I.T.
Exploiting
in business David Irwin putting technology to work to grow your profits
IFC
Exploiting I.T. in Business
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Exploiting I.T. in Business putting technology to work to grow your profits
David Irwin
© Project North East 1999 Published by Hawksmere plc 12-18 Grosvenor Gardens London SW1W ODH 0207 824 8257 Designed and typeset by Paul Wallis for Hawksmere.
All rights reserved. No part of this publication may be reproduced, stored in a retrieval system or transmitted in any form or by any means, electronic, mechanical, photocopying, recording or otherwise without the prior permission of the publishers. This book is sold subject to the condition that it shall not, by way of trade or otherwise, be lent, re-sold, hired out or otherwise circulated without the publisher’s prior consent in any form of binding or cover other than that in which it is published and without a similar condition including this condition being imposed upon the subsequent purchaser. No responsibility for loss occasioned to any person acting or refraining from action as a result of any material in this publication can be accepted by the author or publisher. A CIP catalogue record for this book is available from the British Library. ISBN 1 85418 148 3 Printed in Great Britain by Ashford Colour Press.
Contents Introduction – the rapid growth of computer technology ...........................1 Growing use ...................................................................................1 Indifference ....................................................................................1 Change in researching information ................................................4 Change in communications ...........................................................4 Change in how we sell ....................................................................5 Change in how we buy ...................................................................6 An opportunity or a threat .............................................................6 Changing face of business ..............................................................7 Communications ............................................................................8 What is coming next? .....................................................................8 Computer applications .................................................................10 Implications for smaller businesses ..............................................11
Part One: ICT in business 1
Reviewing your information technology needs .................................15
Introduction .................................................................................15 Why have a review? .......................................................................16 Carrying out the review ................................................................17 Reviewing the business .................................................................18 Researching the options ...............................................................19 Technology ...................................................................................20 Findings .......................................................................................21
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Computer hardware ...................................................................23
Introduction .................................................................................23 Computers ...................................................................................23 Printers .........................................................................................26 Other hardware ............................................................................27 Networks ......................................................................................28 Buying the equipment ..................................................................28 Obsolescence and upgrading .......................................................29 Maintenance ................................................................................30
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Software for general business applications ....................................31
Introduction .................................................................................31 Buying computer software ...........................................................32 Word processing ...........................................................................32 Desk top publishing .....................................................................33 Spreadsheets ................................................................................34 Databases .....................................................................................34 Presentation and graphics packages .............................................35 Accounting and bookkeeping .......................................................36 Integrated software and suites .....................................................36 Other software .............................................................................37
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Computer networks ....................................................................39
Introduction .................................................................................39 Do you need to network? .............................................................40 Choosing a network .....................................................................40 Security ........................................................................................42 Licensing ......................................................................................43
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Connecting the computers ...........................................................43 Adaptor cards ...............................................................................44 Crashes .........................................................................................45
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Computer based and electronic information systems ........................47
Introduction .................................................................................47 Information databases ..................................................................48 CD-ROM .....................................................................................49 On-line information .....................................................................49 Videotext ......................................................................................51 Information for hard disk .............................................................51
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Mobile computing ........................................................................55
Introduction .................................................................................55 Using portable computers ............................................................56 Types of system available ..............................................................57 Hardware .....................................................................................57 Choosing the right model .............................................................58 Expandability ...............................................................................60 Communicating ...........................................................................61
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Part Two: Effective use of software 7
Databases .................................................................................65
Introduction .................................................................................65 What is a database? ......................................................................66 Database applications ..................................................................67 Evaluating your needs ..................................................................67 Choice of software .......................................................................68 Setting up the system ..................................................................70
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Spreadsheets ............................................................................73
Introduction .................................................................................73 Uses of spreadsheets ....................................................................74 Terminology ..................................................................................75 Choice of software .......................................................................76 Running a spreadsheet .................................................................77
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Desk top publishing .....................................................................81
Introduction .................................................................................81 Is DTP needed in-house? .............................................................82 Hardware and software requirements ..........................................84 Training ........................................................................................86
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10 Computerised business accounts ..................................................89 Introduction .................................................................................89 Computerising your accounting system .......................................90 Choice of software .......................................................................92 Features of good accounting software .........................................93 Using an accounts package ..........................................................95
Part Three: The Internet 11 Finding information on the Internet ................................................99 Introduction .................................................................................99 The World Wide Web ................................................................100 FTP ............................................................................................103 USENET ....................................................................................103 Mailing or discussion lists ..........................................................104 The future ...................................................................................104
12 Business websites....................................................................107 Introduction ...............................................................................107 Do you need a business website? ...............................................108 Getting started ...........................................................................108 Planning your website ................................................................109 Designing and constructing your website ..................................111 Managing your website ..............................................................113
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13 Promoting your business on the World Wide Web...........................117 Introduction ...............................................................................117 Web-based marketing .................................................................117 Promoting your site offline .........................................................118 Promoting your site on the web .................................................119 Get visitors to return ..................................................................121 Monitor the web .........................................................................121
14 Internet commerce ...................................................................123 Introduction ...............................................................................123 Is Internet commerce useful for your business? .........................124 What can be sold over the Internet? ...........................................124 Setting up an Internet commerce site ........................................126 Systems of payment ....................................................................127 Legal issues ................................................................................128 Cost ...........................................................................................129
15 Intranets ................................................................................131 Introduction ...............................................................................131 Uses of an Intranet .....................................................................132 Setting up an Intranet ................................................................134 Advantages of an Intranet ..........................................................135 Disadvantages of an Intranet .....................................................136 Planning for an Intranet .............................................................137 Managing an Intranet ................................................................138
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Part Four: Appendices 16 Glossary of computer terminology ..............................................141 17 Useful websites .......................................................................161 18 Useful software .......................................................................165 19 Further reading .......................................................................169 20 Useful addresses .....................................................................177 Project North East .....................................................................177 Business support services ...........................................................178 Information and publications .....................................................179 Internet service providers ...........................................................181 Other useful addresses ...............................................................182
Index ............................................................................................185
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This book is based on Business Information Factsheets researched and written by enterprise and economic agency, Project North East. Section contributors include Linda Jameson and Bill Waugh, both of whom work at Project North East.
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Introduction – the rapid growth of computer technology Growing use In Britain, its use has risen by 65 per cent in the last ten years. The fastest growth this century came in the 1980s. In the past five years in North America, its production has grown by 13 per cent. Worldwide it has doubled since 1982 1. I am, of course talking about … paper! Whatever happened to the paperless office? We may not be paperless yet, but computers are making their presence felt more and more in even the humblest business. Businesses, of all sizes, could do more to put to good use all of the information and communications technology (ICT) power at their disposal. The danger of simply ignoring what is happening is that others may be able to exploit ICT to the benefit of their business and the detriment of yours.
Indifference The technology revolution is changing the way we live and the way we work – as consumers, as citizens and as business people. ICT is advancing at a phenomenal rate. For example, the table overleaf shows how the speed of transmitting the contents of the US Library of Congress electronically has increased 2.
1 The Economist, 19 December 1998 2 US Department of Commerce
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Time to transmit contents of US Library of Congress Year
Time
1950
158,000 years
1980
661 years
1990
113 years
1992
53 days
1997
51 hours
Intel claims that since 1974, when the microprocessor first became available commercially, some 12 billion have been sold. Not only is their speed and computing power increasing dramatically, but they are also being used to control an extremely wide variety of functions. A BMW bought today has more computing power than the Apollo 11 moon rocket. For around £2, you can buy a birthday card which plays a tune – it probably has as much computing power as the whole world had in 1950! There has been an explosion of information. The last 30 years, for example, have seen a doubling of the information accumulated worldwide during the previous 5,000 years. It is estimated that just one day’s New York Times contains more information than the average person of the 17th century absorbed in an entire lifetime! It is also becoming ever easier to access – possibly overwhelmingly so. Whilst there is little sign of it yet, we can expect reductions in the use of paper and far greater use of electronic transmission in the future.
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The Economist now makes back issues available both on the Internet and on CD-ROM. Organisations like Key Note make all their market research reports available on CD-ROM. This makes them far easier to send through the post and far easier to use. But what are the implications for printers and for libraries? Will all of the graphic designers be able to move fast enough to the new medium? As Bill Gates3 has said, ‘one thing about this revolution that is different from the PC revolution is that we think it’s even bigger than the last one. A lot of companies that will be huge players are ones you haven’t heard of or don’t even exist yet’. The problem is that too many businesses are still ignoring these advances. Background research 4 for the recently published Competitiveness White Paper suggests that: •
33 per cent of domestic consumers ‘can’t see the benefit’ of ICT
•
29 per cent of SMEs are ‘indifferent or uncertain’ about ICT
•
just 8 per cent of UK businesses have an I.T. director compared to 67 per cent in the US.
Cisco Systems make routers for computer networks. The company didn’t exist in 1986. They now have sales of $100bn a year and have become the third largest company ranked by capitalisation in the US. Cisco estimate that a new user joins the Internet every 7 seconds. The Internet grew to its first 50 million users in just four years – a blink compared to the 38 years needed for broadcast radio. The Internet will have a major impact on small businesses by improving the speed and reducing the cost of communication (e-mail and own web pages); by offering a powerful way of accessing information; and also through electronic commerce.
3 Bill Gates, Wired, 1994 4 ‘Benchmarking the Digital Economy’, DTI
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Change in researching information Once you start to use the Internet you wonder how you ever managed without it. Recently, for example, I was looking for information on the new Data Protection Act; Health and Safety audits; the International Chamber of Commerce’s Business Charter on Sustainable Development and the Skandia Navigator. In the past this would, at the very least, have required a trip to the library, and probably correspondence with the companies involved – several days, or weeks, would probably elapse before I had the information. However, in the space of an hour or so I had found: •
a copy of the 1998 Data Protection Act – available for downloading at no cost if required
•
a series of guidelines and interpretations to assist in understanding the Act
•
information on health and safety assessments, together with an appropriate guide and form that is used for recording inspections
•
the ICC’s Business Charter on Sustainable Development – together with copies of newsletters explaining who has signed up to it and how it is being interpreted in practice
•
Skandia’s 1997 annual report together with a supplement explaining their Navigator.
Change in communications The Internet is also useful as a communication tool. E-mail makes communications easier, faster and more informal. It makes communications within businesses far easier too, at least for those who have installed their own network. SMEs could use the Internet to improve the way they communicate with their customers and to learn more about their buying habits. For
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example, an office supplies company could make its catalogue available on the web and take orders directly. It might then go further, customising catalogues for use on customers’ own Intranets, allowing users to place orders internally, and then supplying, say, monthly. It could then start making recommendations based on previous buying patterns. Once purchasers become happier with buying over the Internet, ecommerce will really take off. This will make trading across borders, especially for services, easier than ever before. Smaller businesses are therefore at a crossroads. They can either exploit the opportunities or they can stand by whilst other, more competitive, probably foreign businesses grab them.
Change in how we sell The Internet is going to become enormously important for commerce. Recently for example, I e-mailed Amazon.co.uk on a Sunday afternoon to buy a book for which I’d scoured the shops. I had it delivered to the office, on the Tuesday morning – and still paid less than it would have cost in the shops – had they stocked it! Estimates put the value of e-commerce worldwide as high as $300bn by 2002. EasyJet have been offering cheap, no frills air travel. In 1998, they did a promotion with the Times. offering discounts off their already cheap fares for anyone who ordered through the Internet. They had 13,000 sales in 24 hours! It is estimated that the cost of an airline reservation via a travel agent is $8 – but it is just $1 via the Internet5. Dell, the mail order computer manufacturer, has sales of £14m via its website every day.
5 ‘Converging Technologies: Consequences for the new knowledge driven economy’, DTI, Sept, 1998
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Change in how we buy The Internet will help businesses to drive down transaction costs. It is estimated, for example, that the cost of a traditional banking transaction in the US is $1, whereas the cost of the same transaction via the web is just $0.01 6. Microsoft has installed a web based system allowing anyone to order goods directly from their desk. They suggest this has cut the cost of placing an order from £60 to £6. Microsoft’s web based travel agent, Expedia, has grown in just a few months to become the fifth largest travel agency in the US. GE in the US has a major site where it invites potential suppliers to register. Japan Airlines has a site where you can find the specification for a plastic drinking cup, together with their delivery requirements and then bid to supply.
An opportunity or a threat The Internet is a massive opportunity – but it is also a major threat. If you have anything other than a local service business – your competitors could now be anywhere in the world. All of a sudden, distance, location and size have become almost irrelevant. There are many more opportunities for smaller businesses, and if, like Amazon, they can deliver a better service at a lower cost, it doesn’t take a genius to see where customers will migrate.
6 ibid
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INTRODUCTION
Changing face of business Apart from the dramatic improvements in ICT, there are other challenges facing business. For example, businesses are internationalising and knowledge is becoming increasingly important. Becoming institutional learners will become ever more important in the future. Despite worldwide economic turmoil, businesses are facing increasing competition, which will continue to get more intense as more countries compete for inward investment. This will lead to greater commoditisation, greater liberalisation, and increasing pressure to reduce costs and increase use of subcontractors, largely without regard to borders. Ironically, this may also lead to stronger relationships with suppliers. Businesses, including smaller businesses, are becoming more international in their outlook, increasingly looking at international joint ventures and alliances in order to seek competitive advantage. This is made easier by the improvements in ICT described earlier. Increasingly, therefore, businesses will have to rely on their ability to create and exploit their intellectual capital. It is estimated, for example, that two thirds of the value of a motor car now comes from knowledge – in the form of design and manufacturing process expertise. This requires businesses to recognise the importance of learning, both individually and institutionally, as they grapple to keep pace with changes in the environment. Evidence from a 1998 survey 7 of small businesses by Barclays Bank suggests that 70 per cent received no training in the last three years. Only 10 per cent had a budget specifically allocated
7 ‘Training – the key to success’, Barclays Bank – see www.barclays.co.uk
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to training and four out of 10 stated that nothing would prompt them to spend more on training.
Communications It is not just I.T. that is advancing, so is communications technology. The first residential telephone link between New York and London went live in 1927. The cost of a three minute call (in 1990 dollars) was nearly $250! Now the cost – not the price – of one minute of satellite time is 0.003 cents.
What is coming next? It is difficult to tell, but here are a few thoughts: •
e-books will take off – with the ability to download complete texts from the Internet.
•
Work is underway to produce electronic paper – to mimic conventional books even more closely than e-books – and electronic ink.
•
Digital printing is taking off – allowing books and newspapers to be printed economically even in very short print runs. Already one company, PressPoint, is publishing Spanish and Austrian newspapers in New York and Washington 8. The papers are printed in local print centres. Digital printing could also allow publishers to print books one at a time, as customers buy them. Lightning Print, a subsidiary of America’s largest book wholesaler already offers this service to 180 publishers. A French website, oohoo.com offers a similar service to individuals.
8 The Economist, op cit
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INTRODUCTION
•
Electronic procurement will take off. The EU has set a target of 25 per cent of public procurement transactions taking place electronically by 2003; the UK government is aiming for 90 per cent (by volume) of routine goods being procured electronically and providing 25 per cent of government services on-line by 20019.
•
Music and video lend themselves ideally to electronic transmission, even if they are a bit slow. The music standard MP3 is rapidly catching on – and it is now possible to download music directly to the new RIO – a wholly electronic personal stereo. In particular, this is providing a low cost route for new bands to promote their music.
•
Web TV will take off, once the communications technology catches up with the computer technology, allowing greater bandwidth and faster transmission times.
In the UK, the telecom industry now employs twice as many people as the motor industry. Many argue that advances in information and communication technology will be one of, if not the key, driving forces over the next 10 years or so. These advances will impact on many other activities. Companies will act more globally – for example moving work around the world in order to achieve best value for money and many more businesses, even small businesses, will find it easier to work across borders. This, in turn, may impact on distribution and supply arrangements and on greater liberalisation of world trade. Who will need retail outlets when far more trade can be completed over the Internet?
9 ‘Netbenefit: the electronic agenda for the UK’, DTI, 1998
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Computer applications Whilst all the hype and news stories are about improving communications, the explosion of the Internet and the opportunities to be gained from e-commerce, there are many other ways in which computers may be able to assist your business. These include: •
Desk top publishing – businesses can now design in-house professional newsletters and publications which previously they might have subcontracted.
•
Computer aided design (CAD) – everything from simple landscape and office design to sophisticated architectural, engineering and industrial design.
•
Computer aided manufacturing (CAM) – it is a simple step (in conceptual terms, if not in computer terms), to progress from CAD, to having the computer transfer detailed instructions to manufacturing equipment in order to make the products. Typically machine tools include numerical controlled (NC) and computer numerical controlled (CNC) lathes, milling machines and drills.
•
Materials requirements planning (MRP) – is a method of managing levels of stock and work-in-progress, in which both purchasing and the manufacturing activities on the shop floor are controlled by reference to actual orders for finished goods. This is particularly useful where orders are erratic rather than steady. MRP is particularly suited to computerisation, though it requires accurate sales forecasting.
•
Manufacturing resources planning (MRPII) – is a rather more sophisticated technique which incorporates information about the available resources – in order to derive capacity plans and materials – used to exercise shop floor control and to identify purchasing requirements.
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Implications for smaller businesses Changes in technology will continue to provide smaller businesses with opportunities – to offer new products or services, to reach a far wider target market, and to improve production processes. This will require change – often considerable change – but change is uncomfortable, threatening and often traumatic. ICT also allows businesses of all sizes to improve their processes – to benefit from greater efficiency in the office and in the storage and retrieval of information; to monitor business activity; and to identify trends in product sales. The objective of this book is to introduce you to some of the ways in which ICT can assist your business, and to demonstrate that there is considerable assistance available. The Government’s Information Society Initiative (ISI), for example, has a network of offices throughout the UK; and business advisers employed by the Business Link partnerships will help you to look more generally at your business and suggest technology based solutions to business problems where appropriate.
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Part One
ICT in business
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Reviewing your information technology needs
1
This chapter looks at how to assess your long-term information technology requirements.
Introduction Computerised systems can improve the efficiency of a business dramatically. They can also create acute problems if they do not work properly or people do not know how to work with them. Too often, businesses are attracted by the image of information technology (I.T.) and do not look closely enough at how it will be used. Systems may need to be completely replaced as circumstances change. A systematic review of your needs will help you decide exactly how you might use computers in the long-term, and to identify those systems which will be able to grow and develop with your business. I.T. is more than just computer systems. A definition of I.T. might be: ‘technology used to improve and/or control the flow of information’. Information flows both within a business (eg sales reports, memos,
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order forms, etc), and in to or out of it, (eg faxes, on-line information services, etc). The technology involved might include computers, fax machines, telephone links (modems), fibre-optic cabling, and local, national or international computer networks.
Why have a review? Successful implementation The ad hoc introduction of computers leads to many problems. People tend to look at their immediate needs and then introduce a system to deal with them. When further I.T. applications are identified, other systems may be developed independently, resulting in a patchwork of technology and systems with a wide scope for conflict and failure. Further problems arise when technology is superseded and suppliers stop maintaining their products; eventually no one is able to keep the systems going. A planned approach should ensure that you purchase technology which is compatible, and for which maintenance and upgrade arrangements are clear. When you know the likely paths for future development, the necessary specifications can be built in to the systems you buy. Discounts and deals with main suppliers and maintenance companies may be arranged more easily, and long-term stable relations can be established. Above all, you can assess the skills required, in order to manage and develop these systems and you can then recruit accordingly.
Staying competitive It is particularly important to be aware of developing I.T. applications in your industry. A new I.T. system can suddenly give a rival firm a competitive edge. Any business unable to adapt to such a change quickly can soon lose their market share although some firms try to introduce
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new technology too quickly. Astute firms allow rivals to pioneer new systems, then adopt the proven approach themselves at much less cost. The potential benefits must outweigh the risks involved. A review may reveal that only a modest investment is required to stay competitive. New technology can also open up new markets, widening the range of products or services which can be offered to existing customers.
Economic and social change Many commentators believe that the spreading use of I.T. is fundamentally changing the way we live and work. All businesses must consider how these changes could affect their employees, customers and working practices. Developing a strategy towards the adoption of I.T. provides an ideal opportunity to think through a number of business issues. I.T. cannot be treated in isolation. Policy decisions impact upon most other areas of the business. Good use of I.T. is often considered as central to making a business competitive.
Carrying out the review Commission an individual to coordinate the review. A programme of research tasks may be laid out. There may be informal talks with individual members of staff, meetings with work groups, and investigation and research to be done. People are sensitive about what they do and how they do it. It can be threatening to have your roles and activities analysed. A review of I.T. needs is as much about handling people as it is about installing technology. The early involvement of the people responsible for making the strategy work is important. Senior management must be behind the project. Whoever coordinates the review needs the authority and the skills to get the cooperation of every member of staff. Findings may be circulated in a discussion paper before final agreement is reached.
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Businesses may use I.T. consultants to review their needs and prepare a list of options. If you have no I.T. expertise in your firm, you will need such external help. An external adviser can look at things afresh, should be more aware of what is available and may be better placed to counter resistance from staff. If a consultant represents a supplier of computers and software, allow for some bias to the advice. Your local Business Link (or equivalent) should help you find a suitable consultant, or contact the Association of Computer Professionals.
Reviewing the business Strategic planning A review of I.T. requirements cannot take place in isolation. It must consider how your operations may grow and develop in the future. You must have an organised and systematic picture of how the business works, and where it is heading, in the form of a long-term business strategy. Without this, you cannot expect to plan effectively for the introduction of new I.T. systems. I.T. reviews may be carried out annually with your review of business strategy.
