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Putting Digital Twins and Techno-Economics in Action: Driving Strategic Growth & Business Excellence







Digital Twins and Techno-Economics in optimizing TCO


What is a Digital Twin?


A Digital Twin is a virtual replica of a physical asset, process, system, or environment. This virtual model accurately reflects the physical object’s characteristics, behaviors, and states. By leveraging real-time data and advanced analytics, Digital Twins enable organizations to simulate, model, predict, and optimize performance in a virtual setting before applying changes to the real world.


The Evolution of Digital Twin Technology


While often perceived as a new concept, digital twin technology has roots dating back to the 1960s. NASA pioneered the concept to troubleshoot and maintain space systems by creating exact replicas of spacecraft systems on Earth. With the advent of the Internet of Things (IoT), advanced sensors, and big data analytics, Digital Twin technology has evolved, finding applications across multiple sectors.


How Do Digital Twins Work?


At their core, Digital Twins operate by integrating data from various sources:

  • Data Collection: Sensors on the physical object collect real-time data on performance, environment, and operational conditions.

  • Data Integration: The collected data is transmitted to the Digital Twin platform, where it is processed and analyzed.

  • Simulation and Modeling: Advanced algorithms and AI models simulate the object’s behavior under different scenarios.

  • Feedback Loop: Insights gained are fed back to improve the physical object’s performance or to predict and prevent issues.


Types of Digital Twins


Digital Twins can be categorized based on their scope and functionality:

  • Component Twins: Replicate individual parts or components of a system.

  • Asset Twins: Model entire assets, such as machines or equipment.

  • System Twins: Represent systems of assets working together.

  • Process Twins: Simulate entire processes or production lines.


Digital Twin Examples Across Industries


Digital twins are revolutionizing various industries by providing virtual replicas of physical systems, enabling better analysis, optimization, and predictive maintenance. Examples include:

  • Manufacturing: Simulating production lines to enhance efficiency and quality control.

  • Healthcare: Personalizing patient treatment plans and predicting equipment malfunctions.

  • Urban Planning: Optimizing traffic flow and planning sustainable infrastructure projects.

  • Energy: Predicting and preventing outages and integrating renewable energy sources more effectively.

  • Retail: Managing supply chains, predicting stock shortages, and optimizing logistics.

  • Telecom: Improving network operations, preventing congestion, and enhancing cybersecurity.


Application of Digital Twin in Technology Operations and Evolution


As technology advances rapidly, organizations increasingly rely on Digital Twins to enhance operational efficiency and drive technological evolution. Digital Twins bridge the gap between physical systems and digital simulations, enabling companies to optimize current operations while innovating for the future.


Digital Twins in Technology Operations


In technology operations, Digital Twins are used to monitor, manage, and optimize the performance of systems and processes. By providing a real-time virtual representation of physical assets, organizations can:


  • Enhance Operational Efficiency: Identify bottlenecks and inefficiencies in real-time, allowing for immediate corrective actions.

  • Predictive Maintenance: Anticipate equipment failures before they occur, reducing downtime and maintenance costs.

  • Resource Optimization: Optimize the use of resources such as energy, materials, and labor by simulating different operational scenarios.


Examples of Digital Twinning in Technology Operations


  • Data Centers: Companies like Google and Microsoft use Digital Twins of their data centers to optimize cooling systems and energy consumption, leading to significant cost savings and reduced environmental impact.

  • Networks: Telecom companies and networking vendors use digital twins to improve network operations and security by simulating and solving network faults and issues before they happen, such as predicting and preventing network congestion, optimizing traffic flow, detecting configuration issues that can lead to outages or security breaches, and enhancing cybersecurity measures.


Digital Twins in Technology Evolution


On the evolution side, Digital Twins are instrumental in driving innovation and technological advancement. They enable organizations to:

  • Accelerate Research and Development: Test and validate new technologies or products in a virtual environment before physical prototypes are built.

  • Facilitate System Upgrades: Simulate the impact of integrating new technologies with existing systems to identify potential issues and solutions.

  • Support Strategic Planning: Provide insights into future trends and scenarios, aiding in long-term strategic decision-making.


While digital twins were first used in technology operations, their usage has now broadened to encompass future planning and development. Currently, there is a diverse array of digital twins accessible, particularly focusing on technical aspects like design, architecture, and simulating system resilience, offering insights to enhance the technology framework. Despite these advancements, there is frequently a gap in fully grasping the value for businesses, highlighting the importance of precisely measuring the advantages of these choices for the business's future prosperity covering both technical benefits and business benefits.


Examples of Digital Twinning in Technology Evolution


  • Technology Deployment: Companies use Digital Twins to plan and optimize the rollout of networks and cloud deployment, where, firms can simulate the rollout of their new technology stack (layer), assessing capacity, and performance, resiliency and serviceability under various conditions.

  • Cloud Planning: Digital twins can simulate cloud environments to optimize resource allocation, predict system behavior under different loads, and enhance overall cloud infrastructure management.

  • Network Planning: Digital twins are extensively used in network planning, especially in the telecom sector. They help optimize network layouts, predict and prevent network issues, and enhance overall network performance.



TelcoBrain's Approach to Leveraging Digital Twin Technology for Advancing Technology



The above examples demonstrate a prevalent approach that relies heavily on using simulation to anticipate future bottlenecks and implementing necessary actions to mitigate them. While this method may appear advantageous technically by proactively addressing issues before they arise and potentially enhancing business value, the results often do not correspond to these assertions. This is primarily due to its initial technical standpoint, which fails to thoroughly link each technical problem to the business requirements and its quantified value.


