Much research has been published regarding knowledge management (KM) recently. However, there are still confusions about Knowledge management in the academic community and organizations. Distinctions about knowledge are oversimplified; some notions are self-contradictory; the researching paradigm is of duality. We analyze the advantages and disadvantages of current classifications of knowledge and main ideas in KM field, and then address a new dual-dimension knowledge classification method, instead of the pertinent over-simple classification methods, providing a visual method to understand the convertion, utilizing and promotion of knowledge process. Based on this new idea, a different view of knowledge management model, emphasizing the importance of environment, and a new knowledge management system (KMS), are structured. Therefore, the overall knowledge management concept is articulated in a new knowledge management system, with the strategy sub-system, implement sub-system and supply sub-system.