The plan for LANS: can a local area network help your business?

Your company is growing, and it's becoming increasingly difficult to manage data and resources shared by multiple users. Relying on leg work and floppy disks to exchange data, files or using shared printers can be costly--not to mention, frustrating and tiring. Whether you have five or 25 employees, a properly installed and maintained local area network will likely boost productivity and make your company run smoother. LANs connect people, information and equipment in a money-saving and cost-effective manner.

Sharing common resources, such as files and peripherals, is the most basic way to leverage your computing investment. Networkable printers, modems and software can service many people, eliminating the need to purchase several copies of the same hardware or software. The start-up expense for a network may seem steep but your return on investment should justify it A 10-user license for Artisoft's peer-to-peer networking solution, Power Suite, retails for $1,499 (800-846-9726). It includes group scheduling, fax and modem sharing capabilities and Internet access--but the expense doesn't stop there.

Costs include network operating system software, connector cables, upgrades or additions to existing computers and training. Getting employees up to speed on the new network operating system in an important part of the start-up procedure that many companies do not sufficiently plan for. Undertrained users will not be able to reap the full benefits of computer networking--and neither will your bottom line.

"A well-planned network will give business owners efficiency, security and control," says Mark Pinn, a network analyst for Merrill Lynch. "The key aspects to look for in a network operating system are administration and security utilities and productivity." Network administration and security utilities limit who, when and what files and/or resources individual network users can access.

Productivity is determined by each company's individual needs. For instance, a business with a sales force may need an application that allows each user to access a central client database, making the exchange of client information easier and more reliable. Not all network operating systems include productivity applications and you may need to purchase separate groupware programs, such as e-mail or group scheduling, to fulfill your company's needs.

Groupware helps to organize and coordinate the activities of individual users on a network. There are groupware programs that allow multiple users to work on a project from their respective locations in the company. Any authorized user can then make instant revisions to the project. These programs allow the network to grow and continue to be productive as companies' needs change--all without making continual upgrades to the operating system software.

There are two basic types of networks: peer-to-peer and client/server. A peer-to-peer network is a system of interconnected personal computers. Each computer in the network acts as both client and server, enabling the computers to exchange files and electronic mail directly with every other computer. Access to personal files can be controlled by each individual user.

"Peer-to-Peer networking makes it easier for people to collaborate. It is the best choice for small businesses," adds Pinn. They are cheaper than server-based networks but cannot easily handle the exchange of large amounts of data. Nor do they generally have the security and administration capabilities of server-based networks. Peer-to-peer networks are connected with cables and the proper networking software.

Client/server networks are indispensable for businesses with over 25 users who share files and resources. Server-based networking software is more costly than peer-to-peer and is best suited for larger organizations with extensive computing needs. In a client/server network a high-powered central computer, the server, is the focal point of the network. The server is connected to many less powerful client or workstation computers. Clients run programs that are stored on the server, and they can easily access this data.

Whatever the needs of your particular organization, as it continues to grow, it's wise to take a look at installing a networked system--if you haven't already. Cost-effectiveness is the key. Networking will have a beneficial effect on the bottom line of any organization that values the sharing of information and collaboration between staff members.