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BUS705 Implementing the No HFC Refrigerator: CSR Assessment Answer

BUS705 Innovation and Management Decision-Making

Semester 1, 2019

Task 3 – Innovation Report


Description

The purpose of this task is to propose a leading edge, strategic innovation solution to address a corporate challenge in the area of corporate social responsibility or sustainability or a challenge in your industry by renewing a firm’s current approach.

To write this report, follow the process (based on the strategic innovation model) outlined below:

  1. Choose and outline one company related innovation challenge (based on Week 8’s material) pertaining to:
  2. A corporate social responsibility challenge or problem OR
  3. A sustainability challenge or problem OR
  4. An industry challenge or problem
  5. Creatively propose a leading edge strategic innovation solution, by using creative idea generation techniques (use appendices to evidence the process) and by drawing on appropriate sources of ideas.
  6. Accurately and relevantly apply the strategic innovation model to outline how you would implement the strategic innovation solution including outlining:
    1. The innovation action plan, taking into account the company’s current approach, change requirements, target market for the innovation and enhancing customer-perceived value.
    2. The leadership needed and culture that would support the implementation.
    3. Theinnovation implementation with the appropriate process, structure, systems and innovation team (people).

To summarise, you will write a report that proposes an innovative solution to address a CSR, sustainability or other challenge in your industry as well as how the solution will be implemented. This report will need to explain the challenge and solution, use the strategic innovation model, provide an action plan, discuss the leadership that will be required for the solution and how the solution will be implemented. 

Resources

This is an individual task (2,500 words) in which you need to demonstrate your ability to propose an innovation to address a corporate social responsibility / sustainability / industry challenge, by drawing on the relevant material in this course. 

N.B. You need to register the challenge you wish to work on by Week 10 with your lecturer. 

See the rubric below to ensure your innovation report addresses the relevant criteria.

Answer

CORPORATE SOCIAL RESPONSIBILITY

Introduction:

Carbon emission is one of the alarming factors that has been affecting the environment in a significant manner. In this paper, a new idea of implementing the no HFC refrigerator will be discussed. The Australian retail giant Woolworths has decided to implement the non-HFC refrigerator in their store to reduce the carbon emission. This project will describe the innovation model and implementation process of the idea to maintain the CSR challenge. In recent context Woolworths decided to bring new Non HFC refrigerators in their stores and this will help to reduce the carbon emission within the store. This innovation also benefitted the consumers who visit the store with their children from the harmful carbon emission. In this project also the importance of the leadership and innovation for the implementation of the new innovation has been described.

1. Define the CSR challenge in need of an innovation change.

With the increasing global issue of climate change and global warming, both big and small corporations are in dire need of an alternative technological innovation that would help curb the greenhouse gas emission into the atmosphere. The refrigeration manufacturing companies of Australia are in search of finding an alternative for CFCs to use as coolants to fulfil their corporate social responsibility while also preserving their profitability and sustainability in the business. The CSR challenge for the Australian companies is to limit the natural coolants that are being used in the refrigeration system. Studies have shown that natural refrigerants like CO2 and hydrocarbons help to reduce energy consumption in the supermarkets for which they are a popular choice. Supermarkets in Australia owns massive refrigeration systems to provide storage for fruits and vegetables and other degradable foods (Tsamoset al., 2017). The CSR of a refrigerator manufacturing company is not finished only after selling their product if their products keep on harming the environment during their entire lifetime.  The use of natural coolants in the refrigeration systems combined together from all the household and supermarkets make up to a substantial amount of total carbon emission of the nation. Even the supermarket and retail chains like Woolworths use these systems as these natural coolants reduce their energy consumption, and the companies can save on maintenance and refurbishment upto $100,000 per store over a period of 10 years. However, despite its economic benefits, the cooling system keeps on harming the environment and contribute to the overall greenhouse emission of the planet. In order to deal with this issue, the retail companies of Australia need to come up with some technology that would curb the extensive carbon emission while also maintaining their efficiency in energy consumption and a sustainable business model (Ma, Billanesand Kjærgaard,2017). As mentioned in the manifesto published by Woolworths, one of the biggest retailers in Australia, there are multiple goals that would look forward to achieving in the coming years. Among the 15 goals set by them, their 13thgoal is to take urgent action to combat climate change and its impacts. Under this goal, they plan to reduce their carbon emissions to 10% below their 2015 levels and use natural refrigerants and prevent their leakage from bringing down CO2 emission by 15% than their 2015 levels. Other retail chains in Australia are looking for similar alternatives to abide by their corporate social responsibility. The primary challenges that they face are the restructuring of their retail supermarkets that make the majority of their carbon emission. This is restructuring the entire framework is not possible and innovative technology is the only way to preserve the present system while also limiting the carbon emission in the coming years. 

