Domain knowledge evolution in business and IT system change

A modern business organisation is under continuous pressure from its outside environment. In order to survive, it has to keep up with modern technology and adapt under continuous market and business pressures. Business change is brought about by a number of external and internal factors. As it adapts to the changing environment the organisation continuously learns. It accumulates a wealth of information and knowledge about their particular domain and how to deal with changes. In this paper we present a model of knowledge evolution and learning cycles that can be observed in changing business environment