An intelligent intern from a delhi college was hired by my company, Vionix Biosciences, last year. She was studying cutting-edge Artificial Intelligence (AI) research and using cutting-edge technology in ways that could have had a significant impact on the world, so for her, this was a unique chance.
She would have collaborated on ground-breaking inventions with engineers at the indian Institute of technology (IIT) madras and some of the leading tech executives in the US. She had a promising future. In terms of income and stock options, she was expected to surpass any MBA graduate and become a hotshot developer. More significantly, she was capable of doing actual, significant work.
However, she declined a full-time employment offer after her internship. Her goal was to pursue a degree in management. It took her months to get ready for the admission examinations. We sent her our best wishes. However, she was not accepted into her preferred business school. To make less than the initial salary we provided her, she would now spend two years of her life and her family's savings.
This is the MBA dream's tragedy. Students think that obtaining a costly degree will propel them to success in the corporate world. However, in the age of rapidly evolving technology, an MBA is merely an expensive credential with minimal practical use. Students would never be able to recoup the tens of thousands of rupees they spend on tuition, living expenses, and lost wages. Furthermore, even those who are successful in obtaining desired admissions to the esteemed indian Institutes of Management (IIMs) find it difficult to defend their expenditure.
MBAs were important in the past. One of my greatest investments was my own MBA from the Stern school of business at New York University. Credit Suisse First Boston facilitated my advancement from programmer to project manager and ultimately vice president. I gained knowledge of management, marketing, accounting, and law, all of which were crucial for my ascent up the corporate ladder and eventual success as an entrepreneur.
However, things have changed. Technology is changing the corporate landscape, which previously depended on MBA graduates to staff key positions. The days of steady, plodding job advancement have passed. These days, inventions develop at breakneck speed, and businesses are created overnight. Businesses require builders, technologists, and problem solvers, not managers who have been taught from old case studies. In a world where business models are evolving more quickly than university curricula can keep up, the strict frameworks and financial modeling that MBA students are taught are pointless.
Let's also discuss the price. The cost of an MBA at a prestigious indianbusinessschool can range from ₹20 lakh to ₹40 lakh. Include the cost of living, loan interest, and—above all—the opportunity cost of missing out on two years. These students could have made money, gained knowledge, and created something worthwhile if they had joined a startup or started their own businesses instead. Instead, they study PowerPoint presentations for years before reentering the workforce at pay that hardly ever makes the investment worthwhile.
Even IIM graduates, who are thought to be the best, are having trouble landing well-paying positions. Only half of the story is revealed by placement reports. The fact that many students are assigned to positions that don't even require an MBA is something they don't disclose. Without shelling out a fortune for a degree, they might have obtained the same positions. Furthermore, many people who do get well-paying careers soon find themselves trapped in uninspired, bureaucratic positions that are very different from the impact and excitement they had hoped for.
In the meantime, tech firms and startups are transforming the globe and generating new riches. These days, engineers, product designers, and subject matter experts—not MBAs—write the greatest success stories. Business schools do not teach the skills that are important in today's environment, such as data science, biotechnology, software development, and artificial intelligence. The future is being shaped by those who are experts in these domains. They will also be in the greatest demand and make considerably more money than any MBA graduate could ever dream of.
Ask yourself what you truly hope to gain if you are thinking about getting an MBA. If prestige is the issue, realize that prestige does not cover expenses. If it's knowledge, be aware that all of what an MBA teaches can be found for free online. If it's a network, keep in mind that the most successful networks nowadays are created by collaborating on large-scale initiatives with intelligent individuals rather than by attending classes.
My recommendation is to forego the MBA. Acquire practical skills. Participate in a start-up. Create something meaningful. The MBAs are falling behind as the world changes.
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