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2
Introduction
In Chattanooga, in the US state of Tennessee, right frequency and fidelity, thereby improving
information from 500 different sources, including performance and sustainability. It establishes a
traffic cameras, 911 emergency-call data, radar closed-loop approach to unlock value, bringing
detectors, and weather stations, feeds into the synergies across data, technologies, and business
city’s digital twin.
processes, and is at the core of Intelligent Industry3
Upon conducting experiments in traffic-congestion transformation. Through its ability to answer
relief using the twin, the city has shown an questions such as “what is best?”, “what if…?”, and
improvement of up to 30% in traffic flow, resulting “what next?”, a digital twin can not only provide
in greater energy efficiency as well as reduced visibility on how dynamic, real-world systems are
passenger delays.1 In another example, Nanyang currently performing and propose how to improve
Technological University (NTU) in Singapore, using them, but also predict how they will perform in
digital twins, was able to create 31% savings in different scenarios. A product or a system can have
energy use and a reduction of 9.6 kilotons in carbon one or more than one digital twin depending on the
emissions.2 These examples not only illustrate the stage of the lifecycle that requires it.
scale of today’s digital twins and the efficiencies
they bring but also highlight the sustainability There are various ways in which digital twins
benefits they can provide. can help organizations attain their sustainability
goals and facilitate easier collaboration with the
A digital twin is a virtual replica of a physical extended ecosystem. During the conception phase,
system that can model, simulate, monitor, analyze, a digital twin for design can aid the design effort
and constantly optimize the physical world. It and testing of new features as well as bring greater
aims to bridge the “physical-digital” gap at the efficiency to production processes, consequently
Introduction
saving costs and reducing time to market. During products, energy & utilities, discrete manufacturing,
the build phase, a twin can aid virtual training and and infrastructure owners/operators. To get a first-
commissioning. Later, when the product/asset/ hand account of the value derived from and the
system is being operated and maintained, another challenges faced during digital twin implementation,
twin can make processes more efficient by reducing we focused largely on organizations with an ongoing
downtime through predictive maintenance and digital twin program (which form 80% of our
improved performance via optimization. In addition, sample), while the rest are planning to start one. We
they also aid organizations in introducing new also conducted in-depth interviews with industry
business or operating models. executives and academics.
Introduction
This report, which is part of our series on Intelligent
Industry,5 aims to answer the following questions:
01 02 03 04 05
Are organizations How can digital How can digital Which are the How can
adequately prepared twins drive higher twins add value organizations that organizations
to deal with performance and throughout the have successfully accelerate their
changing trends? sustainability? value chain? deployed digital twin
digital twins? journey?
Changing customer preferences, growing regulatory Our research reveals that digital twin deployments
pressures, and increased concerns around carbon are being driven by both top and bottom lines, as
emissions are compelling organizations to well as safety, sustainability, and brand reputation.
accelerate digital innovation. At the same time, Organizations working on digital twins have already
the growing convergence of products, software, seen, on average, a 15% improvement in metrics
and services is creating an opportunity for the next such as sales, turnaround time, and operational
Executive
Summary
big transformation across industries. We call this efficiency, as well as an improvement upwards of
new era of transformation “Intelligent Industry.” 25% in system performance. Further, digital twins
While technologies such as AI, cloud, 5G, and edge will provide digital and flexible ways of working to
computing are key catalysts of this journey, digital mitigate risks and extend collaboration, allowing
twins are at the core of the transformation. A digital operations to be virtual before they become
twin can optimize the design and operate and serve physical, and enabling a closed-loop feedback.
phases of any system – be it a product, its related As a result, organizations are set to increase the
services, a production line, infrastructure, a logistic deployment of digital twins by 36% on average
network, or even a system of systems. It enables over the next five years. Digital twins also provide a
collaboration all along the system’s life cycle and unique opportunity to reconcile profitable growth
across ecosystems, thereby optimizing operations and sustainability. Organizations have realized
and even helping organizations reinvent their an average improvement of 16% in sustainability
business models. How are organizations harnessing owing to the use of digital twins. However, the
this technology, and to what end? What challenges path to successful digital twin deployment is still
do they face and how can they overcome them? not without hurdles; nearly half of organizations
lack a clear vision, managerial commitment, and the
necessary investment, as well as the right skillset
within their workforces.
We also found that 13% of organizations Foremost among these is a stepwise long-term
surveyed excel in six areas that allow them to be road map that integrates safety and sustainability
the frontrunners in digital twin deployments: goals. Additionally, in order to deploy digital twins
vision, leadership, ecosystem empowerment, at scale and obtain full benefits from the system, a
system capabilities and intelligent system set of capabilities will be required to design, build,
development, digital practices, and collaborative and operate digital twins, from system engineering
Executive
platforms deployment. Compared to the rest, and distributed architecture through simulation
Summary
these organizations realize at least 65% higher to machine learning. A digital twin architecture
benefits in the form of increased sales, improved that provides for end-to-end integration in terms
customer satisfaction, reduced costs, and of connectivity, data models, distribution, and
improved sustainability. access is key to scaling up. However, since a digital
twin is connected to a number of systems and
With digital twins still being an emerging consequently opens access to inordinate amounts
technology, it requires a value- and integration- of sensitive information, organizations must
driven stepwise transformation. To move forward also ensure reinforced data security and privacy
progressively in this transformation, companies measures prior to at-scale deployment. The greatest
need to organize themselves to support digital twins value of a digital twin comes from being able to
in terms of capabilities, road map, and governance, predict or simulate the impact of a particular change
while anticipating end-to-end integration. Based on the entire ecosystem. Therefore, on-boarding
on these elements, we highlight five key areas critical partners to the digital twin vision and
organizations need to work on to implement deploying collaboration platforms with these
successful digital twin deployments. partners will greatly augment the benefits such a
project can offer.
