This article highlights that advances in engineering technology cannot be successfully commercialised and performed in the marketplace 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 only hear about in a film, 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 follow a car at a certain distance by recognising the speed and direction of the car in front of it without a human driver. If it becomes possible to have a car that doesn’t need to be driven by a human, this would be a very innovative piece of engineering research. Furthermore, such research 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 huge profit? 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. It goes to show 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 a means of transport, especially for male consumers. They are more inclined 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 market success. The role of business administration is crucial in successfully introducing engineering achievements to the market, analysing consumer reactions, and coming up with optimised strategies.

Engineering students meet business administration

One of the words used to caricature engineering students by nonengineering students is ‘geeky’. It’s a caricature of engineering students’ disinterest in subjects outside of their major and their overwhelming focus on a particular field, such as maths or science. This is closely related to the curriculum of engineering schools.
For example, in the Faculty of Mechanical and Aerospace Engineering, where I am currently enrolled, the first year of study lays the foundation for the major through basic subjects such as maths and physics, and the second year is when students begin to learn the subject in earnest. 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 realised how business administration can be applied to engineering. In particular, I realised 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 commercialised and turned into profit. Therefore, it is essential for engineering students to have a basic understanding of business management.

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, as the market became more active in the late Joseon Dynasty, 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 at this time. 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 gradually developed systematically, 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 such as 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 standardised approach of traditional management is no longer valid. How to efficiently manage and utilise 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 is management that successfully commercialises them and makes them profitable in the market. The importance of business administration will continue to be emphasised in the future engineering revolution, and engineering students will need to cultivate business thinking as well.
Therefore, it is important for students who want to study engineering in the future to learn the basics of business administration. This is not just about building a CV for employment, but recognising that engineering is an integral 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.