Reviewing business processes It is essential to be able to analyse the processes or systems that make your business work. Businesses are not always organised in the most efficient way. People have their own ways of doing things – some more efficient than others. As a business grows, small inefficiencies become big ones, and there can be duplication of effort. Computerised systems, on the other hand, are built to follow logical rules. Introducing new technology provides an ideal opportunity to identify inefficiencies and to set up operations on more rational lines.
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Systems analysis sounds technical, but really only requires common sense. It is essential to understand every element of your own operation before trying to automate it. Why are things done a particular way? More often than not, you can remove unnecessary practices. Look at the highest level of the business and work downwards through processes and information flows before you consider the technology required. The business should decide the technology rather than technology pushing the business.
Information flows Consider the information that flows through the business. How much is vital, how much is useful and how much is unnecessary? It may be helpful to classify the types of information as formal (expected information – for example, orders) or informal (eg, gossip picked up at a conference), and routine (eg, monthly reports) or non routine (eg, oneoff letters). Routine formal information is ripe for automation, non routine formal information can usually be helped by I.T. Less formal information which is harder to automate for example, trade gossip, might be held within a database of information on competitor activity.
Researching the options The business environment In many industries a minimum level of I.T. is essential. Most package holidays are booked via computer. Big retailers use computer links to obtain stock information from their suppliers, place orders, etc. Some manufacturers use computer aided design systems which share design data directly with suppliers, even linking directly to a supplier’s computerised manufacturing system. Other organisations avoid such close bonds, fearing loss of independence. In some cases the relationship can lead to the supplier becoming stockholder for the customer
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and delivering on a just-in-time basis. Think carefully about anyone with whom you will share data – making your systems compatible early on can save a lot of headaches.
Technology Review the available technology. Look at proven technology and its uses. Pioneering new technology is generally for big companies. It is usually cheaper and safer to exploit existing technology, but watch out for useful innovations. Trade journals, etc should keep you up-to-date.
Explore the options Consider the implications of adopting each of the various options, including the implications of not adopting the technology. Decide how computers will be allocated; do you for example, provide one or two users with personal computers and standardised software or install a network to share centrally held software and data files? Shared systems mean shared data, so access restrictions may need to be built in. Paths of future development and expansion should be mapped out. Systems must be flexible and capable of upgrading to keep up with expected advances in technology.
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Findings The findings of the review may be produced in the form of a policy or strategy document. Supporting papers can include flow charts, technical data, etc.
Main I.T. specifications Your I.T. equipment specifications will affect how systems can develop over time. Consider: a)
Main computer hardware
b)
Main software systems
c)
Other I.T., for example, communications technology
d)
Supply and maintenance arrangements
e)
Security and back-up of key data
Personnel and training If staff are not experienced I.T. users, you must recruit or retrain. It is essential to allow staff training for new systems. Training costs could be significant, but lack of training leads to under use of expensive systems or, worse, mistakes, which threaten the survival of the business.
Targets and investment levels Be clear about the level of investment required. It has been estimated that initial hardware costs now represent just 14 per cent of the ‘total cost of ownership’. Include running costs, maintenance or service contracts, staff costs and additional insurance (to cover the equipment and possibly the costs of data recovery in the event of equipment failure, fire, etc). Also budget for the need to run new systems in parallel with the systems they are replacing, until they are proven to be stable and effective. As new technologies become established, prices will fall –
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it may pay to wait, but savings must be viewed against the cost of lost opportunities. Other areas which may be covered include procedures for evaluating new systems and arrangements for future reviews.
Useful tips
The DTI’s Information Society Initiative provides useful information to any business reviewing its I.T. needs.
I.T. analysis and implementation is a popular placement project area for training organisations and universities, which place people in small businesses to carry out projects. Persons available for placement often include students and unemployed graduates or managers. Contact a local university or Training and Enterprise Council to find any such schemes in your area.
Beware of investing in software or hardware upgrades that you do not need. Research in the USA suggests that productivity gains are often very low and are not cost-effective.
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Computer hardware
2
This chapter describes the main types of computer hardware available and outlines how you should approach the task of purchasing them.
Introduction The part of a computer system which does the work is the software. Software, however, needs hardware on which to run. The choice of hardware should be dictated by the software and should be chosen to meet the practical needs of the business. Business requirements, software and hardware should all match before you buy anything – avoid impulse purchases and integrate computerisation with your longterm business plan
Computers Small businesses commonly use IBM compatible personal computers (PCs). These use standards derived from machines built by IBM, but come from various manufacturers and can run a wide range of software.
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The other popular type is Apple Macintosh, preferred by users working in graphics and publishing. Apple and IBM computers are not normally compatible, though conversion of documents is often possible, and Apple produce computers that can run both Macintosh and IBM software. i)
The processor, or central processing unit, is at the heart of the computer and is mounted on a circuit board alongside memory chips and disk drives. The best known manufacturer is Intel whose PC processor series includes Pentium II, Pentium III and Celeron chips. MMX technology is often incorporated into the processors to run multimedia applications faster. Each chip has a ‘clock speed’, rated in megahertz (MHz); again, higher numbers mean faster processors. The ‘entry level’ chip for PCs is Celeron.
ii)
Memory – the main type of memory is RAM (Random Access Memory) which holds data only while you and the processor work on it. Switching off the computer clears its RAM; anything you want to keep has to be saved to disk. Measured in kilobytes (Kb) and megabytes (Mb), the more memory a computer has, the quicker it handles tasks. Programs using colour graphics require large quantities of memory. Although Microsoft’s minimum requirement for running Windows 95 is 12 Mb RAM and the minimum for Windows 98 and Windows NT (which is to be replaced by Windows 2000 Professional) is 16 Mb RAM, they state that more memory may be required to run additional applications simultaneously. You may be better off with a minimum of 64 Mb to run Windows 98 and NT. The standard configuration on new PCs today is 32 Mb.
iii)
Hard disk drives are for long-term information storage. They record data magnetically. Hard disks, usually fixed inside the main box, can hold many Mb of data and usually also hold the software that the computer runs. It is recommended that you buy as large
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a hard disk as possible; don’t settle for anything less than 2 or 3 Gigabytes (Gb) in size. However, as hard drive prices continue to fall, today’s best hard drive values are in the 4 Gb to 6.5 Gb range. The main point is to make sure your hard disk can hold all your software and still leave room for all of the user files that you will need. Floppy drives have a slot into which ‘floppy’ disks are inserted. These portable disks are often used to transfer information or software from one computer to another, or to make back-up copies of important files for storage at another location. At best, a 3.5" floppy disk may hold 1.44 Mb of data. Higher capacity portable disks are available, such as ZIP drives. These are available to hold 100 Mb or 250 Mb, or more using compression software. Zip disk media is relatively expensive (£8 per disk) but works out fairly cheap per megabyte. There are also ‘super disk’ formats which are the same size as a 1.44 Mb floppy disk, but which hold 120 Mb. iv)
CD-ROM drives. These use compact discs as ‘read-only’ memory. CDs can hold massive amounts of software, documents or pictures, which can be accessed quickly. A multi-speed CDROM drive is essential for using multimedia software, or if you want to use the computer to view or edit photographs from photoCD. Most new drives today are 24x or higher. Anything less than 16x should really be avoided. You can’t save your own data on an ordinary CD-ROM or with a normal CD-ROM drive, but recordable CDs and special CD-ROM drives are available. DVD (digital versatile disc) drives can also read CD-ROMs and could be an option.
v)
Monitors – the standard monitor has a 14 or 15" screen. Larger screens (up to 37") allow more detail to be shown, for example, allowing editing of whole pages at a time. If you spend a lot of time in front of a screen, get a good quality monitor. Look for
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compliance with low radiation standards. A high ‘refresh rate’ (over 70 Hertz for a flicker free 14" screen) is more comfortable to work at. Non-interlaced screens flicker less than interlaced ones. If you do a lot of graphic work, high resolution is preferable. Screen guards fitted on the front will filter out some of the glare and radiation. vi)
Expansion cards – to work with artwork or photographs, you will need a graphics card with additional video RAM to speed up image handling. A video card with 8 Mb is now the current entry level and they are available with up to 32 Mb of memory. Sound cards and external speakers are needed for multimedia (sound and vision) or musical applications. Most sound cards are ‘Soundblaster’ compatible.
Printers i)
Matrix printers use pins striking a ribbon to make dots which build up into text or images. Speed and quality depends on the number of pins in the print head – 9, 18 and 24 pin printers are available. They are relatively cheap to run, versatile, and useful for security printing of payslips etc, but are noisy and not especially fast or of high print quality. Carriage width determines the maximum paper size the printer can handle. If you need to print on multipart forms, you need a dot matrix printer.
ii)
Inkjet printers use tiny jets of ink to form text or images from overlapping dots. The number of dots per inch determines print quality. They are relatively quiet, slower than laser and generally handle A4 or A3 size paper. Colour inkjet printers can give acceptable results. Whilst they are cheaper than lasers, they can cost more to run.
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iii)
Laser printers give very high quality print. Most print on up to A4 size paper, though A3 printers are available. Colour versions are expensive to buy and run.
iv)
Specialist printers for bar coded labels etc are available. Plotters allow production of large technical drawings using coloured pens. A common size is A3 paper, though specialist printers for up to A0 size are made.
When comparing printers, calculate running costs (cost per page) and choose the best printer for your needs in terms of quality, speed and features. If you print graphics or long documents, ‘buffer’ size (the printer’s memory) may be important. Memory upgrades are expensive – especially if the manufacturer uses non-standard chips – and some printers come with more than others. Take professional advice on how much memory your printer will need.
Other hardware i)
Modems allow computers to share information via ‘phone lines’. Transmission speed is important as large data files can take a long time to transmit – tying up the computer and running up large phone bills. The minimum data transfer rate you should consider for standard telephone dial-up is 56,000 baud (with fax capability if you want to fax straight from computer). ISDN modems offer faster access to the Internet. Most modems are now V90 (an International Telecommunication Union standard) compatible. Make sure your modem is V90 compatible as the older standards are being phased out.
ii)
Scanners read text and images into a computer from documents – useful if you work with images or have large quantities of text that would otherwise have to be re-typed. Scanners come in flatbed
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(usually A4 size) or hand-held forms. Scanning graphics requires large amounts of system memory. ‘Optical resolution’ (in dots per inch) is the only real standard for comparing scanners. iii)
Tape streamers rapidly copy stored data on to magnetic tape to make back-up copies – more efficient than using lots of floppy disks if there is a lot of data. Tape can either be magnetic or digital. The most common magnetic tapes are the ‘Travan’ format, holding up to 8 Gb. Digital Audio Tapes (DAT) are the most common digital format, holding up to 12 Gb.
iv)
Bar code readers can be linked into computers directly, or via portable units, to allow the computer system to monitor stock movement, work flows, etc.
Networks Computers can link together to allow sharing of data and facilities such as printers. This is known as networking. Simple networks for low numbers of users may simply link PCs by cable; larger networks have a central file server (acting like a multi-user hard disk) linked to the PCs.
Buying the equipment i)
Dealers may charge more for equipment, but should give sound advice on the hardware and software best suited to your needs. High street electronics retailers are usually geared up to sell to consumers rather than businesses.
ii)
Mail order buying can be cheaper if you know exactly what you need. Magazines provide the main source of information on suppliers and prices. Check specifications and guarantee/warranty
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conditions before you order. Some magazines operate schemes protecting buyers from loss if a supplier goes out of business. iii)
Second hand equipment should be fully tested. Buying from a company rather than a private owner gives you more comeback; get any assurances in writing. Check that monitors comply with recent European regulations, and that consumables like printer cartridges or ribbons are still available. At auction, check equipment thoroughly, goods are usually sold ‘as seen’. Allow for commission charges, and be wary of goods for which others avoid bidding.
iv)
Packages of hardware and software are only good value if the software meets your needs; check it out fully before ordering.
v)
Budget for appropriate furniture, especially an adjustable office chair and a desk or table of suitable height.
Obsolescence and upgrading Due to the speed of technological change, manufacturers usually build in a degree of upgradeability, for example 486 processors mounted in sockets will be able to take Pentium processors at a later date. Even so, some upgrade paths become obsolete before you get to use them (eg the Pentium II processor requires entirely new components). Computers with separate boards for major components are preferable to ‘integrated’ ones (everything fixed on the motherboard) because upgrading or repair is easier and cheaper. The motherboard determines which upgrades you can perform at a later date. The scope to add plenty of extra RAM may be the most important consideration.
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Maintenance If you rely heavily on your system, consider a same day on-site repair service, preferably one where replacement hardware is provided if immediate repair is not possible. Back-to-base warranties mean losing use of the faulty item while it’s in repair and transit. If buying from a small manufacturer you may prefer a warranty where service is by a reputable third party company, so you don’t lose cover if the manufacturer goes out of business. Service contracts can be costly, some people prefer to buy spare or replacement machines as necessary.
Useful tips
Equipment reviews in magazines can be helpful, if a bit technical. Occasionally they produce beginner sections or supplements aimed at small business or home office users.
The best way to evaluate a system is to see it do the things which you want it to do.
PCs can have a range of energy saving features. Some are more effective than others. Check manufacturers’ claims if environmental concerns are important to you.
Portables are now as capable as desk top models, but always cost more for similar specifications.
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Software for general business applications
3
This chapter describes the main types of computer software available to support general business activities.
Introduction For many businesses, the purchase and use of computer systems is a necessary part of setting up and running an efficient operation. When buying a computer, a business also needs to buy the software which enables the computer user to store, manipulate and retrieve data. Many types of software are available to suit a wide range of business applications. Most software for business use falls into the categories of word processing, data management, spreadsheets, graphics and accounting products – or integrated packages (which combine a number of these facilities). The programs to carry out these functions can be bought ‘off the shelf’ from a supplier, from a high street store or by mail order. While some software can be used straight away, all software requires some prior thought on how it may best be used. You should also think about the needs of the user (or at least the person setting it up) to learn special skills.
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Buying computer software A common mistake is to purchase attractive looking computer hardware and software without fully thinking through how it will be used. The recommended approach is to develop an information technology (I.T.) strategy, setting out how the business will use I.T. systems in the short, medium and long-terms (see chapter one: Reviewing your information technology needs). If you have a clear idea of exactly what you want your software to do for you, it will help greatly in deciding which packages you should purchase. Many personal computers are sold to small businesses with software already installed. Sometimes this is a full set of quality word processing, spreadsheet, database and presentation applications. At other times it may be an all-in-one package which can do the same basic tasks but without many of the more advanced features of the individual packages. If the software supplied meets your needs you may be getting a good deal, but if not, you might do better buying the computer and software separately. As with any other purchasing decision, you should follow a systematic process before making the decision to buy: draw up a specification, identify a range of suitable packages, request trial copies, test them thoroughly, check reviews and the views of others using similar systems. Compare prices too, but note that the most expensive package is not necessarily superior to its cheaper equivalent from a rival software company. The software mentioned below is for personal computers (PCs) – that is, computers which are IBM compatible.
Word processing Few businesses still use typewriters. Word processing software allows computers to be used to create and amend documents on screen and to print them out when ready. One of the biggest benefits is that changes can be made very easily. You can add, move, amend or delete text, or
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change its layout, without having to retype the entire document. Documents which have to be developed in consultation with a variety of people (eg, reports, proposals, etc) can be revised easily. Frequently used letters can be tailored for different purposes instead of being retyped. Letters can be mail-merged with a customer database to produce personalised letters from one original. Most word processing programs have features like spelling and grammar checkers, thesaurus, etc. Presentation of documents can be enhanced with different typefaces, tables and graphics. With basic typing skills, many executives now work on-screen, reducing the amount of work carried out by professional typists. Packages include Microsoft Word, Lotus WordPro and Corel WordPerfect.
Desk top publishing Desk top publishing (DTP) systems allow documents such as newsletters, leaflets or brochures to be presented and manipulated to a suitable standard for publication. DTP requires a lot of practice and creative ability to master. You should think carefully before purchasing a tool which is probably used most effectively by professional designers and publishers. Word processing software is rapidly approaching DTP standards of presentation, so the additional facility may not be required. Packages include Adobe PageMaker, QuarkXPress, Microsoft Publisher and Corel Ventura.
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Spreadsheets A spreadsheet is like a large grid on a computer screen. The cells which make up the spreadsheet can be filled with text, numerical data or formulae. When you enter values you can use the spreadsheet to carry out mathematical, statistical, logical and any other calculations on them. Spreadsheet uses include profit and loss statements, financial planning and budgeting. They can be used wherever large sheets of paper have traditionally been used. Spreadsheets are particularly powerful at answering ‘what if’ type questions. For example, you could calculate the effects of a 10 per cent increase in costs on your profits within a few seconds. Besides performing calculations, a spreadsheet can be used for any document that requires use a of grid. Spreadsheets can also be used as databases. Spreadsheet software includes Microsoft Excel, Lotus 1-2-3, Corel Quattro Pro and CA Supercalc.
Databases File management and database management systems are another important computer application. The computer becomes an electronic filing cabinet capable of holding much more data in a much smaller space than clerical systems can achieve using paper, record cards and filing cabinets. Information required about customers, products, stocks or employees can be held on separate or ‘integrated’ files known as databases. Instant access and quick searching of records may be carried out. Systems can be used for routine data processing and to provide data for management decisions. One common use for databases is to compile details on customers. This can then be used for selective mailings, by filtering off customers in target groups and ‘merging’ their details with a wordprocessed letter. Personalised letters, can be gener-
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ated showing customer names and addresses and groups can be targeted by criteria such as location, age, etc. Whilst the purchase of computerised systems should always be thoroughly evaluated, it is particularly important to do so in the case of databases, as this is the key to deciding which package to buy. Database packages include Claris FileMaker, Lotus Approach, Microsoft Access, Corel Paradox and Microsoft FoxPro
Presentation and graphics packages Presentation packages enable you to put together a set of professional looking slides for use on an overhead projector (OHP). They also enable you to link a PC (usually a laptop) to a video projector and incorporate slides, photographs, moving images, and even sound, into a structured presentation whose pace you can control. Pictures can be more effective than words for presenting numeric data. The graphics capabilities of many spreadsheet packages allow data to be presented as bar charts, graphs, and pie charts, using colours or shading patterns. Other graphics packages allow images to be created (and edited) for the purposes of illustration (eg in presentations) or as logos etc, to enhance documents. The problems with this type of package are similar to those for DTP outlined above. Both graphics and presentation software require hardware capable of presenting and printing such images efficiently. Some packages combine graphics and presentational capabilities to a greater or lesser extent. Presentation packages include Microsoft Powerpoint, Lotus Freelance Graphics and LinoMedia Dazzler. Graphics packages include CorelDraw, Paint Shop Pro and Photoshop.
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Accounting and bookkeeping Accounting work is much quicker and easier with a good software package. There are a wide range of computer software programs on the market for handling business accounting routines, such as a sales ledger, purchase ledger, nominal ledger, costing and invoicing. Sometimes these are combined in one package, at other times you buy separate modules. Some of this software can perform related functions such as stock recording and payroll – though this often requires add-on modules. If you employ a number of people, payroll software will streamline the task of calculating wages, tax, national insurance, etc. Some software suppliers combine their programs into an integrated package of accounting routines. These packages can be easier to use because the different parts of the firm’s accounts are consistent and data need only be collected and checked once. Time tracking systems such as Timesheet Professional allow you to monitor and cost the time which employees spend working on various client accounts. Accounting software includes Sage (various packages for every size of business) TAS Books and Pegasus.
Integrated software and suites Integrated software comes in two forms. The first, typified by Microsoft Works and Claris Works, gives you a single piece of software which combines word processing, graphics, spreadsheet and database applications. The second, commonly known as ‘suites’, is a set of separate applications from the same manufacturer which are designed to work alone but are able to transfer data easily to and from other
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parts of the suite. The combined elements of a suite are usually capable of far more sophisticated operations than the all-in-one packages. Some integrated systems have other facilities such as diary management, presentation software and communication modules. A communications facility will enable users on a number of computers to pass messages and data files. Access to the Internet is increasingly an option. Integrated software often comes bundled with a new PC; this can be cheap and convenient. However, if you subsequently find that the bundled software cannot meet your needs you will need to buy more suitable software. If all you need is a word-processor, getting a suite is an unnecessary expense. Consider whether you will use all the software in an integrated package. It may be cheaper to buy a single application – but hedge your bets and get one that is part of a suite. The main suites available are Lotus SmartSuite, Microsoft Office and Corel WordPerfect Suite.
Other software i)
Anti-virus software – religiously protect your valuable data files from loss, by using reputable and up-to-date anti-virus software, such as Dr Solomon’s.
ii)
Internet Browser – lets you search for, view and download information on the Internet (as long as you have an account with a service provider).
iii)
E-mail software – enables you to send and receive messages between computers linked by telephone, or across the Internet (if both parties have an account with a service provider).
iv)
Diary management software – like a versatile, on-screen personal organiser.
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v)
Fax – enables you to send and receive faxes on your computer without printing them out.
vi)
Utilities – a broad category of programs that are meant to make life easier. Most useful are those that help when things go wrong, for example to undelete files. Compression software such as WinZip, is also useful.
Useful tips
Bespoke software packages are available for specific professions and businesses, for example architects, lawyers, dentists, and doctors. Video hire shops can purchase till based systems which manage the hire and tracking of subscribers and videos. Your trade associations and press will be a good source of information on these.
