Higher education is under enormous pressure to improve outcomes and reduce costs. Information technology can help achieve these goals, but only if it is properly harnessed. This article argues that one key to harnessing information technology is business model innovation that results in more "open" and "unbundled" operations in learning and credentialing, research and development, and business management. Information technology's potential to dramatically improve the performance of higher education will be realized only when new business models arise to harness it. Especially promising are open, multi-sided, and unbundled models that involve facilitated networks. Applied to learning and credentialing services, these new models have the potential to improve performance by achieving greater economies of scale and scope and providing the basis for greater personalization, access, and choice at affordable prices. The challenge is to further develop and evaluate these potentially disruptive business models and take the best of them to scale. Going to scale will require compatible changes in higher education value networks and the larger standards and regulatory environment IT professionals can play a major role in helping all this to happen. (Contains 22 notes.)