BREAKING THROUGH DISRUPTION 35 HOW THE DISRUPTABILITY INDEX WAS BUILT To develop the framework for the index, we conducted a comprehensive literature review and spoke to subject matter advisors about the nature of disruption. A total of 62 indicators are used to measure each factor in the framework: 24 to measure the current level of disruption and 38 to measure the susceptibility to future disruption. 13 indicators are based on statistics provided by reliable external sources suppliers, including CB Insights, OECD, Gallup, Oxford Economics, IDC, and Brand Directory. 49 indicators are based on aggregated company-level analysis, using a database of the 10,000 largest, publicly-listed companies in each year. This data is drawn from Capital IQ. All 62 indicators are normalized based on a min-max approach. This converts each indicator into a unit-less score ranging from 0 to 1. The closer the score to 1, either the higher the level of current disruption, or the higher the susceptibility to future disruption. The min and max values are derived from statistical analysis of the distribution of the data from across 2011-18, using a process of winsorization that helps account for extreme values. This means that the min and max values stay constant for the computation of the index across the time period, enabling us to compare scores across each year. Framework and indicators: Normalization: Aggregation and weights: The Disruptability Index computation is based on successive aggregation of the normalized scores from the indicators up to the overall scores for current level of disruption and susceptibility to future disruption. After generating normalized scores, we used the indicator weighted average to calculate dimension scores. Weighting adjustments were made to grouped indicators (e.g. average, dispersion, and change), and to ensure no indicator had too much impact based on the variability of the underlying raw data. After generating dimension scores, the arithmetic average generates the current disruption and susceptibility to future disruption scores.