Cross-functional Teamwork

There is a high need for interaction between R&D and marketing

during the innovation process

Idea generation Project selection Development Market entry Customer service

Evaluation of Customer
Marketing Technical Market test, Further market
market acceptance
tasks problems pilot marketing research
acceptance test

Introduction
Customer needs Feedback
customer
regarding… Evaluation Internal for R&D,
General support,
of fit and knowledge Sales &
tasks Sales &
Customer contact focus transfer Service
Service
regarding… Support
Training

Technical Evaluation of Adaptation and

Technological Prototype Further
tasks technical implementation
evolution development support
development
feasibility

Prof. Dr. Volker Trommsdorff, TU Berlin, Vorlesung

Winter 22/23 | Technology and Innovation Management | Prof. Dr. Alexander Kock | 19 Innovation Marketing, 2000
Cross-functional Teamwork

There are several hurdles to interdisciplinary work

Technical language that differs

Communication & from that of other subjects and
language difficulties everyday language.

By definition, specialists share

Discipline-specific
theories and specific expertise that makes
methods precise communication with
others difficult.
Lack of mutual understanding
Lack of mutual
understanding between disciplines: mutual
prejudices, false expectations

Teamwork may be new and

Problems of group
dynamics unfamiliar, teamwork methods
unknown
Disciplinarily or culturally
Disciplines form
similar persons form
their own
(sub)cultures subgroups. Communication
very limited.
Winter 22/23 | Technology and Innovation Management | Prof. Dr. Alexander Kock | 21
Cross-functional Teamwork

R&D and marketing employees are fundamentally different

R&D characteristics Marketing characteristics

Goals
• Knowledge as a source of value for mankind • Organizational survival and growth
• Research for the sake of research • Company goal-relevant activities
• Recognition by Peers / Community • Organizational recognition
Needs
• Autonomy • Plans, procedures, rules
• Creative environment, peer recognition • Organizational recognition
• Continuous learning and development • Teamwork
• Contribution to the growth of knowledge in society • High Organizational Status
Motivation
• Service to humanity • Reward through salary and advancement in the
• Publication, patents under own name organization
• Professional recognition
• Freedom to solve problems and the thirst for knowledge
Griffin, A. and Hauser, J.R. (1996). Integrating R&D and marketing: A review and
Winter 22/23 | Technology and Innovation Management | Prof. Dr. Alexander Kock | 22 analysis of the literature. Journal of Product Innovation Management 13(3), 191–216.
 Cross-functional Teamwork
Cooperation and cross-functional integration promote the emergence of
innovations in teams

Successful Cross-func. int. increases Innovation Success

cooperation Relationship is even stronger when...
• the integration takes place on team/project
Failures level (vs. organization)
• customer information is also shared (vs. not
shared)
Mutual Misunder- Vicious Distrust & Trust & • fewer functions are integrated (vs. many)
understanding standings circle Distance commitment
• High-tech products (vs. low-tech) are
developed
• services (vs. products) are developed
Insufficient
communication

Communication

Troy, L.; Hirunyawipada, T.; Paswan, A. (2008). Cross-Functional

Winter 22/23 | Technology and Innovation Management | Prof. Dr. Alexander Kock | 23 Integration and New Product Success: An Empirical Investigation of the
Findings. Journal of Marketing, 72(6): 132-146.
Cross-functional Teamwork
A successful encouragement of marketing / R&D integration
can be fostered from a top-down perspective (1/ 2)
Integrating Mechanism Barriers Overcome Aspect of Integration Uncertainty Outcome
Reduced Affected
Relocation and physical facilities Physical separation Information amount Success
Personal movement Personality Information utilization Technology Success
Thought worlds Complete tasks Time
Language Resolve conflict
Informal social systems Thought worlds Information amount Technology Success
Language Information utilization Market Profits
Physical separation Decision made Time
Resolve conflict
Organizational structures:
Coordinating groups Language Desicion made Success
Org. responsibilities Resolve conflict Profits
Matrix organization Org. responsibilities Information amount Success
Tasks complete
Processes followed
Project teams Thought worlds Information utilization Success
Language Decisions made Time
Org. responsibilities Resolve conflict

