The Internet of Things uses special sensors (e.g.

cameras or RFID readers)

to identify products and materials.
Those products and materials contain special information about,
for example, what should happen with them. This means that they can
communicate with production or material flow systems and tell them what the next
step in the manufacturing process should be.
The technology thus removes any need for human involvement.
Cyber-physical systems are when the mechanical and electrical systems (e.g. sens
ors and communication tools) embedded in products and materials are networked us
ing software components.
The result is a complete merging of the virtual and physical worlds.