Strategy of Product Development and Process of Creative Industries in Indonesia
1. Ryan Kurniawan; 2. Evo Sampetua Hariandja; 3. Andhi Sukma
Universitas Pelita Harapan
Globalization pressures have begun to have a major impact on the practice of product development across a wide range of industries. A new paradigm has emerged whereby companies are utilizing skilled engineering teams dispersed around the world to develop products in a collaborative manner. Creative industries in Indonesia also are facing the same challenge as well as global companies that is highly competitive and to sustain their success by new product development. The objective of this study was exploring the practices of new product development in creative industries by involving strategy, process, organization, the performance evaluation of new product development itself. This study conducted through survey using the questionnaire that have used previously with modifications adjusted with characteristics of Indonesia creative industries and interview with manager level of product planning, product engineering, product development, marketing planning, and research & development. Total creatives companies have participated in this study are 320 companies consisting 90% domestic investment, 5% foreign investment, and the rest were spread joint venture and state-owned companies. The results of this study are 60% of companies agreed with that new product development highly dominated by direction of top management level (top-down) and 40% agreed with external approval (principal). From 320 companies, 19% conducted new product development to fulfilling consumers’ demand, 17% to increase the product quality, 28% to create new markets and product diversification. The budget allocation for R&D from sales, 64% companies allocated around 0-9%, 20% around 10-14%, and 16% around 15-20%. The strategies of product development in Indonesia creatives companies were new products. From the characteristic of new products, nearly 50% creatives companies developed real products that not available in the markets yet by derivative products.
Topic: Innovation, Operations and Supply Chain Management