Computer technology is constantly changing. There is always something ‘new and improved’ on the market. The older version of a program may cost a lot less – if it will do what you want it to, it may be a bargain.
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Computer networks
4
This chapter is an introduction to networks for those people dealing with them for the first time.
Introduction A computer network (or net) is two or more computers linked together so that the users may share data files, software and resources, such as printers and modems. The computers can be linked by wiring, fibre optic cable or telephone lines. The falling cost of technology has brought networking within the reach of more computer users. This chapter concentrates on the sort of network that a small to medium sized business might use – contained within one building and called a Local Area Network (LAN). Wider Area Networks (WANs) are possible using telephone lines or fibre optics.
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Do you need to network? Networks can be an aid to efficiency – speeding up data processing, allowing expensive equipment to be shared and allowing increased convenience, for example through electronic mail facilities. They are of most use when: i)
several people regularly share data, avoiding the need to swap files on disk or waste time on duplicate data entry
ii)
several people need to use the same data on different computers perhaps at the same time
iii)
several users need access to the same equipment (eg laser printer, plotter, computer-based fax) but do not need one each
iv)
it is more efficient to manage computer resources from a central point (eg to simplify back-up procedures).
If your operations could benefit from a network approach, you need to consider what type of network is most appropriate to your needs and whether it will be cost-effective in the medium to long-term.
Choosing a network First review the types of data to be handled, the applications you want to run and the expected number of users. This determines your hardware requirements and suggests the facilities to be shared. Take into consideration possible future expansion and changing needs. You can then decide which of the two major types of network may best suit your needs.
Peer-to-peer networks These networks treat all computers on the network as equals – each has its own software but data files can be shared, as can printers, etc. One computer may be designated as the print server, having a printer
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attached to it. It places print jobs from all stations in a queue for printing while also serving as a normal computer. Similarly, a computer may be set up to handle electronic messages. The peer-to-peer approach suits small numbers of computers with straightforward applications (eg word processing). The main advantage of a peer-to-peer network is cost. There is no need to purchase a central server – though you will be adding some control software and some hardware (eg network adaptor card for each computer and cables to connect them). Connection cost is likely to be around £50 to £100 per computer. These networks allow only limited expansion; performance can decrease markedly as extra computers are added. Software has to be bought for each computer, though you need only buy as many copies of each application as you need. It is important to ensure that software on each computer is fully compatible if data is to be shared (even different versions of the same software may cause problems). A document or database may need to be used by several people simultaneously; this can cause problems if the software is designed for single users.
Server-based networks These allow all connected workstations to share data and applications stored on the hard disk drive of one or more central file-servers. The server is dedicated to the task of managing files, print jobs, etc for the network. A workstation may be either a terminal with monitor and keyboard, or a computer capable of stand-alone use. Server-based systems can support larger numbers of connections. Software designed for them is usually written to allow several users to access the same document or database at the same time. Multiuser databases, accounts, etc, are particularly useful – updated
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information is instantly available to all users, reducing the problem of everyone working on their own copy of the data. Server-based networks of 10-40 workstations save money, over the cost of individual computers each with its own software. Time/cost savings are apparent, for example in back-up procedures. When upgrading or adding software, only one copy needs to be installed.
Security Security is important to all computer users. The two main areas of concern are ‘hackers’ (illegal intruders) and ‘viruses’ (destructive programs). Hackers are people who gain unauthorised access to your data, either on your premises or via telephone connections. They can be outsiders or members of staff. You need procedures to limit physical access to computers. You also need to set up the system with password protection. User access levels can be assigned in some operating systems (eg to prevent someone in stores from changing payroll details while still having access to stock details). Firewall products provide network security whilst allowing authorised users to carry on with their work. To combat viruses you need procedures for checking every disk that comes into your organisation before it is used on your network. The network should have software routines built in to self-check regularly and to screen anything received via telephone lines. When deciding on a network, it is important to ensure that the operating system you choose supports both networking and appropriate security arrangements.
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Licensing In peer-to-peer networks, software is bought for each individual computer. If you make copies for extra machines, you will be in breach of copyright, unless you buy a licence to use each copy. You can negotiate a ‘site licence’ to allow use of the software on a set number of machines on your premises. On a file-server network you only have to buy one network licensed copy of the software (though the fee may depend on the number of simultaneous users).
Connecting the computers Installing a network requires putting in wiring which allows workstations to be plugged in at convenient positions and moved easily when necessary. The wiring can be broad-band (multi-channel cable) or baseband (single-channel cable); base-band is cheaper but limits the speed and capacity of the system. Two main standards (protocols) define how computers communicate on a network – Ethernet and Token ring.
Ethernet This is the most common and is the only one that works in peer-topeer networks. It divides into different types based on the physical cables. These are Thick-Wire Ethernet, Thin-Wire Ethernet and 10Base-T. Thick-Wire Ethernet has the greatest range, is harder to work with and is more expensive. Thin-Wire Ethernet has a shorter range but is easier to work with and is more popular. Both Thick and Thin Ethernet are straightforward. A single cable links the units in a daisy chain fashion.
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10Base-T is newer and more convenient than either. Long cable runs may need signal boosting equipment to work efficiently. The 10BaseT network uses a star layout – there is a central hub with cables leading to each station, this hub passes data to the server. The advantage that 10Base-T has over the others is that adding and removing units is much simpler. With Thick or Thin systems, damage or disturbance to the cables is liable to cause the entire network to crash.
Token ring These networks send data around circular paths, though they usually take the physical appearance of a star. A Multiple Access Unit (MAU) – a box typically with eight or 16 connection ports – allows computer stations to be connected to it with more ease than Ethernet. Token rings allow computers to be added or taken away more easily and maintain consistent performance despite the workload. They tend to be more robust than Ethernet networks. However, most of the cabling and adaptor cards are more expensive than Ethernet and there is also the cost of the MAU.
Adaptor cards Adaptor cards are the interface between the physical cabling and the computer. There are both external and internal types; external adaptor cards tend to be faster than internal cards. Common designations are 16 bit and 32 bit cards – the higher the number, the faster the data is handled. For a peer-to-peer network whose main use will be file transfer, a 16bit card on each station is the least expensive approach. On a more complex server-based installation, the server will need the fastest adaptor card(s) you can afford. Most network operating systems today can support more than one adaptor in the server. By fitting two adaptors,
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you halve the workload on each, essentially doubling the rate at which data can be transferred. The choice of adaptor cards for the workstations also affects performance.
Crashes Inevitably something will go wrong with your network. The best way to handle this is to plan for it. To prevent accidental damage to a server, keep it where it cannot get bumped and fresh air circulates. It is wise to invest in an uninterruptable power supply unit to avoid power failure and a spike arrestor to smooth out the supply. If the network is vital to your operation consider running mirrored servers (two identical servers running in parallel – if one fails the other takes over). Record details of your network installation, including a drawing of the wiring route throughout the premises, a checklist of exactly how each computer is set-up and what software you have loaded. You should detail stepby-step instructions on how to reconfigure a computer and the server to work correctly, what special software is needed and where it is kept. It is extremely important to have systematic procedures to back-up the data stored on the network. Consider the time spent writing documents, entering data or building spreadsheets and you will soon realise that the cost of a back-up is not nearly as much as the cost to re-establish all your lost documents. An efficient way is to use a tape streamer with 6 numbered tapes. Make a back-up every night on a new tape; the following week you can re-use the first tape and continue in sequence. At any given time you will have a week’s worth of backups incase the data on any one tape is corrupted. Always store back-ups off the premises.
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Useful tips
Computer networking can be complex; it is worth seeking expert advice before incurring major expense.
Running a network involves all users being given appropriate training. A network administrator and at least one deputy will be needed to handle basic housekeeping (eg back-ups) and maintenance. Training in network management should not be skimped.
It is possible for computers at remote locations (eg used by homeworkers) to access a network via telephone lines. Intensive remote access is more efficiently handled by an ISDN line.
To remain effective, passwords should be changed every couple of months.
If you consider buying a network starter package look closely at the adaptor cards; some are cheaper proprietary cards, others are industry standard cards. With industry standard cards you will not be reliant on one supplier when maintaining or expanding the network.
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Computer based and electronic information systems
5
This chapter describes electronic business information systems including on-line, CD-ROM and diskette databases.
Introduction Electronic information systems include those stored on CD-ROM or diskette and databases accessed on-line or via videotext. Business information publishers often make their information available in both printed and electronic form. Printed versions can be cheaper and are often more convenient to search, especially in smaller organisations with limited computer access. Electronic media can make it easier for publishers to distribute their information. Most compilers of business information now store and manage their information electronically anyway. Users can often access more up-to-date information using electronic systems and they benefit from the speed of computerised searching.
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Information databases Information databases were developed to replace card file systems which were used to index reports and articles. Such databases began by including abstracts of articles and bibliographies. Users could access the full text in paper form. Most systems now include the full text versions. Database storage allows sets of information to be stored and transferred easily, and enables fast searching for specific information. More and more reference publications are now held on databases. Examples of information databases: i)
Textline – database of newspaper, business and trade journal articles.
ii)
Justis Statutory Instruments – full text of Statutory Instruments published since 1987.
iii)
Dun and Bradstreet – company information.
iv)
ICC – company information.
v)
Mintel On-line – market reports.
vi)
Datamonitor – market reports.
Most of these databases provide their information in several or all of the following forms: CD-ROM, diskette, on-line and printed. The main benefit of electronic media is the potential to access the publisher’s most up-to-date information. Diskettes and CD-ROM updates can be mailed to subscribers monthly (or as frequently as they require). On-line allows instant access to the latest version of a database. The business connects a computer to the database via the telephone system using a modem and communications software.
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CD-ROM The use and availability of CD-ROM information has taken off in the last few years. Many computers now come with a built-in CD-ROM drive (ROM means ‘read only memory’) as standard. CD-ROMs can hold a very large amount of information which might otherwise have to be stored on valuable hard disk space. Access is through a CD-ROM reader connected directly to a computer or to a Local Area Network (LAN). Search and retrieval methods are similar to those used online. Multiple CD-ROM readers are available allowing network users to load and search automatically, without needing direct access to the CD-ROM reader.
On-line information On-line hosts An on-line host provides access to a range of databases, together with other communications services, within the one system. The host provides the technology, vets the quality of databases and provides marketing, convenient access and billing for the user. Users sign an agreement and pay for use of a password to access the host. A single search system can be used for all the databases in the host. Host based searching is often user friendly (usually free text). The actual location of the database will vary. In most cases the database is kept by the host who has sufficiently powerful computers to run it. The host may also link the user to a database in another location. Many databases market themselves through a number of hosts and do not provide direct access. Hosts also provide the benefit of communications and networking systems to users.
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The Dialog Corporation is one example of a major host. Its services include: a)
Dialog (USA) – over 470 services includes Textline, ICC, Dun and Bradstreet. A British company, MAID took over Knight Ridder in the US and now trades as Dialog plc;
b)
Data-Star (Swiss Based) – over 350 services includes Textline, ICC, Dun and Bradstreet;
c)
Profound (formerly MAID).
Some database providers look like hosts because they provide a range of databases on-line. For example, Mintel On-line provides a range of databases, but is not a host in the real sense because Mintel provide the information.
On-line retrieval Information can be obtained direct from the research organisation/ publisher. The database can be searched (often free text but sometimes command language or menu driven) and the required information may be read on-screen, printed or downloaded to disk. On-line service charges are made on a pay as you go basis. Users pay for a password to give them access and are billed periodically by post. If you are not a subscriber to the database yourself, you may be able to gain access through an information provider, for example a library. An intermediary (eg a library assistant) familiar with the process may handle searching.
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Videotext Videotext is a generic term for systems transmitted in pages, usually in colour, from a remote computer to a modified TV, special terminal or computer. Connection and use is very straightforward. Videotext can be divided into viewdata services and teletext. Commercial use of viewdata became more or less defunct when BT’s Prestel (the most popular service) was sold in 1994. Teletext is the term used for information broadcast for viewing on an especially adapted TV. The main services are Ceefax (BBC) and Teletext (ITV and Channel 4). The system is one way, that is, not interactive, and is free to TV users. Information includes current share prices, travel information etc. The capacity on each channel is limited, and there can be delays between pages. Although Teletext is mainly for use by the general public, like Yellow Pages, this is a very obvious source of up-to-date information that could be used more often by businesses. It is possible to buy Teletext cards and software to allow Teletext information to be downloaded direct to your computer. This is being exploited, for instance, by people who want to record share prices. Teletext Limited have launched Teletext on the World Wide Web, and are currently developing a new digital Teletext service.
Information for hard disk Information databases can also be provided on diskette for loading on to your computer’s hard disk. Updates may also be sent out on diskette. Some systems, for example British Rate and Data (BRAD) through the BRADbase service, allow you to connect with a master database and down-load the updated information as often as is felt to be necessary (with BRAD, this is done daily). The cost of the diskette
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is not normally as much as on-line or CD-ROM, but this really depends upon the nature of the information itself. Storing information in this fashion enables you to conduct searches as fast as your equipment will allow – usually faster than CD-ROM. On the other hand, you may need to dedicate a lot of hard disk space to the database (eg BRAD requires around 100 Mb). Very large databases can require you to dedicate a machine to the job. Alternatively, add-on hard disk drives can be bought quite cheaply for this purpose. Check how much space the system will require, together with RAM and processor type, etc to run it efficiently.
Useful tips
Check out your local information providers, especially the reference library. They may be able to provide the information you need at quite a low cost. Business Link partnerships aim to provide information useful to local businesses, using computer based systems.
Assess your information needs and cost them out. Only subscribe to electronic sources if you are certain that you can justify the costs and that you have the skills and equipment to use them effectively.
Many electronic publishing companies are international in scope; some products reflect their American origins more than others – you should satisfy yourself that a product is relevant to your needs.
You need to assess the sources available. On-line is better for the coverage and speed of searches, and is more up-to-date. CDROM is better for the potential end users to use direct, rather than through an intermediary. Users can spend more time
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searching CD-ROMs without worrying about the costs of staying on-line. It is not unusual for users to subscribe to both services. All the major on-line databases are also available on CD-ROM. One does not always replace the other.
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Mobile computing
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This chapter describes the main types of mobile computing systems available and outlines the considerations involved when purchasing them.
Introduction Advances in technology have given business people who have to travel, a number of ways to work more efficiently with computers. The key elements for mobile computing can involve some or all of: i)
The ability to use a computer to carry out the tasks you would normally do on computer in the office, while you are at other locations.
ii)
The ability to communicate and share information with people at remote locations.
iii)
The ability to work with data that is held centrally, without duplication of effort.
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The tools that can be used for these tasks vary with the specific needs of the user, involving anything from Personal Data Assistants (PDAs) to portable computers and sophisticated mobile phones.
Using portable computers The most basic use of a portable computer is to enable people who move around to retain the ability to work on wordprocessed documents and spreadsheets. If they create new documents or work on existing documents, solely on the portable, there is no problem. However, if the documents are shared or swapped between the portable and another machine, some sort of version control procedure needs to be implemented to prevent mix ups over which is the current version. Similar problems may arise with databases where records (eg all of a salesperson’s clients) are copied to the portable and may be amended. Potential problems can be avoided using procedures or clever software (such as Microsoft Windows Briefcase facility) – as long as they have been identified in advance. If the traveller uses an electronic organiser in the office, they will want to take a copy with them, synchronised with the parent system – several systems allow this. If talks or sales presentations are the reason for mobility, a portable PC with presentation software can be set up to run through a set of slides, video clips, etc automatically. These can be projected on to a screen using an external video projector. Software running on the PC can be demonstrated using a projector, to allow a large audience to view it. A modem and a telephone connection enable communication via email or computer based faxing. Data file transfer and Internet access can make use of the same type of link. For example mobile sales staff may need to obtain information from, or transfer data to, a central system.
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Types of system available The equipment available can be looked at in simple categories. PDAs allow the user to carry an electronic diary/organiser/address book which can perform basic text and spreadsheet functions. Palmtops, running on Windows CE, allow the user to use cut down versions of Word and Excel, and a PowerPoint viewer, allowing the user to give PowerPoint presentations (but not to create or amend them). Portable computers will run all business software. With a modem and phone connection, all of these can communicate with, say, a desk top computer – and with Internet access they can send and receive e-mail. However, the boundaries are being blurred by progress, usually by adding to the existing capabilities of the items. Advanced pagers can display e-mail messages. Some PDAs can be used for e-mail or even searching the Internet, and some can run PC software. Some facilities require a connection to a fixed phone line, but others can use the latest mobile phones for data transmission.
Hardware Personal Data Assistants (also called pocket computers) and palmtops can be useful for the small business. Reputable makes include Psion, US Robotics and Hewlett Packard, but even they are not cross compatible and have limited compatibility with PC software. If you need to be able to carry around your electronic diary and limited amounts of data, or to create simple documents and spreadsheets, one of these may suit your needs. Check compatibility with your main computer hardware and software before you buy. Notebooks and laptops are more advanced portable PCs. Notebooks are usually smaller and lighter than laptops (with some compromise on overall capability and/or a price premium). Portable PC specifi-
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cations and prices change rapidly, but you should be able to buy an entry level machine for under £1,000 including VAT. Typically, this would provide a Pentium II chip running at 266MHz with 32MB RAM and a 3.5GB hard drive and a CD-ROM. More money will buy a bigger hard drive, a better screen, a faster chip, more RAM and a smaller size. You will need to add extra for a modem, monitor and keyboard for office use if required. On the whole laptops are now as versatile as desk tops, though they are still more expensive and, because the screen is smaller, are more tiring to use. If you do not expect to travel much, you are probably better off buying a desk top.
Choosing the right model It is important to know that the hardware and software you buy will let you do exactly what you want. You may need the advice of a dealer or consultant to help with purchasing and setting up systems. The main points to consider are: i)
What do you need to be able to do on the move?
ii)
What sort of data is to be communicated?
iii)
Will data travel both ways or just one way?
iv)
Are advanced facilities necessary or just nice to have?
Once you have a hardware specification, check different machines to find the one that suits you best. Computer superstores let you test different models before purchase. Mail order is a cheap way to buy, but you need to know exactly what you want. When comparing models look at the following.
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Ergonomics Models are laid out differently – choose one which you are comfortable with. Various types of cursor control are available – touch pad, trackerball and nipple – all usually replaceable by a standard mouse. Keyboards come in a range of sizes and have different ‘feels’. Higher specification machines weigh more, so consider modular systems. A good modular portable PC weighs around 2kg without addons, a fully specified one can exceed 5kg. Look for a machine that will withstand knocks. Check that no parts protrude unnecessarily and that ports and slots have protective covers. Batteries and hard disks need to be firmly held in place.
Modular systems Check that all modules are easy to remove and replace. Also check that PC card (PCMCIA) sockets are easy to access. Levers, covers and locking tabs should look robust and be unlikely to break in use. Look out for modular systems with additional features that suit your needs – for example a screen which can be removed and placed on an overhead projector (OHP) for use in presentations.
Screens Choose the screen to suit your applications. For the best resolution you need a large screen with a high number of pixels.
Power supply Most portable devices run on batteries but can also use mains power via a plug-in cable and AC adapter. Adapters also recharge the batteries. Some adapters fit into cigarette lighters in cars. Dual voltage adapters may be necessary if you travel abroad. Two battery types are common: NiMH and Lithium-ion (Li-ion), with Li-ion used in better models.
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Some models can hold two batteries. When powered from battery, few portable PCs will run for more than three hours on one battery before needing to be recharged – the time will be lower for a highly specified system running items such as a CD-ROM drive.
Expandability In the office, many portable PCs can be used more easily by adding a normal PC keyboard, mouse and monitor. In some cases this can only be done with a Docking station – a unit into which you slide a portable to convert it into a desk top PC. They usually come with space for additional drives, RAM expansion, etc. Docking stations are bulky and tend to be specific to the make or model of portable PC. A number of portable add-ons can be connected via PC cards. Various types of PC cards exist, differing in thickness – Type III being thickest. Type III sockets are most common (being able to take thinner cards too). The add-ons are portable and meet compatibility standards. Not all portable devices can use PC cards; many PDAs lack PC card slots. The add-ons available include: i)
Modems – most support both fax and data, and are capable of operating anywhere in the world. Legally you should only use a modem approved for use in the country you are in. Cellphone data adapter cards, although more costly, are useful when you don’t have access to a land-line.
ii)
Network interface – will connect a portable PC directly to a cabled PC network.
iii)
Hard drives – expensive but portable and allow extra data storage. PC Memory cards can also be used for data storage and are less prone to damage.
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iv)
SCSI adapters – they can be used with an external SCSI CD drive, providing flexibility.
v)
Voice adapters enable a user to dictate letters and articles. Audio cards are useful for presentations and can be used alongside voice and data modems.
vi)
Combo cards combine the functions of two PC cards in one, if you can find one to suit your needs.
Communicating As well as carrying around and manipulating data, you may need to communicate with the office or another site. Your system and procedures must be set up to suit your needs. At the same site, data transfer can be via a cable or infra-red link between the mobile and office machines. From remote locations, links are usually via the telephone network. This can be either by direct dial or via the Internet. Direct dial is the most secure but is expensive for extensive national or international use. An Internet service with good worldwide coverage saves money, since all calls are at local rate. Data capable mobile phones allow data transmission where there is no standard phone connection available. Portables using a PC card modem allow data transfer when plugged into a phone socket. Many portables have built-in communication tools allowing you to confirm data, read e-mail, send and receive faxes and surf the Internet. In foreign countries, check to see if you need adapters to let you plug in to phone sockets. In some cases it may be better to carry an acoustic coupler which can connect your modem to any telephone. For greater mobility you could use a digital cellular phone. The phone must be data capable and may need a Data card. Such a phone may
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be expensive, but can be used in much of Western Europe and elsewhere. Mobile call costs are high because data transfer is slow and the cost per minute is high. If you intend to use a mobile phone for data transfer, check that the network in the countries or areas you are visiting is ‘data enabled’.
