White Paper Universities and industry:

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1 Universities and industry: Thinking beyond traditional research based partnerships

2 Universities and industry need to think beyond traditional research based partnerships University and industry partnerships have traditionally been based on the premise of delivering mutually beneficial outcomes through research. And in turn universities have used their research profile to establish a highly valued proposition in their market. Disruptive forces driven by emerging digital technologies, economic globalisation and changing government policy, gives rise to the question of whether universities should look to develop new value propositions and how taking a broader approach to establishing university and industry partnerships can support this. Few universities can sustainably exist on research funding alone The 2015 Universities Australia report identified that 78.4% of university revenue is sourced from Commonwealth Grants Scheme (CGS) and student fees. It also highlighted that the average student dropout rate from 2010 to 2015 was 20.5%. The 2017 Australian Government Higher Education Reform Package proposes linking a portion of CGS funding to student outcomes. Linking student outcomes to CGS funding will increase the need for universities to maintain and increase student enrolments and retention rates. Educational options available to students are increasing rapidly New digital technologies and ubiquitous network connectivity, combined with economic globalisation is delivering increased competition in the education marketplace. The growing presence of Massive Open Online Courses (MOOC) such as edx and Coursera, delivered by some of the world s leading universities, along with the broadening availability of online degree programs, is offering students a variety of educational alternatives. Students are also becoming more discerning. They want to be confident that the time and money they invest in education will deliver the career outcomes they aspire to. The increasing importance of student fee revenue, demands that universities develop a stronger value proposition for students. Differentiation can no longer be solely about a universities research status and campus lifestyle. The majority of students attend university to increase the probability of securing a job, thus are seeking confidence that their university of choice will provide the learning outcomes that position them to achieve their career goals. Traditional approaches to integrate industry relevance into student learning Work Integrated Learning (WIL) approaches such as industry capstone projects, internships, placements along with guest lectures have been the traditional methods to integrate industry relevance to the student learning experience. This approach has been predominately pedagogy focused, applied at the program or course level and has largely proven to be successful primarily due to the philanthropic nature of industry and the goodwill of individuals. 2

3 A drawback of this approach is industry engagements can be informal and are dependent on the ability of an industry partner to support WIL activities during a given academic period and a universities ongoing effort to manage these informal arrangements. It is questionable whether this model can provide the level of differentiation desired by a university in the evolving highly competitive education market without industry commitment. Perhaps, it is in response to this that some universities are now proactively seeking industry partners, requesting a commercial commitment in both time and activities that delivers industry relevance to the student learning experience. The question is why would an industry partner make such a commitment? Competitive advantage is achievable through partnering The business world has long seen organisations seek out partners who can support them to achieve their strategic goals. These organisations have an intimate understanding of their business, which elements are core to the success of their business and how they can derive additional value through engaging with an industry partner. The success of such partnerships is built on the recognition of what constitutes value for each partner. It is through fulfilling this value that long term mutually beneficial partnerships are maintained. As highlighted earlier, the increasingly competitive education market place will require universities to develop value propositions that attract and retain students. We know that industry engagement throughout the learning process can lead to improved employability outcomes for students. These outcomes are highly valued in the market place. If WIL is the platform for achieving this, how does a university gain the commitment from industry partners to support WIL activities? How can one secure such a commitment? A university needs to recognise what constitutes value for an industry partner. How an industry partner can support the value proposition of a university There are a number of ways universities can derive value from industry beyond research based partnerships. When engaged in a mutually beneficial relationship, industry partners have the ability to deliver services that support a university to develop highly valued market propositions. Following are some examples of the contributions an industry partner can bring to a university. Curriculum development, contribution and delivery Contribute to university joint events such as Open Days Guest lectures and speaking roles at Industry Events Actively participate in university industry advisory groups Internships and graduate intake commitments Employment opportunities for students to undertake part time work Sabbaticals for academics to gain direct industry experiences Sponsorship to promote STEM careers to students Public relations and joint marketing campaigns 3

4 Securing these types of contributions through a committed industry partner provides a university a foundation for building new value propositions that directly appeal to its most important customer, students. As highlighted earlier students are becoming more discerning, making conscious choices based on the potential the return of their educational investment. Understanding the value propositions for industry partners Looking across a university one sees all the capabilities required of industry. This of course is not surprising as universities produce the very leaders, workers, products and services that constitute industry. If a university were a company these capabilities would be regarded as a suite of resources that when organised correctly deliver value beyond the sum of their parts. Universities need to consider how they can utilise their resources to create ongoing value propositions for industry partners. The goal of business is the need to generate revenue and maintain profitability to be an ongoing sustainable concern. Universities through the resources at their disposal have the ability to offer an industry partner a suite of valuable services that support this goal. Offering an industry partner a source of revenue is an obvious choice. Just as businesses make decisions regarding which elements are core to their success and how they can derive value through engaging with an industry partner for non-core elements, universities can also make these same choices. Like all organisations universities have elements that are known to be core to the business, while others perhaps are regarded as commodity or non-core. Can these be used to support a mutually beneficial partnership and not compromise the ethos of university? While revenue is an obvious choice it is not the only one. A significant differentiator for business is its people. The ongoing development of leaders and staff strengthens a business and its position in its market. Universities are the bastion of education and should consider how they can utilise their education capability to bring value to an industry partner. Targeted short profession development courses for leaders and managers, and short course skill update programs would be highly valued. The sourcing of top talent is a need for any business and the talent acquisition process can be time consuming and costly. Understanding your industry partners needs and proactively supporting them to identify top graduating talent can deliver significant value to an industry partner. Research opportunities should still be sought but perhaps there is opportunity for broader reach into the customer base of the industry partner. There may be significant value for both the industry partner and their customers by engaging university researchers in solving industry problems. It may sound obvious but many potential industry partners don t understand how they can utilise the capabilities of a university to bring value to their own customers. There is a potential win win for university, an industry partner and their customers through leveraging a relationship with a university. These are some examples of how universities can offer value for industry partners that are highly valued, help establish mutually valued partnerships and strengthen a universities value in the market place. Through establishing committed industry partnerships, universities have the opportunity to strengthen their position in an increasingly competitive market. They need to consider how an industry partner can assist them in doing so and how they can gain that commitment for the medium to long term. 4

5 About the author Learn more at services Dino Rossi is Chief Technologist, Education Industry, for DXC Technology in Australia and New Zealand. His career spans over 25 years through which he brings a variety of perspectives and insights to assist customers with identifying solutions that meet their business needs. Dino is a member of the South Australian chapter of the Australian Information Industry Association and chairs the South Australian Chapter of the National Education Special Interest Group. He occupies the role of Industry Practitioner in Residence for the University of South Australia, fostering mutually valued relationships between industry and academia. He is an Adjunct Research Associate with the University of South Australia, contributing course development and lecturing for specialist professional subjects, and Chairs the School of Information Technology and Mathematical Sciences Advisory Board. Dino holds tertiary qualifications in Information Technology, a Masters of Business Administration from The University of Adelaide, and is currently pursuing a Research Masters in Innovation and Entrepreneurship. About DXC Technology DXC Technology (DXC: NYSE) is the world s leading independent, end-to-end IT services company, helping clients harness the power of innovation to thrive on change. Created by the merger of CSC and the Enterprise Services business of Hewlett Packard Enterprise, DXC Technology serves nearly 6,000 private and public sector clients across 70 countries. The company s technology independence, global talent, and extensive partner network combine to deliver powerful next-generation IT services and solutions. DXC Technology is recognized among the best corporate citizens globally. For more information, visit dxc.technology DXC Technology Company. All rights reserved. MD_7216a-18. October 2017