Digital Twin of an Enterprise as a Management Tool: Concept and Practical Significance

Abstract

The relevance of the study is determined by the growing need for modern data-driven management tools, which is associated with the deepening of digital transformation and the increasing complexity of the operational activities of enterprises.

Aim. The aim of the article is to elucidate the conceptual understanding of the digital twin of an enterprise as a management tool and to substantiate its practical significance for improving economic performance and enhancing decision-making processes.

Methods. The methodological basis of the study comprises general scientific methods of cognition, in particular the method of scientific literature analysis, applied to examine the current state of research on the issue, as well as the methods of scientific generalization and systematization, employed to structure and interpret the obtained results.

Results. The study substantiates the interpretation of the digital twin as an integrated dynamic virtual model that ensures continuous synchronization with real-world business processes and serves as a foundation for analytical and predictive management. It has been established that the implementation of digital twins contributes to enhancing operational efficiency through real-time monitoring, the optimization of resource allocation, and improved coordination among functional units. In view of this, the functional capabilities of digital twins in supporting managerial decision-making have been analyzed, in particular their ability to simulate alternative scenarios, reduce uncertainty, and strengthen the validity of strategic and operational decisions. Moreover, the economic effects of their application have been identified, namely cost optimization, productivity growth, and the enhanced capacity of enterprises to adapt to external changes. Within this context, the interrelation between digital twins and the digital ecosystem of the enterprise has been examined, which made it possible to clarify their role as a central analytical element that integrates heterogeneous data flows into a unified information space. At the same time, the organizational and technological obstacles to implementation have been analyzed, including an insufficient level of digital competencies, high initial investment costs, and issues related to data integration and cybersecurity. Taking the foregoing into account, it has been established that the development of advanced digital technologies creates favorable conditions for scaling digital twins across various sectors of the economy.

Conclusions. It has been substantiated that the digital twin of an enterprise constitutes not merely a technological innovation but also a transformational management tool that improves the quality of decision-making, strengthens business resilience, and supports sustainable development in the context of the digital economy.