01
Servitization (a shift from products to service-based optimizing total cost of ownership of assets is an
business models), sustainability, and regulatory important factor impacting them; however, only 48%
compliance impact almost all organizations today, claimed to be well equipped to do so themselves.
either directly or indirectly.
Among the industries surveyed, the energy & utilities
At the same time, organizations also need to continuously
Organizations feel ill equipped optimize total cost of ownership, time to market, and
industry is struggling most to adapt to servitization
and mass customization, with only 27% and 22% of
customer experience. However, our research shows
to face major industry trends that fewer than half of organizations feel they are
respondents in this industry suggesting they are prepared
to handle these trends, respectively.
able to meet these market demands. As many as 66%
of organizations surveyed, for example, agreed that Fig.1
Less than half believe they are equipped to tackle the major
trends impacting them
66%
Total cost of asset ownership
48%
Sustainability 62%
52%
59%
Focus on reducing time to market
52%
Mass customization and personalization 57% This trend has a high impact in my industry
(of products /services) 49% My organization is well equipped to
handle the trend
Servitization (shift from product to 55%
service-based business model) 45%
Source: Capgemini Research Institute, Digital Twins survey, September–October 2021, N=1,000 organizations.
02
Our research shows that organizations are looking opportunity to assess the impact of each decision without
to digital twins as a way to address the various any real-world risks, thereby positively impacting key
challenges with which they are dealing. business metrics. This ensures effective decision-making
and deployment of strategies that maximize profitability,
A digital twin is a real catalyst for profitability and
maintain reliability, and improve sustainability.
sustainability. It can function as a tool that allows
experimentation with different scenarios and the
How digital twins drive higher Fig.2
performance and sustainability Digital twin investments are driven by top and bottom lines as
well as safety, sustainability, and brand reputation
Extent to which organizations agree that the below are the key drivers of their digital twin investments
Source: Capgemini Research Institute, Digital Twins survey, September–October 2021, N=1,000 organizations.
Digital twins positively affect working in infrastructure Digital twins can also greatly reduce “We measure any new digital twin
both top and bottom lines management and renewable time to market, which is the third- implementations against two basic
energy, is developing a digital twin most cited driver of adoption, at KPIs. The first is whether it helps
Digital twins allow organizations to the customer, such as through
to improve water treatment in one 73%. With the use of digital twins,
improve on a number of metrics, improved quality, which reduces the
its Middle Eastern desalination processes required to assemble
such as costs, operational efficiency, rate of rejection. And the second
plants. The digital twin will enable cable harnesses for the Airbus A330
turn-around times, and sustainability. is whether it brings operational
testing of operational data in the could be carried out in one-fifth
Our research shows that excellence, which includes reducing
process control system before of the time previously required.8
organizations have realized a 13% unplanned downtime. These two
implementation. This makes the This was achieved because the
decrease in costs, on average, across focus areas help in our return on
process validation simpler and allows digital twin could provide the
the various use cases of digital twins capital employed.”
optimization of system operations.7 seed for automatically generating
and a 15% increase in operational
manufacturing instructions so that,
efficiency (see Figure 3). Fig.3
Clarifying the importance of digital through tablets and augmented
twins, Surjya Kanta Pal, Professor of reality (AR) glasses, operators were Organizations realize a multitude of benefits from their digital
Cost reduction, followed closely
Mechanical Engineering and Head able to assemble products following twin implementations
by technological advancement,
of the Advanced Manufacturing the instructions on the devices.
are the top drivers of digital twin
Technology CoE at IIT Kharagpur, Digital twins also allow virtual
investments – with 79% and 77% of Average benefits realized from various digital twin implementations
says: “A digital twin gives you complete, testing, checking for errors before
organizations, respectively, citing
real-time visibility of your system. manufacturing, and improving 16%
them as such. For the construction Improved sustainability
It affords greater reliability of your designs and services – further
of Italian sports-car manufacturer 15%
systems and equipment, as it can reducing development time.9 Increase in operational efficiency
Maserati’s Ghibli model, the
identify faults and predict availability Customer engagement and satisfaction 15%
car’s digital twin helped provide
and remaining useful life. This, in turn, Another important driver for digital
developers with information for Increase in sales 15%
allows you to increase your system’s twin implementations is increased
continuous optimization, which, Decrease in turn-around time 14%
performance and reduce downtime, operational efficiency. An executive
in turn, helped them reduce both
resulting in increased production rates from an industrial aluminum Decrease in costs 13%
the costs and the time required for
and reduced costs.” manufacturing organization, echoes
development by an impressive 30%.6
this sentiment:
Acciona, a Spanish conglomerate
Source: Capgemini Research Institute, Digital Twins survey, September–October 2021,
N=800 organizations with ongoing digital twin programs, benefits averaged across the
various use cases.