Useful tips
The perfect system for mobile computing has yet to be produced. All have points for and against – weigh up the options to suit your needs best. Consider purchase and usage costs against potential savings and competitive advantage.
Where possible, use fixed phone lines for data transmission – they are usually quicker, cheaper and more reliable than mobile phones.
Get your supplier(s) to guarantee that all items will work together in the situations you need them to.
Where possible, check out where you are going to be in advance and plan which equipment you require.
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Part Two
Effective use of software
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Databases
7
This chapter discusses computerised databases and their various uses in the small business.
Introduction Many small businesses use a personal computer (PC) for administrative tasks like accounts, word processing, etc. Databases are useful where a lot of information is held in a standardised format. Most commonly, databases are used to keep a record of existing and potential customers, enabling orders to be processed and direct mail promotions to be carried out. Information is obtained, for example on an order or enquiry form, and then keyed into the database. Basic databases might be mailing lists categorised according to a variety of criteria (eg location, past customer, potential customer, etc). At the other extreme, databases can be used to store large quantities of information for reference purposes.
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What is a database? A database is in many ways like a card index, however it can contain a large number of records in a fraction of the space. A card index is only easily accessible in the order in which it was filed. Database records can be sorted into any order and individual records can be found, viewed and amended in moments. Sets of records can be printed out, and statistical analysis carried out. The information can be carried on portable computers or transferred on disk or on-line to other locations. Most databases have structures based on records and fields. A record is an entry within the database, for example the details of a single enquiry or individual employee. A field is an item of information within a record, for example, an enquiry date, a record number, or a postcode. The main types of fields are ‘numeric’, ‘alphanumeric’ or ‘date’. Calculations may be carried out on numeric fields. Alphanumeric fields usually contain text, or a mixture of letters or numbers (eg a postcode). The database may be ordered by a particular field, for example alphabetically (alphanumeric), numerically (numeric) or chronologically (date). Sets of records may be extracted from the main database according to chosen criteria, for example all current customers who have not placed an order for over three months.
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Database applications A database allows you to manipulate and exploit large sets of records far more efficiently than manual methods allow. It is useful to look at what a database provides for you in terms of ‘outputs’: i)
Searching and updating – individual records can be found quickly, even when details given are incomplete, and updated as required.
ii)
Grouping and targeting – sets of records can be selected according to different criteria. This is very useful for targeting groups for different products or a different type of approach.
iii)
Printing and mail merge – lists, address labels, personalised letters and many other customised documents can be generated for your selected groups.
iv)
Statistical analysis – data can be analysed and presented in a form which aids management decision making (eg monthly sales figures, customer profiles, etc).
Other uses include keeping track of products sold or purchased; detailed patient records and linked prescription printing for doctors; stock control systems linked into bar code readers; and databases designed to store and analyse the data from surveys. Some of the newest databases can be used to make the data available to an Internet or Intranet website.
Evaluating your needs It is important to understand your existing system before you computerise it. Write down the existing procedures you use. Consult with others on how things can be improved. Look at the benefits which computerisation will provide. What do you want to do in the future that you can’t do now? Above all, look at the paper systems and procedures which
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are required in order to keep the data up-to-date. You may find that you need to devote more staff time to data processing than before, though there should be time or cost savings (or competitive advantage) in being able to use the data more rapidly. When you evaluate the costs of running the system, ensure that the benefits of computerisation are sufficient. Be specific, how often will you do mailshots, how many enquiries will you process daily, how often will you require reports? You should have very specific ideas of the benefits which a database will bring before you even start looking at technical requirements. Concentrate on outcomes rather than features.
Choice of software Your systems analysis will largely determine the type of software you require. The main choices are between off the shelf, adaptable and specially written packages. In addition consider packages which link to other software systems. Some software packages are designed for very specific purposes (eg payroll) where all you need to do is enter your own data. Many pre-written database systems are available to suit specific businesses, anything from bakers to nursing homes. These are usually advertised in trade magazines. There are also packages which allow experienced programmers to design their own databases. In the mid-ground are several packages (eg Lotus Approach, Microsoft Access, or Claris FileMaker) intended to allow end users to set up their own databases. Unless you have a lot of time to spare, or trained staff, you will need help to set up anything other than simple systems, even though the mid-ground products are capable of complex results. Assess the likely cost of development and compare these with the costs of an offthe-shelf package, or one customised for you by a third party. Your needs may be so particular that you must pay someone to develop a specific program.
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Do not accept manufacturer claims at face value. Check trade magazines and talk to your trade association. Talk to other business people about their experiences with software. Seek demonstrations from dealers. Demo disks allow you to try out the software. Note that some demos just talk you through facilities and show the software in the best light, ignoring the hours that you might have to spend to produce such applications. Computer magazines review the most widely available software as it is released or modified. You may come across two types of database defined as ‘flat file’ and ‘relational’. The two are very different. A flat file can be thought of like a spreadsheet, with each record taking just one line. Each field requires a separate cell. A relational database behaves as though each cell is the top of a column which can store related data – say sales turnovers at different dates. Flat file databases are much simpler in design, but far less adaptable than relational databases. You might get away with using a flat file design if your needs are simple, but if you are likely to develop other databases, which could use data held in your first database, it is prudent to start off with relational database software in the first place. Software available includes Claris FileMaker, Lotus Approach, Microsoft Access, Corel Paradox and Microsoft FoxPro. All require users to develop their own applications, though some are more suited to experienced database developers. Some computers are sold with some software already installed; this can be either fully specified packages (eg Lotus Approach or Microsoft Access) or lightweight integrated packages (eg Microsoft Works or Claris Works).
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Setting up the system Planning and resourcing Computerising your records can fundamentally change your work procedures. It is important to plan for the introduction of the new system. Many problems can be created by using a computer system before it is fully ready. Transferring data into a database is time consuming if you are converting from a paper based system. Consider using temporary staff for the task. Run computerised and paper systems in parallel until you are sure that the new system is reliable and everyone is using it properly.
Designing input systems and screens You need to decide exactly what data you need to store in your database records. There is a great temptation to keep more than you will need. Bear in mind that the more data you store, the more you must gather, input and maintain – there are real costs attached. Think carefully about what information you will need in each case, and what you will use it for. Input screens should show information in a logical and readable fashion and the layout should match any forms used for data collection.
Data entry and retrieval Accurate and consistent data input is vital. If you intend to use codes to categorise records, standardise the coding and notify data entry staff in advance. It is usually possible to set the system to reject entries which do not match valid code lists. Draw up standards for data entry before you start to input. For example, decide how your system will handle business names. The standard solution is to record a firm’s name as it appears on their letterhead. Have consistent rules on spacing between letters and words (otherwise W H Smith could be W. H. Smith, WH
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Smith or W.H.Smith) – they mean the same to us, but to a computer they are different. If you searched a database for an exact match, you might miss the entry if you were inconsistent (though some databases offer an option to search for the closest matching entry which should find the record). Databases are good at finding an entry from a large amount of data when you only have a clue to start with, for example, you know that a contact is called either Hargreaves or Hargrove, but can’t name the company – get the computer to search for surnames containing ‘Hargr’, then check the entries it offers.
Administration Establish systems to keep your data up-to-date. This may simply involve assigning responsibility for making changes to the database as they are required. On a regular basis, check addresses and contact names are accurate and up-to-date and that defunct records are deleted. A rolling programme of verification may be appropriate, perhaps based on a date of last update field. Allocate adequate staff time to maintaining the system. Staff should be fully trained in the use of the system. Make sure working conditions comply with the Health and Safety (Display Screen Equipment) Regulations 1992. You will need procedures to ensure that the only people to access your data are authorised to do so – particularly if you hold information on individuals. You must comply with the requirements of the Data Protection Act 1998. Contact the Data Protection Registrar for details. It is essential to make regular back-up copies of data in case the system breaks down.
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Useful tips
Ensure that you are committed to computerising your records system and budget accordingly. New I.T. systems rarely represent a cost saving. Computerisation should be seen as an investment which allows you to do more with your information. Establish the necessary staffing and administrative back-up to make the database work properly.
If your database requirements are fairly limited, for example, you only intend to carry out the occasional mailshot, consider buying the information in as you need it, from a business that sells targeted mailing lists. Marketing Week carries advertisements from companies offering various database and direct marketing services.
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Spreadsheets
8
This chapter describes computer spreadsheets and their uses.
Introduction Many computer users in business find spreadsheet software very useful – and not just for financial control. The name spreadsheet derives from the spreading of accounts on a sheet of paper. A spreadsheet is rather like an on-screen calculator displaying all of the numbers upon which calculations are based. It is simply a table of rows and columns into which numerical, textual or coded data may be inserted and displayed on screen. Very large sheets of data can be built-up. Only part of a large sheet may be seen on screen at any one time, but the user can look at any part of the sheet as they wish. Calculations can be performed on any of the figures and the results displayed as required. The results displayed are automatically recalculated. Data can be printed out as seen or in special report formats. Some packages can generate graphs and charts to illustrate the figures.
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Uses of spreadsheets Spreadsheets lend themselves to financial planning because of their ability to recalculate results instantly if any single figure is changed. This is particularly useful for ‘what if’ analysis (eg, what if my suppliers raise their prices by five per cent? What if my sales increase by ten per cent?). The range of tasks that a spreadsheet can perform is enormous. Simple uses include the calculation of key financial ratios. More complex tasks include job costing, scheduling, cash flow forecasts, business plans, budget and actual comparisons, and timetabling. Any production process that uses a number of materials to produce a range of items can have the costing process simplified by using a spreadsheet. For example, a baker can set up a spreadsheet file to display his recipes, calculate the production costs of each batch and the selling price for each item, given a required profit margin. When the costs of ingredients change, the updating of one list – the ingredient costs part of the spreadsheet – will recalculate the batch costs and selling prices of each product. As familiarity grows, spreadsheets can be developed to calculate things like economic order quantities, most profitable product mixes, etc. A spreadsheet is a useful tool for anyone using techniques learned at business schools, but is equally useful for those who work intuitively. The latest packages include sophisticated graphing and statistical abilities. These make it simple to maintain break-even charts, calculate sales trends, look for correlations (such as sales versus advertising expenditure), etc. Serious spreadsheet users can model any business activity that can be turned into numbers and calculations, for example, for decision making or for streamlining processes.
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Terminology The junction of a row and a column forms a cell into which text, numbers or a calculation formula may be placed. Formulae are not displayed in their cells but the results they produce are. Most spreadsheets have several functions available. A function is a built-in formula to calculate financial or statistical information, such as loan repayment figures. Each cell has individual coordinates based on row and column numbers. For example the cell in row three of the fourth column is referred to as r3c4 in some software, or as D3 (columns being letters and rows being numbers) in others. Cell addresses, or references, are used in a formula (eg +D3+D4) within another cell (eg D6) which will display the result of the calculation. Numbers can be displayed in various formats – including currency, dates and number of decimal places. There are many more cells than can be shown on the screen at any one time. It is not unusual to have up to 8,192 rows and 256 columns (over 2,000,000 cells) available, although you are unlikely to need them all. It is often more convenient to use several linked or inter-related spreadsheets rather than one large one. A spreadsheet may also be called a worksheet or a file, and will normally be saved on disk with an individual filename. A group of cells within a spreadsheet are known as a block or range. Blocks can be selected by the user to be printed, turned into graphs, referred to by other spreadsheet files, or to have other operations performed on them. To make a spreadsheet easier to understand, you can add explanatory text, improve the layout by leaving some cells blank, or hide cells that are important to the calculation but do not aid understanding. To prevent accidental entry or erasure of data you can lock cells so that they cannot be altered, but allow colleagues, for example, to perform calculations, but not change the underlying formulae. Some of the more advanced spreadsheets have ‘remember’ or ‘macro’ facilities that let the user
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automate routine or repetitive tasks. You can buy pre-written macros. The addition of Visual Basic code makes spreadsheets extremely versatile for people who do not need to know how a spreadsheet works, but who do need the results.
Choice of software The capabilities, ease of use and hardware requirements of software on the market varies considerably. It is very important to think through what you want to use spreadsheets for and to take advice on which package will best suit your needs. Some software manufacturers produce demonstration disks. The best are working versions with which you can experiment to see how easy they are to use and whether you can get them to do what you want. Some computer magazines print buyers’ guides which grade spreadsheets as ‘beginner’, ‘intermediate’ or ‘advanced’ and give an indication of the sort of hardware required to run the software to best effect. If you are comfortable working with computers, your ambitions for the use of spreadsheets can develop quickly and you may want to use functions beyond beginner level – in this case, you will want to start by choosing a higher level package. The choice of top end spreadsheets should depend more on how easy you find a particular package to use than on the esoteric functions that it offers. Well regarded packages include Microsoft Excel, Lotus 1-2-3 and Quattro Pro. These are often found bundled in suites of software which include wordprocessors (Microsoft Office, Lotus SmartSuite, Corel Office). Most PC software now runs on one of the Windows operating systems; DOS versions are increasingly hard to find. Packages are available which operate complex statistical or financial functions, or can be programmed to perform substantial tasks
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automatically. A number of the newer spreadsheets allow formulae to be built-up in natural language (eg Gross Margin = Revenue – Cost of Goods) instead of using cell references, making it easier to understand where the figures come from. Price is not necessarily an indicator of capability; some very well specified packages cost much less than others. Often you are paying a premium for extra compatibility with other packages from the same manufacturer (eg, Microsoft Excel works closely with Microsoft Word). If this is not of major importance, you then have a much wider choice. The packaged software sold with some computer systems usually includes a spreadsheet. Often the software is in an integrated package, for example Microsoft Works or Claris Works, is suited to a range of basic business applications (including spreadsheet and word processor functions) but has limited potential for development. Some computer suppliers provide the latest editions of a full software suite like Lotus SmartSuite (with word processor, database, spreadsheet, etc) or Microsoft Office when you buy their systems. If the combined software and hardware in one of these packages will meet your needs this can be a cost-effective way of getting started.
Running a spreadsheet You may need to employ someone with specific skills and experience in using a spreadsheet, train appropriate staff, or invest plenty of time in learning to use the program yourself. The skills are usually more important for setting up or adapting spreadsheets to do particular tasks than for using them. Some software has built in tutorials that can show you the basics quite quickly, but there is no substitute for working through examples yourself. Learn to build up increasingly complex spreadsheets from simple procedures.
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Building a spreadsheet is not as laborious as it might appear because the software has the capability to copy formulae rapidly. Some packages include tools to let you see exactly how a sheet has been built-up and how numbers and formulae relate to each other. This can be very useful, especially with complicated layouts and large spreadsheets, but it is better to have a disciplined approach to design and set up in the first place. Planning is important in making the spreadsheet easy to use once it is set up. Aim to use data security features whenever appropriate to prevent mistakes that could take a long time to rectify, or which might never be seen – for example you can hide portions of a spreadsheet or lock cells so that entries cannot be overtyped. Large and complex spreadsheets can slow down significantly when used on less powerful computers. Consider getting a computer with a fast processor speed if you intend to use large spreadsheets or other mathematical software. A criticism sometimes levelled at very large spreadsheets is that significant errors can creep into the results – usually because of minor errors introduced whilst setting the sheet up.
Useful tips
It is very easy to introduce errors when you make changes, especially when enlarging a spreadsheet. Look for one with an ‘auditing’ facility which lets you trace from where a formula cell gets its data.
Once you have set up a spreadsheet you can copy it as many times as you like so that you have a number of files which you can adapt for different data as required. Copying the file for use as a template is a good way of making sure that your spreadsheets have a consistent format. Files are easily combined, for example, you could have five sheets of identical format – one for each quarter’s figures, the fifth automatically totalling the figures for
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the year. Some popular spreadsheets have had a range of templates and utilities developed for them, often by third party companies. This can reduce the time needed to set up the spreadsheet for particular tasks. Availability of these add-ins may influence your choice of software.
When you first set up a spreadsheet, test it with sample data for which you know the results, then you can more easily spot any errors before using real data.
Your local college of Further Education may run reasonably priced courses on how to work with spreadsheets (they usually use Lotus and/or Microsoft products). Training is worthwhile because major software suppliers charge for technical support, taking the view that it is unfair of users not to read manuals or invest time in learning their products.
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Desk top publishing
9
This chapter looks at the uses of desk top publishing (DTP) in business.
Introduction Most businesses, whatever their size, need to produce some printed documents; these can include reports, advertisements, leaflets, catalogues, order forms, newsletters, etc. Desk top publishing is a way of producing a wide range of documentation. The results can be better looking than those produced using typewriters or basic word processors. Using a computer and DTP software, one person can bring together and manipulate all the elements of a publication, ie text, graphics and scanned images, on screen. With an appropriate printer attached to the computer, the completed pages can be printed out. For complex print tasks, the computer files can be saved to disk and passed to a commercial printing firm. To get the best results, desk top publishing needs to be done by someone who has design, editorial and layout skills, as well as basic computing skills. Specialist DTP firms exist to serve the needs of businesses which don’t have, or need, their
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own in-house DTP capability. DTP is most likely to be used by service and information businesses.
Is DTP needed in-house? This needs careful consideration as there are a variety of external sources of DTP production readily available. This includes high street printers, who will design and print items for a relatively modest cost. There are also many small independent DTP businesses which can be used on a ‘job-by-job’ basis or on a more permanent contract. The wide variety of external providers available means that careful consideration is needed when deciding whether to have all or some of the DTP production process in-house. The main advantages of having DTP capabilities in-house are greater control and flexibility over the production of publications; improved turnaround of work; and standardisation of company documentation. Doing DTP in-house will only save money if there are enough jobs to be done that would normally go to an external DTP service. When comparing costs, allow for hardware, software, training, staff pay and staff time. The following factors should be considered before deciding:
Frequency and volume of use How often are documents that require DTP produced? Are all the documents different or are they produced to the same template? You should decide whether in-house DTP would be more cost-effective than contracting out to print firms.
Type of documents produced What kind of documents are produced? For example, glossy, full colour booklets with photographs require a large outlay on resources in order to prepare them in-house, even if the printing is carried out externally.
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Production times Do documents need to be produced at short notice, with tight deadlines? In-house DTP facilities will almost certainly save time on proofing and checking.
Employees Employees using DTP packages need to undergo initial training. Professional courses usually last between two days to a week – this is the absolute minimum for each piece of software. Extra production time must be allowed whilst staff become familiar with DTP packages. It is preferable that DTP facilities are operated by someone who has a background in, or a talent for design.
Resources The basics required for DTP are a computer, suitable software and a printer. Many businesses will already have a PC and printer – although to get the full benefit of the DTP software, a high resolution or colour printer may be needed. If the final copy will be printed in-house, the quality of the printer output is important. If only drafts will be printed in-house, a stylewriter or inkjet printer should suffice. If the documents are to be printed externally, they may need to be produced on an Apple Mac as these are used by most professional designers and printers.
Standardisation Do all documents need to be produced to a standard format? If documents are produced in-house it will be easier to ensure that they conform to specifications.
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Hardware and software requirements If it is decided to have DTP facilities in-house, as with choosing any other computer hardware/software it is important to consider all the options before buying. Information on and reviews of the latest software and hardware can be found in computing magazines. Visit computer dealers and get demonstrations of different packages. Professional advice is usually free, but it is worth shopping around and comparing what is being recommended (and why). When assessing which hardware/software to buy, the following factors should be considered:
Compatibility with existing hardware/software Can existing computers run the chosen software? Do they need to be upgraded or replaced? Does the chosen software work with other programmes already on the PC? Is it easy to import/convert text, figures, etc, from other programs? Is a higher resolution monitor needed to make viewing easier?
Printers Bringing DTP in-house may mean purchasing a printer. Check that the printer is compatible with the DTP software and that it will produce a high enough quality output. Colour inkjet printers are the cheapest option, costing from around £200. Colour laser printers which produce a higher quality output, cost from around £400 to over £7,000, although prices for these are dropping. When considering buying a new printer it is important to find out about maintenance costs and how much regularly replaced parts like toner/ink cartridges cost.
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Ease of use How user-friendly is the chosen software? Is there on-screen help? Does the package take long to learn? Are the manuals easy to use? Is training included in the purchase price?
Type of publications Some software packages are intended for users who want to put together longer publications, such as technical manuals or booklets; others are more suitable for users who want to produce shorter publications.
Add-ons Consider what peripherals may be purchased in the future. This may include a CD-ROM drive (standard on new Macs and useful for accessing photographs held on CD, or large collections of clip-art), a scanner (for reading in existing pictures, plans, etc), an art pad (used by people who don’t like using a mouse to draw pictures on-screen), etc. Will the existing hardware and software accommodate these? If photographs etc, are to be scanned in and manipulated, the computer must have a decent processor and may need extra memory. Additional software with suitable capabilities may also be required.
Costs Budget for purchasing the equipment needed for DTP, according to how much it will be used and the quality needed. Costs will obviously vary widely according to the requirements of the business. Basic software to run on an existing PC may cost around £100, though its capabilities could be limited. To buy a whole system to produce higher quality documents – for example a Mac with software and a printer will cost upwards of £1,500. When budgeting, the costs of staff time and training must also be included.
