Business models are fundamentally linked with technological innovation, yet the business
model construct is essentially separable from technology. We define the business model as a
system that solves the problem of sensing customer needs, engaging with those needs,
delivering satisfaction and monetizing the value. The framework depicts the business model
system as a model containing cause and effect relationships, and it provides a basis for
classification. We formulate the business model relationship with technology in a two way
manner. First, business models mediate the link between technology and firm performance
and, second, developing the right technology is a matter of a business model decision
regarding openness and user engagement. We distill open research questions both for
technology management and innovation as well as strategy.