Dhritiman Mukherjee, Managing Partner, Financial Services & Jonathan Mulder, Head of Digital Twins, Advisory Services, DXC Technology

The concept of a Digital Twin—a virtual, real time, dynamic replica of a physical asset— has evolved dramatically since its early applications in aerospace and manufacturing. Today, the idea has expanded into the realm of Enterprise Digital Twin (EDT), which represents not just physical assets but the entire organisation i.e. its processes, systems, people, policies, risks and controls. This evolution marks a significant shift in how businesses approach digital transformation, strategic planning, and operational excellence.

What is an Enterprise Digital Twin?

An Enterprise Digital Twin is a dynamic, virtual, real time, integrated digital model of an entire organisation unit/function including its business processes, systems, people, policies, risks and controls, etc. It uses real time data from a production environment to provide a dynamic view (as opposed to a static “what-if” analyser view) without impacting the actual systems and processes. EDTs are designed to mirror the real time behaviour of an enterprise enabling simulation, prediction, analysis and optimisation.

EDTs have only become feasible now due to the convergence of advanced AI, scalable cloud infrastructure, and high-performance computing, enabling real-time modelling of complex, interconnected systems. This technological maturity allows organizations to simulate, analyse, and optimize enterprise-wide operations in ways that were previously impossible.

EDTs can be categorised into different types based on their scope. Some common EDTs are as following:

• Process Digital Twin – Models workflows (e.g., payments, customer service).
• Asset Digital Twin – Represents physical assets (e.g., hardware, infrastructure).
• Product Digital Twin – Covers product lifecycle (e.g. mortgages)
• Organisational Digital Twin – Models people and operations
• Customer Digital Twin – Simulates customer behaviour and preferences
• Supply Chain Digital Twin – Models logistics and inventory.
• Financial Digital Twin – Simulates financial models, investment scenarios

Opportunities for UK Building Societies

Like other financial services institutions, UK Building Societies can benefit by creating dynamic, real time digital replicas of their enterprise or part thereof. This will engender operational efficiencies, real time observability, monitoring of risk and controls, predictive analysis of key metrics, and more effective decision making. Potential areas of focus include:

• Risk modelling and compliance – regulatory alignment, e.g. DORA
• Customer behaviour analysis - driven by business and cost objectives, churn risk
• Digital transformation – testing and optimisation
• Process simulation – understand inefficiencies, FTE/cost concentration, volumetrics
• Investment scenario analysis – investment scenario analysis and market dynamics
• Real time compliance – cybersecurity, fraud detection, policies
• Strategic and financial forecasting

Key Challenges

Realising the full promise of EDTs requires overcoming some technical and organisational hurdles. The key ones are as following:

• Data Silos and Integration Complexity: Unifying high-fidelity, real-time data from a wide array of disparate sources (ERP, CRM, IoT)
• Creating the RoI Business Case: Building and maintaining EDTs requires some investment in infrastructure, people and software, so the organisation should have a clear strategy on how to utilise the EDT once implemented
• Talent and Skills Gap: There is a shortage of professionals with the hybrid expertise needed in data science, AI, systems engineering, and domain knowledge
• Organizational Readiness: Implementation requires multidisciplinary collaboration, strong governance, and overcoming organisational resistance or a lack of digital literacy

Having a clear strategy, choosing the appropriate use case, creating awareness, deploying skilled resources, and partnering with a technology services provider, can go a long way in overcoming these obstacles.

Looking Ahead: Opportunities

EDTs are evolving from asset-centric models to holistic, dynamic representations of entire organisations. More enterprises, across industries and including in Financial Services, are investing in creating their own EDTs. They simulate, predict, and optimise across systems, processes, people, policies, risks and controls. EDTs help preserve institutional memory, support scenario planning, and enable predictive decision-making.

The EDT landscape is rapidly evolving, with several trends shaping its future. Generative AI is being used to automate model creation and simulate complex scenarios. Digital Twin-as-a-Service (DTaaS) platforms are lowering the barrier to entry for SMEs. Sustainability modelling is emerging as a key use case, especially in energy, construction, and logistics. Composable architectures are enabling modular, reusable twin components that can be scaled across business units.

Success depends on strategic alignment, systems thinking, data integration, multidisciplinary collaboration and right technology partners. UK Building Socities will benefit from deploying EDTs as part of their forward looking innovations roadmap.

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