2. Demonstrate how sources of ideas (using natural refrigerants) helps in influencing the development of innovation and create a solution.

HFC can be defined as the man maid chemical generally composed of carbon, hydrogen and fluorine. This gas is colourless and odourless. HFC gas is usually used in the refrigerators and air conditioning devices.

It has been seen that the use of air conditioning devices is significant in Australia. Apart from during the summer season, the use of air conditioners is used widely (Maina and Huan, 2015). This makes the emission if the HFC in a more significant proportion in the environment. The discharge of HFC can be considered as the reason for air pollution as it is one of the greenhouses gases.

The main functionality of the greenhouse gas is to trap the heat of the sunlight on the earth. This causes the increase of the temperature of the earth known as the greenhouse effect.  The excessive of HFC is causing the greenhouse effect in Australia (Heard and Miller, 2016). It has been seen the summers are usually hotter compared to the previous years. Apart from that, it has been seen that there has been in a change in nature in Australia. For all these, it can be said the reason is excessive emission of the HFC.

Use of Low-GWP Refrigerants like non-HFC natural refrigeration systems

There are some of Low Global Warming Potential (GWP) natural refrigerants those can be useful for the prevention of the environmental issues caused by HFC.  Unlike the HFC, they are not synthetic can are not as harmful as HFC. In this context, these chemicals can be used for the refrigerator in order to maintain environmental sustainability. Some of the natural refrigerants are Propane, Isobuten, and Ethane (Nawaz et al. 2017).  All these Natural refrigerants are easily available from the sources and in some cases; these Natural refrigerants are more suited than the HFC. HFC causes the depletion of the Ozone layer. On the other hand depletion of the Ozone layer by these natural refrigerants is minimal. However, the application of these Natural refrigerants is needed to be done in a right proportion within the existing cooling system in the refrigeration. In order to do this, the application of thermodynamics is needed to be applied in a proper way. Apart from that high condensation temperature and discharge temperature are needed to be maintained in a proper way. It has been seen in most of the cases, Propane is used as the cream freezer. However, there are certain limitations of using Propane as the Natural refrigerants. It has been seen that the use of the Propane should be limited and the extensive use of the Propane can cause health damage. Apart from that increase of the capacity of the refrigerator will need more propane for the cooling system.

Use of CO2 rack system

Apart from that CO2 can also be considered as the Natural refrigerants in certain cases. It is obvious that CO2 is not environmental friendly, however, it has been seen that the depletion of the Ozone layer done by the gas is lesser than HFC. In this context, CO2 can used is small amount for the cooling purpose. CO2 is generally used for freezing the ice and the use of the dry ice can be implemented through the application of CO2.

3. Innovation model

a. The innovation action plan

As the organisation prepares for introducing more energy efficient and environmentally friendly refrigeration systems in their workplace, a suitable and organised action plan for conducting the implementation of the new systems. In order to successfully carry out the implementation process of introducing new systems at work for refrigeration, the organisation needs to use a systematic and proper action plan for conducting the whole process without facing any difficulty or problem(O'Connor et al., 2016). An action plan consists of an organised set of steps in which the entire project of replacing the older system and implementing the new one in its place will be realised. An action plan consists of various stages or steps as follows. 

Identifying the information assets

Mission and goals

The main objective of Woolworths behind this operation of changing the refrigeration system of the organisation in order to increase energy efficiency as well as introducing a more environmentally friendly system in their work. The main target of the implementation of the new reverberation system is to stop the leakage of the refrigerant in the stores by 5% than the 2015 levels' and provide a more environmentally friendly atmosphere to the customers and the employees as well(Park, 2019).  

