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 reconceptualization 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.