Innovation simply isn't as unpredictable as many people think. There isn't a cookbook yet, but we're getting there.

The best strategy is a balance between having a deliberate one, and a flexible, or emergent strategy.

The innovations are far more important because the technology itself has now way to impact the world for good until it's embedded in the business model. Innovation it's the combination of the simplifying technology and the business model.

How can you make sense of the future when you only have data about the past?

Efficiency innovations provide return on investment in 12-18 months. Empowering innovations take 5-10 years to yield a return. We have ample capital - oceans of capital - that is being reinvested into efficiency innovation.

The mistake managers often make is defining their industry too narrowly. Digital's market share in the minicomputer market stayed very robust even as it fell off the cliff. Disruption seems to come out of nowhere, but if you know what to look for, you can spot important developments well before the market does.

Most companies think of disruption as a threat. But disruptive innovations have tremendous growth potential. If incumbent companies can learn how to harness the forces of disruption, they too can improve their ability to create new-growth businesses.