4 ms·
I have an undergrad in computer engineering, and an MBA from a top-10 or top-5 (depending who you ask) school. I learned a LOT from it, even though my experienc
by _jgvg 10y ago
I have an undergrad in computer engineering, and an MBA from a top-10 or top-5 (depending who you ask) school. I learned a LOT from it, even though my experience after my undergrad degree was mostly in business.
Businesses, finance markets are far more complex than people usually think, and if you like to learn, an MBA is a great way to build a solid base for being a product manager, or a director who actually understands the sides of the company: how products are made, how they are sold/monetized/etc. and how to manage the overall structure of the company.
Sadly, I know a lot of great product managers, directors, etc. who are former engineers and have little understanding of competitive strategy, market forces, economics, marketing & finance.
In terms of learning, I took a generalist approach, but focused mostly on strategy & game theory, finance and technology. Here's some of the key things I learned, which I actually use frequently:
- Overconfidence bias: we usually think we're better than the average on something we know how to do (driving) and worse than the average in something we don't (juggling), even if almost nobody knows juggling and everyone knows how to drive
- No alpha (aka can't beat the market): you can only consistently beat the market if you're far better at financial analysis than a lot of people who do it every day all day. So don't bother trying.
- Value chain vs. profits: you'll find that most of the excess profits in the value chain of a product will be concentrated in the link that has the least competition
- Non-linearity of utility functions: the utility of item n of something is smaller than item n-1. Also, the utility of losing $1 is smaller than (1/1000) utility of losing 1000. This explains insurance and lotteries: using linear utility function, both have a negative payout, but they make sense when the utility function isn't linear
- Bullwhip effect in supply chain: a small variation in one link of the supply chain can cause massive impacts further up or down as those responsible for each link overreact to the variation (also explains a lot of traffic jams)
- Little's law: in supply chain (and a lot of other fields): number of units in a system = arrival rate * time in the system
Sadly, a lot of people in my class weren't that interested in learning, and focused solely on the networking and entertainment parts of the MBA.
- losteverything 10y agoBook please. Link please. More please. Awesome reply.
- ucaetano 10y agoMost of the content was cases, with some parts of books, for example: Biographies of Robert Moses and LBJ by Robert Caro - we used this for studies of power in organizations. We'd read parts of it and understand where these people would get their power from, how they would yield it, and so on. A lot of it is hard to learn without discussions and debate, trying and getting it wrong, and figuring out where you got it wrong. Even some of the things I mentioned are never stated like that during the course, you kinda build that along the way (such as the link of the value chain example).
- nunez 10y agoCan't these things be learned by reading?
- neutralid 10y agoMicro-/macroeconomics and computer science (queueing theory) could cover most of the key items ... but people would need to understand the connections / generalizations / limitations. Perhaps MBAs make it obvious with case studies and in-class debates.
- iakh 10y agoI have BS in EE, went into software development and got an MBA after becoming a software manager. The two most impactful subjects that really changed the way I think were Queuing Theory and Real Options Valuations. You don't need an MBA to learn about these yourself, but without an MBA I probably would have come across Queuing Theory (in the form of Kan Ban), but likely never Real Options Valuations. So if anybody here is considering an MBA, look into both subjects and see if another half a dozen or so similar and related topics might be interesting to you.
- paulddraper 10y agoVirtually everything can be learned by reading.
- collyw 10y agoI am pretty sure you couldn't learn whitewater kayaking or downhill skiing from reading.
- paulddraper 10y agoYou can learn an incredible amount about those through reading, though it's slower than just doing it so most people don't.
- wyldfire 10y agoAs in all things for which you can be awarded a degree: yes.
- sage76 10y agoHate to be blunt, but first of all, the things you pointed out are really common knowledge/common sense, and secondly, most of these are not necessary to be an engineering manager at all. 'No alpha' is something that even Warren Buffet has been talking about, and it doesn't impact any EM's job day to day.
- ucaetano 10y agoYou'd be surprised how many great engineers I know don't actually follow that, either by believing they can pick stocks better than the market (false) or by thinking that you can derive economic profit simply by doing the same as everyone else in an industry. There is a major difference between "knowing something" and having it ingrained in your thinking process so it happens seamlessly. You don't need this to be an engineering manager, but you need this to be a good engineering manager. Knowing and dealing with your own (and other people's) biases, understanding how power works in organizations, how different pieces of an organization interact and how the products you are building impact the financials of the company are basic requirements (but not enough) to be a good engineering manager.
- sage76 10y agoAgree to disagree I suppose. Engineers have the technical skills to look into basic financial and budgeting, and there are financial planning guys involved in big projects to do the really in depth stuff if required. A degree will not fix their unwillingness to learn, MBAs can be earned by going through the motions of the coursework. It happens in more technical degrees all the time. As for the power dynamics stuff, firms in other professional fields do it all the time, and they don't seem to care about MBAs at all. Lastly, a lot can be learnt on the job too. Maybe, statistically, engineers are more unlikely to show interest in this stuff, and that makes an MBA a "signal" that this person is interested in management. It's a bloody expensive signal though, and it just saddens me that my career options and advancement might be limited because of it.
- ucaetano 10y ago> Engineers have the technical skills to look into basic financial and budgeting, and there are financial planning guys involved in big projects to do the really in depth stuff if required. If by "technical skills" you mean "being able do to math", you're as far away from finance as "pressing keys on the keyboard" is from "coding". You don't need a degree to be an engineer, and you don't need a degree to be in "management". But that's not the point.