Effective Simulations for Value Exploration in System-of-Systems Design : A Step Towards Digital Twins

Today, increased global competition and regulatory demands push organizations to find innovative ways to design and create value. One way is to examine Product-Service System offerings, which enable more stable revenues and foster tighter collaboration and value co-creation between the provider and customer. However, this often means adopting a System-of-Systems (SoS) approach where the value creation is dependent on successful collaboration between constituent systems and actors. SoS also leads to higher complexity and uncertainty, making them more challenging to design, especially in the early stages where knowledge is limited. Therefore, this thesis investigates how to leverage simulations and operational data to explore the value creation in SoS design. Methodologically, the work adopts a Design Research Methodology and Participatory Action Research approach, combining systematic literature reviews with six industrial case studies in the construction machinery and climate resilience sectors. The case studies originate from a series of research projects conducted in collaboration with various industrial and public partners between 2020 and 2025. The research introduces two main contributions. First, the Value–Data Framework, which operationalizes Value-Driven Design by linking value modeling to operational datasets, enabling transparent and quantitative assessment of value creation. The value model introduces a two-step value hierarchy to enhance transparency and address the growing complexity of SoS. Operational data is defined and classified clearly to show where and how it can be leveraged. The second contribution, an Integrated Simulation Platform, equips design teams with the ability to develop effective simulations for SoS modeling in early design stages. The platform explicitly addresses multi-fidelity to guide developers in balancing the computational complexity and accuracy. Finally, both contributions are demonstrated in quarry case studies to validate and highlight their usefulness. Lastly, the SoS simulations are contextualized for Digital Twinning, and the use cases and needs for deploying Digital Twins in climate resilience efforts are examined. The findings advance theory by bridging Value-Driven Design and SoS simulations, and provide practical guidelines for managing fidelity trade-offs and data–value integration. Industrial implications include improved decision support for electrification, autonomy, and resilience strategies.

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Publication Details

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KTH Publication Database DiVA (KTH Royal Institute of Technology)
Published
2026-01-01
Primary Topic
Service and Product Innovation
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article

Effective Simulations for Value Exploration in System-of-Systems Design : A Step Towards Digital Twins

Carl Nils Konrad Toller Melén
KTH Publication Database DiVA (KTH Royal Institute of Technology)
Service and Product Innovation
article

Effective Simulations for Value Exploration in System-of-Systems Design : A Step Towards Digital Twins

Carl Nils Konrad Toller Melén
article en

Abstract

Today, increased global competition and regulatory demands push organizations to find innovative ways to design and create value. One way is to examine Product-Service System offerings, which enable more stable revenues and foster tighter collaboration and value co-creation between the provider and customer. However, this often means adopting a System-of-Systems (SoS) approach where the value creation is dependent on successful collaboration between constituent systems and actors. SoS also leads to higher complexity and uncertainty, making them more challenging to design, especially in the early stages where knowledge is limited. Therefore, this thesis investigates how to leverage simulations and operational data to explore the value creation in SoS design. Methodologically, the work adopts a Design Research Methodology and Participatory Action Research approach, combining systematic literature reviews with six industrial case studies in the construction machinery and climate resilience sectors. The case studies originate from a series of research projects conducted in collaboration with various industrial and public partners between 2020 and 2025. The research introduces two main contributions. First, the Value–Data Framework, which operationalizes Value-Driven Design by linking value modeling to operational datasets, enabling transparent and quantitative assessment of value creation. The value model introduces a two-step value hierarchy to enhance transparency and address the growing complexity of SoS. Operational data is defined and classified clearly to show where and how it can be leveraged. The second contribution, an Integrated Simulation Platform, equips design teams with the ability to develop effective simulations for SoS modeling in early design stages. The platform explicitly addresses multi-fidelity to guide developers in balancing the computational complexity and accuracy. Finally, both contributions are demonstrated in quarry case studies to validate and highlight their usefulness. Lastly, the SoS simulations are contextualized for Digital Twinning, and the use cases and needs for deploying Digital Twins in climate resilience efforts are examined. The findings advance theory by bridging Value-Driven Design and SoS simulations, and provide practical guidelines for managing fidelity trade-offs and data–value integration. Industrial implications include improved decision support for electrification, autonomy, and resilience strategies.

KTH Publication Database DiVA (KTH Royal Institute of Technology)
Climate action
Openalex Percentile: Top 93%
Service and Product Innovation
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