Vision

The central vision of the company is to introduce a more energy efficient and environmentally friendly system in their refrigeration process to reduce the energy consumption in the company and reduce the harmful effects of refrigeration the environment as much as possible.

Objective

The main objective of the operation is to reduce the refrigerant leakage in the stores and introduce more environmentally friendly energy efficient non-HFC natural refrigeration system(Mota-Babiloniet al., 2015). The company is aiming to introduce a new system efficient to reduce harmful emissions through the refrigeration systems in the stores. They are trying to use more nature-friendly energy-efficient systems of refrigeration replacing the older setups in the workplace to provide a more secure and healthy environment to their employees as well as to the whole environment itself.  

Implementation

After thinking about the possible measures to realise the objectives of the operation, the organisation needs to implement those systems in the workplaces, such as the stores and the offices in use. In order to do that the company needs to appoint experienced professionals to set up the new non-HFC natural systems for refrigerating in the organisation. The implementation has two stages, as follows.

1. Startup Sequence

This part concerns the prior arrangements to the setting up of the new systems. Before setting up the new systems and appliances, the necessary checkup of the electrical connections required, panels and compressor to be used in the set up should be done minutely to avoid any problem in the process(Sawalhaet al., 2017). All the required appliances and tools should be appropriately arranged in order to provide a suitable arrangement to run the new systems in the refrigeration section of the organization. The workers of Woolworths who will be operating the newly implemented systems should be trained and appropriately directed by the management in order to give them the necessary knowledge and skills for running the systems in order without any difficulty in future.

2. Post-startup

Various factors which affect the refrigeration process should be in order to run a successful proper regular maintenance of the new systems, and regular cleaning and checking of the systems should be done. In order to avoid the COemission, special COsniffer tools and applications should be used on a regular basis. The defrost length of the system, and the pressure should be checked in time to time to minimize energy consumption(Borgford-Parnell et al., 2015).

Budget

There would be high expenditure to change the old systems and implement the new one. Thus the company should be prepared to make a proper budget plan for the entire process. The management should arrange a meeting to discuss the budget for this operation of implementing new nature-friendly systems of the non-HFC emitting refrigeration system in the stores of Woolworths as well as in the entire work of the company.

b. Leadership and culture in support for the implementation

In order to implement a new idea and the necessary changes in the operation of an organisation, a strong and persuasive leadership strategy has to be adopted by the management of the organisation. It is a big challenge for Woolworths to change the older culture of the workplace as well as in the operating strategies in order to bring change in the company’s work to make it more environment-friendly and at the same time more economically efficient.  

Woolworths has decided to take the initiative to improve their energy efficiency by changing their refrigeration system to more environment-friendly by replacing the systems of refrigeration to reduce the refrigerant leakage. In order to do so, the company has decided to replace their old refrigerating system and introduce more efficient and environmentally friendly components in their refrigeration such as transcritical CO2, hydrocarbons and many other similar environment-friendly and energy efficient systems(Hussmann, 2019). In order to do such a massive change in the operating systems for refrigeration within the company, it is significant for the leader or management of the company to take proper strategies and initiatives to do a successful implementation of the strategies.

Before doing the change in strategies and implementing the new systems in the refrigeration the company should keep in mind that they should take in account the opinions of their workers as well whether they are comfortable adopting the new systems and the new culture in the workplace that will follow the implementation of new systems in work. With the change in the refrigeration system, the leader should be aware that it is imperative to train the employees who will be using these new technologies in the refrigeration systems should be capable and efficient enough to successfully operating these newly implemented systems (Aga et al., 2016). With the proper training about adapting to the new system and culture at the workplace, it would be easier for the worker to adapting to the change and maintain reach the regular workflow in the workplace.

The implementation of new systems for the refrigeration needs substantial financial and technological support. The expenditure will be huge. The leader thus should take the proper decision and strategy to reduce the expenditure so that it will be more profitable for the company. But the leader or the management in charge of this implementation should also keep in mind that it is essential to maintain the standard of the service as well as to maintain the energy efficiency and profitability of the implementation. The leader of the operation should make a suitable plan for the change and implementation of the systems of refrigeration in order to avoid any problem or difficulty in the work. In order to do so, the leader of the operation needs to adapt to an organized direction and to a mentor of the employees.

