Deming’s: Management’s Responsibility for the Utilization of Statistical Techniques in Industry

Abstract

In his main paper published in 1953, William Edwards Deming stated that improved quality through the use of statistical techniques can provide firms with a competitive advantage. He also stated that in order to achieve a wider and more effective use of these techniques, top management should not only become familiar with the results of statistical methods; they should also study organisational problems in order to achieve a wider and more effective use of these methods. This paper investigates Deming's original premise and assesses its contribution and lessons for the modern post-industrial world, in which BIG Data is collected and is used by many firms across a wide range of industries in an effort to gain a competitive advantage through statistical analysis. It also dispels the common misconception that competing on analytics is something new and novel, which serves as a wake-up call for managers in analytically challenged organisations, as they will now be underinvesting in a function that has been around for over half a century.