If the 20th century was about "Command and Control", the 21st century is about "Connect and Collaborate". Companies are relying less on internal resources they control directly and are forming a network of global relationships with 3rd party suppliers to drive innovation and enhance the value chain.

A news story from The Japan Times illustrates this concept.  Foxconn, the Taiwanese contract electronics manufacturer, is purchasing Hitachi's controlling interest in their LCD business as part of an effort to enhance its knowledge of LCD manufacturing and to drive down costs.

Foxcon already provides LCD displays for smart phones and devices, including Apple's iPhone and iPad.  This is a perfect example of a company relying on an external supplier to drive innovation in the value chain.  As Foxconn enhances its capabilities in LCD research and manufacturing, companies like Apple will benefit from improved displays and lower costs.  Of course, the consumer will be the ultimate beneficiary as Apple and others continue to improve the value they deliver to the consumer.

You can read the full article at: Hitachi LCD biz to be run by Foxconn