The purpose of this paper is to provide a theoretical framework of how knowledge management (KM) systems can facilitate the incorporation of big data into strategic decisions. Advanced analytics are becoming increasingly critical in making strategic decisions in any organization from the private to public sectors and from for-profit companies to not-for-profit organizations. Despite the growing importance of capturing, sharing and implementing people’s knowledge in organizations, it is still unclear how big data and the need for advanced analytics can inform and, if necessary, reform the design and implementation of KM systems.

To address this gap, a combined approach has been applied. The KM and data analysis systems implemented by companies were analyzed, and the analysis was complemented by a review of the extant literature.

Four types of data-based decisions and a set of ground rules are identified toward enabling KM systems to handle big data and advanced analytics.

The paper proposes a practical framework that takes into account the diverse combinations of data-based decisions. Suggestions are provided about how KM systems can be reformed to facilitate the incorporation of big data and advanced analytics into organizations’ strategic decision-making.

This is the first typology of data-based decision-making considering advanced analytics.