I had the opportunity to sit down with Gerhard Kress, the Senior Vice President of Xcelerator Portfolio and Digital Business at Siemens, to discuss the significance of digital twins in the industrial metaverse. This conversation took place during the Economist Enterprise Metaverse Summit 2023, where we delved into the potential and impact of digital twins in various industries.
Gerhard eloquently described digital twins as virtual representations of physical assets or systems, offering a digital replica of the real world with all its complexities. He emphasized that the value of digital twins lies not in achieving perfect one-to-one matches with their physical counterparts, but in capturing reality and understanding the ripple effects of changes in the digital model on the physical asset.
One of the remarkable aspects of digital twins is their ability to mitigate risks during product design and manufacturing. By utilizing digital twins, businesses can optimize processes, reduce reliance on physical prototypes, and expedite development. This leads to significant time and cost savings, which ultimately solve real-world issues and drive rapid adoption of digital twins.
With conviction, Gerhard stated, “I firmly believe that the Industrial Metaverse will experience rapid adoption in the real world because it addresses genuine challenges and solves real problems. These are not mere concepts; they are practical tools that can significantly improve our lives and drive tangible benefits.”
During our conversation, Gerhard highlighted four critical areas where digital twins demonstrate their prowess. Firstly, in the design and engineering stage, digital twins streamline product design and testing, reducing the need for exhaustive physical iterations and accelerating development. In the production process optimization arena, digital twins allow businesses to create virtual factory layouts and test production processes before implementation, enhancing throughput, energy efficiency, and overall cost-effectiveness.
Digital twins also contribute to continuous process improvement by optimizing established production processes. This enables businesses to respond quickly and agilely to supply chain challenges while ensuring optimal performance. Furthermore, throughout an asset’s lifecycle, digital twins enhance reliability and performance, maximizing value for customers and businesses alike. Gerhard cites an example, stating, “Through the implementation of digital twins, we achieved a groundbreaking 30% increase in output while concurrently reducing the factory’s physical footprint by 40% and slashing energy consumption by an impressive 20%.”
Discussing the potential worth of the Industrial Metaverse, Gerhard estimated that it could reach $100 billion by 2030. However, he acknowledged that this estimation may be conservative, considering the rapid accessibility of technology and the influx of innovative ideas that could surpass current expectations.
Data plays a crucial role in building effective digital twins. Accurate digital representations rely on data, which serves as the foundational backbone for creating and aligning digital twins with the real world. However, Gerhard emphasized that understanding the behavior of the system is equally vital. Data alone may lack the necessary context to provide a comprehensive understanding of the system.
Lastly, we explored the distinction between the industrial metaverse and the enterprise metaverse. Gerhard explained that the industrial metaverse revolves around optimizing processes and physical assets, such as production processes, building operations, and power grids. On the other hand, the enterprise metaverse focuses on collaboration and business processes within an enterprise, addressing financial aspects and internal decision-making dynamics.
In conclusion, our conversation highlighted the immense potential of digital twins in the Industrial Metaverse. Their ability to optimize designs, processes, and asset performance holds incredible value for businesses seeking operational excellence and improved customer experiences. As technology continues to progress and success stories abound, the projected worth of the Industrial Metaverse is likely to surpass even the loftiest of expectations, revolutionizing industries and shaping the future.
