Digital Twin Value Creation as a Dynamic System: A Causal Loop Diagram Approach

Abstract: Digital Twins (DTs) are promoted as a transformative paradigm for the built Environment, yet their value is articulated through benefit propositions that lack cost integration. This study proposes a new conceptualisation of DTs value creation for asset owners, based on System Dynamics (SD). DT costs and benefits are identified first and modelled as variables of four sub-systems representing operational, human, financial and market mechanisms across the asset lifecycle. The results reveal different feedback loops of how value is realised. The contribution is a general system-level explanation of DT value that supports more informed investment decisions.