Digital twins drive the business impact of IoT by offering a powerful way to monitor and control assets and processes. But CIOs must work with business leaders to develop economic and business models that consider the benefits against development costs, as well as ongoing maintenance requirements.
Digital Twins Will Impact Economic and Business Models
Impacts and Recommendations
- Enterprises are preparing to use digital twins to support their business initiatives, but the business outcome benefits are nascent, challenging the core assumptions of CIOs and business leaders regarding digital twin value and internal software competencies
- Software skills will be critical to driving value with digital twins
- The costs of developing and maintaining digital twins must be driven by business and economic models
- Detailed digital twin business opportunities
- Digital twin development aligns with enterprise KPIs
- Different levels of digital twins complexity (for example, from simple devices like water sensors to complex assets like vehicles and power plants) will have differing development and ongoing maintenance costs, complicating CIOs' project business cases and ROI analysis
- Digital twin development analysis
- Integration of composite digital twins
- Key roles and responsibilities for digital twin development
- Using digital twin capabilities may expose enterprise and customer data to privacy, usage model and data ownership questions that may create significant reputation, compliance or legal vulnerabilities and issues for CIOs, business executives and even the board of directors
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