From the link: http://www.engineerjobs.com/content/2012/getting-an-mba-as-an-engineer-worth-it.htm
Interesting read from the link above. Some points have been mentioned below:
- Instrinsic value of studying business
- Promotion in job with current company / employer
- Career transition using the MBA
- Tremederous catalyst to increase salary (when applicable)
- Expanding contacts and professional networks
- Opportunity Cost
- Not necessarily a pre-requisite to leadership positions
- MBA will not necessarily increase your pay
- Employers are occasionally biased against MBAs
- Not all MBAs are equal
- MBA study material not particularly challenging for engineers
“Yes” if …
- You want to move into a managerial or C-suite position for a large corporation or a traditional employer.
- Your job (or anticipated job) will require managing a budget or forecasting.
- You would like to change careers, especially if you are looking outside of engineering altogether.
- You want to remain the go-to problem solver or technical wizard.
- Don’t want to fork over two (or more) years of your time and incur expensive student loan debt.
- Want to remain with a traditional engineering firm.
- Need a guaranteed return on investment.
An MBA is a change agent when applied to a conventional engineering career.
What can Engineers and MBAs learn from each other?
From the link: http://zebulonsolutions.com/productizationblog/?p=424
What engineers can learn from MBAs:
- Every decision should include a financial aspect. Spec a part; look at the cost. Design a process; look at the cost. It’s not good enough just to say “hey this part functions best.”
- Look at everything from a total cost of ownership point of view. It’s not just piece part cost, it’s yield, it’s field returns, it’s overhead, it’s inventory tied up on the water.
- Understand cash flow. This probably should be number one, but it’s tough. If you buy a part in China, have it sit in WIP in a factory for a month then two months on the water, that makes a difference.
- Learn to calculate IRR. Use it to make financial decisions (1), calculate total cost of ownership (2), and to do an IRR calculation you gotta understand cash flow (3). Hint: IRR = Internal Rate of Return, an ROI type calculation, but better suited for development type projects with uneven cash inlays and outlays. It’s the inverse function of NPV = Net Present Value. And it’s in Excel, although it can be tricky to use (it’s an iterative calculation so sometimes it needs a seed…).
What MBAs can learn from engineers:
- What a BOM is (Bill of Materials); what an ECN is (Engineering Change Notice); what EOL is (End of Life).
- Understanding the age old engineering adage: On time. On budget. Works. Pick Two. Engineering is about compromise. And Murphy was an engineer.
- What a product development schedule really entails, and how to budget and schedule for the real world. Engineers know what it really takes to get a product out the door; they know that real product development involves iterations; and that novel products and technologies take a lot of efforts. Yes DFMEAs and validation testing cost money up front, but they decrease the total cost of ownership. See above.
- That engineering is very often about good enough; that no product will be perfect; that compromises are in order. And that saving money does no good if the dang product doesn’t function properly