8/19/2016 Assignment on Business
Topics: Role of Digitalization of
Section: B, Group: 3
DEPARTMENT OF FINANCE, JAGANNATH UNIVERSITY
Department of Finance
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Communication is simply the act of transferring information from one place to another. In the era
of business communication is a necessary tools. People often communicate with their business
partners, stake holders, employees, customers and any related parties.
The communication process and channels are significantly changes in the way social, technical
and global changes occurs and social agents produce, distribute and consume information,
knowledge and culture. One of the main reason of this changes is the fundamental shift from an
analog system to a digital one in transmitting business messages.
We will begin by looking at the characteristics of the digital means as opposed to the analog one;
we will analyze the ways in which that digitation influences the way we transmit business
messages and we will conclude by assessing the limitation and advantages of the digitation of
transmitting business messages.
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Objective of the Report:
The primary objective of this report is to use the theoretical concepts, gained in the classroom in
analyzing real life scenarios. This program is designed to conduct a real life research and gaining
some real life experiences, so that it adds value to the knowledge I have learned in Business
The objectives are stated below:
1. To review my knowledge on Business communication.
2. To identify the advantages of digitalization of business messages.
3. To fulfill my academic requirement.
Methodology refers to the overall procedure of the report. To achieve the specific objective of this
study, data were collected from both primary and secondary sources. In addition, interaction with
the clients and traders of the company was an extremely effective source of retrieving information.
1. Data were collected by observation
2. Communication process of Royal Capital Ltd.
3. Transition of business messages of RCL.
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It is observable that almost all studies have some boundaries. During performing my work, we had
to face some unavoidable limitations. Some of the major limitations of our study are stated below:
Rush hours and business is another reason that acts as an obstacle while gathering data.
As it is a wide range of studies, to prepare this report our tenure was not enough to prepare
Upgraded data will make differences in the performance analysis of this report.
Lack of enough materials like books, journals and other papers capture me for severe
brainstorming during working this report.
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In general, communication is a means of connecting people or places. Two-way process of
reaching mutual understanding, in which participants not only exchange (encode-decode)
information, news, ideas and feelings but also create and share meaning.
Business communication is the sharing of information between people within and outside the
organization that is performed for the commercial benefit of the organization. It can also be defined
as relaying of information within a business by its people.
There are various categories of communication and more than one may occur at any time.
The different categories of communication include:
Spoken or Verbal Communication: face-to-face, telephone, radio or television and other
Non-Verbal Communication: body language, gestures, how we dress or act - even our
Written Communication: letters, e-mails, books, magazines, the Internet or via other media.
Visualizations: graphs and charts, maps, logos and other visualizations can communicate
The desired outcome or goal of any communication process is understanding.
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The Communication Process
1. A message or communication is sent by the sender through a communication channel to a
receiver, or to multiple receivers.
2. The sender must encode the message (the information being conveyed) into a form that is
appropriate to the communication channel, and the receiver(s) then decodes the message
to understand its meaning and significance.
3. Misunderstanding can occur at any stage of the communication process.
4. Effective communication involves minimising potential misunderstanding and overcoming
any barriers to communication at each stage in the communication process.
5. An effective communicator understands their audience, chooses an appropriate
communication channel, hones their message to this channel and encodes the message to
reduce misunderstanding by the receiver(s).
6. They will also seek out feedback from the receiver(s) as to how the message is understood
and attempt to correct any misunderstanding or confusion as soon as possible.
7. Receivers can use techniques such as Clarification and Reflection as effective ways to
ensure that the message sent has been understood correctly.
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Communication theory states that communication involves a sender and a receiver (or receivers)
conveying information through a communication channel.
Communication Channels is the term given to the way in which we communicate. There are
multiple communication channels available to us today, for example face-to-face conversations,
telephone calls, text messages, email, the Internet (including social media such as Facebook and
Twitter), radio and TV, written letters, brochures and reports to name just a few.
Choosing an appropriate communication channel is vital for effective communication as each
communication channel has different strengths and weaknesses.
For example, broadcasting news of an upcoming event via a written letter might convey the
message clearly to one or two individuals but will not be a time or cost effective way to broadcast
the message to a large number of people. On the other hand, conveying complex, technical
information is better done via a printed document than via a spoken message since the receiver is
able to assimilate the information at their own pace and revisit items that they do not fully
Written communication is also useful as a way of recording what has been said, for example taking
minutes in a meeting.
