Virtual Twin Technology’s Growing Footprint in India

The Virtual Twin Technology Impact Report released by Dassault Systèmes and nasscom sheds light on the rapid growth and potential of virtual twin technology in India. This analysis examines the report’s findings and explores their implications for Indian enterprises, highlighting the challenges and opportunities that lie ahead.

Growth and Awareness: A Post-Pandemic Surge

The report reveals a twofold increase in virtual twin implementations post-pandemic, with 90% of enterprises now aware of this transformative technology. This heightened awareness signifies a major shift towards digital transformation, driven by the need for enhanced efficiency and innovation in the face of global disruptions.

Implication: The increased awareness is a positive indicator, but it also sets a high expectation for enterprises to move from awareness to actionable implementation. Companies that can bridge this gap quickly will likely gain a competitive advantage.

Leadership in Life Sciences: Paving the Way

In the life sciences sector, 33% of virtual twin initiatives are driven by top leadership (CXOs), compared to just 22% across other sectors. This proactive involvement from top executives highlights the strategic importance placed on virtual twins in this industry.

Implication: Leadership involvement is crucial for successful technology adoption. Other sectors can learn from the life sciences industry by ensuring that top management champions and invests in virtual twin initiatives.

Digital and Process Maturity: Room for Improvement

Despite high awareness, the report highlights significant gaps in digital maturity. Over 50% of enterprises report patchy digitalization, with less than 20% implementing advanced process automation. Furthermore, 57% allocate less than 30% of their technology budgets to digital spend.

Implication: There is a clear need for a more integrated and comprehensive approach to digital transformation. Enterprises should focus on end-to-end digitalization to maximize ROI and operational efficiency.

Budget Constraints and Deployment Time

Budget constraints are evident, with 25% of companies lacking formal budgets for virtual twins and 80% allocating less than 7% of their tech spend to this area. Additionally, 75% of virtual twin implementations take 12-24 months, indicating a lengthy and resource-intensive process.

Implication: Enterprises must prioritize budget allocation for digital initiatives and explore ways to streamline deployment processes. Faster and more efficient deployment methods will be critical in maintaining momentum and achieving tangible benefits.

Supplier Strategy and Tech Readiness

Supplier selection is a major challenge for 75% of Indian enterprises, and 70% of firms are still in the PoC/pilot stages for essential technologies like AI/ML applications and high-definition 3D software.

Implication: Developing a robust strategy for supplier selection and enhancing tech readiness are essential. Enterprises should focus on building reliable partnerships and advancing their technological capabilities to move from pilot stages to full-scale implementations.

Strategic Recommendations

1. Enhanced Leadership Commitment: Strong leadership commitment is essential for driving virtual twin initiatives. Top executives should actively support and invest in these projects to ensure alignment with overall business goals.

2. Integrated Digital Transformation: Companies must adopt a holistic approach to digitalization, integrating efforts across all functions to achieve cohesive and effective transformation.

3. Agile Deployment: Embracing agile methodologies can help shorten deployment times and allow for continuous improvement. Iterative approaches will enable enterprises to adapt quickly and realize benefits sooner.

4. Focused Investment: Increasing investments in advanced technologies and ensuring readiness for large-scale deployment will be crucial. This includes enhancing capabilities in analytics, AI/ML, and high-definition 3D software.

5. Building Collaborative Ecosystems: Fostering strong partnerships and a collaborative ecosystem can drive innovation and mutual growth. Enterprises should leverage synergies with suppliers and partners to enhance virtual twin adoption and impact.

Conclusion

The findings from the Dassault Systèmes and nasscom report highlight both the promise and the challenges of virtual twin technology in India. While awareness and initial adoption are on the rise, there is a significant need for enhanced leadership commitment, strategic investment, and integrated digital transformation. By addressing these areas, Indian enterprises can unlock the full potential of virtual twins, driving efficiency, innovation, and sustainability across industries. The journey towards a digitally integrated future is underway, and those who navigate it effectively will lead the charge in the next wave of industrial transformation.