Engineering Business Environment: Disruptive Low Carbon Innovation

This document discusses the concept of disruptive low carbon innovation in the engineering business environment. It explores the threats posed by climate change, policy and regulatory frameworks designed to mitigate climate change, and different types of innovation. The document also includes a case study on McLaren Technology Group.

Running head: ENGINEERING BUSINESS ENVIRONMENT
Module Name: Engineering Business Environment
Module Code: ENGT5219
Title of the Assignment: Assignment B – Disruptive Low Carbon
Innovation
Name of the Student
Name of the University
Author note

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Table of Contents
Introduction......................................................................................................................................3
Selection of business type and identification of threats to the business form Climate change.......3
The policy and regulatory framework designed to mitigate climate change...................................4
Innovation theory and disruptive innovation...................................................................................6
Incremental innovation, breakthrough innovation and game changing innovation........................9
Breakthrough innovation...............................................................................................................10
Conclusion.....................................................................................................................................11
References......................................................................................................................................13

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Introduction
Disruptive innovation offers important promise about the expedited global low-carbon
transition and set against the inadequate efforts. Hence, in order to analyze and appreciate its
importance, disruptive low-carbon innovation need to be analyzed in the key shifts in perspective
like for analyzing system transition as well as low-carbon innovation in terms of power, making
appraisal of the importance of digital innovation as well as embryonic convergence with the
process of disruptive innovation. In the present study, McLaren Technology Group has been
selected as case study organization. The threats due to climate change, policy and regulatory
framework designed in order to mitigate climate change are discussed in the present study.
Incremental innovation, breakthrough innovation and game changing innovation are discussed in
the paper along with recommendations for disruptive innovations.
Selection of business type and identification of threats to the business form Climate change
Physical impact from climate change poses a major issues for the organizations as well as
arising trends. The theorists of organizations have started to consider impact of the organization
as well as increasingly change of climate. On the other hand, there are organizational related
dimensions of the climate that has impact on severity, temporal scale as well as spatial scale. On
the other hand, it is important to focus on the climate change as it has an impact on the capital
expenditures needed for the emission of control systems. There are several organizations that
may have to invest on the considerable funds into the process of upgradation of polluting
facilities as well as installation of emission control systems for complying with increasingly
stringent regulation on the procedure of emission of greenhouse gases into atmosphere (Urabe,
Child and Kagono 2018.). It would have an important role for energy as well as utility
organizations that are operating polluting facilities such as refineries as well as power plants.

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On the other hand, potential domestic legislation has an important role in minimization
legislation that is considered. The organizations would be allotted a specific amount of emissions
credit and allows to release only a specific quantity of greenhouse gases into air. The
organizations can emit more credits that allow to buy extra credits and hurting facilities.
Changing Demand for Goods is one of the major impact for climate change on McLaren
Technology Group (Chan and Vasarhelyi 2018.). The combination of changing prices as well as
changing patterns of weather would cause the changing demand for products. Whether global
temperatures rise, like, demand for getting cold weather products like heating oil might be
declined. Apart from these, changing the public perceptions of the organizations is influenced by
change of climate. There are more public opinions that seem to be turning the process and
promote green image.
The policy and regulatory framework designed to mitigate climate change
Climate change mitigation refers to the activities and action that takes in order to limit the
degree or percentage of stretched term worldwide heating and its connected belongings. There
are various kinds of ways through which government and other body can engage with
mitigations. In the context of weather alteration mitigation, decreases in humanoid emission of
greenhouse gases are one of the best options (Singh and Armo 2016). By increase the volume of
carbon sinks such as cultivation, extenuation can occur. Furthermore, government has designed
various kinds of mitigation policies, practices and regulatory framework through which risks
associated with human induced global warming can reduce.
There are many European countries that have adopted national program that has main aim to
overcome the emission. In the context of policies and measures, various regulatory practices has
designed that are discussed below-

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 Enhanced the use of renewable energy and mutual heat and power installation: By this
policy of climate change mitigation, organization should increase the use of renewable
energy in their production, manufacturing and business operation activities. Organization
should increase energy by wind, solar and biomass and combined power and heat
installation.
 Improve the energy efficiency in building, household appliances and industry- By follow
this policy of climate change mitigation, organization should improve efficiency and
effectiveness in the building, household appliances (Homburg, Jozić and Kuehnl 2015).
 Overcome the CO2 emission from new passengers cars- As per this policy of climate
change mitigation, organization should reduce the carbon dioxide emission from new
passenger car through which mitigation in the climate change can increase.
 Measure the emission from landfills- This is another one of the most effective policy of
the climate change mitigation through which corporation should reduce emission from
landfills (Özerdem and Bowd, 2016).
 Abatement measures in the manufacturing industry- By this policy of climate change
mitigation; corporation should reduce the emission from the landfills through which it
can effectively mitigate the changes in climate.
As per the above discussion it has been analyzed that there are various policies and practices
adopted by the corporation in the UK in order to mitigate the changes in the climate. There are
further four pieces of complementary legislations in regard to climate change mitigation. These
legislation of climate change mitigation are discussed below manner-
Modification and fortifying of the EU outflow-exchanging framework It is a solitary European
Union wide top on emanation stipends from 2013 onwards alongside straight yearly decrease

