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News

2008-06-20: Time of Exam has been rescheduled to Friday, June 20, 2008, 12:00-14:00 in Building 35, Classroom 2210 A!
2008-06-18: Study Guide for the Exam is available. Apologies for the delay.
2008-06-09: Please register for the exam here, not later than Friday, June 13, 2008, 12am.
2008-06-09: The slides for unit 8 are now on-line.
2008-06-02: Unit 7 on June 2 will be delivered as a WebCast - Click here to view the unit (Adobe Flash plug-in required).
2008-05-26: The slides for unit 6 are now on-line.
2008-05-05: The slides for unit 5 are now on-line.
2008-04-28: The slides for unit 4 are now on-line.
2008-04-20: The slides for unit 3 are now on-line.
2008-04-13: The slides for unit 2 are now on-line.
2008-04-10: The slides for unit 1 are now on-line.
2008-04-10: The Web page has been updated. Materials concerning the Winter 2008 trimester section have been moved to
http://www.heppnetz.de/teaching/img/2008wt/.

Learning Goals

This class will introduce the fundamental economic effects and theories that explain the diffusion of Electronic Business, especially new institutional economics, and map these to core concepts of management science. The overall learning goal of the course is an in-depth understanding of the interplay of economics, communication and information research, management science, and applied computer science; the underlying social and technical processes, and their implications for business and management.

General Information

Lecture

Mondays, 13:15 - 14:45, Building 36, Classroom 0221

Exam

Friday, June 20, 2008, 10:00 - 12:00 12:00-14:00, Building 35, Classroom 2210 A

Literature

Core Literature:

  1. [WiPR1997] Wigand, Rolf T. et al. : Information, Organization and Management. John Wiley & Sons, West Sussex 1997.
  2. [Tayl1911] Taylor, Frederick Winslow : The Principles of Scientific Management. (Reprint 2006). Aufl., The Echo Library, Middlesex, UK 1911.
  3. [ShVa1998] Shapiro, Carl; Varian, Hal R. : Information Rules: A strategic Guide to the Network Economy. Harvard Business School Press, Boston, MA, USA 1998.

Optional Literature:

