This article highlights that advances in engineering technology cannot be successfully commercialized and marketed without the integration of business administration. It explains the importance of managerial thinking for engineering students, and suggests that business administration will play a key role in the future engineering revolution.
The need for management in the engineering revolution
What if a car was created that didn’t require a human to drive it? It might sound like something you’d hear about in a movie, but I don’t think it’s that impossible. In a recent lecture, I heard about one of my professor’s research projects, and it confirmed my thoughts. He was working on a study where he had two cars and was driving one car to control the other. I was amazed to see a video of a car that could recognize the speed and direction of the car in front of it and follow it at a certain distance without a human driver. If it becomes possible to have a car that doesn’t need to be driven by a human, it would be a revolutionary piece of engineering research. Furthermore, it shows how engineering can increase convenience and efficiency in people’s lives.
But let’s ask a question. If a car company released a car that didn’t require a human to drive it, would it make a lot of money? Even if a product is technologically innovative, there’s no guarantee that it will translate into a successful business outcome. Here’s a case in point.
There was a pancake flour manufacturing company in the US. Through research, the company developed a pancake flour that could be cooked without eggs, and it was a huge success. The company later launched a product that didn’t require milk, but the response from consumers was surprisingly lukewarm: pancakes are not just a dish, but a symbol of a mother’s love and care. Housewives felt that using pancake flour without eggs or milk felt like a diminution of their role, and they turned away from the product. This example shows that no matter how great the technology is, if it doesn’t match the emotions and needs of consumers, it won’t succeed.
Applying this same logic to cars, it’s not clear that a car that doesn’t drive itself will succeed. Cars are more than just transportation, especially for male consumers. They tend to use their cars as a way to express themselves and attract the opposite sex, so technological conveniences don’t necessarily translate into sales. This is a good example of the gap between technological advancement and business strategy.
This is where the convergence of engineering and management comes in, as engineering innovation does not necessarily guarantee success in the marketplace. The role of business administration is crucial in successfully introducing engineering achievements to the market, analyzing consumer reactions, and coming up with optimized strategies.
Engineering meets business administration
One of the words used by nonengineering students to caricature engineering students is “gung-ho”. This is a satirical reference to the fact that engineering students are often disinterested in other subjects outside of their major and are overly focused on certain fields, such as math and science. This is closely related to the curriculum of engineering schools.
For example, the curriculum at the School of Mechanical and Aerospace Engineering, where I am currently enrolled, lays the foundation for the major through basic subjects such as math and physics in the first year, and then begins to focus on the major in the second year. In the third and fourth years, students apply their theories to the real world through practical exercises and experiments. The problem is that even in this process, students are rarely exposed to non-engineering knowledge such as business administration. I started to learn the basics of business administration through my involvement in the Academy of Management and Strategy, and that’s when I realized how business administration can be applied to engineering. In particular, I realized the importance of cost management and financial management, which are management perspectives that must precede engineering thinking.
While engineering and management may seem like separate disciplines, they are actually complementary. In fact, many engineering innovations are only successful in the marketplace when they are supported by business thinking. While engineering innovation focuses on the development of a product or technology, business administration is concerned with how that technology can be efficiently commercialized and turned into profit. Therefore, it is essential for engineering students to have a basic understanding of business administration.
The history of engineering and the role of business administration
When did engineering begin? In Korea, engineering has existed since the Three Kingdoms period. At that time, the so-called “public craftsmen” were controlled by the state and made essential items such as weapons and vessels. However, in the late Joseon Dynasty, as the market revitalized, these engineers became merchants who planned, designed, and sold their own products. This is the earliest form of engineering in Korea.
Engineering and management began to be closely linked from this period. In order to keep up with the market economy and survive the competition, public figures had to make better quality products, which led to the emergence of creative and innovative products. As engineering became more and more systematic, business administration played a fundamental role in its development.
Today, engineering and business are inseparable. Many engineering-based companies drive the global economy, and technological innovation is now a critical factor in determining a company’s survival and growth. This has led to the rise of positions like chief technology officer (CTO), and the convergence of technology and management is shaping corporate strategy.
Business administration will also play an important role in the coming engineering revolution. As engineering technology becomes increasingly advanced, the standardized approach of traditional management is no longer valid. How to efficiently manage and utilize new technologies, information, knowledge, and new assets such as patents is now at the core of management.
Conclusion
As you can see, engineering and management are interdependent, and one cannot exist without the other. Engineering changes the world through innovative technologies, but it’s up to management to successfully commercialize those technologies and make them profitable in the marketplace. The importance of business administration will continue to be emphasized in the future engineering revolution, and engineering students will need to cultivate business thinking as well.
Therefore, it is important for students who plan to study engineering in the future to learn the basics of business administration. This is not just about building a resume to get a job, but recognizing that engineering is an essential part of the process of actually adding value to the world. The convergence of engineering and management will create important synergies for the development of our society, which will help us create a better future.
