The road to digital business starts with ubiquitous “smart” things that will range from contact lenses that measure blood glucose to complex industrial turbines that can predict a failed bearing before it happens. This proliferation of devices is part of a “virtuous circle of smart things,” where falling costs inspire increased connectivity, leading to greater functionality, growing diversity (in the types of smart things) and then, rising ubiquity in the volume of smart things. IT leaders must understand that new technologies may be less disruptive than the new business models they enable and accept that the biggest disruptions will most likely arise from outside their industries. They must act quickly to explore the use of smart machines internally and track use by existing and potential competitors.