Every organization is unique. In order to succeed in your work, you need to understand how your own organization functions. What are its objectives? How do the people work together to achieve results? What is the interface towards customers, suppliers and other business partners? Knowing the answers to these questions ensures your work is focused on your organization’s strategic objectives and is done in the most efficient way.
What is a Digital Twin of an Organization (DTO)?
A Digital Twin of an Organization is a dynamic digital model of any organization. A DTO includes the past performance data, understanding of current business goals and business models, performance KPI indicators with target levels, detailed transaction-level situational process analysis and support for intelligent business decision making. For new employees joining the organization or changing a position/role, the DTO should provide understanding of business operations, performance goals and overall strategy statements. For every employee, the DTO provides up-to-date information about the latest strategy, direction and agreed business models. It is also the storage for performance KPI indicator information as well as transaction level data analysis of current situation.
Why do we need a DTO?
Why do we need to understand customers and be efficient, effective and agile? My top-10 reasons are: 1. World is changing. 2. Digitalization changes business models and operations. 3. New employees are hired. 4. Old employees change positions and locations. 5. Mergers, Acquisitions and Divestments shape large organizations. 6. Robotic process automation (RPA) is taken into use to automate individual tasks. 7. Customer experience is becoming increasingly important. 8. Competition is global. 9. Fittest will survive. 10. Artificial Intelligence is used to boost efficiency.
DTO ensures your work is focused on your organization’s strategic objectives and is done in the most efficient way.
What are the components of a DTO?
The following picture is taken from QPR's demo model for "Capital Bank". It shows the key components of a DTO.
Destination - Business Model - Where does your organization want to be in 3-5 years?
Map - Business Operating Model - How should the organization's operations be functioning?
Performance - Enterprise Performance Management - What is the current KPI performance against goals?
Situation - Business Operational Intelligence - What is the actual situation at the moment based on transaction-level data?
Decision - Business Decisions Support - What should be done now to achieve better results?
QPR Business Operating System
Strategic level of QPR Business Operating System starts with Business Design which is the activity to identify relevant business models for the organization and set strategic goals. Strategic level is then continued with the Performance Management which is the activity to define and cascade business objectives and implement performance indicators and dashboards for monitoring performance against objectives and supporting higher level business transformation projects, programs and initiatives.
Operational level of QPR Business Operating System starts with Operations Design which takes the business models as input and extends them to full operating models containing end-to-end process diagrams as well as information, application and technology architectures. These operating models serve as a map for implementing and running the organization to meet the strategic goals. Operational level is then continued with the Process Mining and Intelligence module which provides day-to-day real time information about your organizations current situation and actual status of behavior and performance of each end-to-end process. Operational Intelligence is like a continuous health check that shows the performance in detail enough level to discover problems, bottlenecks, unwanted process variations and long lead times as well as discover root causes related to these findings.
Building and maintaining a Digital Twin of an Organization is motivating and rewarding job. Using the latest technology you can start with small pilot projects targeted to most important areas and gradually extend the coverage of your own DTO to maximize the benefits!
Interested to find out more? Check out my webinar below.