At present, it is imperative that traditional media must develop with new media. However, the overall performance of the transformation of most traditional media, especially newspaper groups, is not ideal. Thus, it is urgent to answer the key question that how to effectively promote the integration of traditional media and new media and achieve breakthroughs in innovation and performance. Zhejiang Daily Press Group (ZDPG) is a typical traditional media organization. However recently, ZDPG has successfully completed a ″three-end integration″ of Zhejiang Daily Newspaper (ZDN), Zhejiang Online Website (ZOW) and Zhejiang News Client End (ZNCE). Therefore, based on the multi-team system literature and the process-oriented theory of team knowledge emergence, combining the traditional Chinese thinking framework of Hehe(″Harmony and Integration″), a single case study on ZDPG was conducted to clarify the mechanisms through which a coordinated innovation system can be developed combining traditional media and new media. The results show that: (1) Two components are included in ZDPG’s coordinated innovation system: professional teams that conducts in-depth learning and innovation based on external customer demands, and support teams that provides common knowledge and skills for innovation based on internal customer needs. On one hand, while the professional teams such as newspapers, websites and client ends are required to achieve system-level integration, they still need to clearly define the differences between them and introduce customized products which are ″harmonious but different″ in respond to their key customers’ expectations. On the other hand, while support teams are formed at the system level, they are still expected to respond quickly to the various innovation needs from different professional product teams. (2) Intrapreneurship and project incubation are encouraged in ZDPG. Through these efforts, multiple professional teams are more willing to break the identity boundaries, gain knowledge insights from members in other professional teams, and gradually achieve innovation-oriented knowledge and skills to the collective system. (3) Optimization of associated performance appraisal is emphasized in ZDPG. Specifically, performance indicators of support teams in the ″Central Kitchen″ are closely associated with the innovative performance of professional product teams. Thus, support teams are highly motivated to share collective knowledge and skills with different professional teams to achieve product innovation. Therefore, this study indicates that it is essential for traditional media organizations to develop a coordinated innovation system. On one hand, differences inside the multi-team system can be significantly reduced and common knowledge and cross-understanding can be created through intrapreneurial practices. On the other hand, differentiated needs can be satisfied with associated performance appraisal. This study significantly extends the multi-team system literature by proposing a new concept of coordinated innovation system as well as its influence mechanisms. Moreover, this study also contributes to the process-oriented theory of team knowledge emergence by demonstrating two key mechanisms through which individual professional teams with unique knowledge can successfully collaborate with system level support team with collective knowledge and skills. This study also has important implications in management. Specifically, developing a coordinated innovation system is an effective way to integrate traditional media with new media to improve innovation and performance. Such implications are also valuable for transformation of large enterprises in other industries.