Management education in India, and perhaps globally, is set for a major change. This time the change will not be incremental or evolutionary, but quite transformative. As one of the few countries that is going all out to leverage many of the emerging technologies, India will see the impact of change sooner and with deeper impact.
Reason: Most of the MBA programmes which now rely on long-honoured frameworks and books authored for earlier eras, are fast getting outdated. The MBA programme must shift quite dramatically and rapidly to prepare a new generation of professionals who can embrace the disruption sweeping the world, post the pandemic, regardless of industry or domain.
Industry today uses data and insights-led business practices, constant innovative thinking, and transformative mindset to even remain in the same position, let alone grow and thrive. This mindset has to get deeply ingrained among the current MBA students and they need to use their networks, real time connectivity with industry leaders, and new age acumen to get into the industry and succeed.
Domain expertise and business acumen is going to be a critical aspect, rather than just functional knowledge that a traditional MBA program provides, human resources development professionals say.
The current crop of MBA students must focus on industry specialization through multiple internships or hands-on projects as that is going to differentiate them during the job search. Companies will prioritize students with relevant industry experience as their capability to quickly scale up and reach optimal productivity level will be lesser, says Sriram Iyer, Founder-CEO of hrtech, Singapore.
“MBA graduates used to be hired for their ability to analyse a situation, create robust and precise presentations about company capabilities; do backend research, prepare reports, and even provide right inputs for RFPs,” he notes.
Today, generative AI and LLMs are doing all these jobs. AI can analyse reams of reports, provide digests and prepare presentations. It can answer queries, do research and even provide human-like insights with precise data points. “It is going to be difficult for MBAs to find the kind of placements available say 2-3 years ago,” adds Mr. Iyer.
Industry experts note that since the 70s, an MBA study was seen as just another degree — a postgraduate qualification pursued out of necessity rather than intent. However, the mindset toward MBA education is still evolving, with many seeing it as an extension of commerce or science studies rather than a specialized discipline requiring real time study and collaboration with industry specialists.
Unfortunately, many business schools are not able to genuinely appreciate the nuances of management education. While the scale and volume of programmes have increased, they often fail to address the reality of how industries and corporations truly operate. Much of the curriculum is still based on Westernized frameworks, and original research by faculty remains scarce. This disconnect creates a significant gap between what the industry requires and what MBA graduates are prepared for.
Addressing the industry-education gap
Professors of practice (those who move from industry to academia to teach cutting edge knowledge in different subjects and disciplines) say management education is often driven by institutional personalities and is sometimes hindered by insecurities when industry professionals join academia. With unprecedented advancements like machine learning (ML), artificial intelligence (AI), cybersecurity, IoT, and robotics, it’s crucial for MBA programs to prepare students for this new age.
Sujitesh Das, Creator, Badgefree, a Talent Market Exchange & Fractional faculty at IIMs, says MBA education should focus on the four significant transformations that have happened in business:
Understanding the power and impact of deep digital disruption
Extreme focus on innovation as a culture in organizations
The power of Data/Information/ Knowledge / Insights / Wisdom / Conspiracy to provide multi-layered perspectives and dive deep into problem-solving
Fostering a strong culture of ethics, empathy and socially responsible work.
Business Model Innovation: Emerging industries like e-commerce, fintech, ed-tech, and EVs are disrupting traditional operations. New-age companies focus on scalability, reducing operational costs, and creating innovative revenue streams like platform fees and value-added services.
Operational Efficiency: Businesses demand smarter, faster, and more cost-effective solutions. MBA graduates need to embrace this disruptive thinking.
Behavioural changes: The IT revolution sought to automate and make systems more efficient and predictable and thus save costs and reduce wasteful time and expenditure. But transformative digital technologies are today altering human and collective behaviour. Airbnb has changed the way we travel; food apps have changed our cuisine and the way we cook or eat; quick commerce (10 minute deliveries are now making people think “I will buy what I want whenever I want”). And these behavioural changes are resulting in new models of revenue
Innovation and entrepreneurship: The next frontier
Today, intelligence is commoditized by technology. It is no longer a differentiator because anyone can leverage artificial intelligence to synthesize information intelligent and use it with agility. Here’s where creativity is going to differentiate one professional from the other. — combining creativity with business acumen to drive desirability and viability is the bulwark of innovation today.
MBA programmes must foster this culture of innovation and entrepreneurship early on and achieve this by making students participate in different contests. While some schools have labs, simulations, and gamified learning environments, the deeper appreciation for innovation takes time to build.
A shift in attitude toward experimentation and risk-taking is essential, especially as a dynamic group of multigenerational workers – 70s kids, Gen Z, millennials, and Gen X—reshape the workplace.
Data as the new currency
In today’s industry, data isn’t just currency — it’s the fuel for decision-making. However, many business schools fail to teach students how to move beyond superficial analysis. The journey from data to wisdom involves peeling back layers to uncover meaningful insights, making informed decisions, and identifying market trends. This requires more than just predictive and prescriptive analytics; it demands an ability to navigate the grey areas of uncertainty.
Ethical dimensions
Knowledge today is getting synthesized and, for the right prompt, can be served through AI. But the real challenge for B school owners is moving beyond knowledge to actionable wisdom. Business schools must emphasize critical thinking, and also place equal emphasis on ethical considerations, and social responsibility. Empathy is essential for understanding the needs, desires, and pain points of customers, employees, and stakeholders. It helps MBA graduates:
Empathy is needed to develop products and services that truly address customer needs. It is required to foster a positive workplace culture by understanding team dynamics and individual challenges. Building trust and long-lasting relationships with clients and partners requires deep empathy.
Leaders who practice empathy are better equipped to motivate and inspire teams; manage conflicts with sensitivity and fairness; and make decisions that consider the well-being of all stakeholders. Teaching empathy to MBA graduates nurtures leaders who are not only effective but also compassionate and inclusive.
As businesses increasingly rely on technologies like AI, machine learning, and data analytics, the ethical implications of these tools come into sharp focus. MBA graduates must understand the potential societal impact of their decisions, such as biases in AI algorithms or data privacy concerns; or balance innovation with ethics to avoid harm or exploitation.
In the next few years, according to Sriram Iyer, most of the MBA students would be experienced industry professionals because knowledge of business and management will become so specialized that generic information or knowledge will serve little purpose. Most of the routine stuff would be done by machines.
From a college management perspective, there would be more demand for an executive MBA program rather than full-time MBA program. Considering the current disruption led by technology, students might prefer an executive management program, whereby they are able to balance both education and work as that would be better application of knowledge.
A traditional management degree only focuses on providing knowledge. A management degree alongside relevant work experience can put professionals on the cutting edge and make them more resilient in the current job market.
(K. Ramachandran writes on higher education and is also a business leader in 361 Degree Minds.)
Published – December 25, 2024 08:35 pm IST
