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Purpose

This paper aims to discuss the necessity of building a knowledge management system in today’s knowledge economy by focusing on human capital management, choice of tools, and how knowledge processes affect an organization’s strategic capabilities.

Design/methodology/approach

Analyzing several theoretical models in the area of knowledge management and explaining how motivation and choice of tools can improve utilization of knowledge management system.

Findings

Building a knowledge management system is recommended for transitioning into data analytics to capture business trends in the knowledge economy. Motivation and choice of tools are important to determine the utilization of a knowledge management system.

Practical implications

This paper presents practical issues and provides insights into building and using a knowledge management system in today’s organizations.

Originality/value

This paper justifies the need of knowledge management system and presents the issues and solutions to integrate knowledge management system into an organization.

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