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Support Is adequate support offered by the hardware/software producers and/or suppliers? Is there a help desk? Is the on-screen help easy to use and follow? Check out the costs and coverage of service contracts and maintenance contracts.
Training Most professional DTP operators have qualifications in graphic design as well as experience in using the software. If producing publications is an important part of the business it is worth considering employing somebody with a background in design and DTP. If DTP requirements are more infrequent, it may be better to retrain existing staff. Apple have various centres around the UK offering Macintosh training and there are numerous authorised independent trainers. Courses in DTP are usually at one of three levels: basic – for new users, intermediate – covering key features for operators, and advanced – covering more complex features of the software. Training organisations throughout the UK run DTP courses. Most concentrate on specific software such as QuarkXPress, PageMaker, Corel Draw, etc. Some courses are available for PCs and Macs, others just for Macs. However, the way a particular program is used on a Mac is little different to the way the same program is used on a PC. Local Colleges of Further Education often offer very introductory DTP courses, though shorter, more intensive courses may suit business needs better. The Regional Examining Boards have an introductory Desk Top Publishing Skills Certificate and the RSA has a stage 2 examination in DTP. DTP software training does not usually aim to develop a trainee’s design skills.
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Useful tips
Many of the capabilities of DTP software are now available as part of word processing packages. It may be worth exploring whether these more versatile word processing packages will better suit the DTP needs of your business.
Many printing firms work mainly or solely on Macs and tend to favour QuarkXPress. This means that they can only print documents which have been produced using Mac compatible software. If documents are to be printed externally, it will be useful to contact some printers before investing in equipment.
There are a number of stages between finalising a design and the final print run. It is important to agree in advance who is responsible for each stage. If a design/print bureau is used, they will usually liaise with the printer and take on some of the intermediate responsibilities.
For DTP equipment to be used to its full potential, it is essential to invest in proper staff training, or to recruit people with the right skills.
To develop a standard look for business documents, work to templates and have a set of guidelines on standard features like colours, logos, fonts (typefaces) and heading sizes.
Check that the hardware/software chosen is compatible with any expected external sources (eg images from graphic designers).
Hardware used for graphics or DTP work is usually compared by features such as the resolution of the images produced in printouts. Resolution describes the ability of the equipment to show fine detail. Dots per inch (DPI) is a common measure – the higher the number, the finer the image. Work should always be done at the resolution of the final printing, even if the draft or proofing prints are to be printed at a lower resolution.
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Computerised business accounts
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This chapter describes computerised accountancy packages and their uses.
Introduction The owners/managers of small firms often find that keeping a close eye on the finances of the business is the hardest task they face. For many of the smallest firms, a paper based accounting system is all that is required to keep track of incomings and outgoings. As a business grows, it may become more appropriate to use a computer to record accounting information and take on some of the more fiddly or repetitive processing tasks. The first stage of computerising a firm’s accounts is deciding that it is worth doing. There are numerous accountancy software packages on the market. Some cater for small businesses and those working from home, others are aimed at huge, multi-site companies operating internationally. There are also packages designed to suit the needs of businesses at various
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stages in-between. This chapter presents some of the features of computerised accounts and outlines some of the issues that need to be addressed when considering such systems.
Computerising your accounting system Most accounting systems are divided into ledgers. Computerised accounts packages reflect this, which means that the layout, and the thinking behind it, are readily understood by anyone who has experience in double entry bookkeeping or accountancy. Basic computerised accounting systems usually comprise the nominal ledger, the sales ledger and the purchase ledger.
Nominal ledger Many small businesses won’t have used a nominal ledger before computerisation. The majority will have worked from a simple cash book along with basic sales and purchase information. The nominal ledger is the most complex aspect of computerising the accounts system. Input to the nominal ledger will come automatically from the sales and purchase ledgers, thus saving time. The nominal ledger is central to the computerised accounts system.
Sales and purchase ledgers In computerised systems, sales and purchase ledgers can run individually, be grouped together or can integrate with the nominal ledger. Businesses will often manage all modules separately initially and then combining at a later date. Computerising the sales and purchase ledgers will no doubt affect clerical procedures, because data input, etc, has to be systematic.
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Payroll As pay levels remain largely unchanged each week, the printing and calculation of wage slips is extremely repetitive. This kind of task is ideal for computerisation. Payroll needs priority at some point during the week, and is therefore best run as a separate system to the rest of accounts. Many packages have optional payroll modules and information can be held on the system relating to overtime, maternity pay, sick pay, pension information and tax deductions.
Features of computerised accounts systems can include: 1. 2.
Controls and checks to ensure that all entries balance. Automation of repetitive procedures like invoicing or order processing.
3.
Recording and control of all transactions with customers and suppliers (some systems include foreign currency calculations).
4.
Production of professional looking invoice statements. Details of outstanding payments and debtors will be easily obtainable as long as input data is kept up-to-date.
5.
Facilities for generating reports, in some cases the reports can be tailored to fit individual needs.
6.
Ability to account for VAT, and EC VAT requirements.
7.
A budget facility is often included – it may be extremely simple – presenting an overall annual total, or more complex, demonstrating seasonal fluctuations or departmental changes.
8.
Facilities for automatic cheque runs. Control can be maintained by requesting a handwritten signature for cheques.
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Choice of software There are a number of accounts packages on the market. Your choice will depend on the size of your business, the hardware you already own, what you want the system to do, and the number of people who will be using it. Software is available to run on a variety of operating systems including Windows, DOS and Apple Macintosh. When selecting appropriate software for your business, identify the areas of your accounts system which would benefit most from computerisation. From this create an ‘ideal’ system specification. Unless you are able to afford an accounts system tailored to your business, you will have to compromise to some extent and select a system ‘off the shelf’. Major considerations will include how much of your existing accounts system will transfer to computer, whether the system is to be single user or multi user; whether the business might expand to further sites; and how easy it will be to upgrade the different options in future.
Self-employed and home users The most basic packages which might be used by self-employed people and the smallest businesses cost around £40 and include Intuit’s Quicken and Microsoft Money. Such packages might not be flexible enough, so also consider packages under the heading below.
Small businesses Proper business accounting software starts with Sage Instant Accounting, Intuit Quick Books and Pegasus Capital Lite (around £100 to £150) and goes on through packages including Pegasus Capital, Sage Sterling and Megatech TAS Books (prices around £200 to £600).
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Medium sized businesses Overlapping with the business packages above are higher priced ones. These have a wider range of features and are more suitable for bigger businesses because of their greater flexibility and scope. They are often modular systems, where the basic ledgers (sales, purchase and nominal) and other ledgers (eg, stock control, invoicing, ordering, costing) are bought individually as required. The main ones are Sage Sovereign, Tetra 2000, Access Accounts and Pegasus Opera. Prices for these packages start around £1,000 for the basic ledgers.
Large businesses There are a number of packages available for the larger company. Usually allowing a lot of customisation, they may even have modules specially written. There is usually a large consultancy fee to pay for setting up such systems.
Features of good accounting software It may be useful to consider the following points when comparing the various features of the software package.
Functionality What basic features do you want in your system? Divide your requirements into ‘essential’ and ‘desirable’ features. The software must be able to perform all essential functions, and should ideally have all or most of the desirable points – if it doesn’t, you may never be satisfied with it. It should also perform all of its functions effectively.
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Reliability and security The software must be consistent in its output. This is vital for ensuring accurate processing. The system should, if possible, check for discrepancies and produce reports of such problems. In addition, good accounting software should have facilities to ensure accuracy and integrity of data. Ideally, there will be an automatic back-up system, to help you to track down processing failures.
User manuals and support Even the best designed systems are of little use unless they are supported by understandable user documentation and/or training. This should be a major consideration when selecting an accounts package. Check with the suppliers and software houses to find out where the training, support and maintenance will come from. For example, Sage has an excellent help desk which will help with accounting problems, as well as software ones.
Ease of use and flexibility The more complex the features that a package has, the more difficult it may be to operate. Find out whether the package is aimed at the first time user or the professional accountant, and buy according to your needs. As well as this, the software should have some level of flexibility. This may cover simple changes such as altering the layout of a report, or it may be more fundamental to the system, perhaps covering processing efficiency. It may be sensible to see whether a chosen package allows you to upgrade or add more features later without having to re-enter all your data.
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Using an accounts package After considering which aspects of accounting can be computerised and deciding on an appropriate software package, you will then have to install and use the system in your business. Before installing the system you need to be sure that your manual accounts system works adequately, otherwise problems that you may be trying to remove could still remain. Make sure you understand the process of implementing an accounts package and have some idea of an overall plan. You should also have considered the wider implications of computerising your business.
Useful tips
Plan the system you require well in advance – but be prepared to compromise.
Make sure that the computerised accounts package is suitable for you and your business. Most systems require the user to have at least a basic knowledge of bookkeeping techniques, some have features which require a detailed knowledge of accountancy.
Create a checklist to assess packages according to your needs.
Computerisation can be complex; enlist the help of a professional accountant or the software supplier to ensure that installation is carried out correctly.
Don’t let a computer system become a substitute for good practice.
Don’t delete important accounts records from the system. When using an accounts package you must keep back-up copies of data and transactions, in accordance with the Finance Act 1984, the Companies Act 1985 (amended 1989) and subsequent regula-
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tions covering the accounts of small firms. For example, in the case of tax records, information must be kept for at least five years.
Many bookkeeping firms use computers to keep their clients’ accounts. Using such a firm can be a good idea, but it may be expensive and removes control from the business owner. If you use a bookkeeper, find out about the software they use – you may want to transfer the accounts back to your own firm later. You should also discover if they will let you transfer the computer file to your company.
Any chosen computer package should allow a smooth transition from the way the accounts are currently run – changes should be minimal (unless the current system is muddled and ineffective).
Using computers in accounting doesn’t rule out the need to manage the system carefully, although it may minimise the scope for error.
Check if your accountant can take your books on disk to prepare your annual accounts.
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Part Three
The Internet
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Finding information on the Internet
11
This chapter describes the various methods of obtaining relevant information from the Internet.
Introduction The Internet contains a vast amount of free information, produced by governments, businesses, academic institutions, individuals etc, which can be useful for businesses. However, there are several common problems with using the Internet for research. Information overload can be avoided by being more precise in your search terms, for example, a search using the search engine AltaVista (see below) for information on Bulgaria brought up 40,000 items. However, adding additional reference terms will narrow the search removing irrelevant sites (eg adverts for Bulgarian beer or references to ‘The Wombles’). The US dominates the content of the Internet. There is also a lack of quality control in the information available – anyone can publish anything they want to on the Internet. Internet searching can be frustratingly slow (especially at peak times), time consuming (because of the volume
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of data) and relatively costly (unless you get free phone calls). Information that costs money to create, for example, market research reports or the full text of newspapers, won’t be available free – but the Internet can be used to reach subscription services. Unstructured browsing or ‘surfing’ of the Internet is potentially even more costly and time wasting. This chapter is designed to help Internet beginners find useful information as quickly as possible.
The World Wide Web The World Wide Web is the most common method of organising and delivering information over the Internet. The World Wide Web uses hypertext, which is linked text: a highlighted word or phrase in one piece of text when activated, leads to a different piece of text related to the first word or phrase. Common browser software, like Netscape Navigator or Microsoft Internet Explorer, can be used to follow embedded hypertext links anywhere within or between documents, as well as to access graphics, video clips and sound. Web pages very often have links to other sites on a related topic.
Finding information on the World Wide Web – URLs Every Internet site has its own address, known as a URL (Uniform Resource Locator). URLs can often be found in promotional material from organisations (eg advertisements in magazines), in directories, or direct from the organisation itself. Using your browser, you can go straight to a site by typing its URL into the address bar of the browser. For instance, the URL for the Financial Times is http://www.ft.com. Http:// stands for hypertext transfer protocol and denotes a hypertext document written using HTML (hypertext mark-up language). Longer URLs need care to ensure that all the characters are entered correctly – for instance, the Health and Safety Executive’s publica-
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tions page is http://www.open.gov.uk/hse/public.htm. If the message ‘file not found’ appears, try shortening the URL to the slash after the site name for example http://www.open.gov.uk/ which will find the higher site page, in this case the British Government page, then try to follow the links to the parts you want. Advertised URLs often miss off the initial http:// but you may still need to use it.
Finding information on the World Wide Web – subject directories Search engines display subject indexes on the first page. These subject indexes, for example, travel and business, only cover a limited number of sites, but can be a good starting point for beginners and will cover the most popular and well used websites. Some of the most popular sites include: •
Yahoo: http://www.yahoo.com/
•
Yahoo (UK): http://www.yahoo.co.uk
•
B-net: http://www.bnet.co.uk
•
The BIZ: http://www.thebiz.co.uk
•
BUBL LINK – Business: http://link.bubl.ac.uk/business
•
EARLWeb – Business Intelligence: http://www.earl.org.uk/earlweb/busns.html
Finding information on the World Wide Web – search engines If the specific URL of a site is not known or information on a particular subject is needed, search engines are the easiest way to find it. Search engines do the hard work of checking over the web, following links and indexing the content of websites. There are several available, each with varying coverage. Different search engines don’t always index the same sites – for best results it is advisable to use a combination
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of search engines. Search engines are accessed using a browser. Some popular search engines and their URLs are: •
AltaVista – http://www.altavista.com
•
Infoseek – http://www.infoseek.com
•
Excite – http://www.excite.com/
•
Lycos (UK) – http://www.lycos.co.uk
•
Euroferret – http://www.euroferret.com
•
Hotbot – http://www.hotbot.com
•
UKMAX – http://www.ukmax.com
•
Ask Jeeves – http://aj.com (Ask Jeeves has a multiple search engine feature – see below)
Multiple search engines are search pages which allow you to search using several search engines simultaneously. Some popular ones are: •
Mamma – http://www.mamma.com
•
Dogpile – http://www.dogpile.com
Using search engines Before starting to use the search option, try to define exactly what information is needed and what words will produce this information. For example, to search for information on competitors in the sandwich retailing market, the search terms might be ‘sandwich’ ‘take-away’ and ‘UK’ (to limit the search). If this brings too few results, the search could be tried again with broadened terms for example ‘shop’. The results of a search will be displayed with the most relevant sites first. If the first few results seem to be largely irrelevant, try using different terms for example ‘cafes’ or ‘delicatessens’. If searching for information using more than one word, surround them with inverted commas, for example,
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‘Arthur’s Snacks’. This means that the index will only search for this name and not every mention of ‘Arthur’ on the Internet. Also note that, in general, upper case letters will be treated as case sensitive but lower case won’t.
Saving information found on the web Once relevant information is found, it needs to be kept in an easily accessible form. If the website(s) contain regularly updated useful information, save their URLs using the ‘bookmark’ (or ‘favourites’) facility found on most web browsers. There are usually ways to organise bookmarked URLs with comments or under different headings. This makes repeat visits easier. If the information is needed immediately, it can either be downloaded, printed or e-mailed. Software is available that automatically downloads websites and allows you to search them off-line – saving time and money.
FTP FTP or File Transfer Protocol allows users to download software and large data files from Internet host computers. Many software packages or updates are available on the Internet free of charge (a useful site is www.shareware.com), and new software is also often available for free trial.
USENET USENET is a global conferencing system where people communicate via the Internet. There are thousands of conferences and newsgroups on a wide range of subjects. Newsgroups are discussions on articles of interest and can be used to get an answer to difficult questions. USENET discussion lists that begin with ‘biz’ deal with business issues.
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Each newsgroup contains one or more articles (messages), which are similar to e-mail postings. Each article is kept in a subject folder (or thread) with any replies and comments. To access USENET a program called a newsreader is used. If your browser doesn’t have one, your Internet service provider will give you access. Reading postings from lots of newsgroups can take up a lot of time and the information may not be particularly relevant, so only subscribe to those that are regularly useful. Be cautious when first posting enquiries or articles to the newsgroups, as most have rules or ‘netiquette’ and always read the list of FAQs (Frequently Asked Questions), to check that the subject has not been covered already. The addresses of many newsgroups and mailing lists are indexed at: http://tile.net/
Mailing or discussion lists Mailing lists are again useful for discussions on current issues and for answers to enquiries. They are run by mail servers, software that stores a list of e-mail addresses of individuals. They can copy a message from one of those individuals to all the other people on the list. There are thousands of discussion lists on the Internet, usually on specific topics. However, as every message sent to the list is posted to everyone on it, this can mean having a lot of unnecessary and largely irrelevant e-mail to read. Again try to join only the most suitable lists and read all mail on a regular basis. Lists of lists can be found at http://tile.net/
The future The Internet is developing and growing all the time, with more information being added, more people searching for information and search methods improving. Keeping up with the developments is possible. Read Internet magazines, download new software from specialist sites and/or invest in the most up-to-date technology (eg faster modems
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and ISDN links). The DTI has launched the Information Society Initiative, to promote the use of technology. A network of local support centres provide guidance and help to businesses wishing to use the Internet and other new technologies.
Useful tips
In the UK, the Internet tends to work faster on a weekday morning, as the US is still asleep.
Before starting to search, define exactly what information is needed, what search terms you will use and which methods will be used to find it. This will save both time and money.
As anyone can publish anything on the web, relevant and trustworthy information is more likely to be found on sites set up by established sources, for example, governments, universities and newspapers.
If specialist information is needed on a regular basis, for example for market research, it may be worth joining a fee based network such as CompuServe to gain access to specialist databases.
To keep up-to-date with the latest developments, it is useful to read (either in hard copy or on the net) some of the many Internet magazines. They have comprehensive reviews of sites, and news of the latest developments, but most have a leisure emphasis.
Bookmark all the sites you find useful during searching, but remember to update and purge your bookmark lists regularly.
Use European sites where possible; they often work faster.
For extra speed, most browsers let you stop graphics from downloading. This speeds up searching because graphics take much longer to load than text.
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Business websites
12
This chapter gives an overview of setting up and managing a World Wide Website for your business.
Introduction The World Wide Web is part of the Internet. It is made up of a huge number of websites which are essentially inter-linked ‘documents’ containing information. Websites are held on computers known as web servers whose function it is to send documents to visitors’ computers on request. Servers are run by a huge range of organisations around the world (eg universities, governments, businesses). Visitors will access your website using a web browser. Browsers may be provided by Internet Service Providers (ISPs), but are also widely available from other sources.
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Do you need a business website? •
Websites are useful for providing and communicating information to visitors quickly and cheaply. As long as the server holding your information is running, customers and/or staff can have access to the latest product news, price lists, etc. Additionally, a website can be used to collect information for market research or sales leads.
•
Websites can be used to publicise your business. A small firm with a properly set up website can, potentially, get the same Internet exposure as a multinational company.
•
Business transactions over the Internet are becoming more popular. Security for bank or credit card details is still a concern. However, with encryption and businesses offering transaction administration services (including credit checks), much of the worry has been removed.
Getting started If the site is central to your business, you may want to control it by running your own web server. If not, it may be sufficient to lease space on someone else’s server. However, you should note that running a web server full time can be extremely expensive, reaching costs of around £10,000 per month. Most websites are not charged on space alone; the highest percentage of the cost is in the bandwidth used, that is, the amount of data sent across the Internet. You can incur a substantial penalty from your ISP for an excessive number of hits.
A simple website The simplest website contains one or two documents held on a server, owned by a firm leasing space to people who want a website but can’t justify the expense of running their own web server. Your Internet Service
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Provider may lease web space. Most ISPs now provide space (usually up to 15Mb) as part of their standard subscription, which will be more than sufficient for most small businesses. Third party firms also lease space – usually in conjunction with services such as website design and management.
Your own web server Running your own web server is not a cheap option. It could cost tens of thousands of pounds to set up and run a state-of-the-art commercial website for one year. Around a third of the costs are for setting up; the rest is for maintenance, support and updating. Whilst there is room for economy, and you can always lease space on your server to other small firms, the costs can add up. Realistically, only very large companies will have this sort of capacity.
Planning your website What is your website for and how important is it to your business? This will determine your entire approach. Do you need to be keeping up with the competition? Do you have specific business objectives such as using the web to expand into new markets; building a contact database; or projecting a modern image for the business?
What do you want to say? Consider how the website describes your business. Visitors need to know who you are, what products you have and why they should buy from you.
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Competition Have a look at your competitors’ sites and see what they are doing. Search the web using a number of different search engines to find similar sites.
Choosing a site name When choosing your website name or URL (Uniform Resource Locator), consider the following three kinds of domain. a)
Top Level Domains (TLD) – these include .com, .gov, .edu, .net, .org and .mil. Although US in origin, anyone can register under .net, .com and .org.
b)
Country Level Domains (CLD) – these represent the country of the domain, for example .uk, .fr, .de.
c)
Sub domains – this is also known as ‘domain partitioning’, where the URL includes your ISP’s name. If your ISP is Demon, your domain name will be www.yourname.demon.co.uk and your email address
[email protected]. You can register your own domain name such as www.yourname.co.uk with the accompanying e-mail address. This may require a mail forwarding service with an extra charge.
You might choose a website name reflecting your business type or the type of visitor you want to attract. You can purchase as many domain names as you like, targeting them all at the same website. Check to see if the name you want is available at sites such as www.netlink.co.uk or www.corpex.co.uk.
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Databases If you want to feature constantly changing information on your website, or if you want your site to allow searching on large amounts of data, you may want to use a database. Databases can reduce the costs involved with maintaining the site, but seek advice on whether you need an online or offline database, as they can be extremely complex and costly to set up.
