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