In this blog post, we will consider the necessity of business administration from the perspective of engineering students and examine the conditions necessary for technological innovation to succeed in the market.
The necessity of introducing business administration in the process of engineering revolution
What if cars were created that did not require a driver? It may sound like something out of a movie, but I don’t think it’s impossible. During a recent lecture, I heard about the field my professor is researching, and it solidified my belief. The professor is conducting research where two cars are used, with one car being driven by a person while the other is controlled remotely. Watching a video of a car following the lead car at a safe distance without a driver, recognizing its speed and direction, left not only me but also my classmates in awe.
If it becomes possible to have cars that do not require human drivers, this would be a highly innovative achievement in engineering. Furthermore, such research demonstrates how engineering can enhance convenience and efficiency in people’s daily lives. However, let us consider the following question: If an automobile company were to release a car that does not require a human driver, would it be able to generate significant profits? Even if a product is technologically innovative, there is no guarantee that it will lead to successful business results. Let me share an example. There was a pancake mix manufacturer in the US. The company developed pancake mix that could be cooked without eggs, which was a huge success. Later, they launched a product that did not require milk, but surprisingly, consumer response was lukewarm.
This was because pancakes are not just a simple dish but symbolize a mother’s love and care. Housewives felt that using pancake mix that did not require adding eggs or milk themselves diminished their role, and ultimately rejected the product. This case demonstrates that even if technology is superior, it is difficult to succeed if it does not align with consumers’ emotions or needs.
Applying this logic to automobiles, it is uncertain whether a car that does not require manual driving would succeed. Cars hold more than just practical significance, especially for male consumers. They are often used as a means of self-expression and to attract the opposite sex, so technical convenience does not necessarily translate into sales. This is a prime example of the gap between technological advancement and business strategy.
Given that engineering innovation does not necessarily guarantee market success, the integration of engineering and business administration is necessary. This is because business administration plays a crucial role in successfully introducing engineering achievements into the market, analyzing consumer responses, and establishing optimized strategies.
The meeting of engineering students and business administration
One of the words used by students from other departments to mock engineering students is ‘gongdori.’ This is a satirical expression that refers to the tendency of engineering students to be indifferent to subjects other than their major and to be overly focused on specific fields such as mathematics and science. This tendency is closely related to the curriculum of engineering departments.
Taking the curriculum of the Mechanical and Aerospace Engineering Department where I am currently enrolled as an example, first-year students build a foundation in their major through basic courses such as mathematics and physics. Starting from the second year, they begin to learn specialized knowledge in their field. By the third and fourth years, they apply the theories they have learned through practical training and experiments. The problem is that even after going through this process, there are few opportunities to encounter non-engineering knowledge such as business administration. Through my involvement in the Management Strategy Society, I began to learn the fundamentals of business administration and realized how it could be applied to engineering. In particular, I came to understand the importance of cost management and financial management, which I recognized as essential managerial perspectives that must precede engineering thinking.
Although engineering and business administration appear to be separate disciplines, they are actually complementary. In fact, many engineering innovations can only succeed in the market when supported by business thinking. While engineering innovation focuses on the development of products and technologies, business administration considers how those technologies can be efficiently commercialized and converted into profits. Therefore, it can be said that a basic understanding of business administration is essential for engineers.
The History of Engineering and the Role of Management
When did engineering begin? Engineering has existed in Korea since the Three Kingdoms period. At that time, people called “gongin” were under the control of the state and produced essential items such as weapons and utensils. They were simply craftsmen who made things and did not plan or design creative products. However, with the revitalization of the market in the late Joseon period, they grew into merchants who planned and designed their own products and sold them. This can be considered the early stages of engineering in Korea.
Engineering and management began to develop close ties during this period. In order to survive in a market economy, gongin had to produce higher quality products, which led to the emergence of creative and innovative products. Management played a fundamental role in the gradual systematic development of engineering.
Today, engineering and business administration are inseparable. Many engineering-based companies are leading the global economy, and technological innovation has become a crucial factor in determining a company’s survival and growth. As a result, positions such as Chief Technology Officer (CTO) have emerged, and the fusion of technology and business administration now determines a company’s strategy.
Management will continue to play an important role in future engineering revolutions. As engineering technology becomes increasingly advanced, the standardized methods that were the basis of traditional management are becoming obsolete. Now, the core of management is shifting to how to efficiently manage and utilize new assets such as new technologies, information, knowledge, and patents.
Conclusion
As such, engineering and management are interdependent, and one cannot exist without the other. Engineering changes the world through innovative technology, but it is management that successfully commercializes that technology and generates profits in the market. The importance of management will continue to be emphasized in future engineering revolutions, and engineers must also cultivate management thinking.
Therefore, students aspiring to study engineering should prioritize learning the fundamentals of business administration. This is not merely for the sake of building a resume but to recognize that business administration is an essential element in the process of engineering adding value to the world. The integration of engineering and business administration will create significant synergy in the development of our society and contribute to building a better future.