Fig.5
Extended ecosystem and technological convergence together
drive intelligent industry
Open ecosystems and Meanwhile, digital convergence
combination innovation14 will will enable the development of
allow organizations to take new and sustainable business Technological Extended Paradigm shift
full advantage of distributed and operating models, such as convergence ecosystem Business
architecture and intelligence to end-to-end mobility, integrated
drive servitization strategies. supply chain, and circular Sustainability
They will also help extend economies. This is made possible
hardware lifespans and facilitate by empowering cross-industry Distributed Open and From product to services
Digital
edge computing (in which and open ecosystems around a architecture combination
inside Increased lifespan & edge
and intelligence innovation
data is processed as close to system, while optimizing existing computing
the source as possible) for capabilities all along the
improved sustainability. value chain. Digital Digital and
Extended
Integrated operating models
collaborative
continuity supply chain Increased resources productivity
platforms
Digital continuity will make
extended supply chains a reality
and optimize operating models System and Cross-industry New operating and business models
Digital system of systems and open
through seamless intra- and inter- convergence Virtual before physical…
digital twins ecosystems
company collaboration, while and loop back
increasing resource productivity.
It will also allow recycling of
scarce resources and sharing of
Source: Capgemini.
operational resources such as
transport, as well as optimization
of load rates.
Digital twins augment employee experience by this benefit: “Design and engineering are very mature areas
improving safety, allowing collaborative ways of in terms of digital twin implementations, and the pandemic
working, and supplementing training actually expedited that a lot. While designers couldn’t
physically meet each other, they could sit in their own homes
Nearly four-fifths of the organizations surveyed
with Oculus glasses [virtual reality headsets] on and go into a
mentioned that risk mitigation is a key factor that digital
digital space with other executives and inspect the entire car.
twin technology influences (see Figure 6). Digital twins
It does eliminate the need to travel and to get people
allow organizations to reduce health and safety risks for
in a single room to be able to work on design and
Fig.6 employees in addition to reducing supply-chain risks.
engineering aspects.”
Digital twins provide a digital and flexible way of working Digital twins can increase employee safety by supporting
Royal Dutch Shell is constructing a digital twin of its
remote operations and removing the need for direct
Pulau Bukom manufacturing site in Singapore. Upon
human involvement in physically dangerous work
Which of the following ways of working planned completion in 2024, the organization is
situations. Sixty-four percent of surveyed organizations
does a digital twin impact? expecting approximately 25% improvements in levels
cite increasing employee safety as a driver of their digital
of productivity, reliability, and safety. Shell has dubbed
Risk mitigation twin investments. Through its digital twin Echo, Equinor,
77% this project a means by which “to transform the ways to
an international energy company, has been able to
work.” XR – including AR, virtual reality (VR), and mixed
achieve a reduction of up to 50% of offshore man hours
Remote before on site 71% reality (MR) – along with connected tablets, will allow
at its Johan Sverdrup oil field, cutting down significantly
real-time collaboration. Narayanan Valayaputtur, Projects
Collaboration and
on employee exposure to risks.15 According to an
and Engineering Manager, comments: “Shell Bukom’s
decision making 69% executive working with a multinational energy firm, “The
digitalization plans, anchored by the digital twin, constitute
energy industry is one of the most advanced in the adoption
In situ/in the field but augmented a shake-up of the plant. With the setting up of a virtual plant
55% of digital twins, because it can be unsafe. If you have a
(mobile, mixed reality) through the digital twin, and by equipping staff on site with
platform where you have people and there is a strong physical
tablets, we are creating a new culture of remote work, with
risk of accidents, the processes on that platform are the first
Virtual before physical 52% the provision of complex data at employees’ fingertips. This
that you want to automate. Not just that, you also want to
is an exciting time, as we are not just building digital assets,
control the risk variable. For us, that is one of the strongest
but also a new digital culture. We are telling our staff to
implementations of digital twins.”
pursue their interests in becoming data scientists or software
Source: Capgemini Research Institute, Digital Twins survey, September–October 2021,
N=1,000 organizations.
engineers, all while working in a manufacturing plant with
Digital twins also allow teams to work in a flexible
our playground of data.”16
manner, enabling remote access and collaboration. Shawn
Sehy, General Manager at Nissan Motor Corp., speaks to
The digital twin system has brought the 7.1% 27% 7.0% 26%
concept of efficiency by design much closer
26.6% 27.1%
to becoming a reality. Digital twin technology
essentially allows operational efficiency to
be fully tested at the digital design stage,
reducing the need to review and rework a
prototype, saving time and financial costs. Efficiency by design Effectiveness
Generating a virtual simulation of new in operations/service
products and systems before creating physical
versions creates the possibility of “getting it Achieved so far
right first time.” According to our research, Expected additional increase in 3 years
67% of organizations believe simulation is Delta
an impactful data service offered by a digital
twin, justifying its use.
