Why Traditional MBA Programs Are Insufficient, ETEducation
By Dr Rajat Gera.
For more than half a century, the Master of Business Administration (MBA) has been regarded as the gold standard for grooming managers and business leaders. Rooted in functional expertise—finance, marketing, operations and human resources—the traditional MBA was designed for a relatively stable, hierarchical, and predictable business environment. That world no longer exists.
In today’s economy, shaped by rapid digitalisation, artificial intelligence (AI), platform business models, and data-driven decision-making, the traditional MBA model is increasingly inadequate. While not obsolete, it is no longer sufficient on its own to prepare leaders for the complexity and velocity of contemporary business.
From Functional Managers to Digital Leaders
The classical MBA emphasised analytical frameworks, case-based reasoning, and discipline-specific silos. However, modern organisations demand leaders who can operate at the intersection of business strategy, technology, and human judgement. Digital transformation is no longer an IT initiative; it is a core leadership responsibility.
A 2024 report by the World Economic Forum highlights analytical thinking, AI literacy, and technological adaptability as among the most critical skills for future managers, alongside traditional leadership competencies (World Economic Forum, 2024). Yet, many traditional MBA programmes still treat technology as a peripheral elective rather than a foundational capability.
Technology Is Reshaping How MBAs Are Taught
The disruption is not limited to curriculum content; it extends to pedagogy itself. Technology-enabled learning platforms, AI-driven simulations, real-time analytics dashboards, and virtual collaboration tools have transformed the classroom. During and after the COVID-19 pandemic, business schools globally adopted hybrid and online models—not as stop-gap measures, but as scalable, flexible alternatives.
Institutions such as Harvard Business School Online and INSEAD have integrated digital simulations and analytics-based decision labs to replicate real-world complexity (Harvard Business School Online). Similarly, Wharton’s introduction of an AI-focused MBA major in 2025 signals a decisive shift toward embedding technology at the core of management education rather than treating it as an add-on (Business Insider, 2025).
These developments challenge the premise that deep learning requires only physical classrooms and printed casebooks.
The Rise of New MBA Formats
One of the clearest indicators that the traditional MBA is insufficient is the proliferation of alternative MBA formats, each designed to address specific learner and industry needs:
Online MBAs: Designed for working professionals, these programmes leverage digital platforms to offer flexibility without geographic constraints. The Financial Times reports a sharp rise in enrolments for accredited online MBAs globally (Financial Times).
Hybrid MBAs: Combining campus immersion with online delivery, these formats balance networking with flexibility.
Executive MBAs (EMBAs): Focused on senior professionals, EMBAs increasingly emphasise digital leadership, AI strategy, and transformation management.
Specialised MBAs: Programmes in Business Analytics, FinTech, Digital Transformation, Healthcare Management, and Sustainability reflect industry-specific skill demands.
In India, institutions such as IGNOU and IIIT-Allahabad have launched online and technology-driven MBA programmes aimed at scale, inclusivity, and employability (Times of India).
AI as Both Subject and Pedagogical Tool
Artificial intelligence represents a turning point for management education. On one hand, AI is a subject of study—covering strategy, ethics, governance, and business applications. On the other, it is reshaping assessment, feedback, and learning personalisation.
Business schools are increasingly debating how tools like generative AI should be integrated responsibly. Rather than banning such tools, leading institutions are training students to use them critically—mirroring how managers will rely on AI-assisted decision-making in practice (Financial Times).
This shift fundamentally alters what it means to “learn management” in the 21st century.
Implications for Indian Management Education
For India, the stakes are particularly high. With a large youth population and a rapidly digitising economy, management education must move beyond rote frameworks toward adaptive, technology-enabled leadership development. The National Education Policy (NEP) 2020’s emphasis on flexibility, multidisciplinary learning, and digital integration aligns closely with this need.
Institutions that continue to rely solely on traditional MBA models risk producing graduates who are theoretically competent but strategically underprepared for digital organisations.
The MBA as a Platform, Not a Product
The central argument is not that the MBA has lost relevance, but that its traditional form is no longer sufficient. The MBA is evolving from a one-time degree into a lifelong learning platform—modular, technology-enabled, and deeply integrated with industry realities.
In an era defined by uncertainty and technological acceleration, the future MBA must produce leaders who can think systemically, act ethically, and leverage technology strategically. Anything less would be an education for a world that no longer exists.
References:
World Economic Forum (2024). The Future of Jobs Report.
https://www.weforum.org/publications/the-future-of-jobs-report-2024/
Harvard Business School Online – Digital Transformation & AI
https://online.hbs.edu/subjects/digital-transformation-ai/
Business Insider (2025). Wharton launches AI-focused MBA major
https://www.businessinsider.com/wharton-business-school-upenn-ai-curriculum-2025-4
Financial Times. The rise of online MBAs
https://www.ft.com/content/f797934c-84e9-4def-b894-83804be7cd40
Times of India. IGNOU launches MBA programmes in regional languages
https://timesofindia.indiatimes.com/city/delhi/ignou-launches-mba-programmes-in-hindi-and-odia/articleshow/121757304.cms
– The author is Professor and Director School of Management, CMR University, Bengaluru
DISCLAIMER: The views expressed are solely of the author and ETEducation does not necessarily subscribe to it. ETEducation will not be responsible for any damage caused to any person or organisation directly or indirectly.
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