On the bases of defining environment of library management innovation, this paper analyzes the macro-environment of library management innovation using PEST methods including political and law, economic, social and culture, technological environment. It also discusses the micro environment from the point of view of identification of library core values, the change of user search behavior and some challenges of the digital information environment, competitors’ analysis. Only by understanding this environment factors thoroughly can we determine the goal of library management accurately, make corresponding development plan and practical measures, thus, make the library social effect maximization.