Siemens' Industrial Internet of Things and Digital Twin Pioneers New Pathways for Digital Transformation in Manufacturing

DOI: https://doi.org/10.62517/jbm.202609214

Author(s)

Zihan Xu

Affiliation(s)

School of international Business, Southwestern University of Finance and Economics, Chengdu, Sichuan, 611130, China

Abstract

With the advent of the Industry 4.0 era, the Industrial Internet of Things and digital twins have become the core drivers for intelligent transformation in manufacturing. This paper examines Siemens, a global manufacturing giant, to explore how its strategic approach of ‘virtual-physical convergence’ enabled a successful transition from a traditional electrical and automation hardware manufacturer to a digital industrial technology service provider. The study employs case study methodology, literature analysis, and inductive-deductive reasoning to conduct a comparative analysis of recent global and Chinese industrial Internet of Things data alongside digital twin technologies.Research reveals that Siemens has achieved closed-loop management across the entire product lifecycle-from design and production planning to after-sales service-by deeply integrating the data acquisition capabilities of the Industrial Internet of Things with the simulation and predictive capabilities of digital twins through open platforms such as MindSphere and Xcelerator. This convergence not only enhances productivity and energy efficiency but also drives innovation in manufacturing business models, shifting from single-product sales to outcome-oriented service trade centred on ‘products plus services’. This paper summarises Siemens' technological approach of ‘first testing in the virtual realm, then optimising in reality,’ along with its economic value in reducing costs and accelerating innovation. It provides support and practical pathways for China's manufacturing sector to upgrade its industrial chain and reconstruct global value chains within the context of the digital economy.

Keywords

Industrial Internet of Things; Digital Twin; Siemens; Digital Transformation

References

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