The Evolution of Competing Using Analytics

Abstract

Competing using analytics is often heralded as a new concept spurned by advances in high-speed<br />computing, the digital age and the internet. However, evidence for using analytics as the basis for<br />gaining a competitive advantage exists much earlier. In his key paper written in 1953 William Edwards<br />Deming wrote that better quality through the use of statistical techniques can lead to a competitive<br />advantage for firms. He also pointed out that for a more effective use of these techniques, top<br />management should not only become familiar with the results of statistical methods; they should study<br />also the problems of organization by which to achieve a wider and more effective use of these methods.<br />Similarly, quality guru Joseph Juran also a Deming contemporary noted that the Japanese learned to<br />compete on quality which is something the Americans did not understand until it was too late and they<br />lost market share.<br />This paper explores Juran’s and Deming’s thoughts on competing on quality and evaluates its<br />usefulness and lessons to the modern post-industrial world and one in which BIG DATA is being<br />collected and used by many firms across a variety of industries in an effort to develop a competitive<br />advantage from the use of statistical analysis. It also debunks the common misconception that<br />competing on analytics is something new and novel which represents a call to action for managers in<br />analytically challenged companies since they will now be under investing in function that has been<br />around for over half a century.