The research of Knowledge Management theory is an important field of research under the new economic circumstances. Applications of Knowledge Management theory to business administration create new prospects for the development of business.
The text starts with the foundation theory of Knowledge Management, and provides the overview of the basics of Knowledge Management theory, including its contents, features and basic functions to reorganization the theory of Knowledge Management system. Then the text introduces the process of Knowledge Management, and exhaustively expounds five processes whose main contents are acquisition, storage, dissemination and sharing, learning and using, as well as innovation. This paper focuses on the application of Knowledge Management in business administration, and discusses the necessary steps and conditions about how to build a Knowledge Management system, from the building of concept, organization, information systems and knowledge process re-engineering. In the end, this paper analyses the successful model of which Lenovo Group implemented Knowledge Management to contribute to Chinese companies in the implementation of Knowledge Management.
KEYWORDS：Knowledge Management，Knowledge Management system, Knowledge Process, business administration
