ENGT5219 Assignment B: Disruptive Low Carbon Innovation Report

This report delves into the realm of disruptive low carbon innovation within the manufacturing sector, examining the threats posed by climate change and the implications of policy and regulatory frameworks. It explores different types of innovation, including disruptive, incremental, and game-changing approaches, providing relevant examples. The report analyzes the business case for innovation, focusing on early adopters of innovative products and the role of business innovation in reducing greenhouse gas (GHG) emissions. The analysis includes a discussion on the importance of disruptive innovation in mitigating climate change-related risks and the potential of various strategies to lower carbon emissions within the manufacturing industry. It highlights the significance of innovation in achieving greater efficiency and effectiveness, as well as the impact of technological advancements on business operations and sustainability.

Running head: ENGINEERING BUSINESS ENVIRONMENT
Disruptive Low Carbon Innovation: Manufacturing Business
Name of the Student
Name of the University
Author’s Note:

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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.

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ENGINEERING BUSINESS ENVIRONMENT
and the risk related to it is quite high than the incremental innovation form8. However, as
soon as it is being deployed within the market, it could quickly achieve a fast penetration in
the established market. An example of disruptive innovation is for automobiles. During the
19th century, the motors were not considered as disruptive innovations as the automobiles
were quite expensive for disrupting the market of horse draw cars. Hence, low priced Ford
Model T was launched for disruptive innovation in 1908.
3.2 Incremental Innovation
Incremental innovation is referred to as a series of small up gradations that are made
to the organizational existing procedures, methodologies, services and products. These
changes that are being deployed through incremental innovation could be focused for the
improvisation of overall development efficiencies, competitive differentiations and
productivity of the existing products9. Incremental innovation is opposite to the disruptive
innovation and the organizations often use the strategies of incremental innovation. The main
reason for such decision is that disruptive innovation needs a specific investment of both
resources and time and hence it is less risky10. High success is gained through few strategies,
and any manufacturing business becomes successful without much complexity. One of the
most significant examples of incremental innovation is for Gillette. The brand has used
incremental change for staying ahead of the competition. The product of razors has evolved,
and different features are being added for better customer satisfaction.
8 Osiyevskyy, Oleksiy, and Jim Dewald. "Explorative versus exploitative business model change: the cognitive
antecedents of firm‐level responses to disruptive innovation." Strategic Entrepreneurship Journal 9, no. 1
(2015): 58-78.
9 Norman, Donald A., and Roberto Verganti. "Incremental and radical innovation: Design research vs.
technology and meaning change." Design issues 30, no. 1 (2014): 78-96.
10 Souto, Jaime E. "Business model innovation and business concept innovation as the context of incremental
innovation and radical innovation." Tourism Management 51 (2015): 142-155.

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ENGINEERING BUSINESS ENVIRONMENT
3.3 Game-Changing Innovation
Game-changing innovation refers to the new innovative approach that has the
capability of altering business strategies11. A manufacturing company uses game-changing
innovation strategy for bringing out new changes in the products and services12. These
innovations can open up new avenue for economic growths. The most prominent leaders with
the most significant ideas are commonplace since all the organizational management strives
in becoming a game changer for high success13. A popular example of this innovation is in
Amazon.com. Jeff Bezos has started the organization with a little book e-commerce website.
By the time, he became a prominent leader for driving Amazon.com to heights for continuing
to invest in the new game-changing technologies like drone delivery.
4. Business Case
Innovation eventually occurs via the provision of few effective products, services,
business models, procedures and technologies that are made available to the society,
government and market14. The respective idea must be replicable at the most economical
expenses. It should fulfil an important requirement15. Innovation even results, as soon as the
manufacturing business is applying ideologies for further satisfaction of the needs and
expectations of the clients16. As the manufacturing business has to deal with issues related to
11 Avelino, Flor, Julia Wittmayer, René Kemp, and Alex Haxeltine. "Game-changers and transformative social
innovation." Ecology and Society: a journal of integrative science for resilience and sustainability 22, no. 4
(2017).
12 Wilson, Charlie, Hazel Pettifor, Emma Cassar, Laurie Kerr, and Mark Wilson. "The potential contribution of
disruptive low-carbon innovations to 1.5 C climate mitigation." Energy Efficiency 12, no. 2 (2019): 423-440.
13 Ready, Douglas A., Linda A. Hill, and Robert J. Thomas. "Building a game-changing talent
strategy." Harvard business review 92, no. 1-2 (2014): 62-68.
14 Pegoraro, Ann. "Twitter as disruptive innovation in sport communication." Communication & Sport 2, no. 2
(2014): 132-137.
15 Avital, Michel, Magnus Andersson, Jeffrey Nickerson, Arun Sundararajan, Marshall Van Alstyne, and Deb
Verhoeven. "The collaborative economy: a disruptive innovation or much ado about nothing?." In Proceedings
of the 35th International Conference on Information Systems; ICIS 2014, pp. 1-7. Association for Information
Systems. AIS Electronic Library (AISeL), 2014.
16 Pinkse, Jonatan, René Bohnsack, and Ans Kolk. "The role of public and private protection in disruptive
innovation: The automotive industry and the emergence of low‐emission vehicles." Journal of Product
Innovation Management 31, no. 1 (2014): 43-60.

