Unlocking Product Development Potential: The Underutilization of Digital Simulation Tools
In an increasingly competitive and innovation-driven market, companies face growing pressure to accelerate product development, reduce costs, and enhance quality. Digital simulation tools, particularly Digital Twins, offer a powerful yet frequently underutilized opportunity to transform traditional R&D processes. This article explores why many organizations fail to fully leverage simulation technology, identifies common barriers to effective adoption, and presents a structured approach to unlocking significant potential benefits for improved product performance, shorter development cycles, and greater customer satisfaction.
Gilmar Pereira
3/20/20255 min read


Key Benefits of Digital Twins for Product Development
Enhanced Testing and Validation: Digital Twins enable evaluation of new solutions across realistic, comprehensive scenarios, including extreme and unusual operating conditions.
Deeper Product Insights: Engineers can continuously monitor every aspect of the system in real-time, effectively tracing complex interactions between different product components.
Real-World Data-Driven Improvements: Digital Twins leverage actual operational data to simulate and assess the impact of potential design modifications.
Quantifiable Impact
Research and industry studies indicate substantial benefits from integrating Digital Twin technology:
The Power of Simulation in Product Development
In modern R&D and product development, engineers extensively use digital simulations to validate ideas and make critical trade-off decisions based on simulated product performance data. Digital simulation tools offer transformative benefits to R&D processes:
Rapid Concept Testing: Eliminating delays associated with physical prototypes
Multiple Design Evaluations: Testing multiple materials and designs simultaneously
Informed Decision-Making: Allowing systematic exploration of tradeoffs
Improved Predictive Accuracy: Significantly enhancing the predictability of product performance
If we move one step forward in the digitalization, and create an environment capable of studying several simulations, backed up with real-time data and a two-way flow of information between the twin and the sensors that collect this data, we arrive at Digital Twins. This integration provides a risk-free product development platform, enabling engineering teams to evaluate diverse design scenarios without the costs and limitations associated with physical prototypes.
Integrating Digital Twin technology into the early stages of product development could allow companies to adopt processes that work faster, deliver better results, and bring development closer to their customers.
Companies equipped with robust Digital Twin platforms can conduct comprehensive full-product simulations in a virtual environment before any proposed design is signed off on by the customer. That Digital Twin of the product can be used to demonstrate the proposed solution to the customer and verify that the new design meets their needs. And the Digital Twin models of the new components can then be added to the library, making them available for future projects with similar requirements.
It sounds amazing, right? So why aren't more companies using Digital Twins for product development?
Digital Simulation as an Untapped Advantage
In today's competitive market, digital simulation stands out as a critical but often underutilized tool in product design and development. Recent studies highlight the urgency: the Digital Twin market grew 71% between 2020 and 2022, yet only 9% of Digital Twin projects currently focus on product simulation. Companies recognizing and embracing simulation can significantly outperform their competitors.
Common Barriers to Effective Simulation Utilization
Company Leadership Misunderstands the Value of Digital Twins
Successful Digital Twin programs are change management efforts, requiring senior management commitment and support, and a strong program management team to track milestones, develop new processes, and support their adoption by the organization. What many senior leaders miss is that Digital Twins can be used across almost every process and to leverage product development. Instead, they believe it is flashy 3D visualizations everyone loves to show off and just another "Buzz Word."
Company Readiness
Despite clear advantages, companies often encounter significant barriers:
Governance and Workflow Integration: Simulation tools must integrate seamlessly into existing workflows and governance structures. Organizations must adopt best practices in simulation modeling to ensure design decisions are backed by credible, reliable data. Without this integration, simulation outputs may not influence decision-making effectively.
Skill and Knowledge Gaps: Simulation for product development requires specialized expertise that many organizations lack. This represents not just technical knowledge of simulation tools but also understanding of how to interpret results and translate them into actionable insights.
Cultural Resistance: In industries with traditional R&D approaches, cultural resistance to simulation-based decision-making can be substantial. Overcoming the "we've always done it this way" mentality requires demonstrated success cases and executive sponsorship.
Consequences of Simulation Underutilization in Product Development
The cost of not effectively integrating digital simulation tools includes:
Longer product development timelines
Higher costs from late-stage design changes
Limited exploration of alternative designs
Reduced capacity to accurately anticipate product performance in complex environments
Implementing a Successful Digital Twin Strategy
Implementing Digital Twins requires both technical readiness and cultural transformation:


