TWIN TRANSFORMATION IN PRODUCTION INDUSTRIES: THE IT/OT INTERPLAY AS AN ENABLER TO RESOLVE THE ALIGNMENT PROBLEM

Luca Stegmann, Andy Weeger () and Arne Buchwald
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Luca Stegmann: University of Applied Sciences Neu-Ulm, Institute for Digital Innovation (IDI), Neu-Ulm, Germany
Andy Weeger: University of Applied Sciences Neu-Ulm, Institute for Digital Innovation (IDI), Neu-Ulm, Germany
Arne Buchwald: University of Applied Sciences Neu-Ulm, Institute for Digital Innovation (IDI), Neu-Ulm, Germany†Ghent University, Department Business Informatics and Operations Management, Ghent, Belgium

International Journal of Innovation Management (ijim), 2025, vol. 29, issue 05n06, 1-34

Abstract: The concept of twin transformation (TT) has been recently gaining momentum in research and practice. Despite its promises to create successful and stable business models, there are yet only a few empirical insights on how TT is realised across different industries. Our study focuses on manufacturing companies and aims to explore how to enable TT in this sector. Drawing on qualitative-empirical means with two in-depth case studies at large German companies operating at different stages of the value chain, we reveal that effective twin transformation in production industries hinges on a robust alignment between the three organisational functions information technology (IT), operational technology (OT) and sustainability across strategic, operational and social levels. Although the specific areas of action for each function differ — emphasising stability in operational tasks (OT), data provision in information technology (IT), and the minimisation of resource consumption alongside compliance with regulations in sustainability — the overlap between the functions lies in the common objective of realising efficiency gains. The study highlights the importance of aligning IT, OT, and sustainability initiatives to achieve integrated and sustainable production systems, providing valuable insights for companies pursuing twin transformation.

Keywords: Twin transformation; production industry; digital; sustainability; information technology; operational technology (search for similar items in EconPapers)
Date: 2025
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DOI: 10.1142/S1363919625400080

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