All messages must be encoded into a form that can be conveyed by the communication channel
chosen for the message.
We all do this every day when transferring abstract thoughts into spoken words or a written form.
However, other communication channels require different forms of encoding, e.g. text written for
a report will not work well if broadcast via a radio programme, and the short, abbreviated text used
in text messages would be inappropriate if sent via a letter.
Complex data may be best communicated using a graph or chart or other visualisation.
Effective communicators encode their messages with their intended audience in mind as well as
the communication channel. This involves an appropriate use of language, conveying the
information simply and clearly, anticipating and eliminating likely causes of confusion and
misunderstanding, and knowing the receivers’ experience in decoding other similar
communications. Successful encoding of messages is a vital skill in effective communication.
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Once received, the receiver/s need to decode the message. Successful decoding is also a vital
People will decode and understand messages in different ways based upon any Barriers to
Communication which might be present, their experience and understanding of the context of the
message, their psychological state, and the time and place of receipt as well as many other potential
Understanding how the message will be decoded, and anticipating as many of the potential sources
of misunderstanding as possible, is the art of a successful communicator.
Receivers of messages are likely to provide feedback on how they have understood the messages
through both verbal and non-verbal reactions.
Effective communicators pay close attention to this feedback as it the only way to assess whether
the message has been understood as intended, and it allows any confusion to be corrected.
Bear in mind that the extent and form of feedback will vary according to the communication
channel used: for example feedback during a face-to-face or telephone conversation will be
immediate and direct, whilst feedback to messages conveyed via TV or radio will be indirect and
may be delayed, or even conveyed through other media such as the Internet.
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Interpersonal Communication Skills
Interpersonal communication is the process by which people exchange information, feelings, and
meaning through verbal and non-verbal messages: it is face-to-face communication.
Interpersonal communication is not just about what is actually said - the language used - but how
it is said and the non-verbal messages sent through tone of voice, facial expressions, gestures and
When two or more people are in the same place and are aware of each other's presence, then
communication is taking place, no matter how subtle or unintentional.
Without speech, an observer may be using cues of posture, facial expression, and dress to form an
impression of the other's role, emotional state, personality and/or intentions. Although no
communication may be intended, people receive messages through such forms of non-verbal
Elements of Interpersonal Communication
For any communication to occur there must be at least two people involved. It is easy to think
about communication involving a sender and a receiver of a message. However, the problem with
this way of seeing a relationship is that it presents communication as a one-way process where one
person sends the message and the other receives it. While one person is talking and another is
listening, for example.
In fact communications are almost always complex, two-way processes, with people sending and
receiving messages to and from each other simultaneously. In other words, communication is an
interactive process. While one person is talking the other is listening - but while listening they are
also sending feedback in the form of smiles, head nods etc.
Message not only means the speech used or information conveyed, but also the non-verbal
messages exchanged such as facial expressions, tone of voice, gestures and body language. Non-
verbal behaviour can convey additional information about the spoken message. In particular, it can
reveal more about emotional attitudes which may underlie the content of speech. See our page:
Effective Speaking for more on how you can use your voice to full effect.
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Noise has a special meaning in communication theory. It refers to anything that distorts the
message, so that what is received is different from what is intended by the speaker. Whilst physical
'noise' (for example, background sounds or a low-flying jet plane) can interfere with
communication, other factors are considered to be ‘noise’. The use of complicated jargon,
inappropriate body language, inattention, disinterest, and cultural differences can be considered
'noise' in the context of interpersonal communication. In other words, any distortions or
inconsistencies that occur during an attempt to communicate can be seen as noise. See our page:
Barriers to Effective Communication for more information.
Feedback consists of messages the receiver returns, which allows the sender to know how
accurately the message has been received, as well as the receiver's reaction. The receiver may also
respond to the unintentional message as well as the intentional message. Types of feedback range
from direct verbal statements, for example "Say that again, I don't understand", to subtle facial
expressions or changes in posture that might indicate to the sender that the receiver feels
uncomfortable with the message. Feedback allows the sender to regulate, adapt or repeat the
message in order to improve communication. Our pages: Clarification and Reflecting describe
common ways to offer feedback in communication, our page: Active Listening describes the
process of listening attentively.