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ENGINEERING BUSINESS ENVIRONMENT
climate changes and supply chain, it becomes extremely important and significant to ensure
that better effectiveness is gained and the business is not hampered under any circumstance17.
4.1 Early Adopters of Innovative Products of the Manufacturing Business
Disruptive innovation is highly recommended for the manufacturing business to deal
with issues related to climate changes and policy and regulatory frameworks for their
products and services18. Disruption is the procedure, in which a small manufacturing
company with few resources has the capability of successfully challenging the established
businesses19. These businesses could easily focus on the improvement of products as well as
services for the most profitable clients as they eventually exceed the requirements of a few
segments and also avoid the particular conditions of others.
The early adopters refer to those organizations or businesses that utilize innovation,
technology or product even before others could use it. These adapters are essential for the
company as they want to improvise as well as boost the innovative products and services they
are introducing in the market20. In a manufacturing business, the speed of the global
technological change is quite swift. As a result, several retail companies decide to take up
innovative products and services and be their early adopters eventually.
The retailers are the early adopters of the innovative products of the manufacturing
businesses, and they are important for proving, refining, iterating as well as making the leap
of different products, services and platforms to the subsequent mass-market21. However, it is
17 Sandström, Christian, Henrik Berglund, and Mats Magnusson. "Symmetric assumptions in the theory of
disruptive innovation: Theoretical and managerial implications." Creativity and Innovation Management 23, no.
4 (2014): 472-483.
18 Conrad, Douglas A., David Grembowski, Susan E. Hernandez, Bernard Lau, and M. I. R. I. A. M. MARCUS‐
SMITH. "Emerging lessons from regional and state innovation in value‐based payment reform: balancing
collaboration and disruptive innovation." The Milbank Quarterly 92, no. 3 (2014): 568-623.
19 Grady, Janet. "CE: Telehealth A Case Study in Disruptive Innovation." AJN The American Journal of
Nursing 114, no. 4 (2014): 38-45.
20 King, Andrew A., and Baljir Baatartogtokh. "How useful is the theory of disruptive innovation?." MIT Sloan
Management Review 57, no. 1 (2015): 77.
21 Corsi, Simone, and Alberto Di Minin. "Disruptive innovation… in reverse: Adding a geographical dimension
to disruptive innovation theory." Creativity and Innovation Management 23, no. 1 (2014): 76-90.