“Delta” represents the differential in what has been “achieved so far” and the overall
increase expected in next 3 years. Source: Capgemini Research Institute,
Digital Twins survey, September–October 2021, N=1,000 organizations.
01
Energy & utilities
02Automotive
03 Aviation
04
Manufacturing
Digital twins Digital twins can aid Utilizing data from an Digital twins provide Fig.9
reduce the need the design and testing electric propulsion models of “the
for personnel to process and reduce system, digital twins best way” to run a Digital twins help advance sustainability initiatives
be present at risky waste by enabling used in the design process in a given across industries
onshore fields by modeling and ensuring phases of new aircraft environment, resulting
enabling remote physical versions are can optimize in-service in reduced
05 06 07 08
operations, thereby right the first time performance and product waste
improving lifetime robustness
employee safety
Fig.10
More than half of the surveyed organizations lean on digital twins to
improve their sustainability, and a few are already reaping the benefits
Benefits range from process efficiencies
cutting down on emissions and waste, to
the ability to test the viability of new,
sustainable materials
Organizations are largely convinced of the
advantages digital twins can provide to
advance their sustainability efforts; 51% of
57% 51%
digital twin implementers surveyed agree
that digital twins will help in achieving their
organization’s environmental sustainability
goals. Moreover, 57% say that improving
sustainability efforts is one of the key drivers agree that one of the key drivers agree that digital twins will
of their digital twin investments. of their digital twin investments is help in achieving their organization’s
improving sustainability efforts environmental sustainability goals
Many organizations are already invested
in their quest to use this technology to
advance their sustainability agendas, with
34% having implemented digital twins at
Even at these initial stages, organizations have have implemented digital twins, at scale, is the average improvement in
begun seeing an average improvement of 16% to understand and predict energy sustainability realized owing to digital twins
in their sustainability metrics through digital consumption and emissions
twin implementations across various use
Source: Capgemini Research Institute, Digital Twins survey, September–October 2021, N=800 organizations
with ongoing digital twin programs.
cases. With increased uptake of more complex Infrastructure: Digital twins can be used a digital twin and found that cutting emissions
digital twins, this percentage is expected to to help owners of commercial buildings by 70% by 2035 would be a perfectly
increase. dramatically reduce carbon emissions. They feasible target.20
can also significantly improve efficiencies and
A number of organizations are already lower operating costs as seen in the NTU’s Energy & utilities: The development of
benefitting from the sustainable edge that example. The predictive nature of the digital five digital twins of platforms operated by
digital twins provide. twin can also be used to test the suitability Neptune Energy, an international oil and gas
of new materials. Construction company exploration and production company with
Urban planning: Singapore’s digital twin, Lendlease recently built a digital twin to a regional focus on the North Sea, North
called Virtual Singapore, is being used to test and determine the viability of building a Africa and Asia Pacific, is expected to enable
identify where best to build solar panels by multistorey complex in Melbourne, Australia engineers and integrity specialists to carry
assessing light and temperature variation from sustainable timber.19 While this timber out an estimated 4,100 hours of work from
across the country. “In this way, modelling and had been used previously in construction, it onshore locations, improving efficiency and
simulation help us optimize the amount of clean had not been tested in high-rise buildings (in cutting carbon emissions associated with
energy we can harness from the sun, in land- this case, a 29-story apartment tower). offshore travel. Additionally, digital twins of
scarce and heavily built-up Singapore,” explains two new platforms have also recently been
Tan Kok Yam, Deputy Secretary (Smart Siemens, in one of its projects with a German developed, which will support planning of
Nation and Digital Government) of the Prime city of about 200,000 residents, modeled the Neptune’s major carbon capture and storage
Minister’s Office.18 city’s energy demand and infrastructure using (CCS) project in an area capable of storing
more than 50% of the carbon dioxide effort to shorten development times for
volumes being targeted by the Dutch vaccines, allowing them to reach people
industrial sector.21 faster and with optimum quality.24
Aviation: Rolls-Royce’s digital twin-enabled In the life sciences sector, digital twins
platform has helped it extend the time are being applied in medical-device
between maintenance for some aircraft manufacturing as well as in drug
engines by up to 50%, thereby enabling it development and personalized medicine.
to reduce dramatically its inventory of parts Gerd Hoefner, Senior Vice President at
and spares. Perhaps more importantly, it Siemens Healthineers, comments: “[Digital
Fig.11 has also greatly improved the efficiency of twins] can be used not only for diagnosis but
its engines through this platform. “Since also for testing the safety of treatments. For
Consumer products, energy & utilities, and the life sciences industries 2014, we’ve helped one of our airlines avoid 85 example, we could assess the effectiveness of
lead implementation of digital twins to understand and predict energy
consumption and emissions million kilograms of fuel and over 200 million certain cardiac drugs on a digital twin’s heart.
