This paper provides a conceptual framework to explore the linking mechanisms between customer knowledge management and IT-based business model innovation. With a case study from a Chinese leading telecommunications company, this paper attempts to empirically justify the model. In this conceptual model, three types of customer-related knowledge (i.e., knowledge about customer, knowledge from customer and knowledge for customer) contribute to value creation in business model innovation within different mechanisms. Meanwhile, IT increases knowledge accessibility for both firms and customers in value delivery, and enables firms to increase revenue streams with lower costs in value capture for business model innovation. The study links customer knowledge management research to business model innovation literature, and extends the customer knowledge management research through integrating both customer perspective and firm perspective. For practitioners, this study may help companies to understand the linking mechanisms and identify the opportunities of gaining benefit from bridging customer knowledge management and business model innovation