Cross-functional dynamics in new product development

Managing human interactions and the transfer of technology and ideas among individuals and functional groups can be the most challenging aspect of new product development. Interaction, information sharing and cross-fertilization of ideas among people from R&D, production , marketing, and other functional groups is essential. However, problems arise when people with dissimilar orientations, experiences and interests are called upon to interact, make decisions, and participate in a co-creative endeavor like new product development. A closer examination of the human interaction processes that characterize new product development shows that effective leadership as well as followership, equitable distribution of power and a concern for building collaboration among participants can make human interactions more productive, facilitating the progress of ideas across the organisation.