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What Is Digital Engineering? Definition, Operating Model and Execution

Written by Patrick Dunfey | Jan 21, 2026 4:07:35 PM

From authoritative models to executable outcomes across the product lifecycle

Digital Engineering is widely discussed but rarely defined the same way twice.

Across government programs, systems engineering communities, and manufacturing organizations, the term is used to describe very different initiatives. In some contexts, Digital Engineering refers to replacing two-dimensional drawings with three-dimensional, model-based definition. In others, it is used to describe MBSE, digital twins, or simulation-driven design. In many organizations, it has also become shorthand for broad digital transformation efforts that emphasize new tools more than new ways of working.

This diversity of meaning is one of the reasons Digital Engineering can be difficult to implement consistently.

In reality, Digital Engineering is none of these things alone.

Digital Engineering is a way of developing, releasing, and sustaining products in which authoritative digital models, rather than disconnected documents, drive decisions across engineering, manufacturing, quality, suppliers, and service. The emphasis is not on any single artifact or system, but on how product intent is defined, communicated, and preserved as it moves through the lifecycle.

More importantly, Digital Engineering is an organizational operating model, not a single technology.

A Practical Definition of Digital Engineering

Digital Engineering is the practice of using digital, model-based artifacts as the primary means of defining, communicating, and governing product intent across the entire product lifecycle.

That lifecycle spans far beyond design alone. It includes how requirements are interpreted, how manufacturing and inspection plans are derived, how suppliers receive and respond to product definition, and how products are certified, sustained, and changed over time.

The objective of Digital Engineering is not simply to create better models. It is to ensure that those models remain usable, accessible, and actionable for everyone who depends on them to do their work.

Digital Engineering, MBD, and MBSE

Digital Engineering often creates confusion because it builds on established model-based practices while extending beyond them.

Model-Based Definition focuses on embedding design intent, such as geometry, GD&T, materials, and annotations, directly into the three-dimensional CAD model. In doing so, it replaces two-dimensional drawings as the authoritative source of product definition. MBD answers a specific and important question: how is this part defined?

Model-Based Systems Engineering focuses on formal system models that describe requirements, behaviors, interfaces, and relationships, often at the system or system-of-systems level. MBSE addresses a different but equally critical question: how does the system work, and how do requirements flow and interact?

Digital Engineering incorporates both of these practices, but it does not stop there. It addresses how product intent moves from concept to delivery and sustainment without breaking down across organizational boundaries, lifecycle stages, or technical disciplines. That distinction is essential to understanding why Digital Engineering is not synonymous with any single model-based method.

The Digital Thread as an Outcome

Most Digital Engineering strategies are closely associated with the idea of a digital thread. The digital thread is commonly described as a connected flow of product information from requirements through design, manufacturing, quality, supply chain, and service.

In theory, the digital thread ensures continuity of product intent and traceability of decisions across the lifecycle. In practice, however, it is often treated primarily as a data integration challenge, focused on connecting systems and synchronizing attributes.

While system connectivity is necessary, it is not sufficient.

A digital thread only functions as intended when the decisions that matter are made and resolved in the context of authoritative digital models, rather than in disconnected documents, presentations, or conversations. When collaboration occurs outside the model, continuity breaks down even if the underlying data remains technically linked.

Why Digital Engineering Breaks Down in Practice

Many Digital Engineering initiatives struggle not because models or standards are missing, but because collaboration remains document-centric.

Design reviews are frequently conducted using slides rather than shared model context. Feedback is captured in emails or chat tools that are disconnected from product definition. Supplier questions are resolved through marked-up PDFs that must later be reconciled. Manufacturing and quality issues surface late because earlier discussions lacked sufficient context.

In these scenarios, the model exists, but it is not the system of engagement. As a result, rationale is lost, misunderstandings propagate downstream, and changes become increasingly difficult to manage as programs progress.

When this happens, the organization may be model-based in how it defines products, but it is not truly operating digitally.

From Digital Engineering to Execution

Digital Engineering only delivers value when it is executable in day-to-day work. That requires more than authoritative models and connected systems. It requires a way for people across roles and organizations to collaborate directly around product intent.

This is where Digital Engineering connects to model-based collaboration. Model-based collaboration provides the ability to interact with digital models in context so that reviews, feedback, and decisions are tied directly to product definition rather than detached documents.

Digital engineering collaboration applies this capability across the full product lifecycle and extended enterprise, turning collaboration into a consistent operating practice rather than a series of ad hoc interactions. Without this execution layer, Digital Engineering remains a strategy rather than a discipline.

Digital Engineering as an Operating Model

Digital Engineering is not a destination or a tool rollout. It is a way of working that treats digital models as the authoritative foundation for product decisions across the lifecycle.

To be effective, Digital Engineering requires model-based data as the foundation, a digital thread to maintain continuity, and collaboration practices that keep decisions connected to product intent. Organizations that recognize this move beyond technology adoption and begin building systems that reflect how engineering work actually gets done.

That is when Digital Engineering stops being aspirational and starts delivering measurable results.