I have to agree with Chris Kuntz, of ThingWorx who related the home scenario to business. "People understand it's not just about connecting your product, connecting your smart thing, collecting that data. It's about how do you connect it with a business process to effect some sort of change."
We understand the security challenges with IoT and the lack of standards. As IoT adoption increases standards with be developed and implemented. It is the natural evolution of technology adoption processes.
What is equally important is to consider how IoT fits in the Enterprise Architecture and as Chris mentions "how do you connect it with a business process to effect some sort of change". There is a lot of hype around smart devices and big data, but the real value will be realized when it is wired into the operational processes of a business. Adoption (and funding) of IoT will be accelerated when organizations can "listen" for key business events from sensors, "decide" if an intervention is required and "act" in a timely and appropriate manner to these key business events.
This requires that IoT becomes part of the Enterprise Architecture that considers the data from these devices, the other systems that it interacts with and the processes that manages the interventions and actions from the information that we gather from these devices.
Our experience with mature Fortune 10 companies who use smart devices in M2M and Operational Technology (OT) scenarios show that standards will emerge but considering how to create operational benefits from these devices and big data requires some Enterprise Architecture thinking as well.
IoT will also require some thought to manage the operational process applications that deliver the benefit from the devices, and not just applications that manage the devices itself. As Chris said, it is estimated that it will require around 5 to 10 million applications to support the billions of devices to deliver business value. The architecture needs to be extended not just to the IoT devices, but to how it fits into the enterprise and its processes.