Presentation by John Hagel and John Seely Brown of Deloitte's Center for the Edge to Supernova mixer in San Francisco, on August 11, 2009.

1. The Big Shift Supernova Mixer August 11, 2009 Center for the Edge

2. Return on Assets % U.S. Economy Asset Profitability (1965 – 2008)

3. Labor Productivity Index U.S. Economy Labor Productivity (1965 – 2008)

4. Return on Assets % U.S. Economy Asset Profitability by Quartile (1965 – 2008)

5. Legend 0 Ranks Perfectly Stable Perfectly Sustainable Competitive Advantage 1 Ranks Change Randomly Complete Absence of Sustained Competitive Advantage Rank Persistence U.S. Economy Topple Rate (1965 – 2008)

6. WHY IS THIS HAPPENING? WHAT DO I DO?

7. The Big Shift Knowledge Stocks Knowledge Flows Knowledge Transfer Knowledge Creation Explicit Knowledge Tacit Knowledge Transactions Relationships Zero Sum Positive Sum Mindsets Push Programs Pull Platforms Institutions driven by scalable efficiency Institutions driven by scalable peer learning Stable Environments Dynamic Environments