Leverage a digital twin to drive operational resilience

Implementing operational resilience through a digital twin is crucial if companies want to avoid being impacted by the next, inevitable market disruption.

Modern business models and strategies do not keep up with the challenges companies currently face. For example, the financial crisis of 2008 and the recent global pandemic have shown organizations how everything they know about business can became irrelevant overnight.

To overcome this challenge many governments across the globe are discussing and setting up regulations to secure companies from any potential unseen disruption moving into the future. For example, in the EU, the proposed Digital Operational Resilience Act (DORA) is close to being finalized. While in the UK, draft legislation has been published, enabling financial services regulators there to create rules for critical third parties.

However, while this a step in the right direction, companies cannot afford to wait for new regulations to come into play. They should start planning for what successful operational resilience implementations will require now.

Generate more organizational agility and flexibility

Operational resilience enables companies to provide essential business functions in the face of market disruptions (for example a pandemic or any technology that crashes frequently etc.) by predicting issues in advance and developing a strategy to help recover from them fast.

It’s important to note that operational resilience cannot be replaced by risk management, as it isn’t able to quantify threats or respond to particular risks at speed. However, by introducing operational resilience across business functions, companies will be able to adopt an agile mindset that ensures they are more flexible and adaptable when the next disruption impacts the market.

Digital twins drive operational resilience

A digital twin is a digital model that enables companies to design new processes in an offline environment without disrupting their business. The key pillars of a digital twin are process mining, modelling, simulating, and fostering continuous improvement. With process mining and modelling companies can analyze the current state of operations and document the necessary processes needed to ensure operational resilience implementations occur without encountering any major challenges. While simulating highlights how a new process integrates with current ways of working and how disruptions will impact this new setup.

This enables improvements to be tested continuously in a safe environment – determining whether they have the desired effects companies need before launching them. Additionally, leveraging this simulated approach is a more effective and less costly way of achieving operational compliance than performing disruption roleplays and physical tests.

To summarize, leveraging a digital twin enables companies to model and improve their operational resilience in an offline environment, ensuring they have an effective response and recovery plan in place before the next market disruption occurs.

Discover how Capgemini’s Digital Twin for Finance solution can help your organization to improve decision-making, enhance customer experience, improve working capital, and reduce operational costs moving them closer to – what we call – the Frictionless Enterprise by contacting: mariia.nalapko@capgemini.com