Digital twin

A digital twin is a virtual image of a real production system that uses data from the real world to perform simulations, analyses and optimizations. In the manufacturing industry, the digital twin enables predictive maintenance, process improvements, resource efficiency and even the development of new products.
By combining IoT, cloud and AI technologies, digital twins provide valuable insights in real time and are an essential building block for the implementation of Industry 4.0 and smart manufacturing.

Example:
An automotive plant creates digital twins of its production lines in order to virtually test various scenarios (e.g. machine downtimes or capacity changes) before they are implemented in real production.