Prof. Dr. Martin Hepp


180 hours; Contact hours: 36h; Self-study: 144 hours

Recommended prerequisites:

Basic microeconomic and business management knowledge is required, as taught in basic economics courses in relevant bachelor programs. 


The module deals with the connections between (1) the changed communication possibilities through the Internet and services based on it and (2) the change in the structure of economic activity. In particular, the influence on the division of labor and forms of coordination, the decision between in-house production or external procurement, the definition of company boundaries and the appropriate design of information systems are highlighted. In each case, the impacts between economic effects and Internet-based, automated processes are worked out together with the students. 

Learning objectives

By participating in this course, students will be able to understand the impact of internet-based communication on business processes, internal organization and market conditions on sales and procurement markets of companies and value chains, and to make corresponding operational decisions in a scientifically sound manner, in particular with regard to the design of contracts and communication relationships with customers and suppliers. 

Proof of performance:

Written examination of 60 minutes or grade certification. If the proof of performance is provided in the form of a grade certification, this will be announced at the latest at the beginning of the event, together with the specific modalities for obtaining the grade certificate.



  • Picot, A.; Reichwald, R.;Wigand, R.: Information, Organization and Management, Springer, 2008.
  • Shapiro, Carl; Varian, Hal R.: Information Rules: A strategic Guide to the Network Economy. Harvard Business School Press, Boston, MA, USA 1998. 

Further Reading:

  • Chesbrough, Henry; Spohrer, Jim: A research manifesto for services science. In: Communications of the ACM 49 (2006) 7, pp. 35-40. 
  • Coase, R. H.: The Nature of the Firm. In: R. H. Coase (Eds.) 33-55.
  • Cordella, Antonio: Does information technology always lead to lower transaction costs? In: S. Smithson; J. Gricar; M. Podlogar; S. Avgerinou (Eds.): Ninth European Conference on Information Systems. Bled, Slovenia, 2001, pp. 854-864. 
  • Malone, Thomas W. et al.: Electronic Markets and Electronic Hierarchies. In: Communications of the ACM 30 (1987) 6, pp. 484-497. 
  • Malone, Thomas W. et al.: The Logic of Electronic Markets. In: Harvard Business Review (1989) 3, pp. 3-8. 
  • Sampson, Geoffrey: The myth of diminishing firms. In: CACM 46 (2003) 11, pp. 25-28.
  • Succi, Giancarlo et al.: Network Externalities in Software Systems. In: Standard View 6(1999) 4, pp. 185-191. 
  • Taylor, Frederick Winslow: The Principles of Scientific Management. (Reprint 2006). Aufl., The Echo Library, Middlesex, UK 1911. 
  • Thome, Rainer; Hufgard, Andreas: Continuous System Engineering. Vogel Verlag, Würzburg 1996.
  • Williamson, Oliver E.: The Economics of Organization: The Transaction Cost Approach. In: The American Journal of Sociology 87 (1981) 3 (Nov. 1981), pp. 548-577. 
  • Wallis, John Joseph; North, Douglas C.: Measuring the Transaction Sector in the American Economy, 1870-1970. In: S. L. Engerman; R. E. Gallman (Eds.) 95-161.