The Lotus Model is a business strategy developed by the company Lotus Development Corporation, now known as IBM. The model is based on the idea of creating a system that allows for the integration of different software applications. The term 'ESPRIT' is an acronym for European Strategic Program for Research and Innovation in Information Technology, which was a research and development program funded by the European Union. The Lotus Model was created to help businesses take advantage of the opportunities presented by the ESPRIT program.