Citing innovation expert Clayton Christensen, ASU's president explains that true transformation in legacy sectors like education requires disrupting from the core, not the periphery. This involves creating a new, differentiated institutional model rather than simply replacing old components through 'creative destruction'.
Established industries often operate like cartels with unwritten rules, such as avoiding aggressive marketing. New entrants gain a significant edge by deliberately violating these norms, forcing incumbents to react to a game they don't want to play. This creates differentiation beyond the core product or service.
Don't just sprinkle AI features onto your existing product ('AI at the edge'). Transformative companies rethink workflows and shrink their old codebase, making the LLM a core part of the solution. This is about re-architecting the solution from the ground up, not just enhancing it.
Startups often fail by making a slightly better version of an incumbent's product. This is a losing strategy because the incumbent can easily adapt. The key is to build something so fundamentally different in structure that competitors have a very hard time copying it, ensuring a durable advantage.
ASU's president argues that if an AI can answer an assignment, the assignment has failed. The educator's role must evolve to use AI to 'up the game,' forcing students to ask more sophisticated questions, making the quality of the query—not the synthesized answer—the hallmark of learning.
To drive change in a tenure-protected environment, ASU's president empowered faculty to redesign their own departments. This led them to eliminate 85 legacy units and create 40 new, purpose-driven schools, such as turning a Geology department into a 'School for Earth and Space Exploration'.
ASU President Michael Crow argues that Ivy League schools are based on the colonial British model—small, elite, and fundamentally unscalable. This structure is insufficient for a large, modern democracy, which demands new university designs built for scale, speed, and broad accessibility.
Most elite universities measure quality by their low acceptance rates. ASU's President Michael Crow flipped this model, defining success by the number of students they include and support, arguing that exclusivity is an outdated, elitist metric that ill-serves a democracy.
To lead in the age of AI, it's not enough to use new tools; you must intentionally disrupt your own effective habits. Force yourself to build, write, and communicate in new ways to truly understand the paradigm shift, even when your old methods still work well.
Richard Thaler realized he couldn't convince his established peers of behavioral economics' merits. Instead, he focused on 'corrupting the youth' by creating a summer camp for top graduate students and writing accessible journal articles. This new generation then populated top universities and changed the field from within.
Instead of trying to climb the traditional university rankings ladder—a game viewed as unwinnable and misguided—ASU President Michael Crow opted out. He created a new competitive framework for ASU focused on scale, speed, innovation, and societal impact, effectively inventing a different game to play.