A sustainability-oriented KPI framework for digital twin adoption in the sugar industry: ISM–MICMAC approach

Purpose The sugar industry is always pressured to be suitable and enhance its operational effectiveness. Digital twin (DT) has the potential to transform this industry. However, the lack of industry-specific key performance indicator (KPI) frameworks makes it challenging to implement them. This study provides a hierarchical KPI model for DT adoption in the sugar sector, interconnecting the United Nations' sustainable development goals (SDGs). Design/methodology/approach It has two phases: the first is an intense literature review, which identifies 24 relevant KPIs for DT adoption and sets the procedure for expert validation. Second, hierarchical relationships were identified through interpretive structural modeling (ISM) and MICMAC was used to classify KPIs based on driving and reliant power. The developed framework has several dimensions: technology, environmental, strategic, operational, financial and security. Findings Operational and environmental KPIs relate to important factors; however, environmental, social and governance (ESG) tracking, stakeholder satisfaction, governance, social and environmental factors, and reduction of defects were also critical outcomes. Key drivers came after technological studies, such as integrating old legacy systems, data integration and return on investment, or digital investment. The KPI hierarchy establishes the structural relationship that ensures DT investments align with sustainability goals, including cutting carbon emissions, maximizing resource usage and reducing water consumption. Research limitations/implications Likewise, earlier studies, the existing paper is also not free from limitations. We consulted experts from emerging economies like India to develop ISM modeling and collect data. However, the experts' opinions may change from country to country, impacting results. Also, the proposed research is applicable in the sugar sector. Originality/value Developing the DT adoption KPIs in the sugar sector using ISM and MICMAC is a unique contribution of this research. In addition, all KPI frameworks are also interconnected with the United Nations sustainability goals.