Digital Twin (DT) is a concept that has attracted much scientific research and industrial development during the last years. The basic idea is to connect (physical) facilities or devices with digital representations to facilitate real-time monitoring, manipulation and prediction of behavior. The focus of this paper is on the integration of organizational aspects of digital twin engineering (DTE), such as business processes, organization structures and capability development, with technological aspects, such as architecture design, technology selection and system implementation. The paper proposes to use a model-based approach anchored in experiences from enterprise modeling and capability management. An industrial case study is used to demonstrate the different steps of the approach. The industrial case shows feasibility of the approach and relevance of digital twin development for digital transformation.