This study uses the case study method to investigate how IT facilitates business model innovation. The A Steel Corporation (A Company) is chosen for this study. We consider the business model and information technology (IT) factors andanalyze how A Company use IT to facilitate business model innovation. Regarding thebusiness model factor, we describe the A Company¡¦s value propositions, value configuration, and key resources for co-production; further we identify the needed abilities for each stakeholder among the value network to make the co-production business model possible. For the IT factor, we present what ITs are developed and deployed among the value configuration in order to make the business model work. Finally, we report A Company¡¦s performance after its innovation. The case company, applied for industrial technology development projects sponsored by the goverment policy as strategies to introduce their new collaborating-commerce business model.They invoked their strategies to integrate the supply chains for expansion through startup a new business model for partners to understand, communicate and improve the value chain to link to the global companies. The performances cause high impacts on collaborative effectiveness among value chain partners. This thesis, based on a case study of A Company,is to analyze and find the key factor how to use the knowledge management makes strategies success and enable to expend the enterprise worth.