For example, let's take heat-map visualization as an illustration, a widely used tool provided by many reputable vendors and smaller Independent Software Vendors (ISVs). This technique is primarily utilized to forecast upcoming enhancements by pinpointing possible congestion or usage problems and taking proactive measures to tackle these congested zones in order to avert their occurrence. While technical it make sense and we have seen many claims of every red area is good to address because there are customers and the faster you tackle these areas the higher likely hood of preventing issues from happen so you would be avoiding downgrading churns or loss of revenue. that's actually always true, that's because there are many red spots that doesn't bring value to the business.



For instance, in a scenario involving a 5G network, if the digital twin model predicts numerous red spots, with one area having 90% utilization and a higher population density, while the other area shows 80% utilization with a lower population density, the current methods tend to prioritize areas with higher utilization and population, assuming higher revenue potential. Consequently, the initial decision is to upgrade the area with 90% utilization first. However, this decision may not be optimal, as the first area could potentially have lower business value due to a majority of low-value or disloyal customers, who are likely to churn soon. Therefore, it would be more prudent to prioritize upgrading the second area if it offers greater business value. This approach necessitates an advanced business modeling strategy to connect technical considerations with financial aspects, such as revenue and customer lifetime value modelling algorithms, in order to maximize business value in a vendor-neutral manner.



TelcoBrain has created an innovative platform that provides exceptional insights into the evolution of technology. Our approach utilizes Digital Twin Technology combined with Techno-Economics, and Advanced Algorithms to generate these insights, delivering best value to the client's business. Through the creation of a digital model representing the customer environment in Technology, Finance, and Operations aspects, we are able to offer unparalleled insights that connect these dimensions seamlessly.


This comprehensive approach allows us to address a wider set of use cases regarding future planning for end-to-end networks and cloud-based services. It enables firms to model various scenarios for evolution using different criteria at the lowest total cost of ownership (TCO), test potential upgrades based on true-value to the client's business, optimize resource allocation, improve reliability and resiliency, and prevent future issues.


Read more on the future of Network Planning in Telecom in our recent blog.


Comparing TelcoBrain's Digital Twin with Existing Digital Twins



Aspect

Existing Digital Twins

TelcoBrain Digital Twin

Focus Area

Today - Mostly focused on operational issues.

Forward Looking - Mostly focused on Technology Evolution and Business Strategy Issues.

Approach

Technology & Operations Driven.

Business Driven (Technology, Operations, and Economics).

Financial and Economic Value

Analyze technical data (current and historical) which may reflect to financial benefits.

Maps and analyzes both Technical and Financial data which leads directly to financial and business impact.

Methodology

  1. Historical data analysis and simulations.

  2. Presentation and automation.

  1. Data analysis, and simulations.

  2. Multi-dimensional modelling capabilities (Tech/TCO/ROI/ CX).

  3. What-If Scenario and Sensitivity Modelling.

  4. Presentation, actions and automation.

Scope

Single layer or 2 layers at most.

E2E Network Layers (Optical/IP/MPLS/2-5G RAN+CORE/WiFi/LEO-MEO-GEO) and Cloud.

Technology Evolution

Addresses capacity planning from a technical point of view (e.g., heat maps, capacity alarms), which may not deliver the best business value.

Specialized in Technology Evolution Topics based on Techno-Economics, delivering full value to the business.

Insights Provided To

Technology teams.

Technology, Strategy, Financial, and Business teams.

Vendor-Agnostic Matters?

Somewhat doesn't matter as they address operational issues (vendor neutrality is not an issue)

Yes it matters as it involves huge investment

Multi-Vendor

Yes, for layers they address

Yes, End-to-End (E2E)

Used By

Mostly working levels - Engineers, network specialists, network/cloud engineers/experts.

All levels from CxOs (CTIOs/CFOs/CBOs) and their teams, including director to senior management and working-level teams.


10 Reasons Why Firms Need to Adopt and Use TelcoBrain’s Approach for Applying Digital Twin


  • Business Driven Technology (Network & Cloud) Planning Based on Factual Techno-Economics: Digital Twins allow telecom companies and enterprises to model their networks and cloud resources to plan for future growth more effectively.

  • Cost Optimization: By modelling network performance and financials, companies can identify ways to reduce operational costs and optimize resource allocation.

  • Enhanced Service Reliability: Digital Twins help prevent service disruptions by predicting potential issues before they occur.

  • Enhanced Precision: Advanced simulations and comprehensive modeling capabilities of real-world scenarios result in more precise predictions of demand, capacity, vendor choices, and architectural selections—all while minimizing total cost of ownership.

  • Cost Efficiency: By optimizing network and cloud resources, digital twins help reduce operational costs and avoid unnecessary expenditures.

  • Enhanced Network Performance: Continuous monitoring and real-time adjustments improve overall network performance and reliability.

  • Predictive Maintenance: Advanced analytics can predict potential failures, allowing for proactive maintenance and reducing downtime.

  • Customer Experience: Improved network & cloud reliability and performance lead to a better customer experience which translate to extension of revenue from each customer.

  • Resource Optimization: Efficient allocation of resources ensures optimal use of network and cloud infrastructure.

  • Innovation and Research & Development: It enables experimentation and innovation, speeding up the creation of new technologies and solutions that meets business targets.


Conclusion


TelcoBrain has developed an advanced platform that leverages Digital Twin Technology to deliver technology evolution insights to firms globally. It's digital twin combines techno-economics, and advanced algorithms to provide unparalleled insights into technology evolution. By creating a digital replica of the customer environment across Technology, Finance, and Operations, TelcoBrain bridges the gap between these dimensions, offering comprehensive insights for future planning of end-to-end networks and cloud-based services

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