Ever wondered what would happen to your business if there’s a sudden power outage across the company? Will your systems be ready to recover or will the outage shut down your critical service within minutes? The reality is that the modern tech landscape is filled with uncertainties. With most organizations relying heavily on the internet and interconnected systems that are easily disrupted due to something as simple as an electric outage, the way businesses anticipate, respond to and navigate unexpected disruptions has become critical.

Now, what if you’re given a virtual environment where every unexpected scenario could be tested, analyzed, and optimized to predict outcomes and improve decision-making in the real world? Such a solution is the foundation of the digital twin—a transformative technology that’s bridging the gap between physical and digital realities, offering insights and control over the dynamic environment of business operations. 

What is a Digital Twin? 

A digital twin is essentially a digital replica of a physical object, system, or process that’s created to understand, monitor, and predict the physical counterpart’s performance, often by simulating real-world circumstances. It’s simple–you gather all the information and data of something and make a digital copy of it.  

The concept of digital was first introduced by NASA to improve the results of their space missions. Considering how unpredictable space is, NASA developed digital twins to simulate how spacecraft would react to different environments, such as extreme weather, high radiation, or exposure to high vacuum environments. Later on, the concept of a digital twin became widely adopted by other industries such as manufacturers, urban planners, and healthcare providers to optimize their product performance as well as operational efficiency.  

Track the Past and Predict the Future 

According to MarketsandMarkets’s research on the current market growth of digital twins, the global digital twin market size is expected to reach 110.1 billion USD by 2028, with a CAGR of 61.3% from 2023 to 2028. It’s hard not to see the rising benefits of having a digital twin that can be tested through any conditions and scenarios to replicate the potential challenges before your actual business faces them. After all, one of the most challenging aspects of business operations is the unknown risks that come with the ever-changing technological landscape. 

Take a look at the four key benefits of utilizing digital twin technology in business operations: 

Real-time Performance Analysis 

Digital twin models can facilitate real-time communication between the virtual model and its physical counterpart, meaning that insights generated from the digital twin can be applied almost immediately from monitoring to action in the physical world. 

For example, major airlines utilize digital twin technology to monitor and analyze the performance of aircraft engines in real time. Each compartment of the aircraft is equipped with sensors to detect and collect relevant data, which is transmitted to a virtual model for analysis. The virtual model—its digital twin—then analyzes the data to screen for any issues or optimization opportunities. 

Cost Reduction 

Digital twins can significantly contribute to cost optimization by streamlining processes and simplifying maintenance efforts. In manufacturing, for example, digital twins can simulate real-time production workflows to identify any inefficiencies, bottlenecks, or overuse of resources. Digital twins can also replicate a new product design to identify the feasibility of new products or process changes and whether a production line adjustment is cost-effective to implement before actual changes are made on the floor.

Improved Product Quality 

Product digital twins allow companies to predict the market performance of different designs and feature variations. Companies can create a virtual replica of their existing product to test its durability and performance under varying conditions such as weather, stress factors, and usage patterns, before deciding if they’d like to proceed with mass production. This applies to testing materials, designs, or manufacturing processes in a virtual environment, ensuring that only the most optimized version is chosen for production. 

Risk Management 

One of the biggest benefits of having a digital twin is its ability to manage risks by predicting how the market will react to a system or product and vice versa. The amount of historical data collected enables digital twins to predict whether a product or system will perform well in real-world conditions.

For example, digital twins can predict inventory failures and supply shortages before they happen, sending alerts to the manufacturer to repair or restock necessary parts or materials to ensure that the operational flow is not disrupted. 

Key Applications Across Industries

Digital twin technology can be applied across various industries where there is a need for predictive maintenance, product optimization, and risk assessment. Current applications of digital twins span across different sectors, including:

Healthcare 

In the healthcare industry, digital twins are revolutionizing the quality of patient care. Medical devices can monitor a patient’s health metrics in real time and create personalized treatment plans for patients based on their current conditions and financial resources. By analyzing data collected from patients and simulating distinct scenarios, healthcare providers can predict patient health status and ensure that their treatment is most optimized. 

Urban Planning

Creating a digital twin of a city can significantly enhance urban infrastructure by optimizing transportation networks, utilities, and public services. These virtual models mimic real-life situations, allowing urban planners to analyze energy consumption, traffic patterns, and environmental impact. This is particularly helpful when designing sustainable solutions for a city to reduce the city’s carbon emissions. 

Manufacturing 

Supply chain management is a top priority for many companies across industries. With digital twins, businesses can monitor the status of their supply chains and inventory levels in real-time. Manufacturers can also optimize production processes by simulating different scenarios to identify any potential risks to improve efficiency. 

Financial Industry 

When it comes to the financial industry, digital twins are helping companies identify risks, detect fraud, and elevate customer experiences. Virtual models of financial systems allow institutions to simulate market fluctuations, giving investors a better understanding of future market trends and enabling them to evaluate investment strategies for maximum returns. Similar to personalized patient plans, digital twins also allow companies to create tailored financial plans for customers based on data collected, significantly improving customer relationships in the long run.  

Shakudo’s Role

At Shakudo, we empower organizations to leverage digital twins for unparalleled system modeling and optimization. Typically, building a comprehensive digital twin system can take 6-12 months for development, integration, and testing before deployment. However, with Shakudo's centralized operating system, organizations can develop, deploy, and manage digital twin technologies within weeks. Our high-fidelity digital twin solution combines advanced simulation tools with real-time data processing, enabling businesses to accurately predict system behavior and optimize workflows for maximum efficiency. The integration of digital twins, coupled with AI-driven predictive modeling, helps companies achieve scalable growth and minimize downtime, ultimately improving overall performance and long-term resilience to the fast-paced tech landscape.