%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 <i>patenting</i> 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>i.e.</i> 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 <i>additive</i> in its essence, <i>i.e.</i> the
value is added <i>