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Digital project twins increase profitability

Studies show that, depending on the type, size and complexity, at least one in six corporate projects fails on average. In the future, digital project twins should provide a remedy.
E-3 Magazine
27 June 2022
This text has been automatically translated from German to English.

Digital project twins focus on project execution and map all processes running through a project integratively. They thus offer an end-to-end solution for building a digital product model. The goal is to gain a 360-degree view of the project or project portfolios. This makes it possible to react proactively to unexpected developments. On this basis, complex and non-standardized services can be handled efficiently in the future.

Increase effectiveness

A BearingPoint survey shows that projects are more often completed "in budget", "in time" and "in quality" when projecting companies apply Earned Value Management (EVM). However, an EVM analysis hardly allows any conclusions to be drawn about the effectiveness of a project, since extended dimensions of success, such as performance, risks or resources, are not taken into account. However, these are also highly important for a more comprehensive retroactive and prospective evaluation of a project.

The limitations of EVM highlight the need for digital project twins in order to also be able to make more reliable statements about past and future project status by means of improved data bases and integrations. Another important requirement for digital project twins is the management and processing of project data. This requires tools that can manage and process any form of enterprise data and integrate it with data from many different sources. The connectivity of data and the way information is shared between organizations as well as individuals are key challenges here.

"Market forecasts in the area of digital twins are at growth rates of more than 30 percent per year, and investments can be worthwhile not only for manufacturing companies, but above all for projecting companies. Digital project twins will improve realization competence as well as cost and schedule adherence. In addition, other success dimensions will also be increasingly taken into account in companies with them. In order to increase profitability, in addition to the success dimensions of cost and time, more comprehensive and reliable data on performance, scope, quality, risks and resources must be included in a holistic project view.Frank Tiefenbeck, Partner at BearingPoint, emphasizes.

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