kilograms of carbon dioxide,” says Stuart Digital twins can also be used to digitally
Hughes, Chief Information and Digital Officer simulate cardiac catheter interventions and
Proportion of organizations using digital at Rolls-Royce.22 heart surgery in advance, to determine if there’s
twins to predict emissions, by sector a realistic chance of success.” 25
Automotive: In Capgemini Research
Consumer products 52% Institute’s discussion with Renault CIO Another effort, named the Living Heart
Energy & utilities
Frédéric Vincent,23 he revealed how the Project, is attempting to develop and validate
50%
car-crash safety test, which was earlier highly accurate personalized digital models
Life sciences 42% conducted “by throwing the car into a wall… of the human heart, which will establish a
multiple times,” could become more efficient unified foundation for cardiovascular in silico
Discrete manufacturing 32% through the use of a digital twin of the car in medicine and serve as a common technology
Infrastructure owners/ the cloud to simulate the crash and update, base for education and training, medical
operators 22%
upgrade, and change required parameters. device design, testing, clinical diagnosis, and
Global 34% regulatory science – creating an effective
Healthcare: With reference to the social path for rapidly translating current and
aspect of sustainability, GSK and Siemens future cutting-edge innovations directly into
Source: Capgemini Research Institute, Digital Twins survey, September–October 2021, are collaborating to digitalize the vaccine improved patient care.26
N=800 organizations with ongoing digital twin programs. development and production process in an
03
A digital twin, in its simplest form, is a virtual twin of a Product twin that allows faster time to market and
single component or a single unit of equipment, such as a improved system operations
robotic arm. This is a unit-level digital twin. By architecting
and connecting such simpler twins, a system-level New product: during the design and development of
digital twin can be constructed. This will augment the new products, digital twins can be used to improve
efficiency gains realized from the individual twins. For product design and reduce time to market and can also
Digital twins add value example, a digital twin of a production line, a system-
level twin, can be created by connecting digital twins
maintain engineering-manufacturing continuity.
throughout the value chain of multiple machines. Extending this further, a digital
twin of a factory or even of a network can be created by
Industrial system: digital twins of industrial
systems allow integration of products, processes and
connecting multiple production lines/factories together resources, thereby improving the system output and
(a system-of-systems digital twin). providing scalability.
When we look at what the digital twin is being used to The automotive industry has been using digital twins, not
simulate, broadly, it can be categorized as a product, necessarily under that name, in their design (such as the
asset, or network twin. In fact, a product or a system design of assembly lines) and engineering departments
can have multiple digital twins – for instance, one twin for more than a decade. Over the years, the applicability
covering the design, one twin covering the production, of digital twins has expanded and, today, digital twins
and one for the maintenance part. Depending on whether can help automotive manufacturers achieve end-to-end
we are looking at the twin of a product or an asset or a digital continuity and thereby provide additional value
logistics network, there are a variety of ways in which to customers. Tesla, for example, relies on digital twins
value is derived or added. A digital twin can, based on use to improve its customer experience. It creates a digital
case, be broadly classified into the following categories: twin of every car it sells; data from the sensors is fed into
each car’s simulation and, using AI, Tesla can determine
whether the car requires maintenance or if it is working
as intended. Further, Tesla can even update the car’s
software through over-the-air updates.29
(1) Manufacturing continuous processes will require dedicated design and simulation tools (2) CAD/CAM:
Computer-aided design / manufacturing; DMU - Digital mockup; EDA – Electronic design automation.
Source: Capgemini analysis.
Fig.14
Logistics twin that provides Philip Morris International (PMI)
agility and resilience through has created a digital twin of its Issues solved and value added by a logistics digital twin
simulations in addition to global manufacturing footprint.
optimization This allows the company to
assess the impact of changes Value added by Digital-twin
Key characteristics Issues
digital twin backbone
Networks: digital twins in product portfolio, market
provide simulation of regulations, and even business Quality of customer Enable market- and Network design
supply and demand disruption. The solution service at acceptable demand-driven supply +
networks, allowing allows PMI to run forward- Extended enterprise
cost chain Collaborative &
organizations to improve looking optimization scenarios Flexibility and Allow dynamic integrated planning
performance, resilience, and considering manufacturing Network +
Enable portfolio resilience network configuration
sustainability for augmented cost, import/export duty, and Control tower
rotation Sustainability Simulate Monitor Predict
customer centricity. transportation costs across
the network. The company has
Warehouse/ distribution consequently reduced the use Enable demand- and
center: digital twins allow of spreadsheet simulations by Node between event-driven ERP
effective process resource 90% and was able to decrease factories and operations +
Shorten lead time
distribution Execution Systems
integration in a warehouse or the time required for scenario Enable
+
distribution-center context. evaluation from weeks to Warehouse/ Overall effectiveness process-resource
Operated on its In-operations
hours.31 Distribution center integration
own or subcontracted insights
Monitor Predict Simulate
+69 % 65%
61%
rank “Prediction“ as the most impactful
data service offered by a digital twin
II: D
evelopment of core business and IV: Empowerment of the ecosystem Fig.17
collaborative skills remains a significant challenge Core business skills necessary for digital twin implementation
Further, digital twin implementation Large organizations find themselves
requires a specific skillset, the lack of which dealing with hundreds or even thousands 63%
Embedded software
poses a challenge for many organizations. of suppliers. In order to work with these 55%
Figure 17, highlights the core business skills suppliers and other partners in a more
required for digital twin implementation and efficient manner, collaboration platforms 62%
Cybersecurity and blockchain 52%
maintenance. Additionally, cross-functional are essential. However, as shown in Figure 19
collaboration is another critical skill (as cited below, fewer than half have deployed such Connectivity 62%
by 58% of respondents); however, only 50% a platform for collaborative use with their 51%
confirm that they have this skillset available partners (albeit, on average, this is
within the workforce. projected to increase to 58% within the Federated data models, ontologies, 61%
next three years). knowledge management 46%
III: Deployment and integration of a
61%
secured end-to-end architecture Hybrid cloud
53%
Additionally, a number of technological 59%
challenges are hindering organizations from Hardware 53%
+61
realizing the full potential of digital twins
within their specific contexts. With digital % 59%
Data capture
twins having to “speak” to many systems, 43%
including legacy systems, API integration,
connectivity, and other measures are organizations agree that federated data
necessary to collect data. Inadequate internal models and ontologies are necessary Importance Extent of availability
for digital twin implementation
digital infrastructure is further hindering
progress in this respect; 67% of organizations
Source: Capgemini Research Institute, Digital Twins survey, September–October 2021,
say that insufficient cloud deployment and
N=800 organizations with ongoing digital twin programs.