Griffin, A. and Hauser, J.R. (1996). Integrating R&D and marketing: A

Winter 22/23 | Technology and Innovation Management | Prof. Dr. Alexander Kock | 24 review and analysis of the literature JPIM 13(3), 191–216.
Cross-functional Teamwork
A successful encouragement of marketing / R&D integration
can be fostered from a top-down perspective (2/ 2)
Integrating Mechanism Barriers Overcome Aspect of Integration Uncertainty Outcome
Reduced Affected

Organizational structures:
Incentives and rewards Org. responsibilities Task completion Profits
Decisions made
Resolve conflict

Formal integrative management process

Phase review process Tasks complete Technology Success
Follow processes Market Time

Stage-Gate process Org. responsibiliteis Tasks complete Technology Profits

Decisions made Market Time
Follow processes

QFD Thought worlds Information amount Market Success

Language Information use
Org. responsibilities Resolve conflict

Griffin, A. and Hauser, J.R. (1996). Integrating R&D and marketing: A

Winter 22/23 | Technology and Innovation Management | Prof. Dr. Alexander Kock | 25 review and analysis of the literature JPIM 13(3), 191–216.
Cross-functional Teamwork

Summary and implications

Teamwork Quality
Innovative teams increases team
thrive on good performance and the
cooperation and personal success,
cross-functional especially in
integration innovative projects

Teamwork quality can A good team depends

be affected by team on the skills,
composition and commitment and
leadership accountability of the
individual members.

Winter 22/23 | Technology and Innovation Management | Prof. Dr. Alexander Kock | 26
Development
Increasing Development Speed
Increasing Development Speed
In a short product lifecycle development time
has more influence on profit than costs.

Product lifetime cycle: 5 years Shorter

development
Discrepancy

time
6 months
50% Increase
extension of
of Shorter usage
development Earlier market entry
development of resources
time
costs
Effectiveness Efficiency
Loss of profit

5% More sales,
Less R&D costs
30% higher prices

Higher Profit

Schmelzer (1992). Organisation und Controlling von Produktentwicklungen, p. 50.

Winter 22/23 | Technology and Innovation Management | Prof. Dr. Alexander Kock | 28
Increasing Development Speed

Meta-Analytical Evidence: Speed has a significant effect on performance

Cankurtaran, P., Langerak, F.,& Griffin, A. 2013. Consequences of New

Winter 22/23 | Technology and Innovation Management | Prof. Dr. Alexander Kock | 29 Product Development Speed: A Meta-Analysis.
Journal of Product Innovation Management, 30(3): 465–486.
Increasing Development Speed
Meta-Analytical Evidence: Speed of new product development (NPD) is
affected by several antecedents

Process Characteristics NPD Team Characteristics NPD Competencies Firm Characteristics

• Goal effectiveness • Organizational integration • Marketing proficiency • Resource availability
• Process concurrency • Team stability • Technical proficiency • Organizational support
• Customer involvement • Influence of team leader • Problem solving proficiency • Emphasis on speed
• Team learning • Innovative firm climate

Cankurtaran, P., Langerak, F.,& Griffin, A. 2013. Consequences of New

Winter 22/23 | Technology and Innovation Management | Prof. Dr. Alexander Kock | 30 Product Development Speed: A Meta-Analysis.
Journal of Product Innovation Management, 30(3): 465–486.
Increasing Development Speed

Process redesign can accelerate innovation projects

Cycle 1 I 1.1
Cycle 2 I 2.1
C 3...

Reduce number of iterations; Cycle 1

R1
Simplify concentrate on value generating features
Cycle 2
C 3...

Eliminate nice-to do tasks and control Cycle 1

Eliminate steps R 1+2
cycles C 3...

Eliminate delays between cycles; Cycle 1

Eliminate delays R 1+2+3
replace push by pull principles C 3...

Parallel or overlap Parallel or overlap problem solving Cycle 1

R 1+2+3+4
processing cycles C 3...

Speed up Shorten individual problem-solving Cycle 1

R 1+2+3+4+5
individual cycles cycles C 3...