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ENGINEERING BUSINESS ENVIRONMENT
not always a major benefit to the business, and the organization often faces issues related to
such innovation. With the help of disruptive innovation, the threats related to climate changes
and policy as well as regulatory frameworks would be eradicated successfully and without
any error. An example of such distinct technology would be for the automobile industry, in
which disruptive innovation can reduce the effect of excess carbon usage and make the
emissions of low carbon.
4.2 Business Innovation for Reduction of GHG Emissions
Business innovation is when a specific company initiates a new process, product or
service for affecting the positive changes in the business22. Proper innovation of business
refers to finding out of new revenue chances, optimization of the existing channels and also
generating high profits23. The objective of reducing GHG emissions is the minimization of
the contributions to the effect of greenhouse that could contribute to global warming as well
as adverse human health and environmental health. Proper reporting of greenhouse gas
emission is required for identification and targeting high emission categories as well as
implementing specified actions for addressing the identified emission areas24. The
identification of additional sources of data and analysis with the significant potential for
supporting the reduction of GHG objectives. The manufacturing business should include
specific requirements for lower carbon emission and hence higher effectiveness, and
efficiency would be gained25.
One of the most significant steps that disruptive innovation would be providing to the
manufacturing business is that it enables in reducing, reusing and recycling of products and
22 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.
23 Wan, Feng, Peter J. Williamson, and Eden Yin. "Antecedents and implications of disruptive innovation:
Evidence from China." Technovation 39 (2015): 94-104.
24 Guttentag, Daniel. "Airbnb: disruptive innovation and the rise of an informal tourism accommodation
sector." Current issues in Tourism 18, no. 12 (2015): 1192-1217.
25 Wilson, Charlie, Hazel Pettifor, Emma Cassar, Laurie Kerr, and Mark Wilson. "The potential contribution of
disruptive low-carbon innovations to 1.5 C climate mitigation." Energy Efficiency 12, no. 2 (2019): 423-440.

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ENGINEERING BUSINESS ENVIRONMENT
services26. Moreover, the expenses or resource usage rate is also lowered majorly, and hence
GHG emissions are reduced. Light energy is also not used on a higher basis, and the products
are highly energy efficient. Saving up of energy is yet another vital impact of greenhouse gas
emissions, and it could be successfully reduced with energy-efficient products by the
manufacturing businesses. The next critical and significant step for reducing GHG emissions
would be utilizing less heat and air conditioning27. It would ensure that harmful gases like
carbon monoxide and carbon dioxide are emitted to a lower level, and better efficiency is
gained in the respective business.
5. Conclusion
Therefore, a conclusion could be drawn that innovation is one of the most critical and
significant requirements in industry, so that maximum efficiency and effectiveness is gained
under every circumstance. It eventually involves the practical deployment of the invention for
making a meaningful effect in the society and market. Innovation can manifest itself through
the respective process of engineering, in which as soon as the issue gets solved is of a
scientific or technical nature. Change is subsequently considered to be the outcome of a
procedure, which brings out together several innovative ideas, in such a manner that they
could easily affect the type of business. Disruptive innovation can be referred as to
technology, in which application can easily jeopardise the method an industry or market is
functioning. A popular example of disruptive innovation is the Internet connection that has
altered the process, organizations are doing business and which negatively affected
organizations, which are willing to adapt to it.
26 Christensen, Clayton M., Michael E. Raynor, and Rory McDonald. "What is disruptive innovation." Harvard
business review 93, no. 12 (2015): 44-53.
27 Pinkse, Jonatan, René Bohnsack, and Ans Kolk. "The role of public and private protection in disruptive
innovation: The automotive industry and the emergence of low‐emission vehicles." Journal of Product
Innovation Management 31, no. 1 (2014): 43-60.

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ENGINEERING BUSINESS ENVIRONMENT
The most sustainable technologies are those technologies, which enabled business in
improving the operations over a predictable time frame. Such technologies and the way these
were incorporated, both were designed for allowing organizations in remaining highly
competitive and is maintaining a status quo. The disruptive technologies are integrated, and
the innovations are easier in planning for and highly devastating to the organizations, which
did not pay enough attention to the innovations. These innovations even ensure that all types
of complexities and issues are well eradicated without much complication. The above-
provided report has provided a detailed analysis of disruptive low carbon innovations for
understanding the entire scenario of disruptive innovation with recognition of risks to the
manufacturing business from climate changes and subsequent framework for mitigation of
climate changes. Moreover, suitable recommendation related to disruptive innovations is also
provided in the report.

