AT A GLANCE Disruption is an inescapable challenge There is a better path: We studied how a for all industries. And when companies select group of companies confronted face it, they typically make cautious disruption in an unconventional way, by To make a Wise Pivot, moves. They raise barriers to entry pushing themselves outside of their companies need to instead of extending themselves comfort zone. reallocate their financial, outward. They rely on what’s worked for them in the past, in lieu of seeking They took charge of their own destiny, by innovation and talent deep change on the inside. They double making what we call an “innovation pivot” resources towards down on efficiency, rather than to truly change their position, with long- businesses of the future, committing to real innovation. term impact in mind. but without neglecting But while these are instinctual and How can today’s companies chart a their legacy. In this report, understandable choices, they don’t work. successful future? It starts with we show how successful They keep companies in survival mode understanding the distinctive nature of companies deploy an and away from actively shaping their disruption in their industry. And from innovation pivot to manage future. In fact, playing it safe amid there, more ambitious, bold innovation disruption effectively, over disruption is very risky: Our analysis of moves must replace protective reactions. time. 10,000 companies shows that $41 trillion in enterprise value is already exposed to 1 disruption today. 2 BREAKING THROUGH DISRUPTION