Skip to main content

Consider an MBA Concentration in Technology

By U.S. News & World Report

Many of today’s fastest-growing companies are in the tech sector, which is why experts say MBA hopefuls might consider specializing in the field.

For students with a strong interest in innovation and entrepreneurship, experts say a tech MBA degree may be a better fit than a traditional MBA degree with a concentration in marketing or finance.

Experts also say given the breakneck pace of technological innovation and its ripple effect on the U.S. economy, every MBA student ought to learn about technology during business school, even if they have no plans to make a career in the sector.

“Technology is a basic skill now, like being a good communicator,” says Bala Iyer, professor and chairman of the technology, operations and information management division at Babson College.

New York University’s Stern School of Business announced this month that will introduce a one-year MBA program focused specifically on training future tech executives and entrepreneurs.

Peter Henry, dean of NYU Stern, says conversations between the school’s leaders and tech executives about a shortage of MBAs in tech spurred the creation of the program.

“These conversations basically led us to a very simple conclusion,” says Henry, who, in addition to his role as dean, also serves as an economics and finance professor. “There’s a shortage of human capital in the tech industry.” As the largest business school in the city, he says, Stern feels obligated to help train people for the growing industry.

[Learn how to enhance earnings with an MBA specialization.]

The average MBA starting salary among 2016 graduates of business schools ranked by U.S. News who were hired by tech companies was $110,538, U.S. News data show.

Tech executives who lobbied for the creation of NYU’s new tech MBA program say there is high demand for MBA talent.

” There is an acute need for people who understand both business and technology,” Don Callahan, head of technology and operations at Citigroup, a U.S.-based multinational banking and finance firm, said in an official statement.

Here are two questions experts say prospective MBA students should ask before investing in a tech-focused MBA program.

[Understand how to choose an MBA concentration.]

1. Is it in a region with a high concentration of tech talent? Experts say prospective students are more likely to strengthen their business network in the tech sector if they attend an MBA program located in a city with a thriving tech industry.

“Geography is destiny,” Iyer says. “Make sure the school is not the only game in town.”

Being surrounded by tech talent increases the odds that tech MBA students will meet potential business partners during business school, says Brandon Yahn, founder and CEO of Student Loans Guy, a website that discusses repaying student loans in a cost-effective way.

Yahn, a 2012 graduate of the Haas School of Business at University of California–Berkeley, says he chose his MBA program with location in mind, and he says a key advantage of attending Berkeley was its proximity to Silicon Valley.

Proximity to tech companies, Iyer says, allows tech MBA students to gain more real-world learning experience through consulting projects or internships, and it gives them more access to career opportunities.

He advises students to steer clear of business schools that rely heavily on textbooks to teach lessons that are better learned through practical experience. Experts say it is important for tech MBA students to learn basic tech skills, like computer coding, during business school.

[Read two successful MBA admissions essays.]

2. How many of the program’s graduates are working in tech? Yahn says there is an important distinction between a business school that sends the bulk of its grads to the finance and consulting sector and a school that sends a significant chunk of its grads into tech.

For tech MBA students, there is value in attending an MBA program with a strong alumni network in tech, he says, since alumni tend to help students find jobs and can serve as mentors.

Prospective tech MBAs with an interest in working for major tech companies should attend a school with a solid track record of connecting its students with jobs at those companies, Yahn says.

Ben Preston, a 2016 MBA graduate from the University of Oxford, says business school can be a great place for entrepreneurs like himself to pursue their passion, assuming they are at a school that encourages innovation. Prospective students are likely to find a welcoming atmosphere at a business school with a long history of training entrepreneurs, says Preston, co-founder of ViaHero, a travel company that creates custom trip plans designed by expert locals.

“It’s really an amazing place to discover what problem you want to solve and who you want to solve it with,” he says.

Searching for a business school? Get our complete rankings of Best Business Schools.