API integration constitute a major challenge
for them.
Fig.18 Fig.19
Technological challenges that impede the progress of Collaboration within ecosystems and deployment of collaborative
digital twin deployment34 platforms will increase by more than 35%
Hybrid cloud deployment and APIs integration services 67% To what extent have you deployed
digital-collaboration platforms with your partners?
Integration with company OT/IT
backbones and platforms (PLM, ERP/EAM, IOT,…) 57%
36%
Source: Capgemini Research Institute, Digital Twins survey, September–October 2021, Source: Capgemini Research Institute, Digital Twins survey, September–October 2021,
N=800 organizations with ongoing digital twin programs. N=800 organizations with ongoing digital twin programs.
04
Fig.20
Frontrunners outperform others in all six areas of transformation
Overall system performance Lifetime prolonged due to Decrease in Increase in Improved Improved customer
improvement achieved owing digital twins, on average, costs sales sustainability engagement and
to digital twins of all systems satisfaction
Benefits are averaged across the five categories: products and related services, industrial “Delta” represents the differential in benefits attained by the frontrunners.
systems/production lines, assets/infrastructures, logistics, and after-sales support and Source: Capgemini Research Institute, Digital Twins survey, September–October 2021,
services. “Delta” represents the differential in improvement attained by the frontrunners. N=131 frontrunners, N=869 other organizations.
Source: Capgemini Research Institute, Digital Twins survey, September–October 2021,
N=131 frontrunners, N=869 other organizations.
05
Organizations across industries are relying on digital employed by early adopters, our survey results, and our
twins to reduce time to market, improve their operational market experience, we have identified the following areas
efficiency, meet their sustainability agendas, and improve in which organizations need to invest to drive their digital
their customer experiences. However, many are yet to twin transformation at scale.
install the required infrastructure to scale digital twins
successfully and thereby enjoy the complete spectrum
Fig.23
How to accelerate transformation of benefits on offer. Drawing on the best practices
Accelerating digital twin transformation
through digital twins?
Empower the ecosystem partners
to derive greater benefits
Develop a stepwise
Enhance data long-term roadmap
security and privacy for deployment,
across networks considering
sustainability and
Scaling
safety goals
digital twins
“The [digital twin] technology is not yet ready each digital twin and which entities are more closely connected in today’s business
to help us in product innovation, because responsible for maintaining data hygiene (i.e., environment. Connectivity and security
using fluid dynamics in a digital environment synchronization of the digital twin with the are required to ensure continuity of
(for example, trying to model how a Kleenex physical source, data quality, prevention of information from edge to cloud and from
tissue or a Huggies diaper absorbs moisture) unauthorized changes to the data, etc.). design to operations and services, all along
can become very complex. However, using a the supply chain. Only then can the full
digital twin to create an environment where a A key consideration for the governance team benefits of the system be realized.
system can be monitored in real time, learning is ensuring that the employees who would
from that, and converting those insights into be using the digital twins are aware that the Data management: In order for the
predictive or prescriptive actions is a stronger digital twins can augment their work and digital twins to model, simulate, predict
application because of the vast amount of data aid in further decision-making. This means and monitor effectively, data continuity
available within manufacturing operations. We ensuring that the immersive experience and integration with multiple data sources
are piloting the predictive maintenance use case provided to the employees is consistent with is necessary. For digital twins to mimic
for a machine currently, to understand when the their operations. Organizations can achieve operational behaviors, quick computation
machine might break down and the reason for this by providing employees with
breakdown.” 35 the required platforms and tools
twins and make relationships explicit. Some so organizations would also need to scale User experience and user interface:
ontologies can also help in data modeling their infrastructures and scale up their Finally, an intuitive UX/UI is necessary
and address issues such as missing data cloud systems. to exploit the full potential of smart,
and data security. Frontrunners recognize connected systems and processes in the
Capabilities: Organizations will also need
these challenges, with 95% mentioning field. Employees using digital twins must
to strengthen certain skillsets in order to
that a unified data platform is essential be able to use, navigate, and immerse
design and operate digital twins.