Promotion How are you going to get people to visit your site in the first place? How will you encourage them to return? (see next chapter).
Security You don’t want access to confidential information available over the Internet. How can people use your site – is it open to all or are some areas restricted to members? Consider setting up passwords to identify users.
Designing and constructing your website How will your website look to different visitors? Website quality can vary dramatically depending on how the web pages were designed, HTML encoded, and written, which particular browser visitors are using and how visitors have their own particular browsers configured. A good site requires interesting copy, good layout, simple graphics, and lots of links to related topics. Users may want to print what they see on the website, so remember that while fancy graphics can look good, they can take a long time to download. Make sure all documents are proofed before they are put on the site. Bear in mind that different browsers display HTML pages in different ways. If you want to be
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absolutely certain that users see your materials in the way that you want, you will have to save files using Portable Document Format (developed by Adobe). This has the disadvantage that users require Adobe Acrobat Reader, though this is freely available, in order to read the pages. However, you will need to buy Adobe Acrobat to create PDF files.
Setting up your own site For a cheap basic site all you need is a web account with at least 5Mb of web space from an ISP. Start with a simple design and then get more adventurous – using links to other pages, graphics, etc. A web document is formatted using an authoring language called HTML (Hypertext Mark-Up Language). As well as defining format, HTML can set up hypertext links to other pages or websites (so that a visitor can move to them easily). Other items such as graphics, sound and video clips can be placed in web pages. The current word processing packages will convert documents into web documents inserting the HTML control codes automatically. Authoring software (eg Microsoft FrontPage; Adobe PageMill; HoTMetaL) gives more control and provides tools to ease the construction process. Whilst authoring packages mean that you can set up pages without understanding HTML, it undoubtedly will help speed up the process of editing titles and links if you can learn a little about how HTML works. It may be useful to attend a web authoring course, or set up a team to oversee different aspects of website development. Once you have prepared your pages, you need to transfer them to your ISP using another Internet function, known as File Transfer Protocol (FTP). Software for this can be obtained from the Internet: try CuteFTP (www.cuteftp.com), WS_FTP (www.ipswitch.com) and Internet Neighbourhood (www.knowareinc.com).
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In addition, you can make documents available for users to download. For example, you can provide application forms, say, as MS Word documents. Your site should be ‘meta-tagged’ appropriately. This is additional HTML coding within the document, which is hidden from the user but is used by some search engines to help locate and index relevant documents. For instance, a web page featuring your products should be meta-tagged with the actual names of the products.
Outsourcing For a professional looking site you could try using a web design company. Costs can vary largely, depending on your requirements. Look for a company which understands the content of the site as well as the technicalities of setting it up.
Managing your website •
Register your site with all of the major search engines (you can check where it is registered by inputting your URL into www.did-it.com).
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Information requires regular updating – especially links to other sites. Aim for a general change of content every three months, to keep the site fresh and encourage repeat visits.
•
You will also want to keep track of how many visitors your site attracts. Basic counters can tell you how many ‘hits’ (visits to the site) there have been, but you should aim to recover data on how long visitors stay, what links they use most, etc. Such information can be captured – so make sure that you, or the people you lease your site from, have a way of getting it. The information can then be used for sales or market research information.
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•
A successful site can generate a lot of feedback from visitors, often in the form of e-mail messages. You will need a way of handling that feedback and responding to it appropriately. This is best arranged in advance.
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Who will be responsible for managing the site? It will essentially become a product in its own right. Make sure that the staff involved have some technical knowledge and liaise closely with other departments and members of staff, to ensure the information is up-to-date.
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Ensure that all information used is subject to your existing corporate standards. This means that all pages should be proof read, design should be in line with in-house styles and all links should be checked to make sure they operate perfectly.
Useful tips
Use popular browsers (eg Netscape Navigator, Internet Explorer) to check the layout of your design. Remember that other browser software may display the layout differently – and some visitors will have browsers which don’t show graphics, or can’t handle frames.
Before spending time and money on a website, be sure of its value to your business. Is it appropriate as either publicity or a service to clients?
There is a great deal of competition between HTML editing/ authoring programs. Try starting out with one of the free editors included with Netscape or Microsoft browsers.
If you lease web space, check how much control your supplier gives you over your own site.
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Don’t infringe other people’s copyright by using their graphics, photos or text without permission.
Make sure that your e-mail and web addresses are relevant to your firm.
Think carefully before using one of the free service ISPs as you may look less professional to customers and the service you receive may not be as good.
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Promoting your business on the World Wide Web
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This chapter looks at how a business can use the World Wide Web for promotion and trade.
Introduction The World Wide Web (the ‘web’) is an increasingly popular Internet tool for marketing and sales. By setting up and managing a website, businesses can promote their products and service over the web in a variety of ways. For instance, the web can be used for direct sales; for selling through cybermalls and virtual storefronts; for seeking customer opinions; for market research; and for providing information to potential or existing customers.
Web-based marketing To be successful, web-based marketing needs to be integrated into the marketing plan for the business. This plan should also encompass traditional, non-Internet marketing, plus marketing on the larger Internet.
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Successful web-based marketing allows users to interact with the website – much of the appeal of the Internet is its interactivity. Web-based marketing should not force advertising upon people, such as by sending potential customers unsolicited e-mails. Instead, you should try to attract customers to your website by offering them useful information and services: in doing so you can demonstrate your expertise and improve your credibility. However you are marketing your business, you should be sure to present a consistent corporate identity.
Promoting your site offline For a site to be worthwhile, people must be able to find it. The obvious thing to do is publicise your URL (Uniform Resource Locator – the web address) with other media; make sure it is on all your publicity materials, letterheads, business cards, stationery, advertising, etc. Put the URL on company vans, answering machines, voice mail, anywhere appropriate. Let existing clients know your website exists (eg by mailshot). Issue a press release to promote your site. Use your website address in all subsequent press releases and try to ensure that any editorial ends with the URL. This approach works well if your website contains industry specific information and your press release goes to an industry journal. E-mail is widely used and should be central to your Internet marketing. Whenever you contact anyone by e-mail, be sure to include the URL within the message. You may want to consider using an autoresponder: these allow you automatically to send out an e-mail document on customer request. You should ensure that your URL is included somewhere within the documents you make available. Promoting the existence of your website is as important as actually promoting your business through the site.
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Promoting your site on the web Someone looking for information without a URL as a starting point, will use a search engine to locate appropriate sites. Search engines (eg Yahoo, InfoSeek, Magellan) index websites by key words. You should register your site directly with the main search engine providers: focus on UK specific ones such as UKindex and Excite UK, as well as major international ones such as Lycos, Yahoo and AltaVista. You can do this yourself, or, if applicable, ask your web page designer to do this for you. There are quite a few search engines and although there is some overlap, none give complete coverage. Some search engines will check your site before deciding to include it. Be aware that most search engines (except AltaVista and Northern Light) tend not to index sites which are set up using frames. Several websites exist which can help you to register with multiple search engines and/or check where you are listed: these include Submit It! (www.Submit-it.com) and did-it (www.did-it.com). It is important that you get on as many search engines as possible, and that you keep checking back with the engines. If you are not listed then you may have to resubmit your site. Some search engines require ‘meta tags’ to index the site. Make sure you use the most relevant terms. Try submitting your site to an announcing service, such as: •
What’s New (www.whatsnew.com/whatsnew/) or
•
What’s New Too! (newtoo.manifest.com/today.html).
There are numerous ‘Yellow Pages’ type directories on the web. You can register your business web address with them. Entries are often free. Contact the authors of other pages and get links from their pages to yours. Beware of ‘spamming’ search engines. This is the practice of registering your site dozens of times with lots of search engines, and filling the
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document with many keywords (often irrelevant to your business), in order to receive a higher number of hits on the site. You will probably end up being removed from search engine lists. Sending unsolicited commercial e-mails is a similar sort of practice and can seriously damage your reputation. Various other Internet resources can be used to promote your website:
Discussion lists Discussion lists are a method for individuals to network with others on a particular topic. By joining appropriate discussion groups you can gain visibility for your website.
USENET newsgroups By participating in USENET newsgroups you can get your name known. Don’t try to advertise using bulletin boards or newsgroups – this is frowned upon by Internet users and can have unfortunate consequences. Be aware of netiquette – newsgroups are intolerant of people who post messages for commercial gain.
Webcasting Another promotional tool is webcasting. This allows you to send information that is then displayed on another person’s computer screen, typically in a screen saver.
Listservers Listservers give you the ability to build an e-mail contact database automatically from information sent via e-mail or gathered via a form on your web page. They can provide automatic list administration, allowing you to send e-mail and other customer communications easily, and can handle subscriptions and cancellations. Listserver subscribers
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expect a certain amount of information from your service, too many advertisements and clients will stop contacting you.
Get visitors to return Visitors only return to a site if its content is of interest – for example, if it contains information relevant to their business. Ideally, your site will offer them something they can’t get anywhere else. Alternatively, your site might make it easier for people to get hold of documents which they would otherwise have to get through regular mail, for example, a product catalogue. It is most important that your site is updated on a regular basis, perhaps around twice a month. You should think about what added value you can give your website – if all that your site provides is your business name and address, then people are less likely to visit. For instance, you might make members of staff available for questioning via e-mail, when the public wouldn’t normally have this option otherwise. Or you might include competitions or special offers on the website. Even if your site is small, you can make it useful by including links to lots of other relevant sites. Such hypertext links encourage people to visit your site as a way of finding other useful sites. But make sure the links are located far enough into your website for visitors to know whose site it is and find out about your firm in the process. Collaborate with other website hosts; if you have links to them, make sure they have links to you.
Monitor the web Monitor visits – find out how long visitors are spending at your site, what links they use, etc. Have a way of following up visits by capturing the e-mail addresses of visitors (allow anonymity for those who wish it). Competitions, freebies and requests for suggestions usually generate feedback. Part or all of a site can be protected so that only
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people with a password can access it – people can be asked to register with you to obtain a password. It is essential that you keep an eye on your competitors. Make someone in your business responsible for monitoring competitors’ websites. It may be advisable to take a copy of these websites: this can be achieved by using a package such as Secret Agent, available from www.ariel.co.uk/sagent. This allows you to download the whole of a competitor’s site. You can then check over the site offline. By downloading on a regular basis, you can check for any changes which may be of interest.
Useful tips
Publicise your web address at every opportunity; the best website is no use if no one knows it is there.
An Internet marketing plan should be constantly developed. Internet marketing must be managed properly: always check your e-mail; respond to site visitor requests; regularly add new information to the site and monitor site traffic.
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Check the Internet for further hints and tips on promotion.
Internet commerce
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This chapter examines Internet commerce and some of the ways it can be used by businesses.
Introduction Internet commerce (also known as I-commerce, web commerce and electronic commerce) involves selling products or services over the Internet. This is a small part of a trading method generally known as electronic commerce, which mainly covers business transactions involving payment over the web. Some people believe that taking payment via an Internet site can be risky, though it is no more risky than giving a supplier your credit card number over the phone. The SME is advised to use a website initially for promotion and generating orders while maintaining a separate payment system. At a later stage, and after further investigation, they might consider taking payment via their site.
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Businesses which currently take orders by telephone, mail or fax can probably make use of Internet commerce. Such a system gives the small business access to global markets 24 hours a day. The greatest incentive for doing business on the Internet may be that your competitors are already doing so. However, there may be some drawbacks. For example, access may be a problem for some of your customers, the Internet can be slow and if you are catering for worldwide customers you still have to get the products to them.
Is Internet commerce useful for your business? Before going any further you should ask yourself whether Internet commerce is actually useful for your business. Do you have customers with a web presence? Are there any potential customers on the web? Do they have the technology to benefit from commerce over the Internet? Furthermore, is your product suited to Internet commerce? The most suitable are those which are familiar to the consumer, for example, televisions, food products and software. New or innovative products will be more difficult to sell as the consumer will have nothing to compare them with. If a product cannot be easily described, customers will lack confidence in it, and Internet commerce might not be a viable option.
What can be sold over the Internet? Many products and services can be offered via the Internet. You should remember that Internet commerce has not replaced conventional sales methods. It is essentially an additional sales avenue and is useful for enhancing your market presence. Businesses can use a web presence to sell advertising space (this gains more visitors to your site). You can also market products and services.
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However, the main point of Internet commerce is to generate orders via the web.
Electronic products Electronic products are those which can be stored as a computer file. Many types of business have products which can be converted into electronic form, including publishers, software companies, designers, architects and accountants. Once the product is held as a computer file, it is possible to send that file over the Internet to other users, or to allow users to access the file on your Internet server. The advantages of using Internet commerce to sell electronic products, are that customers gain instant access to the product, and you are saved the cost of packaging and mailing. Examples: •
Software publishers can deliver new products over the Internet, saving on the cost of producing CD-ROMs and manuals.
•
Publishers can use the Internet for the electronic publication of newspapers or magazines. Periodicals can be stored on an Internet server. To see the latest issue, subscribers enter their user-name and password.
•
Music publishers can deliver digitised music files over the Internet to a customer’s PC.
Products Most products cannot be physically delivered via the Internet. They can be sold over the Internet, by making it as easy as possible for the customer to learn about the product and encouraging them to place an order. Orders may be taken over the Internet using e-mail.
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Examples: •
Virtual bookshops These have proven to be very successful. Sites allow customers to select books, view book jackets, read reviews and make orders. Order details are then passed to the warehouse or the bookshop located nearest to the customer. Books may be posted out, or customers may be invited to collect books from their local bookshop.
•
Wine-merchants This site could include tasting notes for the stock. Customers could be given the option to search by region or price. Orders could then be placed and the customer e-mailed with details of delivery or how to collect the product.
Services Certain services are suitable for selling on-line. Internet commerce has proven to be particularly successful for businesses taking bookings over the Internet, for example hotel chains, rail services and airlines. New services have been developed for the Internet, for example, Kodak can make customer photographs available on the web, so that friends and family can then look at them and order copies. Further examples of on-line services include information brokers and translation/interpretation services.
Setting up an Internet commerce site There are many ways of starting in Internet commerce although most SMEs should liaise with an independent consultant before starting out. Additionally, make sure that your site is an accessible ‘location’.
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This means registering with search engines and adding links to related, frequently visited sites. Further approaches include:
Working with an Internet Service Provider (ISP) You can come to some sort of arrangement with your ISP. They can take responsibility for all or part of the operation. They may also use a consultancy to act on their behalf. The ISP should have the relevant experience to set up and run an Internet commerce site. This option offers the most security for the small business.
Renting space in a virtual shopping mall With this approach the mall owners will be partly responsible for marketing your site and products or services. They may also offer assistance in setting up your site. Some malls will collect payments on your behalf. Using malls is often the best starting point for the smaller business. At present, however, very few are hosted in the UK.
Do it yourself You become responsible for every aspect of your site, although you can still use an ISP. You create the pages, link in the payment scheme and make arrangements with your bank.
Systems of payment To make placing orders possible, businesses normally need to collect the following customer information: address, name and credit card details. This raises security issues. Businesses must be sure that customers registering at the site are who they say they are, and are not using a stolen credit card. No unauthorised person should be able to access confidential information. Consumers need to be confident
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that their credit card details cannot be intercepted by criminals. Normal security measures include password protection (available with most ISPs and with an internal company Internet server), firewalls and virus checking. Extra security may be necessary. There are many different ways of creating a secure payment system on the Internet. Some of the categories into which the most common solutions fall are encrypted web pages; encrypted mail messages; smartcards; digital certificates; virtual credit cards and virtual tokens. However, much of this technology is new and security issues are extremely important. The SME is best advised to use existing (offline) payment systems. Such systems could be combined with electronic transactions, for example, order details are e-mailed to the business but credit card information is obtained by telephone or fax.
Legal issues There is currently no clear legal framework for Internet commerce on a global level. However, this has not prevented businesses from selling successfully over the Internet. The Electronic Commerce Association (ECA) provides support and advice to its members. The ECA has a Legal Advisory Group, and has published the UK’s Standard Electronic Data Interchange Agreement, which provides standard rules of conduct. Businesses should ensure that they conform to standard trading legislation, including the Data Protection Act 1998. Developments in legislation include the EU Data Protection Directive, which took effect in October 1998. The Directive requires that personal information may only be transmitted outside the EU to a country which ensures an adequate level of protection for the data.
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Cost In general, the operating costs associated with Internet commerce are low, although the complexity of the business will have a big impact on the price that you need to pay. It is usually the cheapest option to use an ‘out-of-the-box’ solution. The volume of business also affects the costs involved. You need to consider your current volume of sales and how much you expect to sell. It may be that you need to take on extra staff to cope with the new volumes of trade. If you already sell to a global market, you have to be careful with the pricing of products and services on the Internet – you do not want to create a conflict with existing channels. If you change the prices of any of your products or services, the Internet site can be altered immediately, saving on the cost of printing a new price list and/or placing an advert.
Useful tips
You need to consider whether Internet commerce will be useful for your business. Do you have potential or existing customers who use the web? When developing your site try to keep things as simple as possible. Seek feedback from external, non-technical users.
People must be made aware of the service you are offering. Make sure that your Internet ‘shop’ is in the best possible location, and that it is on search engines or frequently visited sites. Add information about your website on to business cards etc.
Internet commerce can be of value to your business, even if it doesn’t directly increase profits. It can be helpful in building your market presence. You can sell loss-leading products over the Internet, which will generate non-Internet revenues later on.
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Consider using the Internet for buying as well as selling. Software exists that searches the web seeking out the best prices for you.
Seek advice on legal and taxation matters before beginning trading over the Internet. Be aware that local laws may apply at the point of access, rather than the point of origination of the website. Keep your site up-to-date – you could be penalised if you provide incorrect information – for example out-of-date prices.
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Intranets
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This chapter considers Intranets and their use in the small business.
Introduction An Intranet is, in essence, an internal Internet – a discrete computer network run by an organisation which uses Internet software to enable people accessing the network to view commonly required information. The browser interface and software are similar to those used on the Internet. The fundamental difference is that an Intranet has restricted access whereas the Internet is open to all. At present, the concept is relatively new and awareness of the potential uses and applications of an Intranet is minimal. Additionally, much of the technology is still in the development stage, especially the software which allows the user to create Intranet ready documents directly from their everyday word-processors, spreadsheets, etc. Intranet use in small businesses is extremely limited and as such, its cost-effectiveness is yet to be proven.
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Uses of an Intranet Intranets can be used for a variety of different purposes. The most important use is the sharing of information. This can be cross departmental and even between separate geographical sites of the same organisation. An Intranet makes document access easier. It also allows for continual updating and saves on the paperwork required to issue new versions. Any information used internally can also be made available to the organisation’s external contacts. This can be done by linking your Intranet to the Internet. An Intranet which is made available for selected outside organisations to use is known as an Extranet. Obviously, you will want to keep certain aspects of your data confidential, and you won’t want all Internet users to potentially access your network. Security can be achieved by the use of ‘firewalls’ and password protection. A firewall will protect confidential data by restricting access rights, usually through passwords or encryption. This allows you to monitor exactly who can access your information. You might include various types of information on your Intranet: •
Corporate documents – information about your business is most likely to be included on your Intranet. The types of document suited to an Intranet include: policies and procedures, staff holiday lists, news bulletins, press releases and meeting schedules. It is also possible to include templates of frequently used documents, for example, fax cover sheets, expense claim forms, etc. The documents will probably need to be reformatted in order to be read on an Intranet. Documents can be updated on an ‘as and when’ basis, which removes the need for costly reprinting. It also saves on paper as staff can access information on screen and print out only what is necessary.
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•
Sales – an Intranet can be a useful sales tool. The most recent price lists, product information, sales analysis, stock level information, etc, can be made available to anyone who needs them – including access for customers and suppliers via an Extranet. Recently released database software enables people to run a central database (eg, of products in stock) which can be queried directly from an Intranet.
•
Education and training – an Intranet is also useful for writing and circulating training materials, materials for meetings, etc. It can be used for actual training, with members of staff acting as ‘on-line’ help for their colleagues across the network.
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Finance – details of finance can be kept on an Intranet – letting staff see how sales or purchases are going. Some financial information may be best kept confidential, for example, salary levels and budgets.
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Information technology – an Intranet offers broad opportunities for sharing information and resources. It may also be useful to use an Intranet as a way to pool information on how to get round common computer problems, etc.
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Customer and contact details – customer information or details of key contacts can be kept centrally, allowing a more coordinated approach.
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Personal – Intranets are also ideal for staff to manage their working week. Computerised organisers, e-mail communications and on-line calendars and schedules can all be made available through your Intranet.
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Setting up an Intranet To run an Intranet you will need to have a network of enough personal computers (PCs) for everyone to have access as required. The network must include a file server to hold the files that all the users need access to. This might be a high specification PC, but is usually a dedicated unit. The files on the server are set up using software which can create HTML (HyperText Mark-up Language) documents. HTML documents can include text, graphics, sound and video clips, and links by which selecting a reference will take the reader direct to another document. You can get special HTML authoring software to create documents for Internet and Intranet sites, though recent versions of well-known word processors have the facility to save new or existing documents in HTML form. Newer versions of popular database and spreadsheet software make it easier to incorporate a database or publish a spreadsheet on an Intranet. If you want to build other features into your Intranet you may need to get an Internet/Intranet website developer familiar with programming in JavaScript or Java to help you. To access Intranet documents, as for the Internet, browser software is used. Microsoft’s Internet Explorer and Netscape Navigator are the most popular.
