WHAT THE DISRUPTABILITY INDEX MEASURES The Disruptability Index measures an We therefore measure industry susceptibility industry’s current level of disruption as well to disruption along these three dimensions, as its susceptibility to future disruption. assessing how innovative, defensible, and To diagnose the current level of disruption, efficient incumbent businesses are. we “follow the money” along two dimensions: The index assesses 18 industry sectors and from incumbents, where we look for evidence then 106 industry segments within them. We of declining financial performance; and to use a combination of industry-level and disruptors, where we search for evidence of company-level performance data, with the new competition. latter informed by analysis of the 10,000 Our research shows disruptors are successful largest listed companies (based on revenue). in three ways: they deliver significant innovation in products and experiences for consumers; they break down incumbent defenses and barriers to entry; and, they dramatically lower historic prices through new cost structures. 33 BREAKING THROUGH DISRUPTION