Fujitsu and Toshiba are in talks to combine mobile-phone operations and create Japan's second-largest handset producer, two officials at the companies said. Fujitsu and Toshiba are likely to set up a venture this year to combine their handset operations, with Fujitsu expected to hold a majority stake.

The automobile industry is in the midst of a huge transition. Consumers who were once lured into purchase decisions by iconic designs, strongbrands, or high performance ratings now want all that and more. The automakers that successfully make cars "do" more-in other words, deliver smart, personalized services to drivers on demand-stand the best chance of setting themselves apart from the competition. Here are a few of the early offerings to hit the market.

Toyota's recent response to claims of unintended acceleration in its vehicles illustrates the potential pitfalls of today's technologically complex automobiles. Software development, however, is still largely stuck in a 1970s pre-kaizen mode, where the human-readable instructions are accessible only to those who write the code. This protects the intellectual property of the software developer, but it also limits the abilities of others in the value chain to "see something, say something, and do something" to correct flaws. The lack of visibility into the software in its cars stands in stark contrast to the openness of its management and manufacturing processes. The software hidden in Toyota's black boxes is the equivalent to having a car with its hood welded shut. Open source represents the most significant change and most disruptive force in software development in 20 years. In the open-source software model, the human-readable source code is distributed along with the computer-readable machine code. Users are encouraged to understand the code, find flaws, suggest fixes, and add functionality. Open source is about leveraging the power of participation to solve complex problems such as manufacturing, health care, and government. It may also be how Toyota can improve its vehicles and ultimately regain consumer trust.

Google has finally announced its long-rumored TV efforts at Google I/O. The experience will be search-driven, which is unsurprising given that, well... it's Google we're talking about. Users can enter search terms and get results from the Web and what's currently being broadcast on TV, as well as videos from YouTube and other sites. There will be a "home screen" where you can add bookmarks to your favorite channels, shows, websites, music, photo albums, and so on. Users are forced to choose between accessing the Web or TV, which is a loss for users. Google wants to combine the two into a "single seamless experience" by allowing users to turn their TV into an interactive experience with the Web As usual, Google is not making any of the hardware itself. In typical Google form, the company has instead implemented a remote control protocol that will allow third-party developers to build their own software for controlling Google TV from other devices.

Design thinking is a crucial business asset-one that can, indeed, move a company forward and improve the bottom line. To optimize this impact, Ryan Jacoby and Diego Rodriguez advise thoughtfully structuring the innovation process. They stress working on projects that improve people's lives, and they present a "ways to grow" model that helps managers direct and assess innovation efforts.

More than 120 million people play Zynga's online games. Revenue mostly comes from selling virtual hoes and machine guns and such to players of FarmVille, Mafia Wars, and other titles. Zynga's success depends on the good graces of Facebook, where almost all of its games are played. Facebook doesn't just get happier users, it also gets big checks from Zynga. Facebook is testing a service called Facebook Credits that would offer a single virtual currency for use on many different apps. If the social network forces app makers to use Facebook Credits, as some developers expect will happen this year, Zynga would have to pay the company up to 30% of every transaction. "Zynga is riding high," says Barry Cottle, general manager of EA's interactive unit. "But they may soon find out that the next three years are a hell of a lot harder than the last three."