STEM MBA Programs

As per a 2016 report by McKinsey Global Institute (MGI) titled The Age of Analytics: Competing in a Data-Driven World, most organizations have barely scratched the surface in terms of exploiting the full value of the data available within their company.

The only recognizable progress made so far has been in the field of US retail and location-based services. Sectors including manufacturing, public service, and healthcare are far mining and analyzing the rich data being produced by their industries to further their business.

To get going with data and analysis of data, businesses need to:

• Grasp the value of data analytics and its use in today’s business and how it can help contribute to strategy formation
• Understand the dependency of such data on the digitization of core business processes and therefore undertake digitization in a planned manner. Large data needs to be first collected and the capacity to analyze it also needs to be created.
• Find the necessary brains and talent who will be work on the data to derive insights
• Utilize these insights to give direction the business to steer it in the right direction

But this is only one side of the story. Data Analysts can only provide insights. Business’s need people who understand not just the data-led insights and analytics but also the business side of things in order to implement the insights and gain business advantage.

How Can a STEM MBA Program Help?

Several B-Schools have responded to this need with MBA programs and unique MBA specializations that embed analytics and data into the curriculum. To be called a STEM MBA or STEM course, some programs have been accredited or designated as STEM (Science Technology Engineering Mathematics) courses by the US government.

In this article, we will discuss the motivation behind several Business Schools in the United States for adopting this classification.

How can a STEM MBA Program benefit you?

Some motivations behind business school’s starting STEM courses are as follows:

The demand for Business Translators and Leaders

Demand for Data science professionals is set to rise by 12% every year. Educational institutes are far from keeping pace with demand and are set to generate only 7% more data analyst programs this year as compared to last year. The result? The industry is staring at a shortage of nearly 250,000 data scientists and analysts in the years to come.

Even if these professionals were to somehow magically appear, the industry will still face a challenge when it comes to finding Business Translators. Who are business translators you ask? Just like language translators, these professionals bridge the understanding between business folk and data professionals so they can communicate effectively.

Enter STEM MBA programs – exactly what the doctor ordered to create professionals who are experts in both the business side of things and the science and technology side of operations.

A STEM MBA mirrors the needs of today. The ability to pause and analyze data, and make better business decisions is increasingly important in all levels of an organization, all the way up to the C-suite,” Says Andrew Ainslie, Dean of Simon Business School.

With the stamp of the STEM MBA, graduates will have extra credibility in the job market – employers hold quantitative skills in high regard.

A report by NewVantage Partners survey claims that more than 85% of firms among the Top 1000 firms have already begun transforming into data-driven organizations. Hence, the hiring patterns will also transform and will certainly reflect that shift.

Work Permit advantage for International Students

Employment opportunities play a key role in attracting massive crowds of international students that flock to American Business Schools every year.

Within the MBA cohort globally, average salaries in the U.S. are among the highest. An MBA in North America bags  you somewhere in the vicinity of an average of $124,000 starting salary in comparison to the Asia Pacific that hovers around $90,000.

A majority of International students come from India, China and Africa. These places have a lesser return on investment on an MBA. Hence, work opportunities overseas impact travel decisions greatly.

A STEM designation gives MBA programs an accreditation from the government that further allows them to utilise STEM extensions on their Optional Practical Training (OPT). This helps their students transition their F1 to H1B work visa seamlessly, with 12 months OPT and 2 years of additional OPT – that brings you to a total of 36 months of work allowance abroad.

This serves as a huge advantage to international students.

Having said that, many famous business schools with MBA programs are yet to jump on a STEM certified bandwagon.

The first STEM MBA

The University of Rochester’s Simon Business School recently became the first full-time MBA program to be assigned a STEM MBA moniker. You get a STEM MBA when you pursue this course no matter which specialization you choose. The program focuses on building data-driven decision-making capabilities and sound quantitative skills among its students. They want to prepare the students to become future business leaders with strong analytical acumen.

Does the format of a STEM MBA differ from a regular MBA? The MBA program at Simon is not a STEM program in itself. It is termed as MSBA and is designated as a STEM degree and is integrated with all three MS level Business Analytics programs.

Through a single application, students enroll themselves in the MBA/MSBA dual degree. They are accepted by both the programs and have STEM extensions to their OPT due to the MSBA degree.

For working professionals, Simon offers an MSBA program in Chicago. This is not meant for international students. However, if they are working in the US at that point, they can certainly apply.

Simon also has an on-campus residential MSBA program that is attractive for recent graduates. The duration of the program is 9 months which makes it feasible for international students as well.

Students with dual degrees are supposed to complete their MBA core curriculum. The elective subjects are taken from the MSBA program, enabling them to accomplish the full 30 credits required for the latter. The MBS programs require you to complete a concentration as well. Through the dual program, they also complete the MBA Business Analytics concentration. There is ample scope to learn and grow as all aspects of Business Administration are covered through these newly designed programs.

If students want, they have enough elective space to choose another concentration of their choice. They can choose between Corporate Finance, Investments, Marketing, Consulting, Business Leadership, or Entrepreneurship, only if they want to.

Students who are not enrolled in the dual degree program can finish two concentrations, with one of them being the Business Analytics concentration.

In its first cohort, 25 students enrolled at Simon. The second cohort consisted of 26 students, making up to 20% the two-years MBA program. Out of these students, 80% come from international backgrounds while and 20% are domestic students.

Recruiting from the program is looking positive. In the first cohort of dual degree programs, all students received internships with about 1/3 each in finance, marketing, and consulting positions.

Business analyst graduates have a huge market that spans across all business domains. The aspect of Corporate Relations focuses on developing individuals as well as the firms for a significant amount of time.

Many business schools in today’s times already have Master’s programs with specializations that can qualify as STEM certified. These programs include a Master of Business Analytics, Master in Supply Chain Management, Master in Operations Management, Master in Financial Risk Management, Master in Business Analytics and Project Management, and more. They have already been accredited as STEM programs in many business schools across America.

A combination of an MBA and STEM designations helps students cover all the key aspects of a business program. It blends exceptionally well by adding theoretical knowledge coupled with a practical implementation.

Hopefully, in the coming years, we will see new names added to the shortlist of universities. This realm is still being explored and will surely grow in the future. Do let us know if you get some more info on these programs or come across one. Till then, good luck in your data-driven and scientifically appreciated program decision.