All communication is influenced by the context in which it takes place. However, apart from
looking at the situational context of where the interaction takes place, for example in a room,
office, or perhaps outdoors, the social context also needs to be considered, for example the roles,
responsibilities and relative status of the participants. The emotional climate and participants'
expectations of the interaction will also affect the communication.
The channel refers to the physical means by which the message is transferred from one person to
another. In face-to-face context the channels which are used are speech and vision, however during
a telephone conversation the channel is limited to speech alone.
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The Information Age/The Digital and ICT Revolutions
The digital revolution
Technological breakthroughs have revolutionized communications and the spread of information.
In 1875, for example, the invention of the telephone breached distance through sound. Between
1910 and 1920, the first AM radio stations began to broadcast sound. By the 1940s television was
broadcasting both sound and visuals to a vast public. In 1943, the world’s first electronic computer
was created. However, it was only with the invention of the microprocessor in the 1970s that
computers became accessible to the public. In the 1990s, the Internet migrated from universities
and research institutions to corporate headquarters and homes.
All of these technologies deal with information storage and transmission. However, the one
characteristic of computer technology that sets it apart from earlier analog technologies is that it is
digital. Analog technologies incorporate a combination of light and sound waves to get messages
across, while digital technology, with its system of discontinuous data or events, creates a universal
model? to represent information that is expressed by almost anything using light and sound waves.
To use an analogy, a digital world is a world united by one language, a world where people from
across continents share ideas with one another and work together to build projects and ideas. More
voluminous and accurate information is accumulated and generated, and distributed in a twinkling
to an audience that understands exactly what is said. This in turn allows the recipients of the
information to use it for their own purposes, to create ideas and to redistribute more ideas. The
result is progress. Take this scenario to a technological level all kinds of computers, equipment
and appliances interconnected and functioning as one unit. Even today, we see telephones
exchanging information with computers, and computers playing compressed audio data files or
live audio data streams that play music over the Internet like radios. Computers can play movies
and tune in to television. Some modern homes allow a person to control central lighting and air-
conditioning through computers. These are just some of the features of a digital world.
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ICT is short for information and communications technology. It refers to a broad field
encompassing computers, communications equipment and the services associated with them. It
includes the telephone, cellular networks, satellite communication, broadcasting media and other
forms of communication.
The relationship between the digital revolution and the ICT revolution
The digital and ICT revolutions are twin revolutions. To understand their relationship, let us look
at the history of voice telephony. According to Robert W. Lucky, The crux of [Alexander Graham]
Bells invention of the telephone in 1875 was the use of analog transmission—the voltage
impressed on the line was proportional to the sound pressure at the microphone. The growth of the
telephone was relatively slow; it was not until the 1920s that a national telephone network was
established in the US. In the late 1940s, an alternative to analog transmission of voice was
considered with pulse-code modulation (an encoded signal of pulses). This marked the start of
digitization in telecommunications.
However, it was only in 1961 that the first digital carrier system was installed. Digitization meant
the widespread replacement of telephone operators with digital switches. In 1971 the first fiber
optic cables suitable for communications were made, leading to efforts to send communications
signals via light waves. (Light wave transmission systems are inherently digital.) By about 1989,
ones and zeros had become the language of telephone networks in the US. Digitization was a
critical development because with digital transmission noise and distortion were not allowed to
accumulate, since the ones and zeros could be regularly restored (i.e., regenerated) by a succession
of repeater sites along the transmission line. The outcome was clearer communications over longer
distances at lower costs.
Today, voice is translated into data packets, sent over networks to remote locations, sometimes
thousands of kilometers away, and, upon receipt, translated back to voice. Even television is not
immune to digitization. In the near future, television signals and television sets will be digital. It
will also be possible to use the television to surf the Internet. The digital TV will allow people
from different locations to chat with each other while watching a program. With everything
becoming digital, television, voice telephony, and the Internet can use similar networks. The
transmission of hitherto different services (telephony, television, internet) via the same digital
network is also known as convergence.
Cairncross observes that once the infrastructure and the hardware, be it a computer or a telephone
or another device, have been set in place, the cost of communications and information exchange
will be virtually zero. Distance will no longer decide the cost of communicating electronically.
This explains why, for example, a three-minute transatlantic call that costs $0.84 today would
probably have cost nearly $800 in today’s money 50 years ago!
