| Summary: | The internet of things, digital twins of smart connected products, and thereby enabled smart services are topics of great interest and have been gaining traction for many years. However, many questions concerning the application-oriented usage of digital twins still need to be scrutinized. Therefore, this paper examines the question of an application-oriented framework for value creation with digital twins using design science research approaches. A conceptual reference framework is presented based on earlier research and iteratively developed within workshops with three companies. The framework incorporates primary dimensions of external and internal value creation and data resources. Further, it discusses the product life cycle, the real-world counterpart, value creation in the ecosystem, and the generational aspect of the digital twins. Furthermore, applying the framework to a use case with an industrial research partner helps to show the contributions to the industrial sector. The framework provides utility to practitioners as a means of creating a common sense in interdisciplinary teams, communicating digital twin projects to internal and external stakeholders, and as a toolbox for specific challenges concerning digital twins. In addition, the framework distinguishes itself from existing approaches by including the service ecosystem and its actors while considering the principles of product life cycle management. Therefore, using the framework in other use cases will test the approach on different industries and products. Furthermore, there is a need to develop approaches for implementing and developing an existing case.
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