Knowledge audit is considered as one of the first steps towards designing a knowledge
management strategy for an organization. Knowledge audit opens up the eye of an
organization in terms of understanding its current knowledge capabilities, future
knowledge requirements and critical knowledge gaps.. This paper focuses on how
various knowledge audit tools can be used as an effective mechanism for organizational
innovation process, specially understanding market needs, assessing knowledge
capability and partnerships with external knowledge networks thus contributing to the
development of new products or services
