When small organizations construct and operate Knowledge Management System(KMS), there exists inefficiency in employee participation and system usage. In recent years, web itself is evolving into web 2.0. And It is crucial to utilize web 2.0 characteristics into KMS. The problems in the original version of KMS(KMS 1.0) is as follows. KMS is separated from Offline and electronic work processing systems. Even information in the electronic work processing system cannot be accessed by employees of other divisions in the same organization. Now web 2.0 environment provides more enhanced user participation and information sharing. It also reinforces KMS 1.0 into KMS 2.0. Small organizations should take advantage of web 2.0 environment and construct the better version KMS of its own with low-cost and high-efficiency.