Cyber-physical system (CPS) is one core concept of Industry 4.0. A cyber space has mirror information of physical space and activities in the physical space are synchronized with activities in cyber space. SURUGA Gateway is a CPS, running in a Japanese robot component producer. Innovation process(design) and operation (manufacturing) process is integrated together on the SURUGA Gateway, enabling high quality, short leadtime, low cost, and high ?exibility. Various decisions were made in the cyber space, then executed in physical space automatically. Materials input to manufacturing process according to production plan which created by modi?ed ERP (enterprise resource planning) system, fabricated according to optimized routing and scheduling. All NC (numerical control) machines and MC (machining center) were connected and integrated on a centralized platform using Ethercat protocol and interface, and serial electronic signal control for old machines. The KAMISHIBAI (VPS: virtual production system) is embedded in the SURUGA Gateway,providing online training to assembly operators. Innovation process drives operation process, while know-how to improve efficiency and quality in operation process is feedback to the innovation process. The integration of innovation process and operation process, speci?cally the integration of design, material ?ow, machine ?ow and human resource is most successful point of the SURUGA Gateway. SURUGA Gateway successfully reduced leadtime by 80% and recognized as best practice in Hannover Messe and G20 business conference.