Why adopting a digital twin for your business is crucial?

Digital twins are essentially the virtual duplications of physical devices that data scientists, as well as IT professionals, can use to run simulations before actual devices are built and installed. They are also changing how technologies such as IoT, AI, and analytics are augmented in today's time.

Businesses across the globe are implementing digital twins to revive their businesses. Before the end of this year, half the world's large industrial companies will rely on this innovative technology to gain an added insight into their products, assets, processes, operations, and much more.

Considering the accelerated need for digital transformation across sectors, hyper-automation was among the buzzwords last year and will continue to drive conversations well this year as well. Talking about it, hyper-automation merges multiple components of automation technologies and tools that enable greater automation of work.

Greater data access has made decision-making an easy task and most of us have automated our business processes. Working together with colleagues, external partners, and even customers is precipitously effortless. And we are often discovering new ways to innovate businesses.

But what has spurred this astonishing turnaround? It is the digital twin effect.

Hyper-Automation Powering Tax Technology

Just as it is for almost all business processes, it would be wise to include tax technology as part of the functions that have been hyper-automated. Keeping in mind the Government's mission of bringing in transparency to avert tax terrorism, technology through digital twins will surely lead the way.

Seemingly futuristic, digital twins have been present for close to two decades now, but their use has only gained popularity in recent times, with the pandemic giving it a push. As a means of hyper-automating tasks, digital twins can be utilized across business processes like Record to Report, Procure to Pay, Order to Cash, Machine to Machine, and many more tasks alike. This creates opportunities to explore decision modeling on AI-based inputs, stream analytics, and machine learning tools.

In the tax technology space, there have been a rise in GST compliance platforms, procurement to payment, vendor invoice reconciliations, and other tools. Hyper-automation has taken over the GST accounting system, and as there are constant developments in the sector, soon we can anticipate seeing Digital Transformation and Automation across various industries in this domain. With the help of hyper-automation, which generates a layer across the organization thus creating a Digital Twin of the Organization (DTO) letting us visualize the wear and tear in numerous processes that need to be automated. This can also help certify limiting penalties while auditing.

The Need and Importance of Having a Digital Twin

What businesses need to know about digital twins in the tax sphere is that the sooner these are adopted the improved advantages they can benefit. To put this into perspective, the sooner an organisation digitizes its data, the faster AI can work with it to develop measurable results that can be used to upsurge business efficiency.

Keeping in mind that during the pandemic, many businesses concentrated on cash recovery, the foundation of tax technology as a part of processes made sense. Moreover, understanding the abundant amounts of data involved in tax processes, improving AI systems with ML tools will allow these to take real-time decisions with ease. This competent analysis of data will go a long way in assisting companies to recognise opportunities for tax saving and recovery.

But of course, before organizations can get to this phase completely, there needs to be amplified and consistent awareness about the paybacks of hyper-automation and tax technology. We are hoping that this year will transform the tax environment, consciousness about the need to embrace the new normal will become imperative.

The Clear Advantage for Early Adopters

Unlike previous years, tax professionals will be obstructed in almost every sphere. More transactions will be accounted for in the cloud, sharing of information will surely go up, and with the use of digital technology, early adopters can look at achieving an edge over their competitors.

Through digital twins, which are designed to bring in proficiency in operations, and as we move forward, we can expect our systems to have the reliability of a well-oiled machine. And while its use might still be in the nascent stages, one thing is for sure, hyper-automation is here to stay for as long as we can imagine.

Soon, digital twin operators may even be able to take this a step further, with the help of automated or robotic maintenance that would let engineers carry out maintenance work remotely, by working along with the digital twin.

The fact here is that digital twin technology gives project teams a level of understanding and control that simply isn't possible to achieve otherwise and frees up valuable time for frontline workers to focus on tasks that need attention and add value. With the accurate digitally supported decision-making tools, an individual can make the best decisions at the right time.

Author:

Niraj Hutheesing, Founder and Managing Director of Cygnet Infotech