This article aim is to review existing research on knowledge management (KM) in the context of contemporary digital transformation and its implications for business model innovation (BMI) in a hyperconnected environment. Using a systematic approach to literature review, this study contains papers that were collected from WoS and Scopus databases. 22 peer-reviewed articles formed the basis of analysis. The findings of this study suggest that KM is a key function in redesigning a firm’s business model and together with the use of the new digital technologies can promote the effective adaptation to an ever-changing environment. Thus, organization ought to make the necessary modifications in their KM processes to make the new ever more often digital knowledge accessible, as well as to shape existing knowledge in order to redesign their business models towards continued BMI.