1. Disruption Index
www.DisruptionIndex.org© Joseph Toh 2015

2. Digital is Yesterday. The Next Disruptions may already arrive before you know it.
• Since 2000, 52% of the fortune 500 companies did not make the 2015 list. In less than a decade companies like Google, Netflix,
Facebook are in Fortune 500 list.
• Being Digital is not enough to avoid disruption.
• Even channel partners like Google or Alibaba have turned into competitors. New disruptive business models are creating
unknown threats and opportunities for new businesses. Even if you are a disruptor today will you still be in business tomorrow. e.g.
Air BnB.
• When is the last time, you visited a bank branch or booked a hotel or an airline calling directly?
What are the strategic questions your organization should be answering about disruption?
• Most valuations conducted have predominately assess vertical entity not the eco-system. Out of an analysis of over 30 valuation
methods and innovation indexes, many fail to measure DAC (Distributed Automated Corporation) disruptions and also their
relative valuations that go beyond the traditional methods of valuation.
How prepared are you to
respond to these business
disruptions?
What is the return on the spend
or are you investing for the sake
of missing out?
What disruption are you anticipating
in your company today or
tomorrow?
1 2 3
© Joseph Toh 2015

3. Even established entrants are potential targets for disruption in the new generation of innovation.
Airbnb
Disrupted the
hotel industry and
became the
worldwide
accommodations
leader without
owning any
physical asset
Accommodation
matching engine
Review system
Payment
system
Mobile User
Interface
Each function of Airbnb’s business could be replaced by an independent mechanism and be assembled on the fly in a DAC
(Decentralized Autonomous Corporation) to create a new Airbnb without ever needing to employ more than one person
Blockchain
Virtual Machine
Each mechanism could be developed
independently by 4 individual
entrepreneurs and referenced in a
large decentralized computer system
Once the first mechanism is used, a
request is sent to the BVM that will use
an algorithm to find the most suitable
mechanism to execute the next task
The BVM will autonomously create a
smart contract between the involved
mechanisms defining how much each of
them will be paid by transaction executed
If a more suitable mechanism for any of
these tasks becomes available then the
BVM will pick those instead and so the
amount of choices and the amount of
competition increases
B
A
C
D
© Joseph Toh 2015

4. How will you know and avoid being disrupted if you’re relying on existing approaches?
There has been multiple attempts to measure innovation however measuring true impact of
disruption is scares and limited as it is often assessed in silos
Key gaps in current methods of measurement*
Lack of Actionable Insights
Current Indexes does not indicate the actions that a company
should take to manage disruption risk
Fails to Aggregate Future Value
Indexes focuses on traditional ways of valuation. They ignore
the importance of ecosystem players in the determining the
future value of the company.
Missing Context
Most of the Indexes overlook the context in which the company
operates (country Innovation, Industry innovation maturity and
regulatory openness) to determine the risk of disruption
Limited Relevance
Majority of the Indexes available today are either country level or
Industry level. Moreover, the current indexes focuses
Innovation/Digital but not disruption.
Digital / MarketingInnovation Indexes
Change
Readiness1 2 3
1 2
3 4
Traditional
Valuation4
*Based on analysis of over 25 leading Indexes

5. The Disruption Index addresses key gaps of traditional impact and valuation methods to
provide holistic insights and measures
Impact Actionable Forecast
Disruption
Impact
Contextual
360
o
View
Granular Future Value
Peers &
Markets
Provide guidance on
how well corporates are
prepared for disruption
today and in near future
(12 – 36 months)
Disruption Index will take
into account (Country,
Industry, Regulators,
Peers) in which
corporates operate in to
determine disruption
preparedness
Investment opportunities
to increase companies
future valuation
Provides a comparison
on how my peers are
doing on managing
disruption and a view of
markets to explore new
opportunities
Provide a 360
o
health
check (across key
departments, functions)
for corporates to
understand which area
require upliftment
Provides granularity on
the key areas to improve
within corporate
© Joseph Toh 2015

6. Both external and internal factors are considered based on a comprehensive structure around
people, eco-system, process, technology as well as financials to provide a true diagnosis
Disrupted Managing Disruption Disrupter
AAABBBCCC AAABBB
Disruption Index
Ecosystem
Process
People
(Leadership, Culture, Incentives
and Talent)
Technology
Financials
(Investments,
Results)
Industry
Disruption
RegulationsCounty
Competition
Internal EnvironmentExternal
Factors
External
Factors
© Joseph Toh 2015

7. Big Data & Context ComputingSurvey that also includes DAC1 2
Disruption Index is an industry first innovation disruption valuation index that incorporates both
Traditional Methods, DAC, Big Data and Context Computing methods to derive its results
Company Level Data
• CxO
• Chief Innovation/Digital Officer
• General Staff
Department Level Data
• All Cross divisional functions
• By Country
Social Data
Financial Data
• Historical Financials
• Financial Forecasts
• Investment Updates
• Customer Sentiments data
• Organization Digital Readiness Data
Industry Data
• Country Digital Readiness
• Industry Disruption Readiness
• New Startups Investments Updates
© Joseph Toh 2015