  1. [BHHS2006] Berners-Lee, T. et al. : Creating a Science of the Web. In: Science 313 (2006) 5788 (11 August 2006), pp. 769 -771.
  2. [BiCH2007] Bizer, Chris et al. : How to Publish Linked Data on the Web. http://sites.wiwiss.fu-berlin.de/suhl/bizer/pub/LinkedDataTutorial/ retrieved July 25, 2007.
  3. [CaHL2007] Cardoso, Jorge et al. (Eds.) : The Semantic Web. Real-World Applications from Industry. Bd. 6, Springer, Berlin etc. 2007.
  4. [ChSp2006] Chesbrough, Henry; Spohrer, Jim : A research manifesto for services science. In: Communications of the ACM 49 (2006) 7, pp. 35-40.
  5. [Coas1990] Coase, R. H. : The Nature of the Firm. In: R. H. Coase (Eds.) : The Firm, the Market, and the Law. The University of Chicago Press, Chicago 1990, pp. 33-55.
  6. [Cord2001] 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.
  7. [DaSh1990] Davenport, Thomas H.; Short, James E. : The New Industrial Engineering: Information Technology and Business Process Redesign. In: Sloan Management Review 31 (1990) 4 (Summer 1990), pp. 11-28.
  8. [Davi1985] David, Paul A. : Clio and the Economics of QWERTY. In: American Economic Review 75 (1985) 2, pp. 332-337.
  9. [DeSS1995] Dewan, Rajiv et al. : Strategic Choices in IS Infrastructure: Corporate Standards vs. "Best of Breed" Systems. In: J. I. De Gross et. al. (Eds.) : 16th International Conference on Information Systems. Amsterdam1995, pp. 97-107.
  10. [FaSa1985] Farrell, Joseph; Saloner, Garth : Standardization, compatibility, and innovation. In: RAND Journal of Economics 16 (1985) 1, pp. 70-83.
  11. [FeWL2002] Fensel, Dieter et al. (Eds.) : Spinning the Semantic Web: Bringing the World Wide Web to Its Full Potential. MIT Press, Cambridge, MA, USA 2002.
  12. [HaCh2001] Hammer, M.; Champy, J. : Reengineering the Corporation. Nicholas Brealey Publishing, 2001.
  13. [Hepp2007] Hepp, Martin : Possible Ontologies: How Reality Constrains the Development of Relevant Ontologies. In: IEEE Internet Computing 11 (2007) 7, pp. 90-96.
  14. [KaSh1985] Katz, Michael L.; Shapiro, Carl : Network Externalities, Competition, and Compatibility. In: American Economic Review 75 (1985) 3, pp. 424-440.
  15. [LaRT1998] Laffont, Jean-Jaques et al. : Network competition: I. Overview and nondiscriminatory pricing. In: Rand Journal of Economics 29 (1998) 1, pp. 1-37.
  16. [Malh1998] Malhotra, Yogesh : Business Process Redesign: An Overview. In: IEEE Engineering Management Review 26 (1998) 3, pp. 27-31.
  17. [MaYB1987] Malone, Thomas W. et al. : Electronic Markets and Electronic Hierarchies. In: Communications of the ACM 30 (1987) 6, pp. 484-497.
  18. [MaYB1989] Malone, Thomas W. et al. : The Logic of Electronic Markets. In: Harvard Business Review (1989) 3, pp. 3-8.
  19. [Nels1992] Nelson, Daniel (Ed.) : A Mental Revolution: Scientific Management since Taylor. The Ohio State University Press, Columbus 1992.
  20. [Piet1995] Pietrykowski, Bruce : Fordism at Ford: Spatial Decentralization and Labor Segmentation at the Ford Motor Company, 1920-1950. In: Economic Geography 71 (1995) 4 (Oct., 1995), pp. 383-401.
  21. [Pric1992] Price, Brian : Frank and Lillian Gilbreth and the Motion Study Controversy, 1907-1930. In: D. Nelson (Ed.) : A Mental Revolution: Scientific Management since Taylor. The Ohio State University Press, Columbus 1992, pp. 58-77.
  22. [Samp2003] Sampson, Geoffrey : The myth of diminishing firms. In: CACM 46 (2003) 11, pp. 25-28.
  23. [ShHB2006] Shadbolt, Nigel et al. : The Semantic Web Revisited. In: IEEE Intelligent Systems 21 (2006) 3, pp. 96-101.
  24. [SPVV1999] Succi, Giancarlo et al. : Network Externalities in Software Systems. In: StandardView 6 (1999) 4, pp. 185-191.
  25. [ThHu1996] Thome, Rainer; Hufgard, Andreas : Continuous System Engineering. Vogel Verlag, Würzburg 1996.
  26. [W3C2005] W3C : Simple Knowledge Organisation System (SKOS). http://www.w3.org/2004/02/skos/ , retrieved Nov 30, 2005.
  27. [WaNo1986] Wallis, John Joseph; North, Douglas C. : Measuring the Transaction Sector in the American Economy, 1870-1970. In: S. L. Engerman; R. E. Gallman (Eds.) : Long-term factors in American economic growth. University of Chicago Press, Chicago, IL, USA 1986, pp. 95-161.
  28. [Will1981] 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.

Grading and Exam Preparation

The topics covered in this class are relevant for the comprehensive diploma exam ("Diplomhauptprüfung") and/or for the separate Credit Point exam on June 20. For your preparation, please refer to the study guide.
Note that this study guide has been updated as of June 18.

Contents

1 Introduction
2 From Scientific Management to BPR: The Search for „Ideal“ Processes
3 Transaction Costs: How ICT Changes the Rules of the Game
4 Information Asymmetry and Opportunism
5 Potential and Limitations of ICT
6 Network Externalities: Standards and Lock-In
7 The Economics of the Information Economy
8 Large Scale Collaboration: Web 2.0, Wikinomics and the Wisdom of Crowds
9 The Semantic Web: A Web of Data
10 Services Science and Web Science
11 Exam Review

Schedule and Materials

Unit 1: Introduction

Slides: PDF (1 slide per page; use printer driver options to print multiple slides per sheet).

Literature and Materials:

  1. Wikipedia: Management, http://en.wikipedia.org/wiki/Management

Unit 2: From Scientific Management to BPR: The Search for „Ideal“ Processes

Slides: PDF (1 slide per page; use printer driver options to print multiple slides per sheet).

