Webinar Recap
A Digital Twin is a virtual replica of a physical object, process, or system that uses real-time data to simulate how it behaves in the real world. Digital Twins of Operations (DTOs) offer a powerful solution to the challenges of process visibility and optimization. By providing a real-time, data-driven replica of business operations, Digital Twins allow organizations to uncover inefficiencies, optimize workflows, and align automation efforts with actual operational needs.
In our latest webinar with industry experts, we discuss how DTOs can transform your approach to process improvement, enabling smarter decision-making and long-term operational success.
Operations often run like an iceberg—what’s visible on the surface is only a small part of the entire process. Beneath lies a complex system of workflows that can’t be fully understood with static reports or outdated process maps. Traditionally, to understand and improve business processes, organizations bring in consultants to observe various processes that need optimization.
Consultants rely on several hands-on methods to observe and analyze business processes. Manual shadowing, where consultants physically watch employees perform tasks, allows for insights into workflows, decision points, and bottlenecks. This is often paired with interviews and workshops to gather feedback from key stakeholders and frontline workers, ensuring a deeper understanding of operational challenges.
However, these traditional methods are time-consuming and rely heavily on subjective observation, which can lead to gaps in understanding and missed opportunities.
This is where process intelligence comes in, offering a more precise, data-driven approach. Instead of relying on manual observation, companies across the market are adopting process intelligence platforms that automatically capture and analyze workflows in real time, creating a digital twin of processes to provide a holistic view of operations.
Through AI-powered monitoring, these platforms continuously track activities across systems and tasks, identifying inefficiencies and hidden opportunities with greater accuracy than traditional methods.
This is where Digital Twins of Operations (DTOs) excel, providing a dynamic, real-time snapshot of all operational components. Unlike conventional techniques, DTOs enable companies to optimize processes holistically, revealing insights that might otherwise remain unnoticed.
Bridging the Gap Between Plan and Reality
Traditional process blueprints are like a recipe—providing a step-by-step guide to how things should be done, but missing out on the unpredictability of real-time execution. Just as a recipe doesn’t account for missing ingredients or a malfunctioning oven, static process maps fail to reflect the complexities of day-to-day operations.
This creates a gap between plan and reality, where inefficiencies often thrive unnoticed.
Take, for instance, a global financial services firm that relied on static process mapping to monitor loan approvals. On paper, the process was seamless—applications came in, followed a standardized workflow, and were approved or rejected within the expected timeframe.
However, customer complaints about long delays suggested otherwise. Traditional audits couldn't pinpoint the problem because they looked only at the overall process, not the real-world disruptions: frequent system slowdowns, approval bottlenecks caused by manual rechecks, and inconsistent handling of edge cases. The gap between the planned process and actual operations led to lost revenue and frustrated customers.
| As Vinay Mummigatti, EVP of Strategy and Customer Transformation at Skan, explained, “Organizations often operate under assumptions. But the gap between those assumptions and real operations is where inefficiencies thrive.” |
Now imagine the same company leveraging a Digital Twin of Operations (DTO). Using process intelligence, the company could observe how every loan application moved through the system in real-time.
The digital twin revealed that applications were getting stuck in certain approval stages, particularly when manual checks were triggered for high-risk loans. Armed with this data, the company implemented automated risk assessments and freed up staff to handle only the most complex cases. In just a few weeks, loan processing times dropped by 30%, and customer satisfaction improved significantly. The real-time visibility provided by DTOs allowed the company to react dynamically and make informed changes as they happened—closing the gap between plan and reality.
Similarly, consider a retail chain using traditional process maps to optimize supply chain logistics.
On paper, the supply chain ran efficiently, but the company frequently experienced stock-outs and delayed deliveries. The maps didn’t account for unexpected roadblocks like vendor delays, inaccurate inventory data, or seasonal demand surges. By the time the problems were identified, they had already caused disruptions that could take weeks to fix.
When the company adopted process intelligence, the Digital Twin of its supply chain operations illuminated the exact points of failure. It showed that delays often stemmed from certain suppliers, who were consistently late in fulfilling orders due to production constraints. The company switched suppliers for key products and introduced predictive analytics to better forecast demand. Within months, they saw reduced stock-outs and a smoother, more resilient supply chain.
Digital Twins act like a chef adjusting a recipe on the fly—responding to real-time conditions to ensure the final result is optimized. This dynamic view enables businesses to not only identify bottlenecks but also to implement changes that can have an immediate and lasting impact.
In today's fast-paced world, relying on static process maps is no longer enough. With DTOs, businesses can continuously monitor and optimize their operations, ensuring that strategy and execution are always in sync.
Turning Data into Decisions
Operational inefficiencies often stem from a lack of visibility into processes. When companies automate without fully understanding their workflows, they risk compounding existing issues like delays and errors. Decisions made on incomplete information can lead to costly setbacks, impacting productivity and customer satisfaction.
Digital Twins provide a solution by offering a real-time, data-driven view of processes. With DTOs, organizations can:
- Identify and Eliminate Inefficiencies: Gain insights into redundant steps and bottlenecks within workflows, allowing for targeted improvements.
- Simulate Changes: Evaluate how proposed automation or adjustments may affect turnaround times and accuracy, ensuring informed decision-making.
- Align Automation with Operational Needs: Ensure that automation efforts directly address real challenges, reducing the likelihood of errors and enhancing overall effectiveness.
This shift from reactive problem-solving to proactive optimization allows organizations to transform their operations, ultimately leading to improved customer experiences and cost efficiencies.
The Essential Tool for Strategic Decision-Making
Attempting to automate processes without complete visibility can result in significant risks, including lost revenue and declining customer satisfaction. These challenges can also contribute to accumulating technical debt, which undermines the long-term viability of the business.
Skan’s process intelligence platform creates a real-time, data-driven digital twin of operations, providing deep insights into workflows. This enables organizations to pinpoint inefficiencies and risks early, ensuring that automation initiatives are effective and aligned with strategic objectives. By combining real-time insights with thoughtful automation, organizations can enhance operational agility and foster sustainable growth.
Why Leaders Must Pay Attention
As automation and AI adoption accelerate, gaining a true understanding of your operations is essential for staying competitive. Without this insight, organizations become vulnerable to costly mistakes, from misaligned processes to compliance issues and beyond.
Take charge of your operational optimization with Skan’s process intelligence. By ensuring your processes are optimized before implementing changes, you can avoid pitfalls and achieve sustained success.
To learn more about how Skan’s platform and Digital Twins can empower your organization to make informed, data-driven decisions, watch our full webinar OnDemand.
