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A DIGITAL TWIN BUSINESS MODELLING APPROACH

Published online by Cambridge University Press:  19 June 2023

Jakob Trauer ,
Duc Phat Mac ,
Markus Mörtl  and
Markus Zimmermann
Jakob Trauer*
Affiliation:
Technical University of Munich, TUM School of Engineering and Design, Department of Mechanical Engineering, Laboratory for Product Development and Lightweight Design
Duc Phat Mac
Affiliation:
Technical University of Munich, TUM School of Engineering and Design, Department of Mechanical Engineering, Laboratory for Product Development and Lightweight Design
Markus Mörtl
Affiliation:
Technical University of Munich, TUM School of Engineering and Design, Department of Mechanical Engineering, Laboratory for Product Development and Lightweight Design
Markus Zimmermann
Affiliation:
Technical University of Munich, TUM School of Engineering and Design, Department of Mechanical Engineering, Laboratory for Product Development and Lightweight Design
*
Trauer, Jakob, Technical University of Munich, Germany, jakob.trauer@tum.de

Abstract

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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 TwinDigital / Digitised engineering value chainsBusiness models and considerationsCase study
Type
Article
Information
Proceedings of the Design Society , Volume 3: ICED23 , July 2023 , pp. 121 - 130
Creative Commons
Creative Common License - CCCreative Common License - BYCreative Common License - NCCreative Common License - ND
This is an Open Access article, distributed under the terms of the Creative Commons Attribution-NonCommercial-NoDerivatives licence (http://creativecommons.org/licenses/by-nc-nd/4.0/), which permits non-commercial re-use, distribution, and reproduction in any medium, provided the original work is unaltered and is properly cited. The written permission of Cambridge University Press must be obtained for commercial re-use or in order to create a derivative work.
Copyright
The Author(s), 2023. Published by Cambridge University Press

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