Literature and Materials:

  1. Frederick Winslow Taylor: The Principles of Scientific Management, 1911.
    http://www.eldritchpress.org/fwt/taylor.html
  2. Wikipedia: Taylorism, http://en.wikipedia.org/wiki/Taylorism
  3. Charles Babbage:  Economy of Machinery and Manufactures
    http://socserv2.socsci.mcmaster.ca/~econ/ugcm/3ll3/babbage/index.html
  4. Links to Fordism: http://www2.cddc.vt.edu/digitalfordism/fordism_links/index.htm

Unit 3: Transaction Costs: How ICT Changes the Rules of the Game

Slides: PDF (1 slide per page; use printer driver options to print multiple slides per sheet).

Literature and Materials: tbd

  1. Wikipedia: Transaction Cost Theory
    http://en.wikipedia.org/wiki/Transaction_cost
  2. Leonard E. Read: “I, Pencil. My Family Tree as told to Leonard E. Read”, Dec. 1958
    http://www.econlib.org/library/Essays/rdPncl1.html,
    PDF version: http://www.fee.org/pdf/books/I,%20Pencil%202006.pdf

Unit 4: Information Asymmetry and Opportunism

Slides: PDF (1 slide per page; use printer driver options to print multiple slides per sheet).

Literature and Materials:

  1. Wikipedia: Principal-Agent Problem
    http://en.wikipedia.org/wiki/Principal-agent_problem
  2. Wikipedia: Ideas and Life of Friedrich Hayek
    http://en.wikipedia.org/wiki/Friedrich_Hayek
  3. Wikipedia: Game Theory
    http://en.wikipedia.org/wiki/Game_theory
  4. Wikipedia: Prisoner‘s Dilemma
    http://en.wikipedia.org/wiki/Prisoner's_dilemma

Unit 5: Potential and Limitations of ICT

Slides: PDF (1 slide per page; use printer driver options to print multiple slides per sheet).

Literature and Materials: Wigand, Rolf T. et al. : Information, Organization and Management. John Wiley & Sons, West Sussex 1997.

Unit 6: Network Externalities, Standards, Lock-In, and the Economics of the Internet

Slides: PDF (1 slide per page; use printer driver options to print multiple slides per sheet).

Literature and Materials: Shapiro, Carl; Varian, Hal R. : Information Rules: A strategic Guide to the Network Economy. Harvard Business School Press, Boston, MA, USA 1998.

Unit 7: The Semantic Web: A Web of Data

Important: Unit 7 on June 2 will be delivered as a WebCast - Click here to view the unit (Adobe Flash plug-in required).

Slides: PDF (1 slide per page; use printer driver options to print multiple slides per sheet).

Literature and Materials: Antoniou/van Harmelen: A Semantic Web Primer, MIT Press 2004; W3C Web Page, http://www.w3.org/sw/

Unit 8: Information and Communication Models (June 9)

Slides: PDF (1 slide per page; use printer driver options to print multiple slides per sheet).

Literature and Materials:

  1. Radical Constructivism
    https://tspace.library.utoronto.ca/citd/holtorf/3.8.html
    http://en.wikipedia.org/wiki/Constructivist_epistemology
  2. Semiotics
    http://www.aber.ac.uk/media/Documents/S4B/semiotic.html
    http://en.wikipedia.org/wiki/Semiotics
  3. Shannon and Weaver
    http://www.cultsock.ndirect.co.uk/MUHome/cshtml/index.html
  4. Watzlawick, Beavin, Jackson
    http://en.wikipedia.org/wiki/Paul_Watzlawick
    http://www.colorado.edu/communication/meta-discourses/Theory/watzlawick/
  5. Schulz von Thun
    http://de.wikipedia.org/wiki/Vier-Seiten-Modell (in German only)
  6. Speech Act Theory
    http://en.wikipedia.org/wiki/Speech_act
  7. Media Richness
    http://www.tcw.utwente.nl/theorieenoverzicht/Theory%20clusters/Mass%20Media/Media_Richness_Theory.doc/

Unit 9: Exam Review (June 16)

Study Guide for the Exam: PDF