Governance and project organisation

Why do we need Project Management for the implementation of the Supply Chain Digital Twin Breakthrough Strategy? Why is Project Management key in transformations? Blogpost Why Process Clarity is key hints that in the nearby future, your organisation will go through a transition and transformation!

To start a project, to review, improve or transform your end-to-end processes; or even more ambitious, implementing the Supply Chain Digital Twin Breakthrough Strategy (SCDT-strategy), it makes sense to prepare and create a roadmap. For instance, starting up a SCDT journey, it is of key importance to build the project organisation and install a governance process. A SCDT project, any project must be integrated in overall company strategies. Some years ago we studied project management Prince2, PMI, Governance, Project Leadership and used the principles in practice; the references in the list, together with the projectmanagement methods, are fundamentals to my opinion and provide direction:

• Blomquist, T., Muller, R. (2006), Middle Managers in Program and Portfolio Management; Practices, Roles and Responsibilities (Newton Square, Project Management Institute).
• Humphreys and Associates, Basic concepts of Earned Value Management. World wide web https://www.humphreys-assoc.com (visited 20-2-2016).
• Jugdev, K., Müller, R., (2005), A Retrospective look at our evolving understanding of project success. Project Management Institute Vol. 36, No.4 19-31.
• Müller, R., Turner, R., (2005) The Project Manager’s Leadership Style as a Success Factor on projects: A Literature Review. Project Management Institute Vol. 36, No. 1, 49-61,
• Müller, R., Turner, R., (2007), The Influence of Project Managers on Project Success Criteria and Project Success by Type of Project. Elsevier Ltd European Management Journal Vol. 25, No. 4, pp. 298–309.

(Contact Act2Vision – on request the papers can be shared with you)

Project governance

Project Management and specifically Project governance is key to ensure delivery of quality and budget in digital twin projects. A steering committee with representatives from each function (executive sponsors and project manager) monitors progress and decision-making. A data governance board defines data standards, access rights, and privacy.

Executive sponsorship – Involvement of the Chief Supply Chain Officer, CFO and CIO is crucial to secure budget and priority. Digital twins require changes to processes and data management.

The project organization is composed of a multidisciplinary team consisting of supply chain planners, data engineers, IT architects, modeling experts, AI/data scientists, and change management specialists. The team structure includes a program director, a project manager per phase, technical leader, data manager and business process owners.

Stakeholders include internal and external parties:

1. Interne stakeholders – Chief level (CSCO, CIO, CFO), supply chain planners, demand planners, procurement, operations, logistics, IT, finance, sales, compliance/risk, datagovernance team.
2. External stakeholders – suppliers and contract manufacturers (for data sharing and joint scenarios), logistics service providers, customers (for service level feedback), software suppliers of the digital twin platform, implementation partners and any consultants, government agencies (for sustainability/reporting).

The Intellify guidelines recommend establishing a clear “north star” and roadmap, ensuring data governance and quality, creating cross-functional teams, implementing risk and security controls, and starting iterative pilots. Using PMBoK, from Project Management Institute provides you with five project phases, using 10 processes and, 49 points of attention project management.

The following approach applies these recommendations:

Quality assurance

• Quality plan – Draw up a quality management plan from the start that defines standards for data quality, model validation and user acceptance. Add validation checkpoints after each project phase to assess whether the deliverables meet business goals and technical specifications. Use metrics such as forecast accuracy and scenario simulation reliability.
• Test and validate – Perform unit tests and integration tests on data pipelines, algorithms, and dashboards. Validate the twin model with historical data (backtesting) and have domain experts review the results before going live. Adjust the model based on feedback.
• Continuous improvement – Implement a process for continuous monitoring and improvement of the twin model; periodically evaluate predictive performance and adjust algorithms. This is in line with the advice to treat digital twins as ‘living products’.

Phasing and planning

1. Plan facets – Define project phasing with clear milestones such as concept validation, pilot, full-scale implementation and scale-up. The phasing in the previous paragraph can be seen as the macro plan; Within each phase, micro-plans with deliverables, timeline and responsibilities must be created. Intellify recommends using iterative pilots with early successes to build buy-in.
2. Delivery of partial results – Ensure that each phase is completed with concrete results to be delivered (e.g. a data map, validation model, KPI report). A ‘gate’ review by the steering committee determines whether the project will proceed to the next phase. This way, any quality issues or budget overruns are identified at an early stage.
3. Integrated planning – Use an integrated project plan that includes time, resources, and costs. Schedule slack for unforeseen work such as data cleaning or extra training.