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until 2020 and past. It comprises with extension of the framework to new parts and gases, the
dynamic substitution of free designation of recompenses by selling.
Legislation in regard to climate change mitigation is an “effort sharing Decision”. A practices
transfer the Decision for releases from subdivisions not enclosed by the European Union ETS
like waste, transportation, agriculture, housing etc. In this regard, every associate national will
have to address a compulsory nationwide emission restraint board for 2020. As compare to the
2005 levels, the national target will cut the European Union’s emission from the non ETS
subdivisions by 10% in 2020.
Binding national target for renewable energy: This is another one of the significant legislation in
the context of climate change mitigation under which reduces the EU’s dependence on imported
energy and brings down GHG emission. In this regard, The GHG emissions and EU dependences
on the imported energy can reduce. Legislation is to sponsor the progress and innocent practice
of the carbon imprisonment and packing.
Innovation theory and disruptive innovation
In the 1962, E.M Rogers has developed the Diffusion of Innovation theory that is one of the
social science theories. This theory is based on the creativity, idea and past experience of the
individual. As per this theory, innovation can bring from the individual idea, behavior, and
product, purchase the new product, perform a new behavior etc. In this theory, adoption of the
new thoughts, creativity, behavior and items do not happen in a social system. In this context, it
has been stated that the individual or people who adopt an innovation early then they will adopt
innovation in later. As per this theory of innovation, there are main four kinds of strategies that
used to appeal to the different adopter categories that are discussed below-

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Innovator- In this context of innovation theory, innovators are those people who want to try the
first of innovation. These kinds of people require new idea and innovative thoughts to be the
major to attempt the origination. They are very equipped to gross the hazards and are frequently
the first to produce the fresh thoughts and creativity.
Early adopters- This kind of innovator enjoy theory role of leader and motivator and always
embrace for the opportunities of changes and innovativeness within the business. They always
well known about the new changes and adopt new ideas and creativity with existing product and
services in the organization they always aware about the requirement of changes in the process
and business system. In this kind of innovator do not requirement to convince them to change.
Early Majority- This kind of people is also very unique and they are rare leader who enjoys the
role of leadership always. However, this kind of leader does not adopt a new idea before the
average person. This kind of people requires adopting some evidence that creativity can bring
before they are willing to acquire this innovation. In this regard, includes the approaches such as
proofs of the innovation’s efficiency and success stories.
Late Majority- This kind of individual is skeptical to change. This kind of people adopts the
creativity and innovation after it has been trying in large manner. In this regard, approaches to
appeal to this population include data on how many other individuals try to the creativity and
invention.
Laggards – This kind of people are the type of individual who bound by their tradition. This
kind of people is very skeptical to change. They focuses upon the various approaches to appeal
to this population such as fear appeals, statistical force from other individuals etc.

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According to this hypothesis of innovation, there are fundamental five primary segments that
influence the reception of a development advertisement every one of that segment is plays to a
different degree in the five classes that are talked about beneath way-
Relative advantage- In this regard, invention is understood as improved than the impression,
database and invention it substitutes
Complexity- In this regard it is quite difficult to understand the innovation and its
implementation in the process.
Observability- In this regard, innovation provides an effective results and outcome.
Compatibility- In this regard, revolution is with the value, familiarities and requirement of the
possible adopters.
Disruptive innovation- In this regard of innovation in the business, business unit can make a
new marketplace and worth system and ultimately interrupts an current marketplace and worth
system. It is a kind of invention in the business through which business unit can develop a new
marketplace, worth system and finally interrupts an prevailing marketplace and worth system,
marketplace important corporation, product and coalitions etc (Ter Wal et.al. 2018). This kind
of innovation is tends to developed by the outsiders and business men in startup business rather
than existing market leading organization. The other entrepreneur and startup firms (Masuda and
et.al. 2018) develop it. The commercial atmosphere of the marketplace leader does not permit
them to follow troublesome innovation while they main get up. This kind of innovation is
profitable at first and because of their expansion can take scares capitals gone from supporting
innovation. This kind of theory of innovation uses by the organization has fewer resources and
that are very smaller organization. In this regard, small business entity with fewer assets can