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Advantages of an Intranet Much of what can be done with an Intranet can currently be done on a standard computer network. The key difference is that the user accesses the information using one standard interface and by following obvious links to the data they are after, rather than having to run different types of software and remember lots of different file names, directory names, etc.
Communication An Intranet can link departments or remote sites within a business. This makes communication and access to information easier. Every member of your organisation can tap into up-to-date details from their computer.
User friendly An Intranet is very simple to use. The browsers are easily accessible and use simple search methods.
Up-to-date Most business documents go out-of-date quickly. Intranets are easier to update – so staff are less likely to act on out-of-date information.
Boosts morale Staff prefer to have easy access to all of the information they need. Most also like to share what they know. Let your staff contribute to the content. Allow them to try setting up their own departmental pages. Monitor the information and style of the pages to ensure that it corresponds to your corporate image. Consider allowing an informal area to be developed too.
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Increased efficiency Intranets can aid efficiency. For example, if advertising copy needs to be checked by more than one member of staff, it is easier to make the document available on an Intranet rather than provide numerous printed copies.
Information retrieval It is easier to make information more accessible through an Intranet. Links can be built into one document to take the reader directly to other relevant information. Additionally, any information located can be used immediately without the need for major reformatting. Simply cut and paste into the required document or software package.
Disadvantages of an Intranet Security The point of an Intranet is increased access – more files are available to more people. You need to decide who is allowed to see certain things, for example, personal staff information, salaries, major contracts, etc. For these items, security measures may be needed. Access may also be an issue for those allowed information through an Extranet. Information made available on the Internet is not secure.
Cost Intranet browser software and authoring software are relatively cheap at present. If your existing network is compatible you should have few hardware costs – though an Intranet only works if everyone has access to a computer. The real costs come from the time involved in setting up the structure, formatting documents, establishing links
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between documents, etc, and buying in expertise as necessary. Think about maintenance costs and think about it in terms of staff time.
Software Intranets are still very new. The software may prove problematic. Will it be easy to upgrade in the future? It has been based heavily on the Internet: this may mean that the features available are not appropriate to your business needs. Research the options before committing yourself to a system. Developments are fast and within a year software may be available to better match your needs.
Staff attitude Will it help your business? Are your staff committed to an Intranet as a business tool? If they do not understand the reason for installing an Intranet, it will become trivialised and staff will abuse the time they spend on it – ‘chatting’ with other staff, accessing irrelevant information and setting up their own pages.
Planning for an Intranet Any technological development needs to be planned in line with your business goals. Decide whether you really need an Intranet, don’t just jump on the bandwagon. An Intranet is not just an I.T. project – it affects all staff. You will need to address a number of issues, such as: •
Do you need professional assistance? The answer is probably yes unless you have I.T. staff specifically trained to set up Intranets. You may be able to convert documents in-house. HTML authoring is fairly straightforward with the right software. However it is a time consuming process and will cost you in terms of staff time.
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•
Speak with your staff. They are the people who will be using your Intranet on a day to day basis. Let them express their thoughts. How do they feel about Intranets? Organisational developments like this make some people worry about being replaced by technology.
•
Train your staff. Few will know how to use Intranet applications.
Managing an Intranet Establish guidelines for managing your Intranet. Who will update the documents? Ensure that everyone authoring documents uses the same document templates and applications, it will save compatibility problems later. Set and follow procedures. Issue a style guide. This should include filename standards – documents are normally linked using filenames as a reference.
Useful tips
Seek advice about implementing an Intranet. Is it really what your organisation needs? What will you be using it for?
Remember that security for your data is extremely important. Make sure you have adequate controls over access rights to various documents.
Make sure your users are comfortable with the technology, it is no good having a fully operational Intranet if none of your staff use it.
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Part Four
Appendices
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Glossary of computer terminology
16
Abbreviations: Inevitably, abbreviations are creeping into every day use within e-mails and in chat room conversations. A list can be found at www.fau.edu/netiquette/net/acronyms.txt. Here are some of the more common ones: BCNU
Be seeing you
BTW
By the way
FWIW
For what it’s worth
FAQ
Frequently asked questions
FIO
For information only
FTF
Face to face
FYI
For your information
IMHO
In my humble opinion
ROTFL Rolling on the floor laughing RTFM
Read the flipping manual
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TIA
Thanks in advance
TTFN
Ta ta for now
TTYL
Talk to you later
Alphanumeric: Data consisting of letters and numbers. Applications software: Programs allowing a computer to tackle tasks like accounting or word processing. Autoexec: A batch file automatically executed by DOS when the computer is switched on or reset. Background printing: Printing one document whilst you work on another. Back-ups: File copies made to be kept in case the originals are lost. Batch file: A file containing a series of commands which it executes in sequence. Baud rate: A measure of the speed at which data transfers inside or between computers, often quoted for modems. Benchmark: A standard comparative test of computer capability. Beta test: Trial run of new software under normal working conditions. BIOS: Basic Input/Output System. The part of the operating system built into the computer memory (ie not software). Bit: Short for binary digit, 1 or 0. A group of 8 bits (a byte) can represent any keyboard character. Boolean logic: Algebraic notation based on statements including AND, OR, EQUALS, etc; used in database searches, etc.
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Booting up: Starting up a computer, the process automatically loads the programs required to make the computer functional. Comes from the expression, ‘Pulling yourself up by your boot straps’. Browser software: Software enabling users to search for and read information held on the World Wide Web. The two most commonly used are Netscape Navigator and Microsoft Internet Explorer. Buffer: Additional memory capacity between a computer and a peripheral. A printer holds data from the computer in its buffer until it has been printed. Computers send data faster than it can be printed, the buffer frees the computer and allows the printer to retain information, preventing data loss if a fault develops. Bugs: Design flaws in software or hardware. Bus: An internal path to allow movement of data between the parts of a computer (see also Local Bus, ISA, EISA, VESA and PCI). Byte: Eight bits make a byte. Computer memory capacity is described in multiples of bytes. Cache: A type of buffer which stores recent instructions or data, used to speed up access to information on the hard disk. CAD/CAM: Computer Aided Design/Computer Aided Manufacture. CD-ROM: Compact Disc based storage of large amounts of text, graphics, sounds, etc used in multimedia applications and database publishing (see also ROM). Variants can allow users with CD-writing hardware and software to record their own data on a special (CD-R) disc for archiving or distribution; more recently, re-writeable (CD-RW) discs have become available – and the discs they produce can still be read by an ordinary CD-ROM drive.
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Character: A number, letter, or symbol on a computer screen, keyboard, or printer. Chip: A tiny chip of silicon containing complex electronic circuits. Clip art: Pictures in computer file formats which can be included in documents. Clock speed: A measure of how fast a computer’s processor works, measured in Megahertz (MHz). The higher the number, the faster the processor. Communications software: Programs allowing a computer to link to other computers and exchange data, usually via telephone lines using a modem. Compatible: Hardware and/or software capable of sharing programs or data. Compression software: Programs (eg, PKZIP or WinZIP) used to reduce the size of computer files to take up less disk space for storage or transfer. Consumables: Anything that is used up in the course of a job, for example, paper or printer cartridges. Corruption: Unintended changes to data, usually caused by accident or carelessness. Can be caused by electrical or magnetic interference during data entry, transfer or storage, or by software or hardware errors. CPU (Central Processing Unit): Main computer circuits where instructions are interpreted and the specified arithmetic operations and data manipulations are carried out; also called the processor. Normally connected to memory chips and input-output devices. An
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entire computer system may be referred to by the name and type of its CPU (see Intel, RISC and Pentium). Crash: When a program stops and cannot be restarted. Cursor: The dot, line, arrow or block on the computer screen showing where a typed character will appear, or signifying which operation will be selected by pressing the return key or clicking with a mouse. Cursor keys: Keys controlling cursor movement. Cut and paste: Technique for moving text, etc around a document. Data Protection Act 1998: Laws to cover the security of personal information held on computer databases. Database: A collection of information files. Specialised programs called databases are designed to allow easy handling of data. Desk top publishing (DTP): Specialised software to combine text and graphics into layouts like those in magazines or newspapers. The text can be arranged in different fonts, sizes, etc with great flexibility. DIP Switches: Switches in the hardware allowing the user to alter its capabilities without having to change software or hardware. Directory: Part of a disk cataloguing its contents. Directories and sub-directories are used to organise files. Disk drive: A device to add and remove data to or from the magnetic storage disk, the process is called ‘writing to’ and ‘reading from’ the disk (see also Hard disk and Floppy disk). Docking station: A unit into which a portable computer plugs, allowing it the facilities of a desk top computer.
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DOS (Disk Operating System): The program the computer uses to control the handling of files within the computer as well as their storage on and loading from disk. Versions include MS DOS, PC DOS and DR DOS. Dot matrix: A printer which makes images on paper using metal pins to strike a ribbon. Image quality depends upon the number of pins in the head. Cheap to run, but slow and noisy. Downloading: The process of copying a file from one location (usually on an Internet server) onto another computer. Driver: A piece of software used by an operating system to enable a specific item of hardware (eg a printer) to be used. DVD ROM and RAM Drives: Digital versatile disc – an emerging technology, similar to CD-ROM and CD-RW but with higher storage capacity. The ROM version is read-only but the RAM version is rewriteable. Some DVD drives will also read CD-ROMs or even write CD-RW discs. E-mail: Electronic mail – a facility enabling computer users to send messages to each other via the Internet, regardless of the types of computer they are using, as long as each has a modem and an account with an Internet Service Provider. EGA (Enhanced Graphics Adaptor): Expansion card allowing graphics to be shown on screen with reasonable resolution; superseded by VGA and SVGA. EISA (Extended Industry Standard Architecture): A standard Bus design, updating ISA but not as fast as VESA or PCI. Energy star: American standard for computer equipment with reduced energy consumption.
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Expansion card: Circuit board with processors etc, added to a computer to enable it to perform specific tasks. Expansion slot: Socket inside a computer allowing installation of expansion cards to increase the computer’s capabilities. Extension: The addition to a filename after the full stop, usually three letters, used to show the type of file for example, .txt = text file, .bat = batch file. External memory: Information storage outside the computer, for example, on disk. Extranet: A facility like an Intranet, based on Internet technology, run by an organisation as an information resource. Unlike an Intranet, access is made available to people outside the organisation. Field: A single category of information on a database record such as a name or telephone number. File: A distinct group of text, instructions, or data held in, or accessible by, the computer. Filename: The name given to a file to distinguish it from any other. Under DOS and Windows, this is no more than 8 characters long, but may be followed by an extension to show the type of file. Operating systems such as Windows 95 allow longer file names. File server: A computer with software allowing linked computers (eg, a network of PCs) to share data files and/or other resources. Floppy disk: A circular sheet of magnetic material enclosed in a protective casing; used as an external memory to store data and programs from the computer. They are interchangeable, and are read from or written to, by the disk drive. The most common size for use with a PC is 3.5 inches.
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Font: A typeface used when printing text. Format: Either the way data is laid out in a file; or used as a verb, to mean the preparation of a new disk to store data in a form readable by the disk drive. FTP (File Transfer Protocol): A standard way of transferring files from one computer to another, usually over the Internet. Used for both downloading and uploading. Function keys: Extra keys on the keyboard, often numbered from F1 to F12, whose function can be customised to suit the needs of the program or the user. Gigabyte: A measure of computer memory or storage capacity; one Gigabyte is 1,024 Megabytes. Graphical User Interface (GUI): A software package such as Windows, acting as a user-friendly link between the operator and the operating system by representing the possible commands as symbols (known as icons). Graphics card: Expansion card to let a computer show video graphics on screen. Hard copy: A copy of what is in the computer memory or on its screen, printed out in a permanent form by a printer. Hard disk: A magnetic disk and disk drive combined, which is often built into a computer. They can hold much greater quantities of data than a floppy disk. A typical hard disk now holds up to 6Gb. Hardware: The machinery and accessories of computing (as opposed to software).
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High Resolution Graphics: Pictorial representations generated by a computer, of such good definition that they may resemble photographs. Special components and monitors may be needed to allow this capability to be used. HTML: Hypertext Mark-up Language. The language used to produce documents for the World Wide Web which can make use of hypertext links. Hypertext: The basis of the World Wide Web. Hypertext documents can be interlinked so that selecting a reference automatically takes the reader to the relevant point which may be in the same document or within a different website entirely. IBM compatible: The most common form of PC, compatible with standards developed by International Business Machines, the company which first made personal computers widely available. Icon: A pictorial representation of an article or operation, used in Windows software. IDE (Intelligent Drive Electronics): A type of hard disk interface (see also SCSI). Information Technology (I.T.): Ways of handling or transmitting information, involving all aspects in the use of computers and telecommunications equipment. Inkjet: Type of printer producing high quality text and graphics by spraying ink drops on to paper. Input: Anything going into a computer. The act of feeding in data is known as inputting.
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Input device: Equipment used to input data into a computer. Examples include keyboard, mouse, bar code reader and scanner. Intel: A company manufacturing microprocessors used in IBM compatible PCs. The range includes: 386, 486 and Pentium processors; SX, DX and DX2 designations; and a wide range of clock speeds. Integrated circuit: A miniaturised electronic circuit etched into a single piece of silicon. Integrated software: Programs designed as a collection to work in such a way that the output of one part (eg, spreadsheet) may readily be used by another (eg, word processor). Interface: The connection between two devices, anything from a simple cable to complex electronics with special software. Interlacing: Feature of monitors which do not refresh their screens as efficiently as non-interlaced ones. Internal memory: The data store inside a computer; made up of ROM and RAM. Internet: An international network of computer systems allowing users to access facilities such as e-mail and the World Wide Web. Intranet: A facility which enables all of the communication, file searching, sharing and interlinking utilities associated with the Internet to be run entirely within an organisation on its own network. It works using browser software to follow hypertext links to the various resources. ISA (Industry Standard Architecture): The most basic design of bus.
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ISDN lines: High performance digital telecommunications links suited to data transfer, for example, video conferencing, etc. Keyword: Either: words with a special meaning for a computer; or in a database, words that are used to search for information. Kilobyte: A measure of memory capacity; 1Kb = 1024 bytes of data. Laser printer: A type of printer producing high quality text and graphic printouts rapidly, by a process similar to that of a photocopier. Load: To call up a file or program from storage on disk, or elsewhere, into the computer’s working memory (RAM) so that it can be used. Local Area Network (LAN): Computers and peripherals, in the same building or in close proximity, linked in a network. Local bus: Internal connections direct to the processor; more responsive than a standard bus. Macintosh: Computer range manufactured by Apple. Widely used in publishing and graphics work. Not normally compatible with IBM type PCs, though the RISC chip based Power Macintosh will also run MS DOS and Windows software. Macro: A brief code or command replacing a series of keystrokes and/or commands. Mail merge: A word processor facility allowing a standard letter to be merged with details from a database to produce a personalised letter for each name on the database. Megabyte: A measure of memory capacity; 1Mb (Megabytes) = 1024 Kilobytes of data.
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Memory: The devices in a computer capable of temporary or permanent data storage (see RAM, ROM, Internal and External Memory). Microprocessor: A computer processor on a silicon chip. MMX: See Pentium. MODEM: Short for MOdulator/DEModulator, it is a device which lets a computer send data via telephone lines to another computer with a modem. Motherboard: The main circuit board on which components and expansion cards are mounted. Monitor: The Visual Display Unit (VDU), also called the screen, which lets you see data without having to print it out. Monochrome: Black and white; orange or green displays on computer monitors are called monochrome. Mouse: An input device used to move the cursor rapidly about the screen. Used with Windows software to make selections quickly by positioning the cursor on an icon and clicking a mouse button. MPRII: An international standard for low radiation output from monitors. MS DOS: Microsoft Disk Operating System – the original disk operating system designed by the company called Microsoft. Used on IBM compatible PCs. Came in several updated versions but superseded by Windows 95. Multimedia: Any combination of text, sound, and still or moving pictures used in training software, databases, games, etc. Often based on CD-ROM.
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Network: Computers and peripherals linked together so that the users may share files, programs or items of hardware. Non-interlaced: Monitor displays which refresh more effectively and are less prone to flickering than interlaced ones. Novell Netware: Operating system software for file server based networks. More established than Windows NT, its main competitor for PC networks. On-line: Connected to a working computer system. Operating System (OS): The program controlling a computer’s operation, it allows the loading, data processing, printer output and disk operations. Output: Anything resulting from a computer operation, usually in the form of a VDU screen display or printed on paper. Output device: An item of hardware handling computer output. Examples are: monitor (VDU), printers and plotters. Overdrive: An upgrade facility found on some PCs, allowing a faster processor to be added at a later date. Overwrite: Recording information on a disk over the top of existing data. This occurs when making back-up copies on floppy disk, when saving a new file onto a disk containing a file of the same name, or saving an edited file with the same filename. Overwriting destroys the data underneath. Parallel interface: A connection between two devices which can handle more than one bit of data at a time, as opposed to a serial interface. PC: Personal computer.
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PCI (Peripheral Component Interconnect): A high speed design of bus. PCMCIA Slot: Expansion slot allowing data storage cards, hard disks, modems, etc to be plugged into portable computers. Often simply called PC slots. Peer-to-peer: A local area network connecting computers to share data without having a central computer as a file server. Pentium: A microprocessor from Intel which is faster than previous (386 and 486) processors. Pentium Pro is a variation; more powerful than the basic Pentium chip but now sidelined by a new generation of Pentium processors. MMX is another variation of the basic Pentium chip designed to give improved performance with multimedia software. Peripherals: Computer equipment connected to the CPU, for example printer, mouse, modem, etc. Plotter: An output device where the computer controls the movement of a pen or pens to produce drawings, plans, etc. Port: A socket in a piece of hardware where peripheral connections can be made. Processor (microprocessor): The part of the computer which performs calculations and executes instructions. Intel is the best known manufacturer. Program: A listing of instructions to the computer making it perform a function or functions. Prompt: The symbol on the screen which shows that the computer is awaiting your input.
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QBE (Query By Example): Method of searching a database for information without needing to understand Boolean Logic. RAM (Random Access Memory): The part of computer memory that stores software and data whilst it is worked on. When a program is running, RAM is constantly written to, read from, and overwritten. Data in RAM is lost if a computer is switched off (unless it is saved first). Real-time: Operations where a computer interacts with events and instructions as they happen. Record: Part of a database file, a record is equivalent to a single card in a card index file. The information in a record is divided into fields (individual information headings). Refresh rate: The number of times a monitor display is updated per second, measured in Megahertz. Over 70 MHz should be flicker free on a 14 inch monitor. Removable drives: Portable high capacity disk drives which use swappable disks. The disks are not usually interchangeable between makes (or even types) of drive. Useful for data sharing (smaller capacities like Iomega Zip drive – 100Megabytes) and back-ups (larger capacities like Iomega Jaz drive – 1 Gigabyte). Resolution: The clarity of detail in a screen image or printout, often classified in Dots Per Inch. Return key: Like the typewriter’s carriage return key; also known as the enter key. It tells the computer to act on an instruction or accept data input. RISC Chip: A type of processor chip claimed to be faster, smaller and more energy efficient than the Intel type found in most PCs. Uses
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Reduced Instruction Set Computing technology. Can run MS DOS and Windows software, though not for optimum performance. ROM (Read Only Memory): Part of computer memory storing data needed by the computer. It is not lost on switching off the machine. A computer’s BIOS is usually held in ROM. Save: To record a file or program onto disk or other storage medium, so that data is not lost when a computer is switched off. Scanner: A device which converts text or pictures into digital information that a computer can use. Screen dump: A printout of what the screen is showing. Scrolling: Moving the screen display up, down, left, or right to view the next part of a document, spreadsheet, etc. SCSI (Small Computer System Interface): A type of interface for computers and peripherals, considered superior in performance to IDE interfaces. Search engines: Areas of the Internet which help users to locate information more easily, by enabling them to enter search criteria such as keywords. The search engine then identifies some of the sites on the Internet which match the criteria. Serial interface: A connection between hardware items that handles data transfer one bit at a time. Compare with parallel interface. Server: See File server. SIMMS: Single In-line Memory Modules – plug in additional memory (RAM).
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Software: The programs and data that a computer works with and on (as opposed to hardware). Software package: Programs, together with manuals on how to use them, supplied as one package. Sound card: An expansion card allowing the computer to produce high quality sounds. Spreadsheet: A program displaying rows and columns of numbers and text. Formulae can be added to calculate and display values, automatically adjusting results when data is changed. Stand-alone: A computer system which is self contained and not part of a network. SVGA (Super VGA): Graphics standard for monitors; provides better resolution than VGA. System disk: The disk (hard or floppy) from which the computer obtains its operating system software when starting up. Tape drive: Large capacity, fast tape cartridge machine used to make a rapid back-up of data from a hard disk. Also called a tape streamer. Touch screen: A touch sensitive screen working so that touching an icon representing your choice selects that option. Turnkey system: A self-contained system, ready to run upon delivery without modification. UNIX: An operating system allowing specialist applications to run on several types of computer. Upgrading: Improving, or adding to the capability of, existing hardware or software.
