The Internet of Things is going to be a big deal for a number of reasons, not least of which is the likelihood that IoT is the way “physical” industries, unlike “virtual” industries, will be able to leverage digital technology.

Up to this point, the industries that have been most able to take advantage of digital technology are based on intangible, or largely intangible (software) products, including information technology, media, finance and insurance.

For the most part, industries that are substantially physical have not made the digital advances we have seen for intangible products such as content (music, video, print), banking, stock trading, banking, ticket sales or other software products.

It does not take much insight to suggest that manufacturing, trade, health care and other industries can benefit from IoT capabilities in the next wave. Nor does it take much insight to recognize the the economic and operating advantages of “digital” business will likely make key breakthroughs as IoT is leveraged. 

And that is one reason Internet of Things is important. It represents the next wave of applied digital technology to create “digital business” that is more efficient and more profitable than the older analog modes.