A Collaborative KPI Framework for Evaluating a Digital Twin Demo Platform: Supporting Circular Economy Transformation in SMEs

Abstract

This study addresses the challenges faced by small and medium-sized enterprises (SMEs) when adopting circular economy (CE) practices, particularly when the SMEs are characterized by limited resources, lack of expertise, and constrained access to tailored digital tools. Within the Interreg Baltic Sea Region (BSR) CIRC-2-ZERO initiative, a digital twin demo platform (DTDP) is being developed to support SMEs in terms of data-driven circular product and value chain design. Given that the effectiveness of such platforms depends on systematic evaluation, this study proposes a collaborative key performance indicator (KPI) framework to enable systematic assessment and monitoring of the DTDP. The study applies a participatory and iterative methodology, employing the nominal group technique and multi-voting across three expert workshops involving twenty participants from academia, business support organizations, and the electronics and engineered wood products sectors. This stakeholder-driven approach ensures that the KPI framework reflects both operational realities and user needs. The study is structured into three phases—namely, KPI identification, refinement and validation, and development of data collection procedures. The resulting framework organizes the KPIs into three core dimensions—technical performance, usability, and value impact—while distinguishing between indicators relevant to the DTDP’s piloting phase and those important for its long-term development. The framework also includes structured data collection procedures intended to support consistent and reliable monitoring. This study contributes to the growing body of research on performance assessment of digital platforms supporting CE transitions, offering a practical, stakeholder-driven tool for assessing DTDPs and supporting SMEs’ circular transformation. Moreover, the study promotes sustainable industrial practices and supports regional development in the BSR.