The amount of software elements that need to be considered and developed for products and production systems require a closer and more agile collaboration between organizational functions and departments since the interface is becoming increasingly merged. Previous research has identified the advantages of closer integration between various functions but has not yet investigated the barriers that emerge within software development for production systems. This paper aims to explain the way of working in agile and integrated production system development by exploring these barriers through a case study within a manufacturing company. The findings identify barriers related to both technological, work cultural, and organizational aspects.