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21 BizEd November/ December 2014 21 BizEd November/ December 2014 BY LOICK ROCHE AND MARK THOMAS W hen Steve Jobs decided to make the iPhone, he knew it would ultimately destroy the iPod, which was gen- erating 70 percent of Apple's reve- nues at that time. So why did he go ahead with manufacturing plans? He believed the principles laid out in The Innovator's Dilemma, written by Harvard professor Clay- ton Christensen, who noted that companies sometimes have to can- nibalize their own products to stay ahead of the competition. Chris- tensen never predicted the iPhone's wild success, but his research helped lead to its creation. Christensen's research is only one example of the many ways in which universities can influence innovation today. In the 2012 book What Are Universities For?, Stefan Collini declared that one of the prime objectives of higher educa- tion is to be a center for innovation and creative thinking. While some dispute that, we believe innovation is at the heart of the strategy for most business schools today. When schools offer programs that empha- size innovation, they can have a direct short-term impact on the busi- ness world—and a long-term effect on tomorrow's executives. Regulating bodies that oversee education are coming to the same conclusion. AACSB International has made innovation one of the three pillars of its new accreditation stan- dards, along with engagement and impact. Similarly, under the U.K.'s new Research Excellence Frame- work, funding bodies there will consider the impact of research when allocating funds to universities. Think Fast nues at that time. So why did he go written by Harvard professor Clay- - nibalize their own products to stay 1 consider the impact of research when 2 3 4 If business schools want to teach our students how to drive innova- tion in the workplace, we must teach them to work together, see across cultural boundaries, and think critically. To do that, we first must embrace innovation ourselves. We believe the following steps are good places to start: Collaborate with business to stimu- late innovation. The University of Cambridge has set up a strategic partnership under the Cambridge Cluster, which includes 1,500 tech- nology-based firms working with dif- ferent research centers at the various faculties. In the past 20 years, this university/business partnership has led to the creation of more than 300 high-tech ventures, and 14 can boast revenues of more than US$1 billion. In another approach, Grenoble Ecole de Management has integrated "serious games" into the curriculum. Students use gaming strategies to dis- cover innovative ways to approach markets and develop products for participating French companies, including Michelin. Obviously, the companies are hoping to benefit by implementing new R&D ideas gener- ated by the students, but the school has a longer term goal: to help stu- dents master critical problem-solving skills that they can take with them into the workforce. Launch programs designed to get new ideas to market efficiently. Two examples are Stanford's Innovation and Entrepreneurship certificate program and Wharton's Strategy and Business Innovation program. Another is MIT's $100K Entrepreneurial Competition, in which student teams create new business models. Maura Herson, director of the MBA at MIT's Sloan School of Management, points out that the most important part of the competition for stu- dents is learning entrepreneurial skills, not winning prizes. Use live case studies in the class- room so students can work on real-world problems. Such projects are increasingly popular with com- panies that appreciate the candid feedback given by young students who are not bound by the conven- tions and politics of the office envi- ronment. They give their opinions about the problems companies pres- ent to them, rather than the answers they think the boss wants to hear. Such open debate is vital for inno- vation in the business world. Teach students to look at indus- try from different perspectives. Harvard's Business Innovations in Global Health Care program pres- ents new models in the increasingly challenging healthcare industry. INSEAD's Social Innovation Centre asks participants to look at busi- ness from sustainability and ethical perspectives. Fudan University's Innovation Science Fair encourages students from different research dis- Innovation is at the heart of the strategy for most business schools today.