Executive Summary

The “Management Curriculum for the Digital Era” (MaCuDE) project, sponsored by AACSB International and funded by PwC, was chartered in 2019 to assess the current state of business school curricula for “digital readiness” and develop recommendations for their evolution to address the challenges and opportunities of the digital era. This report summarizes the findings of Phase 2, which focused on identifying knowledge and skill requirements as expressed by industry.

The project involved over 100 universities across five continents, organized into nine task forces aligned with traditional academic disciplines (Accounting, Finance, Information Systems, Management, Marketing, Strategy/Innovation/Entrepreneurship) and three “horizontal” task forces that cross over multiple domains and functions (Analytics/Operations Research, Ethics and Cybersecurity, Future of Work).

Key Themes and Skill Categories

The task forces identified five key themes brought about by the evolution of digital technologies: Data Analytics and Machine Learning, Programming, Algorithms and Artificial Intelligence, Emerging Digital Technologies, and Managing Digital Organizations. As a result, business school graduates should be able to make sense of and create value from data, develop tools to streamline and scale their contribution, leverage the potential of artificial intelligence and automation technologies, and manage organizations that base their business model on digital capabilities.

Four broad skill categories emerged across the different working groups:

  1. Digital Competence: This includes Digital Literacy (proficiency in using data and tools) and a Digital Mindset (attitude toward data-driven organizational transformation). Graduates need to relate data to the organizational context, identify areas where emerging technologies can make a difference, and discover new value opportunities.
  2. Business Acumen: Graduates must understand the implications of the digital era on their specific organizational context, interpret complex data sets, derive actionable insights, and recognize how different business models benefit from or are enabled by digital technologies.
  3. Leadership Effectiveness: This includes the ability to function effectively within globally distributed teams, inspire and motivate teams in a virtual environment, manage external disruptions, adapt swiftly to change (Agile Mindset), and appreciate privacy and cybersecurity principles.
  4. Personal Effectiveness: Graduates are expected to think critically, work efficiently, communicate effectively, work independently, and operate with integrity. They should be able to discern between fleeting trends and genuinely disruptive changes, articulate ideas clearly and convincingly, adapt quickly to changes, and manage their own workload and deliverables.

Disciplinary Task Force Highlights

Finance: Programming emerged as an important skill across different career stages. Data analytics was highly sought after, primarily among managers. Excel was the most popular programming environment, followed by Python and R. Despite advancements, most decisions are still made manually, but there is strong recognition of the potential benefits of machine learning and AI.

Marketing: Omnichannel strategy implementation is a highly sought-after skill. Data analytic skills (basic statistics, inference skills, customer centricity analysis) are highly desirable for MBA graduates. AI skills were not as highly valued, with a trend towards utilizing off-the-shelf AI solutions. The task force split the career path for digital-savvy professionals into three roles: Marketing Analyst, Generalist/Translator, and Digital Strategist.

Management & HR: Any job that can be automated efficiently will eventually succumb to automation. Concerns were raised about technically savvy junior employees who struggle to communicate insights effectively. Cloud computing is a focus area due to its potential to centralize IT operations and improve the velocity of large-scale changes. The uneven distribution of digital savvy within and across organizations was noted.

Information Systems: Bridging the gap between business and technology is quintessential for Information Systems graduates. They should possess fundamental environmental competencies, domain knowledge, and data, information, and content management skills. Business continuity, information assurance, and the integration of security and privacy concepts into courses were emphasized.

Analytics: Understanding data engineering, visualization, and storytelling is just as crucial as having a strong grasp on statistics. Two skill gaps among new graduates were identified: human problem-solving and a deep understanding of the problem domain. SQL, Python, and Tableau were considered core tools. The importance of human judgment in situations of uncertainty and context-dependence was highlighted.

Future of Work: Roles requiring a holistic or systemic view of the business will gain prominence. New fields such as sustainability, resilience (particularly cybersecurity), and content creation are emerging. The evolving nature of task-specific skills and their impact on wages was noted. Work environments are transforming, with remote and hybrid models gaining traction. The rise of self-employment options such as entrepreneurship, contracting, and the gig economy was discussed.

Implications for Business Schools

Business schools can respond to the challenges of the Digital Era by:

  1. Gaining a clear understanding of the discipline-specific and boundary-spanning skills expected by the industries they serve.
  2. Defining boundary-spanning skills as learning objectives at the degree or program level.
  3. Implementing programming for personal effectiveness as extracurricular activities.
  4. Considering various teaching methodologies based on in-house expertise, infrastructure availability, and access to outside partners.
  5. Creating a roadmap to a desired level of maturity that is appropriate for the school, identifying which skills should be developed in-house, who needs them, and to what depth they should be studied.

Conclusion

The MaCuDE project has highlighted the significant impact of digital technologies on the skills and competencies required of business school graduates. To remain relevant and effectively prepare students for the challenges and opportunities of the digital era, business schools must adapt their curricula to emphasize digital competence, business acumen, leadership effectiveness, and personal effectiveness.

The insights provided by the various disciplinary task forces underscore the need for a comprehensive approach to curriculum development, one that takes into account the unique requirements of each discipline while also fostering boundary-spanning skills. By working closely with industry partners and staying attuned to the evolving needs of the job market, business schools can ensure that their graduates are well-equipped to navigate and lead in the digital landscape.

Ultimately, the success of business schools in the digital era will depend on their ability to cultivate a new generation of leaders who can combine deep technical expertise with strong strategic vision, ethical foundations, and the agility to drive change across multiple functions and channels. By embracing this challenge and committing to continuous learning and adaptation, business schools can play a vital role in shaping the future of business and society in the digital age.