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A traditional library’s functions are centered on library collection and information resources and their utilization. A library management system comprises resource acquisition, cataloguing, circulation, reading, and reference in respect of “literature streams.” Functionally, libraries have currently evolved into knowledge service centers, which are oriented toward knowledge, committed to knowledge innovation, and centered on the knowledge demands of users. Meanwhile, library management has also gradually shifted to focus on knowledge management. However, the applications of knowledge management are mainly limited to library services. It lacks innovative applications in internal management such as business flow and institutional settings. This article takes Peking University Library, one of the top-notch academic libraries in China, as a case study to explore this issue. Through restructuring its organization and re-setting its staff positions based on the “knowledge stream” as the core, the academic library intends to satisfy the knowledge demands of different types of users and create an environment in favor of knowledge flow and innovation. All of these efforts further support the development of the university.
