PLAYING IT SAFE— AND FALTERING Industry participants are acutely aware of the threats posed by disruption. But how are they responding? We addressed this question by assessing an industry’s susceptibility to future disruption; we looked at whether its players are becoming more efficient, or more innovative, or whether they are building stronger defenses. All industries are focused on building greater resilience, with the biggest improvers being the Health and High-Tech sectors. They did this through a range of activities, from cutting operating costs, to improving innovation commitment and saving for a rainy day. Companies in High-Tech, for example, shaved on average 2.6 percentage points off their COGS/Revenue and increased the value of their cash and short-term assets by 40 percent. But they continued to see an increase in actual disruption, due to financial performance pressures and the merciless influx of disruptors. BREAKING THROUGH DISRUPTION 11