Winter 22/23 | Technology and Innovation Management | Prof. Dr. Alexander Kock | 31
Increasing Development Speed
Innovation project acceleration can be achieved by means of specific
approaches and instruments
Strategic Approach Agile Working Approach Tools
• Platforms and Modularization • Self-organized, empowered teams • Simulations
• Collaboration with external partners: • Short iteration cycles with tangible • Rapid Prototyping
• Customers results (e.g., prototypes, minimal (e.g., 3D printing)
viable products) • Design Structure Matrix
• Users
• Universities • Continuous user feedback • Quality Function Deployment
• Competitors • Highly cross-functional and co- • …
• Complementors located teams
• Outsourcing • Examples: Scrum, Lean, Design
Thinking,…
• …

Winter 22/23 | Technology and Innovation Management | Prof. Dr. Alexander Kock | 32
Increasing Development Speed

Approach 1: Platforms make it easier to manage the complexity of projects

Definition of a Platform “Interdependent Architecture” “Modular Architecture”

“a set of common components, modules, Changes of a component require Components can be changed without
or parts from which a stream of adjustments of all other components, affecting other components. This
derivative products can be efficiently as the connections of the components allows "plug and play“.
developed and launched” (Meyer and cause each other and depend on
Lehnerd, 1997, p. 7) each other

Advantages of Platform Strategies System System

• When developed, components and
structures can be used more than once,
thereby reducing production costs
• New product variants can be introduced Component A Component B
Component A Component B
faster
• In industries in which no fundamental
technological changes are expected (i.e.
after the introduction of a dominant
design), platform strategies can reduce Component C Component C
costs
Source: e.g. Jacobs/Swink (2011)
Winter 22/23 | Technology and Innovation Management | Prof. Dr. Alexander Kock | 33 Katzenbach & Smith (2003)
 Increasing Development Speed
Approach 2: Scrum is an agile process model to reduce complexity from a
process perspective
Product Owner
Sets priorities & Refined Product Refined Product
manages the product
Backlog Backlog Principles to reduce complexity
backlog
• Transparency: The progress
and obstacles of a project are
Project Product
Set Up
Product Backlog recorded daily and are visible
• List of requirements & Issues Daily Scrum (max. 15 Min.)
• Owned by Product Owner • Team updates Sprint Backlog to all.
• Scrum Master updates
• Anybody can add items
• Product Owner Impediment List & Sprint
• Review: Product
prioritizes Burndown Chart Sprint Review functionalities are delivered
• Sprint demos Increment and evaluated at regular
• All discuss
• Announce next Sprint intervals.
Scrum Master Planning Meeting
Manages the
Sprint
• Adjustment: The product
process and
Burndown requirements are not defined
Sprint Planning Sprint Backlog removes Chart Increment
• Declare Sprint Goal • List of tasks impediment Retro • Version of once but are reassessed after
• Reflect on way of
• Select highest priority • Owned by Scrum How much work left until done
working
the product each delivery and adjusted if
items from product Team • Potentially
Backlog • Scrum Team modifies Development Team • Define actions for shippable
necessary.
• Create Sprint Backlog • Project team Develops product improvement
and estimate items estimates effort self-organized

Most modern development projects are too complex to be planned consistently. Solution through empirical, incremental
and iterative approach.

Winter 22/23 | Technology and Innovation Management | Prof. Dr. Alexander Kock | 34
Increasing development speed

Agile methods indeed increase adaptability

Intensity of using agile principles, e.g.:

• Continuous gathering of customer/user
feedback.
• Iterative planning and execution cycles.
• Regular presentation of interim results
(e.g., prototypes / minimum viable

Adaptability
products).

Agile PM methodic
N=380 projects R2=17%
Report MPM Benchmarking Study 2017
Winter 22/23 | Technology and Innovation Management | Prof. Dr. Alexander Kock | 35
Increasing development speed
Approach 3: Design Structure Matrix as a tool reduces complexity through
a different way of presentation
Design Structure Matrix
… depends on…
In the DSM the information flow
as well as further dependencies

Activity 1

Activity 2

Activity 3

Activity 4

Activity 5

Activity 6
between activities of a process
can be represented.
Advantages:
Activity 1 • Mapping of complex and
highly coupled processes
Activity 2 • •

… affects…
• Iterations can be displayed
Activity 3 • • Compact presentation form
feedback • Degree of dependency can
Activity 4 • be represented
feed forward
Activity 5 • • • Disadvantages:
Activity 6 • • • Notation in need of
explanation
• Branches cannot be mapped
Binary DSM uniquely
Flow Chart
Winter 22/23 | Technology and Innovation Management | Prof. Dr. Alexander Kock | 36 Nach Browning (2001)