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Uploading: The process of copying a file from a computer to another location (usually on an Internet server). URL: Universal Resource Locator – the ‘address’ of a website. User friendly: This term should mean, ‘Easy for an inexperienced user to come to terms with’; now very much a cliché. Utilities: Programs for ‘housekeeping’ tasks like recovering deleted files, etc. VESA Local Bus: A fast internal connection which speeds up graphics handling. VGA (Video Graphics Adaptor): A graphics card allowing high resolution graphics. Replaces EDA but in turn replaced by SVGA. Video conferencing: Using computer based telecommunications to make face-to-face contact with distant locations. Virus (computer virus): A self replicating program which may cause corruption of valuable data files. Visual Display Unit (VDU): Another name for the monitor or display screen. WAN (Wide Area Network): A computer network with widely separated terminals, often using telephone lines for data transfer. Website: A distinct area of the World Wide Web, often set up by a specific organisation, usually made up of several ‘pages’ and linked to other sites using hypertext links. Windows: A standardised interface between the user and the software, intended to make it easier to use. Commands are selected either by clicking an icon with a mouse or from menus. Windows 95 is an updated
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version intended to be more user friendly and to make workgroup computing easier. Windows NT is a full network operating system version for file servers and workstations. Word processor: Software for producing documents. Neater, more flexible and far more efficient than a typewriter. Workgroup: A small networked group of computer users who communicate and co-operate through a computer network on a routine basis. Workstation: An individual computer, usually attached to a network. The term may also more broadly describe the working area (desk, seating, etc) which incorporates the computer. World Wide Web: Part of the Internet designed to give users easy access to information held on a vast number of interlinked websites and web pages. Users need browser software and an account with an Internet Service Provider to access the World Wide Web. WYSIWYG: What You See Is What You Get. A feature of Windows software; you see on screen exactly what will print out. ZIF Socket: A socket on the motherboard designed to allow easy upgrading of the processor (requires Zero Insertion Force). ZIP files: Files (usually with a .ZIP extension) which have been compressed using widely available compression software such as Win Zip. Not to be confused with Zip drives – a type of floppy disk drive. All trademarks/tradenames acknowledged.
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17
The following websites may be useful: •
e-comm.Internet.com – the electronic commerce guide.
•
europa.eu.int/index.htm – The European Commission’s website.
•
expedia.co.uk – a travel page managed by Microsoft which aims to find the most convenient and cheapest travel routes.
•
pbs.mcp.com – the site for Macmillan who publish a wide range of computer books, all of which are available to read on-line at their website. It is an excellent reference service.
•
simap.eu.int – the European Union’s procurement site giving access to all publicly quoted tenders covering all aspects of the EU’s work.
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www.allec.com – all e-commerce.
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www.backup.com – able to provide back-up services on-line, for small amounts of data (up to 10 Mb) free, and for larger amounts at modest cost.
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www.cobwebinfo.com – Cobweb publishes a wide range of business information.
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www.dti.gov.uk – the DTI’s site can keep you up-to-date with issues affecting business in the UK.
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www.economist.com – provides both an electronic version of the Economist as well as an archive. They will also e-mail you a weekly summary of business news and politics news.
•
www.eff.org/pub/net_culture/folklore/arts/homepage _smiley.capture – gives a list of the smiley faces, such as: :-), that people use to convey emotion in e-mails and chat rooms – now known as ‘emoticons’.
•
www.emerald-library.com – an on-line collection of academic and professional journals.
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www.etiquette.net – gives tips on web ‘netiquette’.
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www.fau.edu/netiquette/net/acronyms.txt – a listing of acronyms used in e-mails and chat rooms.
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www.hmso.gov.uk/acts.htm – an excellent way of assessing government legislation requirements.
•
www.hotmail.com – provides an Internet based e-mail service. This is a free service. You collect your e-mail by visiting Hotmail’s website. You can therefore access your email from any Internet service anywhere in the world.
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www.inlandrevenue.gov.uk – tax news and information.
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www.inst-mgt.org.uk/external/mgt-link – offers a directory of websites on management topics.
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www.ispo.cec.be/ecommerce – electronic commerce and the EU.
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www.micweb.org.uk – The Institute of Management’s Management Information Centre is a good source of information covering all areas of management skills.
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www.nfea.com – The site of the National Federation of Enterprise Agencies.
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www.open.gov.uk – the government’s information site.
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www.pne.org – Project North East’s own website – visit our site to access a regularly updated version of interesting links.
•
www.streetmap.co.uk – a really excellent way of accessing maps, though it currently only has street maps available for London. If you have your own website, you can link to a map from this site.
•
www.telegraph.co.uk – the Telegraph’s website. Registering, which is free, gives access to its ‘Connected’ archive and its faqs! facts! fax! section which will answer many of the more abstruse questions about computing.
•
www.tradeuk.com – enables business to identify international sales and contacts.
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www.visto.com – allows you to store mail, personal calendars, contacts, etc uploaded from your PC.
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www.year-x.co.uk/ec/ – the electronic commerce information resource.
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www.yell.co.uk – if you have easy access to the net, this is a cost-effective way of finding business telephone numbers and addresses.
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www.bluemountain.com/index.html – a fun site from where you can send greeting cards for all occasions.
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This section gives a very brief summary of some software which you may find useful:
Adobe Acrobat Increasingly, documents are being provided, by e-mail or via the web in ‘Portable Document Format’. The advantage is that the end user sees exactly what you intended in the way you intended, rather than relying on the vagaries of a browser or on having the same word processing package. To read a PDF requires Adobe Acrobat Reader, available freely and easily from www.adobe.com. Writing PDF files needs Adobe Acrobat available at modest cost.
Adobe Photoshop One of the leading photo and image editing packages.
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Cookie Pal Displays cookies that are sent to you over the Internet and lets you decide whether to retain or delete them (www.kburra.com).
Databases Try any of these: MS Access, Corel Paradox, MS Fox Pro, Lotus Approach, Claris Filemaker.
Desk top publishing QuarkXPress, Adobe PageMaker, MS Publisher, Corel Ventura.
Graphics Try any of these: Corel Draw, Paint Shop Pro (see below), PhotoShop.
Hot Metal Pro Excellent for web page creation (www.sq.com).
Internet browsers MS Internet Explorer, Netscape Navigator, Mosaic.
Memory managers Such as Helix Software’s Hurricane ‘98 or Quarterdeck’s QEMM ‘97 – take over managing your computer’s memory to extract all of it.
MS Front Page A programme to enable you to prepare web pages (www.microsoft.com/frontpage).
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MS Project Or similar project planning software – makes the preparation of Gantt charts, resource histograms and critical path analyses extremely easy.
Norton Anti Virus Good virus protection is absolutely essential; this package is friendly and effective.
Paint Shop Pro One of the best value for money graphics packages around. It is indispensable if you want to prepare your own graphic images for use on your web pages (www.jasc.com).
PGP (Pretty Good Privacy) Encryption software that is available from Network Associates (www.nai.com).
Presentations Try any of these: MS Powerpoint, Lotus Freelance Graphics.
Spreadsheets Try any of these: MS Excel, Lotus 1-2-3, Corel Quattro Pro, CA Supercalc.
Uninstall Deluxe Completely removes unwanted applications and includes safeguards to prevent accidental file deletion.
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Voice recognition software This is becoming more common, with packages such as Philips FreeSpeech ‘98, SpeechMike and IBM’s ViaVoice.
WinZip Enables you to compress and decompress files. You will be surprised how much WinZip can reduce the size of a file which contains a lot of graphics. If you want to send large files by e-mail, this is a must (www.winzip.com).
Word processing Try any of these: MS Word, Lotus WordPro, Corel, Word Perfect.
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Further reading
19
Section 1 The Small Business Computer Guide, J S Beckman, Butterworth Heinemann (1995) Computer Users Yearbook (annual) Software Users Yearbook (annual) VNU Publications • Telephone: 0207 439 4242 The Essence of Information Systems, Edwards, Ward and Bytheway, Prentice Hall (1996)
Section 2 PC Pro Computer Buyer Computer Shopper Dennis Publishing Limited • Telephone: 0207 631 1433
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PC Direct Ziff-Davis (UK) Ltd • Telephone: 0207 378 6800 Website: www.zdnet.co.uk Which Computer?, EMAP Computing Telephone: 0207 837 1212
Section 3 The Small Business Computer Guide, J S Beckman, Butterworth Heinemann (1995) PC Answers, Future Publishing • Telephone: 01225 442 244 Computer Shopper PC Pro Dennis Publishing, Subscriptions • Telephone: 01454 620 070 What PC? & Software Personal Computer World VNU Business Publications • Telephone: 0207 316 9000 Croner’s Guide to I.T. Croner Publications Ltd • Telephone: 0208 547 3333
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Section 4 Strategic Networking: from LAN and WAN to Information Superhighways, P.Henry and G. De Libero, International Thomson Computer Press (1996) The Essential LAN Source Book, Simon Collin, McGraw-Hill (1995) Network News, VNU Business Publications Telephone: 0207 316 9000 Network World, EMAP Publications Telephone: 0207 388 2430
Section 5 There are too many providers of electronic information to list here. For contact addresses check one of the major directories in your local reference library. Most publishers will happily send catalogues or information packs describing their services and costs. Many can also provide demonstration disks or allow trial access on-line. Croner’s A-Z of Business Information Sources, Croner Publications Ltd • Telephone: 0208 547 3333 On-line CD-ROM Review, Learned Information (Europe) Ltd, Telephone: 01865 730 275 CD-ROM Directory, TFPL Multimedia Ltd Telephone: 0207 251 5522
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Section 6 What to Buy for Business, Reed Business Publishing (monthly), Telephone: 0208 652 3500 Making the Most of Mobile Computing, J Lettice and T Dennis, Portable Add-ons • Telephone: 01483 241 333
Section 7 Database for Business Users, Wayne Harris, Pitman (1992) Database Marketing, Ian Linton, Pitman (1997)
Section 8 Modelling with Spreadsheets, Andrew Rothery, Chartwell-Bratt (1990) Computerisation in Business, Royall and Hughes, Pitman (1991) Decision Making with Computers: the spreadsheet and beyond, John Edwards, Pitman (1997) The more popular spreadsheets like Microsoft Excel, Lotus 1-2-3, and Quattro Pro, and integrated packages like Microsoft Office, have generated a number of books to guide beginners and business users through the learning process and provide suggested layouts for particular business tasks. These can give you an idea of the capabilities of particular software, but make sure that the version of the book is the current one for the software. Programs can change considerably between versions. Windows and DOS versions also differ.
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Section 9 The Manager’s Guide to Desktop Electronic Publishing, G R Marshall & K Friedman, Prentice Hall (1990) For training in desk top publishing, contact either an independent trainer or the nearest Apple Centre.
Section 10 A Guide to Accounting Software – Evaluation Techniques for Accountants and Managers, J L Muggridge and F E Trott, Kogan Page (1994) Computerising Your Accounts, AJ Marlow, NCC Blackwell (1989) Contact the major software houses and software publishers for details of individual accounts packages. There are also a number of books explaining some of the more popular programmes.
Section 11 The Information Society Initiative, Info line (0345) 152 000, Website: www.isi.gov.uk Finding it on the Internet (2nd ed), Paul Gilster, John Wiley and Sons Inc (1996) Finding information on the Internet, Howard Lake, Aurelian Information (1998) Business Information on the Internet, Karen Blakeman, RBA Information Services (1999)
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.net Magazine, Website: www.futurenet.com/net/ Internet Magazine, Website: www.Internet-magazine.com Internet Business Magazine, Website: www.ibmag.co.uk Business information sources on the Internet, Website: www.dis.strath.ac.uk/business What’s new in the UK, Website: www.whatsnew.com/whatsnew/uk
Section 12 Internet Business Magazine, Internet Business Magazine Ltd, Telephone: 01273 773 224, Website: www.ibmag.co.uk Marketing on the Internet, Jill Ellsworth and Matthew Ellsworth, John Wiley & Sons (1995) Understanding Business on the Internet in a Week, Bob Norton and Cathy Smith, Hodder and Stoughton (1996)
Section 13 Website Promotion Ideas (article), Free Pint, Issue 26, 12 November 1998 Website: www.freepint.co.uk Internet Business Magazine • Telephone: 01273 773 224, Website: www.ibmag.co.uk Marketing on the Internet, Jill Ellsworth and Matthew Ellsworth, John Wiley & Sons (1995) The Internet Marketing Plan, Kim Bayne, John Wiley & Sons (1997)
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Understanding Business on the Internet in a Week, Bob Norton and Cathy Smith, Hodder and Stoughton (1996) The Web Factory Guide to Marketing on the Internet, Anna Ollier, Aurelian Information (1998) Netiquette Home Page, Website: www.etiquette.net
Section 14 Doing Business on the Internet, S Collin, Kogan Page (1997) Understanding Business on the Internet in a Week, B Norton and C Smith, Hodder and Stoughton (1996) Internet Business Magazine • Telephone: 01273 773 224, Website: www.ibmag.co.uk
Section 15 Network Week, EMAP Business Publications, Readerlink Services, Telephone: 0208 956 3015 Computer Weekly, Reed Business Information Telephone: 01444 441 212 Web Development with Microsoft Resources, J J Townsend, et al, Sams Net Publishing (1996) Building the Corporate Intranet, S Guengerich, D Graham, M Miller and S McDonald, Wiley Computer Publishing (1997)
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Useful addresses
20
Project North East Project North East (PNE) is an enterprise and economic development consultancy run by social entrepreneurs, which offers a range of skills from ideas generation to turn-key project management in the business and job creation field. PNE is an independent, but not for profit company and is funded from a variety of private, charitable and public sources. Its purpose is to develop and manage innovative, quality services which offer individuals and organisations the opportunity to realise their potential, primarily through the creation and development of business enterprises. PNE works in five key areas: •
development and provision of a wide range of business support services including consultancy, advice, training and loan finance, to help new and growing businesses in the north east of England;
•
refurbishment and management of incubator workspace;
•
research, publication and marketing of business information;
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•
management of Shell LiveWIRE, to encourage young people to think about starting in business and to provide appropriate assistance; and,
•
economic development consultancy and capacity building.
Since its launch in 1980 PNE has: •
reached over 140,000 people through promotions;
•
directly helped over 1,600 people to start up in business and helped over 1,600 businesses wanting to grow;
•
lent over £1.7m to people starting or expanding a business levering £5.4m from elsewhere;
•
converted over 130,000 sq ft of redundant buildings to provide workspace for small businesses as well as exhibition and conference facilities;
•
researched and produced over 700 small business publications.
Business support services PNE provides a wide range of complementary services to help business, whether start up or existing, who have the potential for growth and include: •
start up counselling and training, including NVQ3 Business Planning for Owner Managers and NVQ4 Business Management and Development;
•
aftercare counselling and support to assist new businesses to survive and prosper;
•
marketing consultancy (providing intensive marketing and sales support to businesses with the potential to sell out of the area);
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•
export marketing (providing support to clients wishing to start exporting for the first time) and assistance for clients wishing to develop international trade links;
•
loan finance (typically up to £10,000);
•
business planning and financial packaging, typically assisting businesses to raise £50,000 to £1m, in combinations of equity, loans and grant aid;
•
financial management consultancy (to help businesses ensure they have a proper system for financial control);
•
accredited by the Institute of Management to offer management development and management training including the NVQ4 Certificate in Management and NVQ5 Diploma in Management;
•
accredited by RSA to offer Training and Development Lead Body units leading to NVQ3 or 4 in training and development.
Information and publications In addition to providing services directly to business people, PNE also provides a range of information and publications intended to assist other business support organisations. These include: •
Business opportunity profiles, which are short briefing notes intended to provide basic information about a wide range of business ideas;
•
Business information factsheets concentrate on a single topic – such as the requirements of the Disability Discrimination Act or Health & Safety legislation, or how to read a balance sheet, or the key components of a business plan;
•
COBRA, Complete Business Reference Adviser, available on CDROM, provides not only BIFs and BOPs but also a database of
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financial assistance, an extensive bibliography and a directory of business support organisations; •
Market synopses provide a more detailed description of broader markets;
•
‘Become a Successful Owner Manager’ training course, comprising participants’ workbooks and tutors’ notes specially designed to complement requirement of NVQ3 ‘Business Planning for Owner Managers’;
•
All of PNEs current and planned information services are also available on the World Wide Web at the Complete Business Website (www.pne.org/cobweb).
Project North East, through its subsidiary, Cobweb Information Ltd, publishes Business Opportunity Profiles. These are available from Business Links, enterprise agencies and libraries. If you have difficulty finding BOPs locally, contact PNE directly. PNE also publishes Market Synopses: concise but comprehensive reports covering major UK market sectors. Synopses can be purchased individually, directly from PNE: Hawthorn House, Forth Banks, Newcastle upon Tyne, NE1 3SG. Telephone: 0191 261 7856 Fax: 0191 261 1910 e-mail:
[email protected] Project North East has set up an Internet site which may be of interest to anyone starting or already in business at www.pne.org.
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Addresses and telephone numbers for your local Business Link, Training and Enterprise Council (Local Enterprise Company in Scotland) and Local Enterprise Agency may be found in your telephone directory. The Business Link Signpost service on (0345) 567 765 can put you in touch with your nearest Business Link office. Local Scottish Business Shops can be contacted on (0141) 248 6014 or (0800) 787 878 for callers from Scotland. For Business Connect in Wales call (0345) 969 798. Local Enterprise Development Unit (LEDU) in Northern Ireland can be contacted on (01232) 491 031. The National Federation of Enterprise Agencies can put you in touch with your nearest agency, ring them on (01234) 354055 or find them on the Internet at http://www.nfea.com Shell LiveWIRE helps young people to explore the option of starting or developing their own business. Ring them on (0191) 261 5584 or look on the Internet at http://www.shell-livewire.org
Internet service providers There are a large number of Internet service providers, offering a wide range of services, at little or no cost. These include: Demon Internet Ltd 322 Regents Park Road Finchley London N3 2QQ Telephone: 0208 371 1010 www.demon.net
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A CD to get you started is available from your local enterprise agency. Freeserve
(www.freeserve.net)
ConnectFree
(www.connect.free.co.uk)
Free-Online
(www.free.online.net)
BT
(www.byclickplus.com)
AOL
(www.aol.com)
Easynet 39 Whitfield Street London W1P 5RE Tel: 0207 209 0990
Other useful addresses Information Society Initiative www.isi.gov.uk
[email protected] Tel: (0345) 152000 Contact Jenny Searle. ISI has a network of local delivery centres who can assist businesses to make better use of I.T.. British Computer Society 1 Sandford Street Swindon SN1 1HJ Tel: 01793 417417
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Data Protection Registrar Wycliffe House Water Lane Wilmslow Cheshire SK9 5AF Telephone: 01625 545 700 Electronic Commerce Association 3rd Floor Ramillies House 1-9 Hills Place London W1R 1AG Telephone: 0207 432 2500 Website: www.eca.org.uk
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21
Index
10Base-T.......................................................................................44 Accounting packages ...................................................31, 36, 89-96 Adaptor cards ..........................................................................44-45 Apple Macintosh ..................................................24, 85, 86, 87, 92 Bar code readers ...........................................................................28 Computer Aided Design (CAD) ..................................................10 Computer Aided Manufacturing (CAM).....................................10 Crashes .........................................................................................45 Data management ....................................31, 34, 47-53, 65-72, 111 Desk Top Publishing (DTP) ........................................10, 33, 81-87 Digital Audio Tape (DAT) ............................................................28 Disk drives: •
CD-ROM.......................................3, 25, 48, 49, 52, 53, 85
•
floppy ............................................................25, 50, 48, 51,
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•
hard................................................................24, 50, 51, 60
•
zip ....................................................................................25
Docking station ............................................................................60 Electronic commerce .......................................3, 5, 6, 8, 9, 123-130 Electronic mail....................................................4, 37, 56, 104, 120 Ethernet........................................................................................43 Expansion cards............................................................................26 File server .....................................................................................28 Graphics packages ......................................................31, 35, 56, 87 Hardware.....................................................................23-30, 57, 84 Information Society Initiative (ISI) ................................11, 22, 105 Internet........................3, 4, 5, 6, 37, 57, 99-105, 107-115, 117-122 Intranets ..............................................................................131-138 Kilobyte ........................................................................................24 Licensing (software) .....................................................................43 Manufacturing resources planning (MRPII) ................................10 Materials requirements planning (MRP) .....................................10 Megabyte......................................................................................24 Memory ........................................................................................24 Mirrored servers ...........................................................................45 Mobile computing ...................................................................55-62 Modem .......................................................................27, 56, 60, 61 Monitor.............................................................................25, 26, 29
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Multiple Access Unit (MAU).......................................................44 Network(s)
4, 20, 28, 39-46, 60
•
Local Area Network (LAN) .......................................39,49
•
Peer-to-peer ..........................................................40-41, 43
•
Server based...............................................................41, 43
•
Wide Area Network (WAN) ............................................39
On-line information...........................................................16, 49-50 PC cards ...........................................................................59, 60, 61 Personal Data Assistant (PDA)...............................................56-57 Presentation packages ......................................................35, 56, 57 Printers ..............................................................................26-27, 84 Processor (CPU) ..........................................................................24 Random Access Memory (RAM) ...............................24, 29, 52, 58 Read Only Memory (ROM) .........................................................49 Scanners ..................................................................................27-28 Search engines .............................................101-103, 110, 113, 119 Security......................................................42, 84, 94, 127-128, 136 Software...........16, 23, 28, 31-38, 43, 57, 68-69, 76-77, 84, 92, 137 Spreadsheets................................................................31, 34, 73-79 Tape streamers ..............................................................................28 Token ring .....................................................................................44 USENET .....................................................................103-104, 120 Videotext.......................................................................................51 Word processing ................................................................31, 32-33
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World Wide Web ..........................................100-103, 107, 117-122
188
•
Business websites ............................108-114, 118-122, 124
•
Webcasting.....................................................................120
