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The challenge I have been running into is convincing CTOs, CIOs and CKOs that there are network effects. These people have invested heavily in pre-Web 2.0 "knowledge management" solutions. They view blogs and wikis as a threat to the possible success of their existing investments. They fail to realize that adding a wider range of productivity tools to the Intranet will add value to existing tools, rather than take away from them.Do you have any suggestions on how to communicate this.

A short answer to your question is that in such cases an appeal to corporate competitiveness might make the most sense. Enterprise Web 2.0 (or to use the emerging enterprise 2.0 tag) evangelists such as Andrew McAfee and Dion Hinchcliffe are always on the lookout for corporate success stories to publicize. I'd pay close attention to what they have to say. Often in public presentations they are challenged by corporate audiences to "prove that this stuff works." They always like to point to public examples -- when they can -- in order to rise above the hype. Being able to point out that a comparable or competitive company "is doing X already - why aren't we?" can be a powerful motivator.

As a cost-conscious consultant I would first want to know whether the existing knowledge management system can be augmented with newer collaboration, social networking, and relationship management features in order to extend the investments in infrastructure that have already been made.