A Technology Adoption Model in the Dutch Energy sector: The case of Digital Twins

Abstract

Emerging technologies are revolutionizing organizational growth, productivity and in- vestments more than ever before. One such technology that has come into the limelight in the past few years is the Digital Twin. The so-called ’digital twin’ is a real-time virtual replica (representation) of any given physical asset/object. The full-potential of a digital twin lies in its ability to not only communicate with the physical asset, but also control it remotely. Although the concept of digital twins is more than a decade old, digital twin initiatives are now been deployed in the manufacturing, automotive and healthcare industries among others. One such industry, experimenting with digital twins is the Energy sector. The objective of this research was to perform an exploratory investigation into the adoption of Digital Twins in the Dutch Energy sector predominately by Trans- mission System Operators (TSOs) and Distribution System Operators (DSOs). The investigation comprised of four elements: establishing the most fitting technology adoption model when it comes to digital twins, determining the relevant adoption variables, exploring the perception of digital twins in the industry and investigating the relationship between absorptive capacity and organizational characteristics. The research method deployed for the former two elements was desk research, whereas the latter elements were probed by conducting (semi-structured) interviews and targeted questionnaires respectively. There were a total of nine participants involved in this research which included technology adoption decision-makers having a wide range of work experience (1-5 years to 20+ years) from the five of the eight TSO/DSOs of the Netherlands.
The research found that the most fitting technology adoption model when it comes to digital twins in the Dutch energy sector was the Technology-Organization-Environment (TOE) Framework with the following relevant (non-exhaustive) adoption variables: Complexity, Compatibility, Perception, Technological Characteristics, Availability, Organizational culture, Organizational size, Budget size, Incentives, Management support, Ab- sorptive capacity, (decision-maker’s) Demographics, Attitude towards technology, Regulations, Competitive pressure and Network effects. In addition, the overall perception of digital twins was found to be positive across the Dutch Energy sector, however, there was no consistent relationship established between organizational characteristics and the levels of digital twin perception. Similarly, the research suggested that organizational characteristics and absorptive capacity were not correlated. Nonetheless given the limitations of having a low number of study participants and the potential of bias amongst respondents towards their employer, the strength (significance) of these discovered relationships are indicative and should be further investigated in future research prior to making any additional claims that are conclusive.