Why Engineers Should Learn Business and Gain Field Experience?

Recently, while interacting with a company executive, I heard thoughts that echoed my own. It made me reflect on why engineers should study business and gain hands-on field engineering experience.

Many believe that business studies are only for managers and leaders who lead people, make strategic, operational, or financial decisions in a company. But in reality, business knowledge is just as important for technical management. In our time, only Industrial Engineering included business courses, but now, global academic curricula for engineering and technical education are evolving to integrate business studies into different branches. This is a positive shift that will help future engineers bridge the gap between technology and business.

For engineers, business knowledge makes it easier to create strong proposals—whether for introducing new technology, setting up a lab, expanding a product design team, developing new product features, upgrading products for market growth, or controlling costs. Concepts like Ansoff/BCG Matrix, SWOT/PESTEL Analysis, Business Model Canvas, Balanced Scorecard, Gap Analysis, and financial report analysis help in making well-structured business cases. Additionally, R&D engineers benefit from learning about research design, methodologies, and techniques—areas often overlooked in traditional engineering courses.

Business Tools for Informed Engineering Decisions

To make sound decisions, engineers should also understand:

• Net Present Value (NPV) & Cost-Benefit Ratio – Helps assess the long-term value and financial viability of engineering projects.
• Internal Rate of Return (IRR) & Payback Period – Key financial metrics to evaluate the return on investment and the time required to recover initial costs.
• Sunk Cost & Decision-Making – Avoiding the trap of past investments and focusing on future value.
• Desirability, Viability & Feasibility – Ensuring that innovations are not only technically feasible but also economically viable and market-desirable.
• Opportunity Cost – Understanding trade-offs in decision-making by evaluating what is lost when choosing one option over another.
• Change Management & Stakeholder Management – Essential for driving technological change, ensuring smooth transitions, and aligning engineering initiatives with business goals.

• Risk & Cost Management – Helps engineers assess uncertainties, mitigate potential failures, and optimize resources effectively.
• Operations & Supply Chain Management – Critical for optimizing manufacturing, inventory, and logistics in engineering-driven industries.

Another crucial aspect is field experience. Troubleshooting and product visualization in real-world conditions help engineers become seasoned design professionals. Understanding how products perform in the field allows engineers to develop or enhance better solutions.

To complete the engineering learning cycle, engineers must also understand Product Lifecycle Management (PLM)—from concept, design, prototyping, and manufacturing to deployment, maintenance, and eventual phase-out. PLM is not just a business tool; it helps engineers make informed decisions at every stage of a product’s life, ensuring efficiency, cost-effectiveness, and sustainability.

Business studies also play a crucial role in technical and engineering management. Whether it’s budgeting for R&D, optimizing resources, aligning technical roadmaps with market needs, managing change, or making strategic investment decisions, a solid understanding of business principles empowers engineering leaders to balance innovation, cost, and risk effectively.

Additionally, developing entrepreneurship and intrapreneurship skills during engineering studies gives young engineers a business perspective—helping them become future innovators, build startups, or drive innovation within organizations. These skills provide a foundation for transforming ideas into real-world solutions and navigating the challenges of bringing new products and technologies to market.

A well-rounded engineer needs knowledge of business management, field service engineering, and product lifecycle management to effectively communicate and implement engineering solutions that make the world a better place.

Lifelong Learning Through EdTech

The good news? The EdTech revolution has made learning more accessible than ever. Today, there are plenty of online courses, micro-credentials, and immersive learning platforms that help bridge these knowledge gaps without disrupting your career. From business acumen to supply chain optimization and financial modeling, engineers can now acquire essential skills at their own pace and convenience. There is no age limit to learning or teaching!

We just need to stay open to knowledge from all directions and know when and where to apply it.

This is only my personal reflection based on my limited experience, and perspectives may vary from others.

Let’s embrace lifelong continuous learning!