to successful implementation of a digital themselves in the application and, in order
twin, compared to just 54% of others who to achieve this, the UX as well as the UI
Design capabilities: Skillsets such as
suggest the same. must be well-thought-out and intuitive for
systems engineering, modeling, and multi-
the users.
dimensional simulation are necessary in
As the digital twins scale, this challenge
designing the digital twin system
becomes even greater, and organizations Sacha Porges, Global Director, Customer
Operate and serve capabilities:
must determine how to develop these Quality & Programs at GKN Automotive,
These include data capture, distributed
ontologies, whether to use any current underlines the importance of these enablers:
architecture, artificial intelligence/machine
ones or to create new ones, and how these “A well-thought-out design of your digital twin
learning, as well as event-management
are going to be validated and maintained. is critical – it is the compass needle, and you
capabilities
To benefit fully from digital twins, want to be going in the right direction from
Collaborative skills: All along the value
organizations must design and deploy a the beginning. You need to know the enabling
chain, across both internal and external
data-management strategy. Digital twins technology to be able to integrate the physical
ecosystems
can also be computationally very intensive, assets with the digital twins: how you would
Fig.24 connect the physical to the virtual, cases or quick wins, all these
and what technology would you three layers can be addressed
A high-level digital twin architecture
need to do that. Similarly, to enable separately or through model-
real-time flow of data from the based systems engineering
IoT [internet of things] devices (MBSE). MBSE also provides the
Digital twin Services layers provided by digital twin architecture and integration with operational interoperability among these
COLLABORATIVE and transactional data from other three layers that is required for
PLATFORM enterprise systems, you must define complex use cases.
the types of devices and software
Twin business services enablers
needed.” The figure also shows the service
Model-based
simulation layer Graph Life cycle management Virtual build layers that the digital twin
visualization cockpit and digital continuity Realistic simulations Design and implement a digital architecture provides. It allows
twin architecture physical-digital integration by
DATA CONTINUITY Digital collaboration and continuity
means of data collection and
A digital twin architecture helps
storage, data capture and device
deliver the digital twin initiatives
QUICK WINS control, and through embedded
Predictive models in a smooth manner. Figure 24
ENTRY software. Further, digital
POINTS Data management shows a high-level architecture
Data integration and transformation around business objectives collaboration and continuity
MBSE layer with three major technology
is enabled through data
APPROACH foundations required for
integration. In order to realize all
delivery, along with the services
Physical-digital integration these successfully, organizations
DATA CONTINUITY that a digital twin enables.
should focus on lifecycle
management, digital continuity,
Data & software “in service” twin As explained in the previous
Device and realistic simulations, and cockpit
recommendation, a data-
software layer Data collection Data capture and Embedded & dashboard services.
management layer allows for
and storage device control software
easy analysis of data. A device
The bottom layer shown in Figure
and software layer allows for
24 provides for data collection in
employees and teams to interact
order to build a single and up-to-
Source: Capgemini. with the twin. For simple use
date source of truth federating
“cold” (historical system specifications and Ensuring only authorized access to system Collaborate with partners to derive
models etc.,) and “hot” (IOT, OT, real-time facilities and data is paramount in protecting greater benefits
events) data, as well as “descriptive” (GIS, the confidentiality of business and personal The greatest value of a digital twin comes
BIM, CAD/CAM, etc.) and “transactional” information. from being able to predict or simulate the
(PLM, ERP, MES etc.) data. The modelling impact of a particular change on the entire
of a digital twin should be flexible and In addition, unauthorized modification or network of partners. This can be made
be able to offer advanced data services, destruction of data/operations while being possible only by feeding data or inputs from/
such as modeling and simulation, intuitive processed, in transit, or in storage must also about partners into the digital twin. In order
visualization, analytics and AI/ML, and be prevented. The integrity of the system to build such complex twins, which extend
+38 % would not be manageable in such a scenario. its physical counterpart can introduce technology companies to drive digital twin
Therefore, striking the right balance in divergence in the behaviors or states of the implementations. Johnson Controls, HVAC
terms of data-sizing, synchronization, and two entities. Given the bi-directional link (heating, ventilation, and air conditioning)
computing is critical to scaling up. between the two, an attacker may negatively and security equipment manufacturer
of organizations are willing to work with affect both through changes in either. for buildings, for example, announced an
new/existing partners towards digital twin
implementation
Enhance data security and privacy integration between the Azure Digital
across networks The privacy and security risks associated Twins IOT platform and its own OpenBlue
with digital twin deployment are manifold. Digital Twin platform to maximize efficiency
Since a digital twin is connected to a
Reinforced data security and privacy while managing physical spaces.36 Beyond
number of systems and consequently opens
measures are, therefore, indispensable prior suppliers and customers, organizations are
access to inordinate amounts of sensitive
to digital twin deployments – a sentiment working with a variety of partners, which may
information, hacking into an unsecured
echoed by 69% of surveyed organizations, include IT vendors or consulting and system
digital twin allows immediate access to the
who plan to effect major changes in their integrators (C&SI), software firms, startups,
internal data of the entire business system.
end-to-end cybersecurity. hyperscalers, financial institutions, original
Fig.25 equipment manufacturers (OEMs), and telco Similarly, consortiums play a role in the
operators. Further, 47% of organizations design and development of digital twins.