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The main characteristics of digital technology
Data stored in analog formats cannot be reproduced without degradation. The more copies made,
the worse the copies get. Digital data, on the other hand, do not suffer such deterioration with
reproduction. For instance, movies, videos, music and audio files in digital format can be copied
and distributed with a quality that is as good as the original.
One of the major limitations of many conventional technologies is their inability to combine media
types. Telephones, for example, can send and receive only sound. Similarly, you can watch
television and expect a character to answer a question you pose. However, with digital data, it is
easy to combine media. Thus, phones with video, or interactive sound with pictures, become
possible. Hence the term multimedia.
The digital domain supports a great variety of interactions, including one-on-one conferences, one-
to-many broadcasts, and everything in between. In addition, these interactions can be synchronous
and in real time.
The ability to combine the transactional capability of computers and computer networks with
digital media is another interactive advantage of the digital domain. Placing an order and finalizing
a transaction becomes as easy as filling in an electronic form and clicking a button. Movies-on-
demand (where you pay for movies that you choose to watch on your TV screen) is just around
Software developed for digital communications and interaction is designed so that users may tailor
their use of the tool and the media in a manner not possible with conventional analog technologies.
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The conventional alternatives for manipulating text, sound, images, and video are almost always
more cumbersome or limited than the new digital tools. Years ago, Francis Ford Coppola said that
the day would come when his young daughter will take a home video camera and make films that
would win film awards. Coppola’s prediction is fast becoming a reality. Computers with the right
software and minimal hardware can do today what thousands of dollars’ worth of film and video
editing equipment did in the past decades.
The Internet is a network of networks. It is a global set of connections of computers that enables
the exchange of data, news and opinion. Aside from being a communications medium, the Internet
has become a platform for new ways of doing business, a better way for governments to deliver
public services and an enabler of lifelong learning.
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Importance of technological revolutions
New technologies transform our lives “by inventing new, undreamed of things and making them
in new, undreamed of ways, says the economist Richard Lipsey.
Imagine what will happen when the cost of a long distance telephone call becomes as low as the
cost of a local call? Or, when you can get a driving license at a time and place of your own
choosing? Or, when you can bank from the comfort of your own living room? In some countries,
ICT is already making these happen. Many believe that the current technological revolution may
in time exceed the Industrial Revolution in terms of social significance.
Lipsey, who studies the relationship between technological change and economic development,
suggests that the introduction of new technologies can have the following effects on society:
1. Initial productivity slowdown and delayed productivity payoff from the new technologies
2. Destruction of human capital (as many old skills are no longer wanted)
3. Technological unemployment (temporary but serious)
4. Widening disparities in the distribution of income, which tends to be temporary until the
supply of labor catches up to the new mix of skill requirements
5. Big changes in regional patterns of industrial location (globalization)
6. Big changes in required education
7. Big changes in infrastructure (e.g., the information highway)
8. Big changes in rules and regulations (intellectual property, antimonopoly, etc.)
9. Big changes in the way we live and interact with each other
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Are there any advantages of analog communication over digital communication
which is preventing the complete digitization of all communication networks?
Analogue systems are still likely to work, or at least easy to fix even if individual components fail.
Graceful signal degradation
They still use AM in avionics because of this: in bad weather, you can still hear something.
New analogue systems are designed not to become obsolete. Additionally, it can always be
interfaced to a DSP chain if need be. You can usually upgrade replace analogue components with
better offerings, but you are stuck with digital ICs...
Simplicity in use
No fancy LCDs and touch screens. -- though this is bad in large systems- few/expensive integration
Analogue components can be made rugged to ridiculous lengths nowadays, surviving
temperatures, radiation and other condition few IC packages can offer. once an IC develops a fault
due to environmental reasons, it is forever faulty. An analogue system may still decide to work,
even if badly. (note: does not apply to all analogue components)
All you need is some wire and polish to make RLCs. May come useful in desperate situations.
everything is analogue. 'digital' is just a convention of analogue signals. To this extent, any digital
system needs at least an analog buffer and converter to exist. Analog = real world.
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Business communication is a very important and most used tools in today’s business world. Every
organization is heavily dependent on communication. Effective communication leads to a business
success. As the technical advancement is coming the communication is also updating its process.
Now business messages are more attractive, flexible, time efficient, cheaper and storable, all this
is being possible just because of digitalization of business messages.
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4. Business Communication by Lesikar, 12th