Two elements are required for disruption: 1) a business model change, and 2) elements of innovation. The document discusses how disruption has occurred in different industries like electronics, music, and transportation. It provides questions to assess potential disruption for a company, including asking what kind of business the company is really in, what its advantages are, what is enabling disruptors, how the disruptor could erode the business, and how long the company has until disruption occurs. Examples provided include the disruption of trains by planes, and Blockbuster by streaming services.