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ENGINEERING BUSINESS ENVIRONMENT
References
Avelino, Flor, Julia Wittmayer, René Kemp, and Alex Haxeltine. "Game-changers and
transformative social innovation." Ecology and Society: a journal of integrative science for
resilience and sustainability 22, no. 4 (2017).
Avital, Michel, Magnus Andersson, Jeffrey Nickerson, Arun Sundararajan, Marshall Van
Alstyne, and Deb Verhoeven. "The collaborative economy: a disruptive innovation or much
ado about nothing?." In Proceedings of the 35th International Conference on Information
Systems; ICIS 2014, pp. 1-7. Association for Information Systems. AIS Electronic Library
(AISeL), 2014.
Christensen, Clayton M., Michael E. Raynor, and Rory McDonald. "What is disruptive
innovation." Harvard business review 93, no. 12 (2015): 44-53.
Conrad, Douglas A., David Grembowski, Susan E. Hernandez, Bernard Lau, and M. I. R. I.
A. M. MARCUS‐SMITH. "Emerging lessons from regional and state innovation in value‐
based payment reform: balancing collaboration and disruptive innovation." The Milbank
Quarterly 92, no. 3 (2014): 568-623.
Corsi, Simone, and Alberto Di Minin. "Disruptive innovation… in reverse: Adding a
geographical dimension to disruptive innovation theory." Creativity and Innovation
Management 23, no. 1 (2014): 76-90.
Cortez, Nathan. "Regulating disruptive innovation." Berkeley Tech. LJ 29 (2014): 175.
Grady, Janet. "CE: Telehealth A Case Study in Disruptive Innovation." AJN The American
Journal of Nursing 114, no. 4 (2014): 38-45.

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ENGINEERING BUSINESS ENVIRONMENT
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.
Guttentag, Daniel. "Airbnb: disruptive innovation and the rise of an informal tourism
accommodation sector." Current issues in Tourism 18, no. 12 (2015): 1192-1217.
Horn, Michael B., and Heather Staker. Blended: Using disruptive innovation to improve
schools. John Wiley & Sons, 2014.
King, Andrew A., and Baljir Baatartogtokh. "How useful is the theory of disruptive
innovation?." MIT Sloan Management Review 57, no. 1 (2015): 77.
Norman, Donald A., and Roberto Verganti. "Incremental and radical innovation: Design
research vs. technology and meaning change." Design issues 30, no. 1 (2014): 78-96.
Osiyevskyy, Oleksiy, and Jim Dewald. "Explorative versus exploitative business model
change: the cognitive antecedents of firm‐level responses to disruptive innovation." Strategic
Entrepreneurship Journal 9, no. 1 (2015): 58-78.
Pegoraro, Ann. "Twitter as disruptive innovation in sport communication." Communication
& Sport 2, no. 2 (2014): 132-137.
Pinkse, Jonatan, René Bohnsack, and Ans Kolk. "The role of public and private protection in
disruptive innovation: The automotive industry and the emergence of low‐emission
vehicles." Journal of Product Innovation Management 31, no. 1 (2014): 43-60.
Ready, Douglas A., Linda A. Hill, and Robert J. Thomas. "Building a game-changing talent
strategy." Harvard business review 92, no. 1-2 (2014): 62-68.

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ENGINEERING BUSINESS ENVIRONMENT
Sandström, Christian, Henrik Berglund, and Mats Magnusson. "Symmetric assumptions in
the theory of disruptive innovation: Theoretical and managerial implications." Creativity and
Innovation Management 23, no. 4 (2014): 472-483.
Souto, Jaime E. "Business model innovation and business concept innovation as the context
of incremental innovation and radical innovation." Tourism Management 51 (2015): 142-155.
Wan, Feng, Peter J. Williamson, and Eden Yin. "Antecedents and implications of disruptive
innovation: Evidence from China." Technovation 39 (2015): 94-104.
Wilson, Charlie, Hazel Pettifor, Emma Cassar, Laurie Kerr, and Mark Wilson. "The potential
contribution of disruptive low-carbon innovations to 1.5 C climate mitigation." Energy
Efficiency 12, no. 2 (2019): 423-440.

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ENGINEERING BUSINESS ENVIRONMENT
Appendices
Appendix A
Threats from Climate Change

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ENGINEERING BUSINESS ENVIRONMENT
Appendix B
Threats from Frameworks