Knowledge management arose as a result of the need to incorporate the dynamics of an enterprise environment into an enterprise model. It requires a holistic approach integrating technological and human aspects by building and developing key competencies. Knowledge management makes possible correct strategic decisions, correct investments into product, minimizing risks, process innovations and effective update of the business strategy. Furthermore it leads to reduction of costs, improvement of quality in all aspects of an enterprise and reduction of delivery times of goods and services. In the knowledge enterprise, the creation of an internal climate favourable towards innovative approaches, employee development, cooperation between employees, knowledge sharing and fulfilment of organization goals must be provided. A synergy of functions is crucial for managing a knowledge enterprise.