Karan Higdon runs for 200 yards and three touchdowns, including the winner in overtime, as No. 17 Michigan defeats Indiana 27-20. (1:13)

BLOOMINGTON, Ind. -- The good news for Michigan is that its defense was again stifling enough to overcome an afternoon of mistakes and a squandered fourth-quarter lead.

The bad news: With the heavy part of a backloaded schedule still ahead of them, the time to outgrow those issues is just about gone.

In the wake of a 27-20 overtime victory at Indiana on Saturday, Michigan coach Jim Harbuagh said his team needs to be more disciplined and continue to grow, but he liked the way it responded in a real “football fight” against the Hoosiers.

Stiffer tests lie ahead for the Wolverines, who face three top-10 opponents in the next six games, starting next Saturday at No. 3 Penn State.

“We’ve got a long way to go,” Harbaugh said. “We’re very humble about this, and we’ll move on to a big road game next week. This was a big game for our team. Mistakes were made, but I think it’s something we can really grow from.”

It took a goal-line stand, punctuated by a fourth-down interception for the Wolverines, to put to bed Indiana's comeback bid in Memorial Stadium.

The young and reckless Michigan defense again hovered around 200 yards of total offense allowed before the final two drives of the game, when the Hoosiers erased a 10-point deficit in the final four minutes to force overtime.

The failed comeback -- a familiar feeling for Indiana against ranked opponents -- was sparked by special teams and complemented by Michigan's mistakes.

J-Shun Harris returned a punt to Michigan's 20-yard line to set up one of Indiana's two touchdowns on the day. After missing an onside kick recovery by inches, the Hoosiers got the ball back in time for Griffin Oakes to knock through a game-tying, 46-yard field goal as time expired. That drive was aided by one of the Wolverines' 16 penalties, a school record.

A week ago, turnovers plagued Michigan's productivity in a loss to Michigan State. Penalties were the main culprit this week. Flags cost Harbaugh's team a total of 141 yards, well more than double the number of yards they gained in the passing game (58).

Karan Higdon rushed for 200 yards and all three Michigan touchdowns in the Wolverines' overtime victory at Indiana. Brian Spurlock/USA TODAY Sports

Running back Karan Higdon helped to alleviate some of those ongoing issues in the passing game. He carried the ball 25 times for 200 yards and, in the process, dragged Michigan's offense across the finish line. His third touchdown of the game came on the first snap of overtime, bouncing off a tackler before scampering into the corner of the end zone.

Higdon said it was the same play call that led to his first score back in the second quarter.

"I got the ball, saw the hole was clogged and I decided I needed to make something happen," he said.

He had to. Michigan’s offense struggled to find its stride under the direction of quarterback John O’Korn for the second consecutive week. The fifth-year senior completed 10 of his 20 pass attempts for 58 yards. He and his receivers have yet to connect for a touchdown pass in the two games he has started this season.

O'Korn's stat line was almost identical to the numbers he put up while filling in for starter Wilton Speight last year against Indiana (7-for-16, 59 yards passing). His completion percentage sat at just above 50 percent last week in the loss to the Spartans.

O'Korn dismissed questions about the passing game this time around by saying the running game was doing enough that they didn't feel the need to throw. And while that's true, all signs point to Michigan needing that run game -- accompanied by its top-notch defense -- to continue to carry it forward.

Harbaugh said Saturday that his team still had room to grow this season, that its fate isn't sealed to clawing its way to victories against middle-of-the-pack Big Ten teams for the remainder of 2017. But at the midway point of the fall, it's getting to be the time of year when teams have become what they're going to be. This isn't the Michigan team that led the conference with 40.3 points per game last year.

Harbaugh said he liked his team's willingness to fight when facing adversity this week. Fighting might have to be the formula for the rest of the season.

Saturday's overtime win came with a dose of reality that a willingness to fight might not be enough for the Wolverines to put themselves back in the same championship conversations they took part in during Harbaugh's first two seasons.