Digital twins allow businesses to repeatedly simulate and optimize complex multivariable problems, reducing the learning costs associated with physical world experimentation. Previously confined to large corporations, small and medium enterprises (SMEs) can now leverage AI to create advanced digital twins.
This five-step process involves: defining a clear business objective; outlining a process flowchart; identifying and structuring necessary data; building a digital model of the flowchart; and finally testing, implementing, and iterating the model. Strategy execution carries the highest risk as any miscalculations have tangible consequences. One way to mitigate this risk is by repeatedly testing a process in a simulated environment, making incremental improvements each time. This approach, similar to Toyota's continuous improvement systems, involves continuous data monitoring and numerous micro-decisions.
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