Knowledge Management & New Organization Forms: A Framework for Business Model Innovation By Dr. Yogesh Malhotra, @Brint.com BizTech Network, www.yogeshmalhotra.com Reference: Malhotra, Yogesh.  Knowledge Management & New Organization Forms: A Framework for Business Model Innovation, Information Resources Management Journal, Jan- Mar 2000, 13(1), 5-14. Reprinted in Knowledge Management and Virtual Organizations (Ed. Malhotra, Y.), Idea Group Publishing, Hershey, PA, April 2000, 2-19. Abstract The concept of knowledge management is not new in information systems practice and research. However, radical changes in the business environment have suggested limitations of the traditional information-processing view of knowledge management. Specifically, it is being realized that the programmed nature of heuristics underlying such systems may be inadequate for coping with the demands imposed by the new business environments. New business environments are characterized not only by rapid pace of change, but also discontinuous nature of such change. The new business environment, characterized by dynamically discontinuous change, requires a re-conceptualization  of knowledge management as it has been understood in information systems practice and research. One such conceptualization is proposed in the form of a sense-making model of knowledge management for new business environments. Application of this framework will facilitate business model innovation necessary for sustainable competitive advantage in the new business environment characterized by dynamic, discontinuous and radical pace of change.   Keywords Knowledge Management Systems, Business Model Innovation, E-Business Models, Information Systems Practice and Research, Philosophy of Information Systems “People bring imagination and life to a transforming technology.” -- Business Week, The Internet Age (Special Report), October 4, 1999, p. 108 The traditional organizational business model, driven by pre-specified plans and goals, aimed to ensure optimization and efficiencies based primarily on building consensus, convergence and compliance. Organizational information systems – as well as related performance and control systems -- were modeled on the same paradigm to enable convergence by ensuring adherence to organizational routines built into formal and informal information systems. Such routinization of organizational goals for realizing increased efficiencies was suitable for the era marked by a relatively  stable  and  predictable  business  environment.  However,  this  model  is  increasingly