Innovation of New Product Development Process: A Case Study of Healthy Drink-Based Product Line in Indonesia’s Company

Abstract

The research was financed by National Innovation System Research Incentive, Ministry Research and Technology, Republic of Indonesia (SINAS Ristek ) Abstract Contemporary and performing organizations are under tremendous pressure to bring new products and to market them quickly. However, the task of new product development requires significant investment and time in addition to making various decisions during the NPD process. The aims of the study is to identify pattern and model of new product development (NPD) process conducted by an Indonesia’s local company (“S” company), particularly for healthy drink, “K” products line to meet best practice in NPD. The research was also conducted to determine the factor(s) that promote and hinder innovation culture within the company, which can affect the company’s competitiveness. Descriptive analysis of factors and determinants which support and hinder the NPD process are provided using strategic assessment and alignment model. The mapping status of newess level of products or portfolios, level of innovativeness and NPD stages are analysed using a Stage-Gate framework. The result found that the process of innovation and NPD in “S” company strongly associated with personal figure of the CEO/top manager or top-down appraoch. The fact that informal NPD process in “S” company is seemingly spontaneous, natural yet very flexible and highly dependent on CEO’s intuition. Keywords: new product development process, Indonesia, healthy drink, innovation DOI : 10.7176/EJBM/11-24-17 Publication date : August 31 st 2019