Digital project twins increase profitability and business benefits

Digital project twins increase profitability and business benefits

Every sixth project fails. This is often associated with profitability losses for companies. The technology consultancy BearingPoint has now examined in more detail how project success can be increased through the use of digital project twins. […]

A wide variety of studies show that, depending on the type, size and complexity, at least one in six projects fails on average. The consequences due to high initial investments are usually large and the profitability of the companies suffers. In the future, digital project twins should remedy this situation and ensure more project success, as the new BearingPoint analysis “Data-driven project management instead of gut feeling” shows.

Digital project twins make a 360-degree view of projects possible

Digital project twins focus on the implementation of the project and integrate all processes in a project. They thus offer an end-to-end solution for building a digital product model. The aim is to gain a 360-degree view of the project or project portfolio. This creates the opportunity to be able to react proactively to unexpected developments. On this basis, complex and non-standard services can be handled efficiently in the future.

Success dimensions of Project Management: The Limits of Earned Value Management

A BearingPoint survey shows that projects are more often completed “in budget”, “in time” and “in quality” when project-planning companies use earned value management (EVM). However, an EVM analysis hardly allows conclusions to be drawn about the effectiveness of a project, since extended success dimensions, such as performance, risks or resources, are not taken into account. However, these are also of great importance for a more extensive retro and prospective evaluation of a project. The limitations of the EVM show the need for digital project twins in order to be able to make more reliable statements about the previous and future project status by means of improved data bases and integrations.

“Market forecasts in the field of digital twins are at growth rates of over 30 percent per year and investments can be worthwhile not only for manufacturing companies, but also for project planning companies. Digital project twins will improve the implementation competence as well as cost and deadline compliance. In addition, other dimensions of success will be increasingly taken into account in companies with them. In order to increase profitability, in addition to the success dimensions of costs and time, more comprehensive and reliable data on performance, scope, quality, risks and resources must also be included in a holistic project view,“ says Frank Tiefenbeck from BearingPoint.

The aim is to record all available parameters of a project

An important requirement of digital project twins is the management and processing of project data. This requires tools that can manage and process any form of company data and integrate it with data from many different sources. The connectivity of data and the way information is exchanged between organizations and individuals are key challenges.

“A digital project twin can, for example, provide information about the needs of the customer, how price-sensitive he is and with which service providers or suppliers a cooperation would be possible. However, in order for a digital project twin to be able to provide a 360-degree view across all project phases, a high degree of process integration must be ensured, starting from the initiation of a project through the preparation of an offer and implementation to acceptance,“ says Tiefenbeck.

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