Even though collaborative product development (CPD) is considered as a strategic business plan to maintain competitive advantage, the literature lacks a systematic and detailed model of CPD from a strategic point of view. This article aims to develop a CPD model based on an axiomatic design technique by offering a system perspective in the context of software development (SD). Software industry is characterised by a dynamic and innovative nature and it gives a suitable application area in order to detail the proposed model in industry. Three main dimensions of CPD derived from the literature are defined in strategic level: partnership process, collaboration process and PD/SD. These three dimensions are detailed into hierarchy through business feedback and by experts from software industry. The model is evaluated and verified through two interviews. A case study is then conducted to observe the performance of the model. The conceptual model offers a guideline for CPD practitioners to increase effectiveness in collaborative efforts in the development process. The proposed model incorporates the main success factors of CPD in general, collaborative SD in specific, and it can be used as a performance evaluator in collaborative projects.