More from U.S. News

10 Ingredients of a Strong MBA Resume

10 Mistakes to Avoid in MBA Applications

Ace the MBA Admissions Interview

Consider an MBA Concentration in Technology originally appeared on usnews.com

Don’t Settle for Student Loans to Pay for Online Education

By WTOP Staff
Online college programs are becoming a more popular choice for prospective students, with one study finding that more than 6 million students enrolled in at least one online course in fall 2015. The popularity of these courses can be attributed in part to their flexibility with working adults' schedules, students' ability to progress more quickly through online programs and, oftentimes, cheaper tuition. [See 10 low-cost online bachelor's programs for out-of-state students.]Online degrees can be beneficial to many college students, but some studies have shown online learners complete their programs at lower rates than students at traditional brick-and-mortar campuses. Individuals with student loans but no degree comprise two-thirds of defaulted borrowers. Though these numbers are not encouraging, just like for traditional programs, there are ways to reduce how much you'll need to borrow for an online program to ensure you won't become one of these statistics. Don't just settle on borrowing student loans to cover the whole cost of your program and living expenses. Instead, start thinking about how to cut costs and cover your balance in different ways, such as the following. -- Grants and scholarships: Even though you are taking an online course, you can still apply and receive grants and scholarships. But your first step should be to complete the Free Application for Federal Student Aid, commonly referred to as the FAFSA, which will allow you to receive a Pell Grant if your expected family contribution is low enough. The EFC criteria and award amounts are adjusted annually, but the 2017-2018 academic year awards range from $606 to $5,920, which could significantly lower the amount you borrow annually. Your next step is to apply for scholarships. You can start by checking online scholarship search engines, such as the Salt Scholarship Search, College Board's BigFuture and Peterson's. But don't forget to take advantage of local organizations and your school's financial aid office. Both may offer scholarships that you can't find with a national scholarship search. [Review these 10 sites to kick off your scholarship search.]For instance, organizations like the Elks Club, Knights of Columbus or the Rotary Club typically offer scholarships annually to local students. Just because you're going to school online doesn't mean you're ineligible. Visit your local library for scholarship listings, and ask around town. You might be surprised how many local organizations offer scholarships. While these scholarships typically aren't large, every little bit counts. Each dollar you receive in a scholarship is a dollar you don't have to borrow and pay interest on. -- Work-study: Another option for online students may be work-study awards. Not all students enrolled in online programs are eligible, but students at some schools -- including, for example, SUNY Empire State College and Liberty University -- are. Work-study awards are not given upfront like scholarships and grants. In most cases, they are an offer to earn up to the awarded amount if you secure an eligible work-study job. While there is a misconception that all work-study jobs must be on campus, students can work for off-campus, nonprofit or public employers as long as the work is in the public's interest. You may be able to work for a for-profit employer if the job is relevant to your course of study. No matter who the outside employer is, it will need to have an established agreement with your college for you to receive work-study funds. Remember, to be eligible for federal financial aid, you must be enrolled and pursuing a degree or certificate. If you're not working toward a credential, Pell Grants and work-study won't be option, but you may still be able to take advantage of private scholarships -- just be sure to read the eligibility criteria carefully. [Explore what to know about financial aid in online programs.]-- Pay as you go: One of the great benefits to enrolling online is the flexible schedule, which can allow you to complete your college coursework around your responsibilities. But prospective students often overlook using their part- or full-time job earnings as an option for paying for college. Almost 80 percent of college students in 2015 worked at least part time while attending classes, according to the National Center for Education Statistics. By budgeting and thinking strategically about your college costs, you can likely reduce your dependence on student loans by paying a portion out of pocket. Many -- but not all -- online programs are less expensive than traditional programs and often have shorter payment periods. Six, eight or 10 weeks are common course durations. Because of the frequency of payments in an online setting, you may be well-placed to pay as you go and possibly avoid borrowing altogether. Attending college online and avoiding student loans may be challenging, but if you are willing to put in the effort, you can limit the amount you need to borrow. More from U.S. News Q&A: Understanding Student Loan Discharge Eligibility Student Loan Refinancing Isn't Right for All Borrowers
Read Next Story

Related News

Frustration grows in Venezuela as earthquake death toll reaches 1,430

Israel and Lebanon sign framework agreement with US in ‘first step’ toward peace, Rubio says

Trump-endorsed populist poised to become Colombia’s next president as rival challenges vote