CIO Compass – Innovation fusing digital and physical

Digital twins are no longer a technology topic , they are becoming an operating model decision. By connecting physical assets, operational data and decision intelligence, they redefine how industrial organisations plan, arbitrate and execute change across engineering, operations and partners. 

In the next 18–24 months, the game changer is the convergence of three AI layers: decision intelligence and analytics, agentic AI to orchestrate workflows, and Physical AI (robotics, vision, autonomy) that acts in the real world. Together, they turn the twin into an execution‑ready ‘industrial brain’ rather than a digital display but only when embedded into governance, workflows and accountability. 

This shift is also geopolitical. Supply chains, energy constraints and strategic dependencies are forcing European industries to regain control over how they design, build and operate critical assets with stronger requirements on sovereignty, cybersecurity and interoperability. 

This explains why most organisations remain stuck at pilot stage. The technology is ready. The operating model is not. Fragmented ownership between IT, OT and engineering, weak configuration control, unclear decision rights, and slow change management prevent scale.

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