out a cost benefit analysis to determine if the investment is worthwhile taken on the basis of the organization’s required rate of return. Lengthy but capital expensive projects have always plunged many firms into series of endless economic problems. The organization must also consider its existing workforce, whether they need to be taken for prior training in order to gain basic skills about the operations of the system or not. Thorough trainings are recommended to eliminate the possibility of user resistance (3rd Ed. Stair & Reynolds, 2006).

Organizations business strategy

The main aim of net design is to facilitate frequent and smooth flow of communication channels across the organization. However, maximum emphasis should be put into understanding the organization’s business strategy. The line of products or services offered by the firm, its client’s preferences and needs should form the framework on which the net work is established. Aligning an information system design with the business strategy is likely to offer competitive advantages to the firm (Thomas, 2009).

Redundancy: automating major activities of the firm has always led to people being declared redundant. The aim of the firm is not to make employees lose jobs but to provide efficiencies by cutting operational costs. Where unemployment arises as a result of an organization’s decision to implement a change, it’s the responsibility of the organization to look for alternative ways through which the affected individuals are considered (Scott, 2006).

Conclusion

Network design is one of the methods which a business can radically change its structure. The increasing cost of doing business has made organizations to be more cost sensitive than any other factors in the modern environment. Organizations are therefore reaping from the seeds of modern technological advancement, cutting operational costs, redefining their business process to capture both global as well as domestic attention. However a business should design an information system that is compatible with its strategy, optimal and takes the needs of the people including the society and its environment.

List of references

Stair, R.M. & Reynolds, G. W. (3rd Ed). (2006). Fundamentals of information systems. Boston: Thompson Course Technology

Scott, M. (2006). Network Design Strategies.

Thomas, S. (2009). Network Design checklist.

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StudyCorgi. 2022. "Network Design in Business Organizations." March 4, 2022. https://studycorgi.com/network-design-in-business-organizations/.

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