The current H1b system has a cap, with more applications than positions. This is resolved via a "lottery". If you apply, you have a 30% chance of being selected. Indian outsourcing firms started to game the lottery (for every position have 3 applicants).

The new system will resolve the above problem by selecting applicants with the most points (giving points for skills, etc...).

From person experience H1b lottery is heart-wrenching, and makes it difficult to plan. The Australian system (which is similar to this system), is much better.