Knowledge is only created through communication. Organizational networks, having their hearth in the local area networks, are the primary tool for business communication. Here we present a stage model, which shows that organizational networks gradually grow from 1) basic operations support to tools for 2) data collection, then to 3) information exchange, in order to finally enter to the 4) knowledge management stage. Key characteristics of the organizations and organizational networks that change over the stages include the used technology, scope of the network, state of network management practices, richness of communication methods, time and place synchronization, user awareness state and diversity of end user devices and applications. Furthermore, we define a model of the basic infrastructure needed for any knowledge management activity. The components of this model are: Knowledge storage, resources for knowledge collection, support tools for knowledge formation, resources for knowledge distribution, as well as tools for knowledge quality management and knowledge mapping. Within each of these infrastructure components, communication networks play a crucial role. Our study rests on an empirical study on ten Finnish organizations. We support our theoretical model through a mapping of our case companies to it. To provide concrete recommendations for business, we list key actions that are needed in order to proceed from one phase to another in the model. Our studies show that insufficient technology management, but more importantly, missing user communication skills - both at technological and at human-human level - badly impede the development of knowledge management in many organizations.