Leverage Azure Digital Twins to Bolster Enterprise IT Capabilities

Azure Digital Twins To Bolster Enterprise IT Capabilities

Digital twin technologies are empowering businesses with a shift towards operational efficiency and sustainability driven by large-scale digital transformation projects. Especially for the world’s biggest goods manufacturers, retailers, insurers, and other value chains, the demand for automation and AI is on the rise. 

Microsoft Azure AI

Companies of the digital era require to find time for innovative solutions to environmental, economic, and operational challenges. Global competition, shrinking prices on goods, and ESG policy changes are some factors impacting the way businesses run core functions. To deliver results with large scale technology implementation efforts, industries need end-to-end support that improves the value of a service or product at each interval of the value chain. 

Digital Twin Technology Accelerates Enterprise IT Modernization 

A digital twin is a virtual replica that establishes as an identity through a real-time digital counterpart to a physical process or object. The concept of digital twin originated with NASA in an attempt to enhance simulations and modelling of physical phenomena of spacecrafts in 2010. 

Digital twins refer to a set of technology enabling a shift to modernization – data, networking, processes, people, and technology frameworks – leveraging cloud AI capabilities to streamline physical processes. A new way of working, digital twins offer unparalleled access to insights and governance tools, allowing organizations to optimize operations by reducing costs and improving efficiencies. 

Azure Digital Twins Technology

How Digital Twin Technology Works 

With less risks involved, teams can work effortlessly, wasting zero time and effort when performing core business activities. With advanced capabilities of Azure Digital Twins, your company can design and operate new age solutions to some of the most pressing business concerns.

Digital Twins replicate the physical components of any product, service or process in a fully governed virtual environment, where the system can be executed and monitored in real-time prior to full-fledged implementation, producing revolutionary insights on performance, security and structural integrity.

For example, if you would like to test the efficiency of a new process to govern your Bank’s Logistics Management System, you can run a simulation on Digital Twins with real-time vehicles, people, movements, maps, goods, warehouses, treasuries and other relevant data simulated virtually. The entire function of your logistics chain then generates data that can be analyzed for performance improvements observed in the Digital Twins environment.

For a business, this method of testing and evaluation saves time, resources and development costs while also mitigating risks beforehand.

Benefits of Azure Digital Twins 

Digital twin technology is advancing at an unrivalled pace, stirring up new ideas amidst the industry 4.0 setting. In the simplest explanation, digital twin represents the virtual replica of real-world processes, or functions, simulating an environment to test and optimize performance and efficacy. 

For example, to test the use of a newly developed automobile for a certain type of terrain, a virtual evaluation with sensorial output will speed up innovation, reduce costs and help optimize the product time to market. 

According to Gartner, 13% of technology projects dealing with IoT devices use digital twins technology, where 62% of companies are in the process of considering the many benefits of digital twins technology. The digital twins market is estimated to reach from $3.8 billion in 2019, to $35.8 billion by the year 2025, currently growing at a 37.8% CAGR. 

Widespread IoT and virtual reality interests from diverse industries, increased cloud adoption and the impacts of digital disruption during the pandemic are all contributing to increased focus on smarter ways to assess the impact of new products, environments, ideas, and strategies for businesses. 

Engineers and business strategists will now require continuous testing, sensorial technologies and cloud AI integrations to assess vulnerabilities and successes of a pilot project. 

Azure Digital Twins Integration Capabilities

Quick and Versatile Integrations using Digital Twin Technology 

While digital twin technology witnessed successful use cases in various industries like FinTech, Retail, BFSI, Manufacturing and others, there are many more benefits to be uncovered. 

Some major benefits of using Azure Digital twins are: 

1. Faster production cycles and risk assessments 

Using digital twin technology, companies can validate and fine-tune the performance of a product before it arrives to the market. A replica can be observed in a simulated environment to assess various criteria that impact the efficacy of the problem a product or service tries to solve. This method of evaluation improves risk handling, accelerates product line efficiency and contributes with incisive intelligence to proactively react to trends and patterns. 

2. Preventive and predictive maintenance using AI 

Digital twins used for IoT sensor development produce large sums of data in real-time, requiring engineers to analyse structured and unstructured forms of data to identify strengths and weaknesses in the system. With the ability to govern all your data, Azure digital twins enables effective predictive maintenance which lowers operational costs and boosts production capacities. 

3. Enhanced governance and real-time monitoring 

To gain an in-depth view of physical systems requires a robust technology architecture. Leveraging Azure’s cloud-based digital twin technology improves access to resources required to monitor, govern and control your digital initiatives in real-time and at scale.  

4. Enhanced teamwork and collaboration 

Process automation discovered via digital twin simulations ensure that you can implement the right changes at the right time to offer 24×7 access to system information. Technicians can focus more on building a collaborative tech environment while employees experience enhanced productivity, efficiency and morale. 

5. Smart financial opportunities and decision-making 

Better financial decision-making is vital to a company’s growth and sustenance. Virtually representing and testing opportunities before you shell out a huge capital investment is one way Azure’s digital twin technologies help business leaders. With clear forecasts about relevant financial data like cost of labour and materials, business strategies pan out better.  

Using real-time analysis and advanced AI capabilities, Azure digital twins for product development can help you make adjustments to your business processes, and value chain that are practical and financially ideal. 

What to Consider Before Implementing Digital Twins? 

But before you go ahead and venture into the Digital Twins emergence across industrial applications, here are 3 things to consider before implementing Azure digital twins.  

1. Update and upgrade your data security protocols 

Gartner estimates that 75% of digital twins implemented for IoT linked OEM products like retail store shopping assistants, will utilize at least 5 types of endpoint integrations by 2023 

With voluminous amounts of data collected and processed at each endpoint, like the ones obtained from complex fraud detection systems in insurance operations, each endpoint can be secured with early simulations of the tech architecture and layout in action.  

Areas of security that require keen attention are via: 

  • Access management and clearly defined user roles 
  • Data encryption and quality checking 
  • Identifying unknown system and device vulnerabilities early 
  • Routine security audits and data analysis 


2. Managing and assuring data quality 

Digital twin models rely on data obtained from hundreds and thousands of remote networks and sensors which can pass through insecure environments before it reaches you. Companies looking to capitalize on data extraction and processing can use digital twin technology to deploy data management and quality assurance best practices.  

3. Training your transformation team 

Digital twin technology users are expected to find new opportunities, new ways of work and refined process modifications to solve complex problems. By empowering businesses with new, agile and responsive capabilities, your staff must be trained in core Azure technologies and Digital Twins frameworks for the best results.  

Uses of Azure Digital Twins Technology

Azure digital twins enables uninterrupted innovation for companies, also helping business leaders discover new capabilities of AI for business transformation. For insurance companies, digital twins can setup a virtual insurance lab to study market trends, predict investment opportunities and evaluate any risks to make better decisions, and design intuitive products. 

Leverage Technovert’s custom Microsoft Business Solutions to harness the power of strategic digital transformation with digital twin technology implementation.  

Click to know more about our Digital Transformation for Insurance expertise.  


Business longevity is met when IT facilitates system changes required to compete and thrive as a leader in industry. I write about digital assets and how businesses can leverage capabilities of AI, cloud and edge computing for strategic transformation.

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