Problems and solutions for the successful introduction of a phase-gate model for domain-specialized high-tech manufacturers in Japan

In Japan, manufacturers running a single business account for a high percentage of the sales of precision machinery and fine chemicals. There are numerous domain-specialized high-tech manufacturers who focus on a single business as their main field of technological expertise. Such organizations are constantly exposed to the risk of diminishing market opportunities for their business due to the emergence of alternative technologies. At the same time, as technological progress slows down, these firms also face the risks posed by industrial commoditization. Therefore, there is increasing appetite for new business within such organizations. To facilitate the creation of new business, high-tech manufacturers frequently adopt the stage-gate process. The phase-gate model is suitable for organizations facing numerous problems in the early stages of new business development. However, most domain-specialized high-tech manufactures in Japan face relatively few problems in the early stages. This paper proposes a revised version of the phase-gate model, adapted to the specific needs of Japanese high-tech manufacturers moving into new business areas.