Fuel Mill

The Case Series in Management of Technology
No. 1

RESON
Strategy, R&D and the Management of
Technology

Kenneth Husted
Jens Frøslev Christensen
Department of Industrial Economics and Strategy,
Copenhagen Business School
Telephone +45 3815 2535
E-mail (KH)
kh.lpf@cbs.dk
E-mail (JFC)
jfc.ivs@cbs.dk

Foreword
This case is the first in a series of company cases onstrategy, organization
and management of technology headed by Jens Frøslev Christensen at Department of
Industrial Economics and Strategy, Copenhagen Business School. The objective of
these cases is twofold: to generate empirical inputs from business practice to both
ongoing research and case-teaching exercises within the field of Management of
Technology.
This case study does notpretend to give a full and final account of Reson A/S.
The study provides a broad outline of Reson’s historical development, industrial and
competitive context, management, strategy and organization, with special attention to
R&D and management of technology.
The case builds on interviews with managers at Reson (a chronological list of
interviews and interviewees can be found in appendix1), internal reports and
company material. We would like to extend our warmest thanks to R&D manager
Steen Bruun and managing director Claus Steenstrup who have made decisive
contributions to this case.
Support from CISTEMA (Center for Inter-disciplinary Studies in Technology
Management), DRUID (Danish Research Unit for Industrial Dynamics), and
Department of Industrial Economicsand Strategy is gratefully acknowledged.
Copenhagen, October 1999

2

1. INTRODUCTION ..................................................................................................................... 4
2. RESON’S PRODUCT MARKET AND TECHNOLOGY PATHS.......................................... 6
3. RESON’S INDUSTRIAL AND COMPETITIVE CONTEXT............................................... 14
3.1 HIGH POWER ULTRASONICS .................................................................................................. 14
3.2 TRANSDUCERS AND HYDROPHONES ....................................................................................... 17
3.3 SONARSYSTEMS................................................................................................................... 18
4. MANAGEMENT, STRATEGY AND ORGANIZATION ..................................................... 21
4.1 ORGANIZATION AND LEADERSHIP AT GROUP LEVEL ................................................................ 21
4.2 ORGANIZATIONAL STRUCTURE .............................................................................................. 24
4.3 STRATEGY........................................................................................................................... 25
5. THE ORGANIZATION OF BUSINESS FUNCTIONS ......................................................... 26
5.1 MARKETING AND SALES ........................................................................................................ 26
5.2PRODUCTION........................................................................................................................ 29
5.3 FINANCE .............................................................................................................................. 29
6. THE ORGANIZATION OF INNOVATION AND TECHNOLOGICAL DEVELOPMENT30
6.1 SOURCES OF INSPIRATION AND KNOWLEDGE.......................................................................... 30
6.2 THE ROLE OF PUBLIC R&D FUNDING PROGRAMS .................................................................... 35
6.3 PROJECT MANAGEMENT - MILESTONE VERSUS AUTONOMY APPROACH ..................................... 36
6.4 THE R&D STAFF AND TECHNOLOGICAL CAPABILITIES ............................................................ 37
6.5 PATENT POLICY...