Shifting focus of value creation through industrial digital twins—From internal application to ecosystem-level utilization

• Published in: Technovation 2023-07, Vol.125, p.102795, Article 102795
• Main Authors: Rantala, Tero, Ukko, Juhani, Nasiri, Mina, Saunila, Minna
• Format: Article
• Language: English
• Subjects: Digital ecosystem; Digital platform; Digital servitization; Digital twin; Inter-organizational collaboration; Multi-sided platform; Two-sided platform; Value co-creation; Value creation
• ISSN: 0166-4972
• DOI: 10.1016/j.technovation.2023.102795

Industrial organizations are increasingly using digital twins as the solutions offered by digital twin service providers are rapidly expanding. This study aims to investigate how the value creation mechanism changes when transitioning from an organizational digital twin to an ecosystem-level digital twin that functions as a two-sided or multi-sided platform. The study results are based on the multiple longitudinal case studies conducted in Finland, where data were gathered using various methods and replications across the cases were conducted to investigate the same phenomenon. The study makes the following main contributions: (1) although the focus of value creation through digital twins at the level of machines/production lines highlights a technological approach, value creation is increasingly complemented with a human approach when digital twins are used as factory-level internal platforms. (2) Owing to the well-recognized value creation logic in internal use, industrial organizations are inclined to expand their value creation beyond organizational boundaries and establish two-sided and multi-sided platforms around their digital twins. (3) Forerunner organizations are also looking for opportunities to establish multi-sided platforms around their digital twins even though they are not yet ready to shift their value creation logic from internal to ecosystem-level utilization. •The study shows the value creation through industrial digital twins.•The focus of value creation through digital twins at the level of machines highlights a technological approach.•Industrial organizations are inclined to establish two-sided and multi-sided platforms around their digital twins.•Organizations are not yet ready to make shift in value creation logic from internal to ecosystem-level utilization.