%0 Journal Article %T An Empirical Study of Contrasting IoT with IT: Evidences of Differences Drawn from Japanese Experiences %A Fumio Kodama %J American Journal of Industrial and Business Management %P 27-58 %@ 2164-5175 %D 2018 %I Scientific Research Publishing %R 10.4236/ajibm.2018.81003 %X By contrasting IoT (Internet of Things) with IT (Information Technology), various evidences of the difference between them are discovered by our empirical and case studies. For empirical evidence, a comparison is made between the personal computer as representing a case of IT and the automobiles as representing a case of the future IoT, since the self-driving of cars is discussed quite frequently nowadays. Based on their patenting behavior, the degree of modularization is measured, and effects of digitalization on modularization are found out to differ between PC and automobile industries. Similar modularity analysis is employed to sub-module suppliers, and they are found out to be integrative rather than modularly structured, because analogue technologies are essential at the level of sub-module supplying. Through our modularity analyses, it becomes clear that a digitalization brings about a modularization, and will eventually bring an IoT evolution. In order to illustrate the evolutionary process from digitalization to internetworking via modularization, we will investigate a chronology of the machine tool development in Japan ever since 1975. In order to illustrate the evolutionary process of becoming interconnected, we will make a study on a construction machinery manufacturer, i.e. how a manufacturer can go downstream into a service innovation. These case studies will show clearly that the process of upgrading of ITs into an IoT evolution is incremental by its nature and is additive in its essence, i.e. the value is added