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Derivatives of Dr. Deming’s teachings are classically packaged today under names such as Total Quality, 6 Sigma, Lean, and the Toyota Production System. Each has had, and continues to have, a transformational impact on factories.

However, the factory was and is but a small part of Dr. Deming’s vision. In his book The New Economics, Dr. Deming wrote that the factory represented just 3% of the opportunity for company improvement from applying system thinking: “The shop floor is only a small part of the total. Anyone could be 100% successful with the 3% and find himself out of business.” He felt that 97% of the opportunity for improvement from applying system thinking lay in applying it to innovation, strategy, and the way we work together.

Just as Dr. Deming taught leaders how to transform manufacturing quality from a random act to a reliable science, Innovation Engineering teaches how to transform innovation from a random act to a reliable science.

To survive, companies need a durable competitive advantage. No technology, plant, product, or market will ever be that. The only durable competitive advantage is your people and their ideas.

Yes, Innovation Engineering takes its founding principles from Deming, and I am sure Deming would have loved it. I am also quite confident that Juran, Crosby, and Taguchi would approve. The key issue to me is that Innovation Engineering creates a repeatable process that leads to a durable competitive advantage.

—Walter Werner, Deming Master