Smart Products and Industrial Internet of Things aims at providing an overview on challenges and opportunities in the design of an industrial internet of things system. The module contents focus on the Smart Factory as a collection of interacting intelligent components (machines, transport equipment, products, assemblies, sub-assemblies, sub-systems, etc.) and the implications of their interaction with humans. These components need to understand themselves, by having a perception of their own capabilities, operational environment and action scope. They also need to understand each other, so that collectively their interactions result in a set of sustainable production processes and environment. The design of large technical system is necessarily incomplete if the human dimension is left out. There are ethics and human aspect involved that must influence its design. In this introductory module the aim is to try to connect all these dots without the in-depth detail.