Organizations have long viewed service management as an effective means of bridging the gaps in organizational performance and driving operational efficiencies. However, IT service management (ITSM) initiatives often fall short of expectations, with limited value-producing results. With an effective strategy for knowledge capacity building, IT organizations can prepare to drive innovations and iteratively improve operational performance by leveraging strategic knowledge assets. This report advises operations leaders on a new approach to modernizing knowledge management to meet the demands of innovation through capacity building.