The Department of Information Management and Library Studies (DIMALS) in th
e School of Business Information Technology at RMIT University, Melbourne,
Australia, has undergone fundamental changes in mission and objectives sinc
e 1994. Faced with falling demand for its programs, growing competition fro
m non-LIS departments, and changes both to the corporate strategy of the un
iversity and to federal government policies, the department had to take urg
ent and, at times, drastic action. The response entailed a business strateg
y directed at creating new products for new markets, notably in the field o
f knowledge management. In addition to mastering new and interdisciplinary
subject areas, this required the development of a facility for the flexible
delivery of courses in-distance mode. This has led to design of the first
knowledge management program in Australia, with a consequent shift in the j
ob market for graduates and in the composition of the student body. Other o
utcomes include an enhanced role for the department within the university a
nd the creation elf new revenue streams.