Public universities are now expected to play a pivotal role in the knowledge economy/society, by being engaged, entrepreneurial and, more importantly, relevant to the wider society in which they operate. However, the challenge of complexity (partly arising from the embedded nature of public universities within the higher education, innovation, and other social systems) makes managing a public university remarkably difficult. This article suggests a way forward for creating resilient public universities capable of making the contributions expected of them. The authors recommend that universities position their business as services, embrace open service innovation, and redesign their business model to maximize shared value for society.