THE ORIGIN
Early published implementations of IoT digital twins, such as in AWS (called device shadow) and Azure IoT platforms, focus primarily on cloud representation of basic endpoint things. In those incarnations, an IoT digital twin is basically a data structure in the cloud that represents physical things, such as sensors and devices. Twins receive data and status updates from their thing counterparts and thus mirror the thing states as close to real time as possible. IoT digital twins often have representations of the actual as well as of the desired states of the device. Applications and services may modify the desired state to cause the twin implementation to issue the necessary commands to the device to modify its state accordingly and to bring the two into compliance. Cloud-based applications and services can use and access digital twins as device proxies instead of accessing the endpoints directly. This mode of operation has several potential advantages, including: 1) faster access, (2) continuous availability, (3) savings of bandwidth and power, (4) an abstract representation and interface.
NOW(ISH)
Having proven their usefulness in practice, development of digital twins in IoT is now expanding to incorporate elaborate behavior models by using true-to-reality physics and even 3D photorealistic rendering. Addition of physically accurate behavioral models makes digital twins the exact virtual replicas of their real-world twin counterparts. They maintain state synchronicity with the physical twin via real-time bidirectional communication. This enables digital twins to be used for living simulations with precise timing. They in turn allow for elaborate “what if” types of analyses to obtain additional insights and predict outcomes of changes as well as cope with disturbances such as malfunctions, failures, and drastic changes in the operating environment.

(source: NVIDIA)
Rendering in digital twins is useful for visualization and local and remote viewing which is convenient for humans and can lead to additional insights. For example, it can be used for exploring the effects of various motions in robots and applying the safe and effective ones to their training. Digital twins with accurate physical models and rendering form the elements of the virtual experience that is often referred to as the industrial metaverse. This is somewhat similar in appearance to the social network metaverse. The key difference is that social metaverses exist primarily in the virtual world with actions mostly driven by human users, whereas the industrial metaverse contains virtual elements that are exact replicas of real-world entities designed to continuously mimic their behaviors in a synchronized manner. The term omniverse is sometimes used to refer to the two synchronized physical and virtual realities.Practical Considerations
As described, digital twins can be very useful in industrial applications with automated manufacturing lines that tend to be closed-loop systems with largely deterministic behaviors that can be modeled. Some of the proponents of digital twins project the application of this concept to large complex systems that may involve people, social interactions, and the natural environment. All of these expectations should be tempered with practical considerations. Modeling can be costly, especially for complex components and systems. This is especially the case when no design CAE or CAD models are available, and it must be done from scratch. Complex, multi-component or spatially expansive systems, such as manufacturing lines or warehouses may require the use of laser scanning to create just the surface-level model. The extent of modeling and scope of digital twins in practical applications must be guided by the measurable benefits and return on investment. Detailed rendering can be demanding to develop, so it should be done where necessary, such as in visualizing and planning robot movements.
AND BEYOND
Beyond the operational use described thus far, digital twins can add value in all stages of a product life cycle. A manufacturer can use accurate physical models and simulation to design and optimize a product in the virtual domain before settling on the final version for production. Finalized models can then be used to create digital twins for operational purposes by connecting them to the data from the related equipment as it is installed. Once deployed, the data and insights from the digital twin can be used not only by the system operator but also by the equipment manufacturer to track real-world behaviors of their products over large swaths of the installed base. For example, an aircraft engine manufacturer can monitor and track their fleet in operation. This is beneficial to both the manufacturer and its customers. Operators, such as airlines, can benefit in terms of receiving expert guidance on preventive maintenance and handling of emergencies. In turn, the manufacturer can use the data from the actual operating conditions in the real world to refine their ML and AI algorithms on large sets of actual data and use those to improve future generations of the product. These kinds of arrangements also enable creation of new business models, such as power as a service. Completing the product life cycle, digital twins can also assist in the decommissioning process when the equipment is retired or repurposed. By traversing different stages of product lifecycle, digital twins can provide a way to bridge a long-standing gap between design, commissioning, and usage phases of equipment by sharing the same model and thus communicating the design intent to system operators.