Disruptive Low Carbon Innovation: Manufacturing Business | Engineering Business Environment

Running head: ENGINEERING BUSINESS ENVIRONMENT
Disruptive Low Carbon Innovation: Manufacturing Business
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ENGINEERING BUSINESS ENVIRONMENT
Table of Contents
1. Introduction............................................................................................................................2
2. Threats to the Manufacturing Business..................................................................................2
2.1 Threats from Climate Change..........................................................................................2
2.2 Threats from Policy and Regulatory Frameworks...........................................................3
3. Innovation with Examples......................................................................................................3
3.1 Disruptive Innovation.......................................................................................................3
3.2 Incremental Innovation....................................................................................................4
3.3 Game-Changing Innovation.............................................................................................5
4. Business Case.........................................................................................................................5
4.1 Early Adopters of Innovative Products of the Manufacturing Business..........................6
4.2 Business Innovation for Reduction of GHG Emissions...................................................7
5. Conclusion..............................................................................................................................8
References................................................................................................................................10
Appendices...............................................................................................................................13
Appendix A..........................................................................................................................13
Appendix B..........................................................................................................................14

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ENGINEERING BUSINESS ENVIRONMENT
1. Introduction
Innovation can be referred to as the new ideas, creative thoughts and new
imaginations in the distinct form of a method of the device1. The following report outlines a
brief discussion on disruptive low carbon innovation with relevant details related to the
recognition of different threats of the business from climate changes and policy or regulatory
frameworks for mitigation of climate changes. The report also summarizes about disruptive
innovation, incremental innovation and finally game-changing innovation with suitable
recommendations.
2. Threats to the Manufacturing Business
The manufacturing businesses comprise of new technologies and help in finding new
innovative ideas to the customers2. It is being estimated that the share of GDP of
manufacturing industry would be exceeding 20% in the topmost 60 largest global economies.
The two most essential factors that provide risks to manufacturing business are climate
changes and the policy or regulatory frameworks. The details of these two factors are as
follows:
2.1 Threats from Climate Change
The first threat of manufacturing business from climate change is an issue with supply
chain3. There are several facets of global supply chains, which bring out risks for disruption.
Moreover, the geographic shifts for resource availability as well as volatility in the globalized
trading relationships are also few vital issues that are being faced by a manufacturing industry
due to massive climate change4.
1 Christensen, Clayton M., Michael E. Raynor, and Rory McDonald. "What is disruptive innovation." Harvard
business review 93, no. 12 (2015): 44-53.
2 Guttentag, Daniel. "Airbnb: disruptive innovation and the rise of an informal tourism accommodation
sector." Current issues in Tourism 18, no. 12 (2015): 1192-1217.
3 Horn, Michael B., and Heather Staker. Blended: Using disruptive innovation to improve schools. John Wiley
& Sons, 2014.
4 King, Andrew A., and Baljir Baatartogtokh. "How useful is the theory of disruptive innovation?." MIT Sloan
Management Review 57, no. 1 (2015): 77.

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ENGINEERING BUSINESS ENVIRONMENT
As the supply chain management is considered as one of the most basic requirements
in the manufacturing industry, so that the business of manufacturing is not stopped under any
circumstance; the risks related to supply chain could be extremely vulnerable for the
business, as the entire business could be stopped completely5. Geographical shifts could have
a major negative impact on the entire manufacturing business, and the respective organization
would be suffering majorly for this aspect. The other threats that are being faced by climate
changes include an increase of costs and resource usage in the business to a high level (See
Appendix A).
2.2 Threats from Policy and Regulatory Frameworks
There are few threats present for these frameworks that are designed for the
mitigation of climate change. The first threat from policy and regulatory framework for a
manufacturing business is that the business would not be able to deal with the risks related to
excess rules in different geographical locations (See Appendix B). Due to different climate in
different countries, it becomes quite difficult for the organizations to do their business
globally or throughout the world6.
3. Innovation with Examples
3.1 Disruptive Innovation
Disruptive innovation could be referred to as the type of innovation, which can create
a completely new value network and even the market. This innovation is mainly produced by
the outsider or entrepreneur in different start-ups and not by the existing market leaders7. A
disruptive procedure could take a long period for developing than by a conventional approach
5 Cortez, Nathan. "Regulating disruptive innovation." Berkeley Tech. LJ 29 (2014): 175.
6 Wan, Feng, Peter J. Williamson, and Eden Yin. "Antecedents and implications of disruptive innovation:
Evidence from China." Technovation 39 (2015): 94-104.
7 Guttentag, Daniel A., and Stephen LJ Smith. "Assessing Airbnb as a disruptive innovation relative to hotels:
Substitution and comparative performance expectations." International Journal of Hospitality Management 64
(2017): 1-10.