Perplexed by digital twins? Learn what they can do for organizations.

The many benefits of digital twins ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌   ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌   ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌   ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌   ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌   ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌   ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌   ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌   ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ 

TODAY'S NEWS. TOMORROW'S INSIGHTS. A daily newsletter from McKinsey & Company   Edited by Belinda Yu   Editor, Atlanta Demystifying digital twins In the news • Cutting through the confusion. Digital-twin technology has been available for decades, but people often remain perplexed by it. Through advanced analytics, sensors, and other technologies, digital twins analyze the physical environments that they're in. Because of this, they enable supply chain leaders to better oversee complex, changing systems—such as interconnected, global supply chains. For example, one e-commerce giant uses digital twins of its warehouses to improve operations and track packages. [MIT] • Digital breweries. As digital-twin technology has become more available and less costly, more companies are using it to create dynamic views of their businesses. One beverage company is teaming up with a technology organization to generate digital twins of its breweries. Online sensors will enable workers to observe how fermentation is proceeding; the technology will also detect delays in the bottling process. Digital twins can be helpful in supply chain management, as they collect and learn from data in real time. [PYMNTS] "We've seen increases in revenue of as much as 10% by developing customer twins that allow customers to fully interact and immerse themselves within the product." On McKinsey.com • Defining a digital twin. Many people use the term "digital twin" loosely, say McKinsey partners Kimberly Borden and Anna Herlt in a recent episode of the McKinsey Talks Operations podcast. A digital twin is a digital representation of a physical object. Crucially, digital twins are linked with real data sources and can be updated in real time. Digital twins can bring tremendous value to companies. For instance, companies that use digital twins can reduce development time, improve product quality, and rapidly test and redesign products. • Improved sustainability. In addition to enabling companies to increase revenue, a digital twin can be very helpful for improving product sustainability, explains Herlt. Digital twins can help companies reduce the material in product designs, improve the traceability of products, and reduce waste. Consumer electronics manufacturers, for example, have been able to reduce scrap by roughly 20%. Listen to the podcast to learn which key elements should be in place before companies can start using—and benefiting from—digital twins. Discover digital twins Was this forwarded to you? Sign up here. Or send us feedback—we'd love to hear from you. Follow our thinking This email contains information about McKinsey's research, insights, services, or events. By opening our emails or clicking on links, you agree to our use of cookies and web tracking technology. For more information on how we use and protect your information, please review our privacy policy. You received this email because you subscribed to the On Point newsletter. Manage subscriptions | Unsubscribe Copyright © 2022 | McKinsey & Company, 3 World Trade Center, 175 Greenwich Street, New York, NY 10007