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A sustainability-oriented KPI framework for Digital Twin adoption in the sugar industry : ISM-MICMAC approach

Pandey, Satish Chandra ; Virmani, Naveen ; Bhandari, Dimple and Jagtap, Sandeep LU orcid (2025) In Journal of Agribusiness in Developing and Emerging Economies
Abstract
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... (More)
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: 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.

Managerial implications: The existing research guides the derivation of the KPIs for DT deployments using ISM and MICMAC methods. Such guidance will be helpful for compliance and policy development for DT adoption 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. (Less)
Please use this url to cite or link to this publication:
author
; ; and
organization
publishing date
type
Contribution to journal
publication status
epub
subject
in
Journal of Agribusiness in Developing and Emerging Economies
pages
20 pages
publisher
Emerald Group Publishing Limited
ISSN
2044-0839
DOI
10.1108/JADEE-08-2025-0392
language
English
LU publication?
yes
id
682a8dc3-028b-4eb4-a193-0e1090198ccc
date added to LUP
2025-11-02 14:50:04
date last changed
2025-11-28 11:05:43
@article{682a8dc3-028b-4eb4-a193-0e1090198ccc,
  abstract     = {{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). <br/><br/>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. <br/><br/>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. <br/><br/>Research limitations: 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. <br/><br/>Managerial implications: The existing research guides the derivation of the KPIs for DT deployments using ISM and MICMAC methods. Such guidance will be helpful for compliance and policy development for DT adoption in the sugar sector. <br/><br/>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.}},
  author       = {{Pandey, Satish Chandra and Virmani, Naveen and Bhandari, Dimple and Jagtap, Sandeep}},
  issn         = {{2044-0839}},
  language     = {{eng}},
  month        = {{11}},
  publisher    = {{Emerald Group Publishing Limited}},
  series       = {{Journal of Agribusiness in Developing and Emerging Economies}},
  title        = {{A sustainability-oriented KPI framework for Digital Twin adoption in the sugar industry : ISM-MICMAC approach}},
  url          = {{https://lup.lub.lu.se/search/files/234007022/jadee-08-2025-0392en.pdf}},
  doi          = {{10.1108/JADEE-08-2025-0392}},
  year         = {{2025}},
}