The Digital Twin Software Landscape
The Digital Twin software market for product simulation features several sophisticated solutions provided by industry-leading vendors. Each solution offers distinctive capabilities tailored to specific aspects of product simulation, ranging from physics-based modeling to integrated lifecycle management.
Selecting the right solution should be done carefully and conscientiously. A suitable choice should align with the criteria defined in: Phase 1: Competitive Intelligence and Scoping; and Phase 2: Architectural Planning, Integration, and Deployment
Below is a brief overview of some prominent solution providers.
Generic Digital Twin Solutions for Product Design
PTC: Integrates CAD, PLM, and IoT data into real-time models, providing predictive insights and optimized operations. Utilizing ThingWorx and Vuforia, PTC solutions streamline product design, maintenance, and asset lifecycle management.
Ansys: Employs multiphysics simulation combined with real-time data, creating highly accurate Digital Twins. Through its Twin Builder platform, Ansys enables predictive analytics, design optimization, and improved operational efficiency across multiple industries.
Dassault Systèmes (3DEXPERIENCE Platform): Offers comprehensive Digital Twin solutions through its DELMIA platform, extending traditional technology to a "virtual twin experience." DELMIA allows organizations to virtually model, simulate, visualize, and demonstrate product implementations throughout the lifecycle.
Industry-Specific Digital Twin Solutions
GE Vernova: Combines real-time operational data with physics-based models, optimizing asset performance and enabling predictive maintenance, particularly in the energy sector.
Microsoft: Azure Digital Twins platform offers a robust platform-as-a-service (PaaS) solution, creating digital models of products and infrastructures, including buildings, energy networks, and industrial facilities.
NVIDIA: Omniverse platform enables robotics developers to create, test, and optimize robotic fleets in virtual environments before deployment in real-world scenarios like factories or streets.
IBM: Maximo Application Suite integrates IoT, generative AI, and advanced data analytics, comprehensively monitoring and managing asset lifecycles.
Rockwell Automation: Specializes in Digital Twins tailored specifically for manufacturing through its Emulate3D software.
Pricing
Prices for these Digital Twin solutions vary significantly depending on functionalities, scalability, and specific applications, typically starting from around $1,500 upwards.
Recommendations for Small Companies
For smaller businesses, investing in a comprehensive Digital Twin solution may represent a significant financial commitment. However, smaller organizations don't need to select an entire software suite immediately. Instead, they can carefully analyze which aspects of digitalization and simulation would most effectively support their product development objectives. By building a structured digitalization roadmap, companies can take incremental steps that maximize benefits from minimal investments.
One practical approach is partnering with experienced consultants who can provide tailored guidance in selecting and implementing the right tools.
Conclusion: Seizing the Digital Advantage
Now is the time for companies to critically assess their current R&D processes and readiness for digital transformation. By strategically adopting digital simulation and Digital Twin technologies, organizations can significantly enhance their product development capabilities, reduce time-to-market, and strengthen their competitive position. Don't risk falling behind—begin your journey today by evaluating your company's digital maturity, addressing internal barriers, and strategically implementing Digital Twins to unlock unprecedented innovation and growth.
How I Can Help
Digital Twin technology offers clear benefits, but making it work in practice needs expert planning and execution. I've led digital transformations, implemented Digital Twin for Product Development, and explore the benefits of Simulation in companies like Vestas and Novo Nordisk, so I know how to help your organization effectively use digital simulation tools.
I offer targeted consulting services to help your organization maximize the potential of digital simulation tools:
Digital Transformation Strategy Development
Assessment of your current R&D digital maturity and simulation capabilities
Development of a customized Digital Twin/Simulation implementation roadmap
Strategic guidance on software selection aligned with your specific industry needs
Implementation Support
Project management for Digital Twin initiatives from planning through deployment
Technical guidance on integration with existing systems and workflows
Change management support to overcome cultural barriers to adoption
R&D Process Optimization
Redesign of R&D governance structures to incorporate simulation-based decision making
Team capability assessment and skills development planning
Establishment of simulation best practices and validation methodologies
My goal is to help you achieve real, measurable improvements from your digital transformation efforts.
Reach me at gp@gilmarconsulting.com for a free consultation. We can discuss how Digital Twin technology can speed up innovation, reduce costs, and improve your competitive edge.


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