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Sector insights12 August 20266 min read

Digital twin of business processes: what it is and who builds it

A digital twin of business processes is a working digital copy of how your operation runs: from order intake to delivery, from raw material to finished product. Not a static process diagram, but a model fed by real data so you can simulate, predict and adjust without disrupting the actual operation. The difference from an asset twin, which replicates a physical object, is fundamental. A process twin tracks behaviour, flows and decision points. That makes the technology useful, but also more complex than most brochures suggest.

By Yeslin Beljaars

What is a digital twin of business processes?

There are three main types of digital twins: the asset twin (a machine or building), the system twin (a chain of assets, such as a factory as a whole) and the process twin. The latter is what most operations managers are looking for when they search for 'digital twin of business processes'. A process twin captures how work actually flows: which steps are taken, how long they take, where delays occur, and which decisions are made at what point. The digital copy is continuously fed with transaction data from your ERP, TMS, WMS or production system. This allows you to simulate a new way of working, identify a bottleneck or calculate the impact of a capacity change, without using your real operation as a test environment.

What are the types of digital twins and which one fits processes?

The confusion around 'digital twin' arises because the term is used for very different applications. Geographic twins, such as a 3D model of a city or port area, are visually impressive but have nothing to do with process management. Asset twins for machinery are closer to operations: they predict when a component will fail. Process twins go a step further and model the behaviour of people, systems and goods flows together. That combination is precisely what makes them both valuable and expensive: you need reliable source data from all systems involved. If that data is absent or inaccurate, the model will be too.

Which Dutch companies can build a process digital twin?

In the Netherlands there are roughly three categories of providers. Large technology companies with a Dutch office, such as Siemens Digital Industries, deliver integrated simulation environments for the manufacturing industry, but focus on complex, capital-intensive production environments and rarely work with SMEs. Specialised process modelling companies supply software with which you draw and simulate process models yourself; the end result is a model, not a running system. The third category, which includes Bonsai Software, builds a domain-specific core system that inherently functions as a digital twin: the data flowing through the system is simultaneously the model of the operation. This makes sense if you already want to replace or rebuild your ERP, TMS or WMS. If your existing systems work well and you simply want insight into your processes, a dedicated process modelling provider is often a better choice.

When does a digital twin of business processes make sense, and when does it not?

A process twin delivers the most value when your operation is complex enough to justify simulation and when your existing data is structured and reliable. Think of a logistics company with dozens of variables per planning run, a food producer that wants to link batch control and traceability, or an industrial company that wants to synchronise maintenance schedules with production planning. A process twin is less useful when your basic data registration is not in order. Building a model on data maintained manually in spreadsheets produces an expensive but unreliable system. In that case, a better core system solves more than a twin built on top of it. An honest provider asks that question before issuing a quote.

How do you select a provider and what does it cost?

Ask every provider three questions. One: who owns the model and the underlying data? Some providers build a twin inside their own platform, keeping you dependent on their licence. Two: how is the twin fed? A model that needs to be updated manually is not a twin but an expensive diagram. Three: which specific decision will you make better with this? If a provider cannot answer that question concretely for your sector, the answer is probably 'none'. Indicative costs vary widely: a straightforward process modelling environment can start at tens of thousands of euros per year in licence fees, while a fully custom-built domain-specific system that functions as a process twin typically requires a development trajectory of six months to a year. Always ask for phased go/no-go milestones, so you are not locked into a project halfway through if it fails to meet expectations.

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Frequently asked questions

What is the difference between a digital twin and a process model?

A process model is a static description of how work should proceed. A digital twin is continuously fed with real operational data, so it reflects the actual situation and allows you to run simulations based on current figures. The difference lies in the live data connection.

Which Dutch companies build digital twins of business processes?

In the Netherlands there are large technology companies with simulation software for the manufacturing industry, specialised process modelling providers and parties such as Bonsai Software that build domain-specific core systems which inherently function as a process twin. The right choice depends on whether you want to replace your core system or simply gain insight on top of existing systems.

What does a digital twin of business processes cost?

Costs vary widely. Process modelling software starts at tens of thousands of euros per year in licence fees. A fully custom-built system that functions as a process twin typically requires a trajectory of six months to a year. Do not be caught off guard: ask for phased milestones with go/no-go decision points.

When is a digital twin of business processes not a good choice?

If your basic data registration is not in order, for example because processes are tracked manually in spreadsheets, a twin built on that data will produce an unreliable model. In that case, investing in a solid core system is more worthwhile than building a twin on top of it.