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unseat a built up effective by focusing on portion of the market that has been ignored by the
occupant. In such manner, substantial specialty unit centers around enhancing the item and
administrations for its most requesting purchasers , the firm that are little is picking up an a
dependable balance at the base end of the market or tapping another market the occupant had
neglect to deliberate.
Incremental innovation, breakthrough innovation and game changing innovation
Incremental innovation is quite different from the disruptive innovation. The Incremental
innovation is a series of very fewer improvements and upgrade that has developed by the
business unit in their existing business operation, product, services and methods. In this regard,
business unit focuses on their existing business procedure, method, strategies, product and
services in order to bring the innovation in the overall business unit. Organization implement the
changes by use of incremental innovation under which it consider upon the improvement on the
existing products development, manufacturing productivity and differentiation of product and
services (Wesseling and Edquis 2018). There are several kinds of the organization that has
adopted this kind of innovation in order to bring the effectiveness and develop competitive
advantages in the business environment. By using this kind of innovation in the business entity,
management can develop effective business position in the competitive business environment
and provide effective services and innovative product to customers in the market. This kind of
innovation has become a common strategy of the business unit in the consumer technology
industry under which organization regularly improve personal delivers with customer friendly
features and characteristics. The disruptive innovation is just opposite from the incremental
innovation. In the regard of radical or disruptive innovation, organization introduces the new
product, services and strategy in the market for bring effective position of brand in the

9ENGINEERING BUSINESS ENVIRONMENT
competitive business environment. Radica innovation required effective investment of time and
resources in the business. In this kind of innovation also include some kind of risk and hazard
regarding the capital investment. In a simple word it can be said that incremental innovation is a
series of the small improvement and increment in the existing good, services, strategies,
procedure, practices and methods that assists to business unit in maintaining its competitive
position and brand image in the competitive business environment. This kind of incremental
innovation is generally implement and used within organization with help of latest and high
quality of technology. With help of advanced technology and equipment, company can bring the
effective innovation within the business and associated product and services. Thus, it can be said
that in order to implement the incremental innovation in the business, high quality and advanced
technology is very important.
Breakthrough innovation
The breakthrough innovation is innovation that bring from inside of the company. It
pushes something to the next level, this kind of innovation bring from the internal procedure,
methods and strategies that implement by the organization (Berry and Berry 2018). It is a kind of
innovation that opens the organization to new market or changes the criteria buyers interact with
the market and industry. In this type of innovation, business unit makes the changes in the
internal product and services, process that provide a significant changes and creativity in the
existing system of business. This is the effective way to create something unique and effective
within business unit and associated product and services. This helps in developing effective
brand image in the market and attracts new customers toward the firm. This kind of innovation
alos provides an opportunity to employees for their growth and development. In order to
implement this kind of innovation within the business, product and services, corporation

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provides an opportunity to its employees through which they can learn the new skill, ability,
knowledge and creativity to being something new along with product and services, ad business
activities. The breakthrough is an inherent part of the innovation approach by which business
unit can grow and improve its operation by offers something new to its buyers.
Game changing innovation- This is another one of the most significant type of
innovation under which innovation can bring within the organization by using the strategies.
There are various features of game changing innovation such as changing game product
innovation almost always refers a new category whether it is role playing game, non stick
cookware and MP3 players. In this regard, all game changing innovation fulfill a customer
requirement and needs according to changing trends and fashions in the market with regard of
product and services, (Bason 2018)This kind of innovation usually seem impossible or
unfeasible a short time before their introduction. This kind of game change innovation in the
mature industries mostly driven by the well settled players who are not in first place while
developing industries usually see their game changes.
Conclusion
On the basis of the above discussion it has been concluded that Physical impact from
climate change poses a major issues for the organizations as well as arising trends. The theorists
of organizations have started to consider impact of the organization as well as increasingly
change of climate.it is important to focus on the climate change as it has an impact on the capital
expenditures needed for the emission of control systems. It would have an important role for
energy as well as utility organizations that are operating polluting facilities such as refineries as
well as power plants. It has been also concluded that The breakthrough innovation is innovation
that bring from inside of the company. It pushes something to the next level, This kind of

11ENGINEERING BUSINESS ENVIRONMENT
innovation bring from the internal procedure, methods and strategies that implement by the
organization Game changing innovation has various features of game changing innovation such
as changing game product innovation almost always refers a new category whether it is role
playing game, non stick cookware and MP3 players. It has been also concluded that incremental
innovation is a series of the small improvement and increment in the existing good, services,
strategies, procedure, practices and methods that assists to business unit in maintaining its
competitive position and brand image in the competitive business environment.

12ENGINEERING BUSINESS ENVIRONMENT
References
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In Theories of the policy process(pp. 263-308). Routledge.
Dodgson, M., 2018. Technological collaboration in industry: strategy, policy and
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Bason, C., 2018. Leading public sector innovation: Co-creating for a better society. Policy
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Wesseling, J.H. and Edquist, C., 2018. Public procurement for innovation to help meet societal
challenges: a review and case study. Science and Public Policy.
Masuda, Y.J., Liu, Y., Reddy, S.M., Frank, K.A., Burford, K., Fisher, J.R. and Montambault, J.,
2018. Innovation diffusion within large environmental NGOs through informal network
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