By Phalgun Kompalli

The Fourth Industrial Revolution or Industry 4.0 that began less than a decade ago has been marked by an accelerating pace of innovation in communications, technology, and AI, with breakthroughs occurring at an exponential pace. The convergence of physical, digital and biological worlds with the rise of the Industrial Internet of Things (IIoT) has radically disrupted traditional business models across industries, with advanced analytics, automation, and advanced manufacturing technology that is interconnecting industrial devices and equipment, streamlining operations and augmenting productivity. In this transformative era, MBA education must evolve to prepare the leaders of tomorrow. As a result, the landscape of modern business demands a new breed of professionals equipped with the skills to navigate this era of disruptive transformation. This in turn, signals an imperative need to reframe MBA education to deliver the essential skills and knowledge required to thrive in the Fourth Industrial Revolution.

Traditional MBA programmes were primarily focused on imparting fundamental business knowledge and developing core competencies. However, the Fourth Industrial Revolution is synonymous with change and the rapid pace of technological advancements, and the ongoing digital disruptions have led to a growing disconnect between the skills taught in MBA programmes and those demanded by the industry. It’s an era where corporates are looking for agile and extremely tech-equipped talent who could understand and decode innovative layers to derive business results. 

Unlearning and Relearning

As Alvin Toffler, author of the landmark 1970 book, Future Shock stated, “The illiterate of the 21st century will not be those who cannot read and write, but those who cannot learn, unlearn, and relearn”. Success requires the ability to unlearn obsolete practices and relearn cutting-edge approaches. 

MBA curricula must be updated to incorporate emerging technologies and their applications as well as managing geopolitical shifts, and evolving consumer preferences. Critical thinking and openness to new ideas are essential traits that MBA programmes should cultivate. Experiential learning formats are taking centrestage. This can also be achieved through case studies, real-world problem-solving, and exposure to various industries and cross-border cultures.

Embracing Technology

Technology is the cornerstone of Industry 4.0. Leaders must have a foundational understanding of current technologies and stay abreast of developments to harness them effectively. For instance, artificial intelligence (AI) and robotics are revolutionizing industries. According to the World Economic Forum, while AI and technology are expected to displace around 85 million jobs by 2025, 97 million new jobs are also expected to be created.

MBA programmes should include courses on emerging technologies and their applications. For instance, a course on AI could encompass Machine Learning, Natural Language Processing, and their applications in fields like finance, marketing, and supply chain management. Additionally, an understanding of IIoT is critical in manufacturing and logistics, as it can lead to predictive maintenance, improved safety, and optimized resource utilization. Establishing partnerships with tech firms for hands-on exposure and practical experience to keep pace with technological advancements can also be a game-changer.

Managing Uncertainty and Risk

In a rapidly evolving world, uncertainty and risk are inherent. Adaptability is the name of the game. An effective MBA programme should equip students with the skills to decipher complex scenarios, weigh options, and make informed decisions. This involves an understanding of statistical analysis, decision theory, and risk management. Furthermore, it is crucial for leaders to develop resilience and mental agility to cope with the stresses of a volatile, uncertain, complex, and ambiguous (VUCA) environment. Incorporating modules on change management, crisis management, and scenario planning in MBA curricula can be immensely beneficial.

Soft Skills: The Foundation of Success

While technological proficiency is invaluable, soft skills remain critical. The ability to communicate effectively, collaborate, inspire, persuade, and harness the potential of team members is indispensable. In an age where automation and artificial intelligence are prevalent, it is the human touch and creativity that set great leaders apart. Through efficient communication, leaders can articulate visions and steer their teams towards objectives. Collaboration is key to fostering innovation and synergy. Moreover, in an increasingly diverse workforce, cultural competence and emotional intelligence are vital for ensuring harmony and high morale. MBA programs must, therefore, emphasize the development of these soft skills through practical exercises and simulations.

In a world that’s more connected than ever, it’s vital that our education systems are designed to empower individuals with the tools and knowledge they need to succeed. The Fourth Industrial Revolution and the rise of IIoT present immense opportunities and challenges, and it is through a reimagined and adaptive MBA education that we can best equip the leaders of tomorrow to navigate and thrive in this exciting new era.

The author is co-founder, upGrad. Views expressed are personal.