What is the difference between a bunch of bricks lying on the ground and a house? What is the difference between a bunch of pieces of wood lying on the ground and a chair?
The former is created order and the later is disorder. Creating a more useful configurations of atoms/electrons/zeros and ones.
When you create order from disorder, you create value - wealth.
You have the raw materials. You have the assembly process - the know-how, the machines and the effort to put the raw materials together.
Software is just electron configuration. A physical product is just an atom configuration. In software, you don’t need the raw material atoms. But for physical product, you need. Know-how is needed for both. Machine in software case is just computers and servers. But for physical products, it can be a huge infrastructure. Both needs the efforts(energy).