How to Calculate the ROI of a Digital Twin for Asset Management

Digital twin ROI = (inspection costs avoided + defect costs prevented + time saved − cost of the twin) ÷ cost of the twin. For asset managers, most of the return comes from fewer on-site inspections and catching defects before they become major repairs. One GHD Advisory client using Asseti digital twins reported critical issues 12 times faster while cutting cost by 80%.

What is a digital twin?

A digital twin is a digital representation of an existing asset. This can range from a simple 2D or 3D model of one component right up to a complex, multivariate, interlinked, and fully integrated digital model of the make-up of an entire asset. They save time and money by reducing the need for actual physical interaction with an asset. The analysis of the data gathered by the digital twin makes it possible to inspect, monitor, and predict problems that may occur throughout the asset's operational lifespan.

With companies and organizations needing to be ever leaner and more flexible, asset management is one of the most time- and resource-consuming areas to improve, and digital twins are one of the most significant recent advances in it.

How to calculate digital twin ROI

Start with the formula above and estimate each input for your portfolio:

• Inspection costs avoided: site visits, access equipment and contractor time replaced by remote review of the twin.
• Defect costs prevented: repairs caught early instead of after failure.
• Time saved: faster reporting and decision-making across the portfolio.
• Cost of the twin: data capture plus the platform subscription.

Customizing a digital twin to your organization

It can be difficult to know where to start with a new technology and methodology like digital twins. How can they fit into the wide range of organizations where asset management is vitally important to their overall operation?

In this regard, Asseti provides a calculator to assist in customizing a digital twin to the needs of any organization. It is a simple web-based tool that asks the user a series of questions about both their current asset management process, and what functions they would like their potential digital twin to perform on top of that. A report that includes recommendations and cost is then generated and sent to the user. It is in this regard that the Asseti calculator highlights one of the biggest benefits of using digital twins – their agility and adaptability in providing a wide range of data relevant to the assets.

Where the savings come from

Once the physical components of the digital twin are set up (this may include additional cameras, sensors, and other monitoring equipment at the location of the asset), they are linked to the Asseti platform that then enables advanced asset component structures, cross-asset category searching, analytics and reporting, depending on the specific requirements of the organization.

The platform provides a highly configurable dashboard for monitoring the process. It presents key asset information in a clear, comprehensible manner that allows the user to hone in on whatever area of the process is being investigated. The data is sorted, analyzed, and then presented textually, graphically, or both.

The built-in mapping functionality allows eyes-on interaction with the assets, which is vitally important for maintenance and remote inspections. It can be integrated with other GIS (Geographic Information System) systems to provide application-level links for advanced functions such as network tracing.

Using the digital twin model allows for a step up in the efficient management of asset documentation. Only relevant documentation is produced – and quickly – which is often vital when producing reports both internally and for regulators. Asseti's in-built reporting suite incorporates a report builder that enables users to filter and group assets by any criteria, across asset categories.

Flexibility and integration

Modeling asset management with digital twins allows an organization to create a flexible asset hierarchy whether it be a group asset, a complex asset, an asset component, or a simple asset level.

This capacity for agile asset exchange enables integration with third-party datasets and systems. The data processed by the digital twin can be integrated into existing finance, document management, and customer relationship management systems to reduce costs and improve overall business efficiency.

Digital twin ROI FAQs

What is a digital twin in asset management?

A digital twin is a 2D/3D digital replica of a physical asset, built from drone or sensor data and updated over time, used to monitor condition and plan maintenance remotely.

Where does most of a digital twin's return come from?

Fewer on-site inspections and earlier defect detection. One GHD Advisory client reported critical issues 12 times faster while cutting cost by 80%.