Cost control

1. Budget baseline – Define a budget baseline per phase with tolerances. Use an project control methodology (fi. Strategic Project Buckets, Earned Value Management) to link the value of delivered deliverables to the cost and time. If deviations arise, take corrective measures (rescoping or additional budget).
2. Periodic financial reporting – Report costs, hours spent and forecasts to the steering committee; compare with baseline and identify deviations in a timely manner.
3. Risk management – Map out risks such as scope creep, data quality issues or integration delays. Set aside a risk budget and define mitigations. The Intellify Guidelines emphasize the importance of risk management and security, including privacy and cybersecurity.

A well-designed governance framework ensures that the SCDTS implementation is controlled, that partial results are measurable and that the total costs remain within the predetermined limits.

Team composition, roles and areas of expertise

Required Roles

• Program director – ultimately responsible, reports to CSCO/CIO, manages project manager.
• Project manager – coordinates execution, monitors planning and budget, coordinates with stakeholders.
• Solution architect – designs the overall architecture (data ingestion, integration, modeling, cloud platform).
• Supply chain business lead – represents the process owners, defines use cases and validates models.
• Data engineers – build data pipelines, ensure data quality, metadata, and integrations.
• Modellers/simulation experts – develop the twin model; have expertise in optimization, simulation and mathematical modeling.
• Data scientists/AI experts – develop algorithms for prediction and optimization; integrate machine learning into scenario analysis.
• IT integration specialists – responsible for linking with ERP/MES/TMS, APIs and cloud infrastructure.
• Change management specialists – support communication, training and organisational adaptation.
• Cybersecurity and privacy expert – manages security, compliance (GDPR) and access control.

Required areas of expertise

• Supply chain management – demand planning, inventory management, production, transportation, purchasing.
• Mathematical modeling and simulation – discrete event simulation, system dynamics, optimization.
• Data engineering – data modeling, ETL, streaming, API integrations.
• Analytics & AI – statistiek, machinelearning, probabilistische forecasting, scenarioanalyse.
• ITarchitectuur – cloud, microservices, databasebeheer, enterprise integration patterns.
• Projectmanagement – agile/scrum, Prince2, stakeholdermanagement, communicatie.
• Change management – Kotter/Proscimethoden, training, adoptie.
• Compliance & security – data privacy, information security, sector regulation.

Advice for project roles

Different functions within a digital twin project (SCDTS) can benefit from specific training:

• Modellers and simulation experts – a 40-hour EUGLOH course or the EIT modules on digital process twins gives in-depth experience with simulation tools and scenario analysis. This knowledge is essential for the development and calibration of the twin model.
• Supply chain planners and business leads – follow courses that combine supply chain logistics and operations with digital twin concepts (e.g. EUGLOH, EIT Advanced Manufacturing) helping your planners to translate business issues into simulation models.
• Solution architects and data engineers – stimilate certifications alike the Fraunhofer certification and EIT modules on technical implementation provide insight into architecture, data integration and IoT, enabling your teams to support in design of a robust digital twin infrastructure.
• Project managers and change managers – line up for (online, digital) nexecutive programs such as DIGITWIN4CIUE deal with strategic planning, governance, and change management. These trainings are useful for leaders who manage a SCDTS program and need to manage the impact on processes and organization.

By investing time in  training and analysis, your organization can reduce the risks of a controlled start in your transition, which might even lead to a SCDTS implementation in your end-to-end processes. Good preparation helps to convince stakeholders, justify budgets and ensure that the project runs efficiently. And, don’t forget to select the right project manager.

Project ending – Hand-over, commissioning is key for adoption.

A Supply Chain Digital Twin Breakthroug Strategy is a long-term strategy. It is a process by itself, requiring a skilled Process owner. Once the prototype works:

• Integrate with enterprise systems (ERP, APS, S&OP, PLM).
• Add user roles and data access control.
• Ensure versioning, auditability, and cybersecurity.
• Move from Digital Shadow (one-way data flow) → Digital Twin (bi-directional) → Digital Thread (lifecycle connectivity).

Follow a Plan–Do–Check–Act (PDCA) loop:

1. Plan: Define KPIs and expected impact.
2. Do: Implement and update the twin.
3. Check: Validate model accuracy and performance.
4. Act: Adapt operations or redesign processes.

Building process clarity today for the digital supply chain of tomorrow.

Act2Vision Digital Transformation Leadership and Project Management providing direction, clarity and structure. Act2Vision transforms complex supply chain operations into transparent, data-driven, and continuously improving systems. By combining Operational Excellence experience in multiple data driven processes, Act2Vision ensures your workflows are measurable, optimized, and ready for Digital Twin thinking and replication.

Interested in Act2Vision Services, contact:

• Program-/Project management and Project Management Support
• BPM and Standardization Program (S&OP, P2P, .. end-to-end)
• Operational Data Architecture Blueprint
• Digital Twin Readiness Scan (Maturity) and Request for Proposal
• Optimization & Simulation Guidance
• Project, Program, Interim Digital Transformation Leadership