Data Communication

Data Communication and Web 2.0 Key components of data communication Data communication basically refers to data transmission from source to destination. It has five major components, which have been summarized in figure 1 below.

Figure 1: key components of a basic data communication system (Forouzan & Fegan, 2007, p. 4)

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This refers to the information to be communicated from the source to the destination, and can be a picture, text, a video or an audio file.


This is the source of information and refers to an electronic device used to send the message. In most cases, devices with computing capabilities are used to accomplish this task.


It refers to the device that receives the sender’s message1.

Transmission medium

It is a channel that facilitates message transmission from the source to destination. It can be a wired channel (Ethernet cables), or wireless (radio frequencies like Bluetooth and Wi-Fi).


It comprises of rules that authoritatively control the communication between the sender and the receiver.

The overall manner that data communication is used to reduce operating costs

Companies use data communication systems to efficiently and effectively communicate with relevant parties, including customers, vendors and partners. For instance, businesses can use Voice over Internet Protocol (VOIP) technology to save on their international calling costs because all calls via the internet are treated as local calls, regardless of their distances (Jacobs, 2013). Besides, VOIP support video conferencing, hence firms hold meetings from their respective locations without travelling and incurring the associated costs.

The use of web 2.0 to improve business operations

To start with, web 2.0 technologies refer to the second generation World Wide Web whose focus is to enable people to share information, collaborate, and interact online. A good example of this platform is twitter.

Firms can use web 2.0 platforms to easily distribute and market their products and services, and at the same time, invite and encourage customers’ feedback and participation in their product development (McKinsey & Company, 2009). This can help them enhance the quality of their products to customers’ expectations and attain a competitive advantage over their competitors.

Firms can also use web 2.0 applications to gain access to external expertise that suit their immediate needs. Take an example of LinkedIn, whereby, a firm’s manager can access a particular person’s professional profile and evaluate his/her qualifications to see whether he/she can be of any value to his/her firm.


Forouzan, B. A., & Fegan, S. C. (2007). Data Communications and Networking. Miami: Huga Media.

Jacobs, G. (2013, February 15). Ways VoIP phones can help businesses reduce communication costs. Retrieved from Shoretel:

McKinsey & Company. (2009). How companies are benefiting from Web 2.0: McKinsey Global Survey results. Mexico City: McKinsey & Company.

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