C&SI partners and software firms remain the top preferred are considering strategic partnerships for They help in the adoption of standard
partners for digital twin initiatives
digital twin initiatives, while another 38% are formats and provide resources or guidelines
willing to work with new/existing partners to organizations, thereby increasing the
Preferred partners for digital twin implementations towards digital twin implementation. Among scale of adoption. For instance, Digital Twin
the various potential partners, 46% of Consortium, which counts Microsoft, GE
organizations rank IT vendors/C&SI as being Digital, and Northrop Grumman among
IT vendors/C&SI 46%
among their top-three preferences, followed its founders, is working on advancing best
by software vendors (see Figure 25). practices and standards requirements. The
Software vendors 35% members aspire to drive consistency in
The energy & utilities sector is keen to the vocabulary, architecture, security, and
Start-ups 31% harness the potential of digital twins. interoperability of digital twin technology.39
However, while they are focusing on small-
Hyperscalers 30% scale twins, building digital twins for an
electric grid or a nuclear reactor is definitely
Financial/Insurance companies 28%
complex, and it is often difficult for the
organizations to develop these advanced
twins on their own. As a result, we see
Original equipment manufacturers (OEMs) 28%
organizations collaborating with software
vendors and equipment providers. E.ON,
Third-party manufacturers 26% for example, is working alongside multiple
industry partners through a consortium to
Telco operators 22% create a digital twin that monitors asset
health and performance of its 110 kV power
transformers.37 Separately, French utilities
Source: Capgemini Research Institute, Digital Twins survey, September–October 2021, giant EDF is also planning to deploy digital
N=800 organizations with ongoing digital twin programs.
twins for its fleet of 56 nuclear reactors – in
collaboration with various academic and
industry partners.38
From secured
sensor and OPCUA
connectivity to
MANUFACTURING end-to-end OEE
PERFORMANCE management
PLATFORM
Research Methodology
In-depth interviews
We conducted 14 in-depth interviews with 13%
industry experts, academics, and think tanks Country of headquarters of organization Annual revenue of organization (in USD)
from various organizations and universities.
Australia
Executive survey United States
Canada 8%
We surveyed 1,000 organizations, 80% of 26%
10% 5% 5%
which have an ongoing digital twin program, United Kingdom 16%
France
with the rest planning to start one. The 8% 10%
distribution of selected respondents and
their organizations is provided in the Sweden 8%
following figures. 20%
10% Germany
30%
The study findings reflect the views of Spain 8%
the people who responded to our online 7%
questionnaire for this research and are 6% India
Between 1 and 5 billion
South Korea
8%
aimed at providing directional guidance. 8% 7% Between 5 and 10 billion
Please refer to the methodology for Italy Between 10 billion and 20 billion
details of respondents and get in touch The Netherlands Between 20 and 50 billion
with a Capgemini expert to understand Japan More than 50 billion
specific implications.
Source: Capgemini Research Institute, Digital Twins survey, September–October 2021, N=1,000 organizations.
Research methodology *The study findings reflect the views of the people who responded to our online questionnaire for this research and are aimed at providing directional guidance.
Please refer to the methodology for details of respondents and contact a Capgemini expert to understand specific implications.
References
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Intelligent Industry: The Next Era of
References
Capgemini Research Institute 2022
51
Authors
Roshan Gya Jean-Pierre Petit Jacques Bacry
Managing Director, Global Head of Digital Manufacturing Group EVP Digital Continuity & PLM Group
Intelligent Industry Offer Leader, Capgemini Offer Leader
roshan.gya@capgemini.com jean-pierre.petit@sogeti.com jacques.bacry@capgemini.com
Shreya Pande
Manager, Capgemini Research
Institute
shreya.pande@capgemini.com
Authors
Capgemini Research Institute 2022
53
Research Institute
The Capgemini Research Institute is Capgemini’s Jacques Bacry Vikas Kumar
EVP Digital Continuity & PLM Group Intelligent Industry Leader - APAC
in-house think tank on all things digital. The
Offer Leader vikas.g.kumar@capgemini.com
Institute publishes research on the impact of jacques.bacry@capgemini.com
digital technologies on large traditional businesses.
The team draws on the worldwide network
of Capgemini experts and works closely with
Moise Tignon Udo Lange
academic and technology partners. The Institute VP, Intelligent Industry Digital Continuity Leader
has dedicated research centers in India, Singapore, moise.tignon@capgemini.com udo.lange@capgemini.com
the United Kingdom, and the United States. It was
recently ranked number one in the world for the
quality of its research by independent analysts.
Visit us at www.capgemini.com/researchinstitute/
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About Capgemini
Capgemini is a global leader in partnering with companies to transform and
manage their business by harnessing the power of technology. The Group is
guided everyday by its purpose of unleashing human energy through technology
for an inclusive and sustainable future. It is a responsible and diverse organization
of over 340,000 team members in more than 50 countries. With its strong
55-year heritage and deep industry expertise, Capgemini is trusted by its clients
to address the entire breadth of their business needs, from strategy and design
to operations, fueled by the fast evolving and innovative world of cloud, data, AI,
connectivity, software, digital engineering and platforms. The Group reported in
2021 global revenues of €18 billion.