Glossary · Strategy term

Digital twin of an organisation

A plain definition, why it matters, how strategy1 uses it, and answers to the questions people ask most.

Definition

What is a digital twin of an organisation?

A digital twin of an organisation (DTO) is a dynamic software model of how a business works: its structure, processes, resources and performance, kept current with operational data so leaders can test changes before making them. The idea extends engineering digital twins, which model physical assets, to the whole enterprise.

Also called: DTO, digital twin of an organization, enterprise digital twin.

Explained in full on The Strategy Twin.

Context

Why it matters

Static plans and spreadsheets cannot show how a change in one part of a business affects the rest. A DTO lets leaders simulate options, such as a new market, a process change or a cost programme, against a model that reflects current conditions.

In practice

How strategy1 uses it

strategy1's Strategy Twin is a digital twin built for strategy decisions rather than operations. It models six domains (market, competition, company, capital, context and decision) with hundreds of objects that matter rather than millions of records, and links every decision back to its evidence and forward to its KPIs.

FAQ

Digital twin of an organisation: common questions

Is a Strategy Twin a digital twin of an organisation?

A Strategy Twin is a kind of digital twin of an organisation focused on strategy. Most DTOs model operations and processes; a Strategy Twin models the markets, competitors, capital, constraints and decisions that strategy depends on, and strategy1 keeps one for each client.

Where does the idea of a digital twin of an organisation come from?

From engineering. Digital twins began as real-time models of physical assets such as engines, plants and buildings. The same idea was later applied to whole organisations, modelling processes, resources and performance instead of machines.

What data does a digital twin of an organisation need?

Typically data on structure, processes, resources, customers and performance, drawn from systems such as ERP and CRM. How much is needed depends on the decisions the twin supports: a strategy-focused twin needs fewer, better-sourced objects than an operational one.

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