One of the potential commodities that can be developed are red chili. But this commodity is still getting attention because it affects inflation due to fluctuating prices. Production supply is still not continuous and quality is not optimal. Complex and dynamic problems in red chili because it involves many actors in the development of this plant as well as the actual conditions of the red chili plant. This paper aims to examine the root causes of the sub-optimal red chili development system, starting from production and downstream, so that it can offer various solutions through the analysis of innovation strategies in future development. This research uses a soft system methodology approach because the method can describe the relationship between variables in a systemic, complex, and dynamic manner related to the phenomena of red chili development in the Majalengka Regency which is one of the red chili centers in West Java. The informants in this case study consisted of farmers, related stakeholders, consumers, related institutions, and traders. The results showed several innovation strategies, namely the need to build a system for procurement of production facilities, a coordinating system for market guarantee partner institutions, quality standards, and price stability, systems in agro-industry business units, product quality assurance systems through the establishment of innovation in Good agriculture practices and standard operating procedures. It is hoped that the stages in the CATWOE analysis can be applied to achieve future red chili development.