Within this study, we develop a procedure for strategic knowledge management which focuses on small and medium energy providers in order to help them assemble and improve their organizational knowledge base for digital innovation. This tool called EPOS procedure is designed to fulfill nine functional requirements. These are drawn from literature, confirmed via empirical data and cross-checked in discussions with practitioners in order to ensure its usability and effectiveness. The procedure comprises four general phases in which knowledge needs are determined, deficiencies within the current knowledge base uncovered, action plans formulated and improvement measures implemented. By extending hitherto existingapproaches insofar as the multidimensional nature of knowledge and innovation, the importance of a certain amount of slack, a long-term strategic perspective and context specifics in the energy industry are concerned, the study provides substantial prescriptive suggestions for management in the energy sector.