What does a “third way” for industrial digitalization look like?

The phrase “third way” for industrial digitalization commonly refers to a hybrid approach for designing and deploying digital systems in manufacturing that sits between two traditional extremes:

• Custom, one-off solutions that are heavily engineered, expensive to maintain, and hard to scale.
• Rigid, monolithic platforms (for example some MES, ERP, or MOM suites) that are standardized but often slow to adapt to local plant needs or changing regulations.

The “third way” aims to combine the strengths of both while avoiding their main drawbacks.

Core characteristics of a “third way” approach

• Modular and composable
  Systems are built from reusable building blocks such as workflows, forms, data connectors, and equipment adapters. Plants can assemble these modules for different lines, products, or regulatory regimes without starting from scratch.
• Configuration over custom code
  Most behavior is controlled through configuration, not bespoke programming. This shortens validation and change control cycles in regulated environments and reduces dependency on scarce specialist developers.
• Open, interoperable data layer
  The approach emphasizes open APIs, event streaming, and data models that can bridge OT, MES, ERP, LIMS, QMS, and PLM rather than locking data into a single monolithic system.
• Local flexibility within global guardrails
  Corporate standards (for example master data definitions, mandatory quality records, traceability rules) are enforced centrally, while plants have room to adapt screens, workflows, and integrations to their local processes and equipment.
• Incremental and iterative
  Instead of multi-year, big-bang rollouts, the third way favors stepwise implementations (line by line, site by site) with rapid feedback, learning, and continuous improvement.
• Designed for compliance by construction
  Capabilities such as audit trails, electronic signatures, version control, and change history are embedded as standard features, so new workflows inherit compliant behavior instead of requiring repeated re-engineering.

What it is not

• It is not a single product or vendor offering, but a pattern for how organizations structure their digital architecture and delivery model.
• It is not limited to a specific layer like MES or SCADA. The approach can span shop floor systems, quality and laboratory systems, data platforms, and higher-level business applications.
• It does not imply reduced rigor in validation, security, or change control. Instead it tries to make those controls more systematic and reusable.

Why it matters in regulated manufacturing

In regulated or highly audited environments, a third way approach can help balance:

• Standardization for consistent records, traceability, and audit readiness across sites.
• Adaptability to frequent changes in product mix, customer requirements, or regulatory expectations.
• Total cost of ownership by reducing duplicated custom solutions and avoiding overly rigid platforms that are costly to modify and validate.

Example in an industrial context

Instead of building a fully custom MES or accepting an out-of-the-box template that does not fit operations, a manufacturer might:

• Adopt a modular execution and data layer that integrates with existing ERP, historians, and quality systems.
• Use configurable digital work instructions, checklists, and data capture forms that share a standard data model across plants.
• Apply shared, reusable patterns for electronic signatures, deviations, and CAPA triggers, while allowing each plant to tailor details such as step sequences and equipment mappings.

In this sense, the “third way” is a practical architectural and organizational strategy for industrial digitalization that pursues both control and flexibility rather than choosing only one.