The IT and communications revolution is changing character. The information age has entered an era of technology deployment: applying maturing technologies to achieve business innovation. This shift requires a profound change in the roles and responsibilities of the corporation's top technology executive, the Chief Information Officer.

Until recently, the CIO has managed IT to lower costs and improve productivity. The new CIO provides unique input into the core strategic direction of the organization, mapping technology deployment to business growth and transformation. New tools and techniques help.

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Even the largest companies struggle to achieve scale in their IT organizations. Sourcing alternatives not only offer expert, cost-effective IT operations at massive scale. They also provide an opportunity for progressive CIOs to drive the new innovation agenda.

Alternative sourcing models can deliver cost savings of 15 to 25 percent. These savings can be used to invest in new capabilities. In this way, the organization's own IT infrastructure can be put to work to fund innovation and top-line growth.

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Every organization is a unique collection of assets and competencies. The key to intelligent sourcing decisions lies in understanding which areas of the business are the levers of growth and which are critical, but not differentiating.

IBM has developed a powerful tool to help CIOs determine the processes and activities that will differentiate their organization and help them drive business innovation and growth: the Component Business Model for the Business of IT.

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