Strategy of Product Development and Process of Creative Industries in Indonesia

Creative industries in Indonesia are confronting the globalization pressures that is profoundly focused and to maintain their prosperity by new product development. The target of this study was investigating the activity of product development by including strategy, process, organization, the performance assessment of new product development itself. This study led through the survey that have utilized already with changes balanced with attributes of Indonesia creative industries and interview with manager and director level of product planning, product engineering, product development, marketing planning, and R&D. The sample in this study are 320 creative companies consisting 25% private, 15% SME, 10% joint venture, 10% home industry, and the rest were others. The results revealed that 51% of product development strategy comes from the direction of top management and 47% from outsiders. Mostly the objective of product development in order to meet consumer demand. The strategy of product development of creative industries in Indonesia were new products that emphasize on derivative products.