It is the responsibility of the leader to operate the entire process of changing and implementing new systems in the refrigeration process successfully. Even after the implementation, it is the responsibility of a leader to make sure that the employees do not face any problems or difficulties in operating and adapting to the new culture in the workplace. Transformational leadership is crucial in this case so that the leader could be more supporting to the employees' opinion in the process(Banks et al., 2016). In order to create a positive working atmosphere in the new set up, it is significant for the management of the work to take in consideration the opinions of the workers seriously so that any difficulty in the work could be solved. 

This new initiative for increasing the energy efficiency in the reformation is a special milestone in the company's responsibilities towards the environmental aspects. The management offers a new innovative and environment-friendly service to its customers. It is the responsibility of the leader of the company to make its customers aware of the positive initiative that the company is taken to provide a more environmentally friendly atmosphere and services to them. The leader should encourage the customers to support and appreciate such initiatives and adapt to more environmentally friendly ways.

c. System implementation

In order to implement the new non-HFC nature-friendly refrigeration system in the workplace of the company, the management of Woolworths needs to use a well-organised plan of action.

Appropriate process

The proper process for implementation of the new refrigeration system has to be used for a successful implementation. A proper implementation process consists of the following steps.

Project initiation

The starting of the project consists of the determination of the objectives and goals of the operation to achieve the expected results. The management or the leader introduces the members to take part in the conducting of the entire operation (Chang, 2016). The members of the project are given their responsibilities and roles that they have to play in the process. 

Information gathering

In this stage, the necessary information needed to conduct the implementation process successfully. A proper onsite observation has to be done in order to understand the present situation and requirements of the refrigeration system in the company (Hart, 2018). Proper knowledge about system integration is defined in this stage.  After the observation and identification of the needs and requirements, the proper reporting has to be done.

Analysis 

After gathering the required information about the project, a proper analysis of the information have to be done. The problems, issues and risks should be identified by the proper analysis of the information. The gap analysis has to be performed in order to find the areas and factors of the project planning that need to be revised and modified in order to root out the possible risks that could hamper the process.

Project planning

After evaluating all the necessary information for the process along with the possible risks, proper planning for conducting the project has to be done. The necessary tasks and respective responsibilities have to be acknowledged to the project members.

Execution

At last, it is time to implement the previously collected information and planning to action. A proper organised new environment-friendly non-HFC refrigeration system is implemented in the workplace of the Woolworths. Proper maintenance has to be done in order to keep the newly implemented system successfully.

Structure and systems

The company needs to follow a proper and organised structure in order to implement a new system to work. The company needs to choose a suitable complementary refrigerant that can be used in the new system set up. There are various non-HFC nature-friendly refrigerants such as CO2, Ammonia, Hydrocarbons and many more(Karampour and Sawalha, 2018). Woolworths is trying to use transcritical COor generally called the water loop systemin orderto reduce its present rate of refrigerant leakage in the system in their storesThe first stage is to remove all the older refrigerating systems from the store of Woolworths. All the power panels and connections required for the new set up have to be checked properly in order to avoid any difficulty in the process.

Innovation team

The company uses an innovation team to conduct the project properly. In the team, the company has appointed an experienced and skilful professional who are able to handle the process properly and solve any possible problems and difficulties that could arise while the implementation process. The innovation team consists of the experienced professional of the newly implemented system, experienced IT professionals, skilful managing authority and efficient workers.   

Conclusion:

This paper highlighted all the perspective of the implementation of the non-HFC refrigerator and the innovation model had been applied to implement the idea. In this paper, a coherent action plan has been defined and also the system process and leadership approach have been analyzed. With the change in the refrigeration system, the leader should be aware that it is imperative to train the employees who will be using these new technologies in the refrigeration systems should be capable and efficient enough to successfully operating these newly implemented systems.  Non HFC refrigerator is a new initiative for reducing the carbon emission and it will help to ensure the safe visiting of the consumer within the store by reducing the carbon emission from the refrigerator.

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