Let me give you an example from my career working with the Philips LCD team in the early 1990s. Although our office was located next door to the Wireless Technology team, the idea to combine wireless functionality with LCDs (i.e. a wireless display!) didn’t dawn on us at the time - by operating as two separate teams, we missed out on an opportunity. It's the downside to business silos!
Years later, however, I saw an excellent example of collaboration at Philips when both the Lighting and TV businesses cooperated to develop the Ambilight TV – merging lighting technology with flat screen TVs to create sophisticated effects that enhanced the user experience. Combining competences in two different business units, while leveraging a product leadership position and channel to market, resulted in a major market win for Philips.