A Digital Twin Business Modelling Approach

DS 122: Proceedings of the Design Society: 24th International Conference on Engineering Design (ICED23)

Year: 2023
Editor: Kevin Otto, Boris Eisenbart, Claudia Eckert, Benoit Eynard, Dieter Krause, Josef Oehmen, Nadège Troussier
Author: Trauer, Jakob; Mac, Duc Phat; Mörtl, Markus; Zimmermann, Markus
Series: ICED
Institution: Technical University of Munich, TUM School of Engineering and Design, Department of Mechanical Engineering, Laboratory for Product Development and Lightweight Design
Section: Design Methods
Page(s): 0121-0130
DOI number: https://doi.org/10.1017/pds.2023.13
ISSN: 2732-527X

Abstract

Digital Twins are one of the most trending topics. However, there are still open issues in the development of Digital Twins. One of these impediments is formulating a clear and valid value proposition of a Digital Twin. Therefore, this paper presents a novel business modelling approach for Digital Twins. Based on a literature review and an academic case study, different business modelling approaches and techniques were systematically compared, selected and adjusted in order to develop a new framework suitable for describing the value of Digital Twins. It consists of 10 steps – (1) describe a basic development concept of the DT, (2) identify the customer segments, needs and pain points, (3) derive a value proposition (4) identify revenue streams and values created, (5) identify key activities, (6) resources needed, and (7) necessary partners. (8) Adapt the organization to fit the business model and (9) evaluate the cost structure of the project. In the end, document and communicate the new business model (10). Each step is supported by auxiliary methods, tools and procedures. The approach was applied to a scientific case study. In an initial evaluation the overall applicability and usefulness of the approach were confirmed.

Keywords: Digital Twin, Digital / Digitised engineering value chains, Business models and considerations, Case study

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