Chan Kim and Renee Mauborqne want to get out of the Red Ocean, create new markets and swim comfortably there. This strategy is known as the blue ocean strategy. And innovation is one of the most important aspects to ensure the success of the Blue Ocean Strategy. I will not discuss the Blue Ocean Strategy here. What's interesting to me is just how Knowledge Management helps companies create innovation. If you look in more detail, you realize that innovation is the core of Knowledge Management. The knowledge management initiative will be considered a success if it has added value. That is, all tools, initiatives and activities undertaken on behalf of Knowledge Management must have added value as an end result. It conforms to innovation, right? How can Knowledge Management generate innovation? To answer this question we need to look more deeply at how the innovation process is formed. In short, innovation can come about in a variety of ways. The core of innovation itself is the creation of added value in a coherent, targeted and structured way. To explain how innovation is formed, the simplest explanation is to refer to the SECI introduced by Nonaka and Takeuchi in his book The Knowledge Creation Company: How Japanese Companies Create the Dynamics Of