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Digitalization
Digitalization is the process of connecting digitized information via digital twins and the digital thread to gain detailed insights that can be used to transform business processes and create new opportunities for product innovation.
First, the process begins with digitization - the conversion of information (i.e. objects, images, sounds, documents, data, etc.) into an electronically stored digital format that is accessible through technology.
Next, digitized information is used to build digital twins, which are virtual representations of physical products, production processes, and operation performance.
The data relationships between digital twins, and the ways in which they inform and influence each other, is known as the “digital thread.” Analyzing the digital thread and using the resulting insights to improve products and processes across an enterprise is digitalization in practice.
Digitalization can yield a number of insights and benefits that enterprises can leverage for competitive advantages. Examples include:
- Building a more accurate picture of manufacturing processes and addressing inefficiencies, resulting in higher-quality production
- Virtual validation of products - speeding up the design process and eliminating the need for physical prototypes
- Connecting real-time data from products’ performance in the field to the next versions of those products for definitive improvements
Digitalization is being rapidly adopted by multiple disciplines in the public and private sectors, and is ongoing in mature disciplines such as education, healthcare, energy, manufacturing, utilities management, transportation, and infrastructure development.
Digitalization is profoundly changing production.
Related resources
- Digitalization Solutions for the Medical Device Industry
- How digitalization enables disruptive innovation
- Digitalization’s role in future-proofing your business
- How Siemens PLM enables companies implement digitalization
- Teamcenter, a modern, adaptable product lifecycle management (PLM) system that connects people and processes across functional silos.
- Digital Transformation Strategy