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 - converting information (i.e., objects, images, sounds, documents, data, etc.) into an electronically stored digital format 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 they inform and influence each other are known as the "digital thread." Digitalization in practice is analyzing the digital thread and using the resulting insights to improve products and processes across an enterprise.
Digitalization is being rapidly adopted by multiple disciplines in the public and private sectors. It is ongoing in mature disciplines such as education, healthcare, energy, manufacturing, utilities management, transportation, and infrastructure development.
Related products: Digital Transformation Strategy
Digitalization can yield a number of insights and benefits that enterprises can leverage for competitive advantages. Examples include:
Build a more accurate picture of manufacturing processes and address inefficiencies, resulting in higher-quality production.
Speed up the design process and eliminate the need for physical prototypes.
Connect real-time data from product performance in the field to the next versions of those products for definitive improvements.
How digitalization enables disruptive innovation
Digitalization's role in future-proofing your business
How Siemens PLM allows companies to implement digitalization
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