When benchmarking is used
The main task of benchmarking is the improvement of the company's processes to reach a higher level of sales or management by implementing other people's, already tested, methods, processes, technologies. In this way, comparative analysis allows the company to approach or successfully compete with the leaders of the industry or to take a leading position.
Usually the analyzed criteria are quality, time and cost. If you are interested in find people website, follow the link to find out more.
For the comparative analysis, another company is chosen, which will serve as a benchmark. After data collection and processing, conclusions are applied in practice. In addition to processes and technologies, even the strategy of the reference company, which can be adapted to your needs, is carefully analyzed.
Bench marketing provides an opportunity to learn from the best, so it can be applied to any company regardless of the type of business, even in e -commerce . Benchmarking is not carried out with the aim of copying someone else's experience, but to identify the potential for improving one's indicators.
See benchmarking
Some analysts divide benchmarking into two main types, based on the field of research:
- Internal - comparison of productivity and efficiency indicators between departments (teams, branches), i.e. within the company. Such an analysis is used at the initial stage before comparison with a reference company or to improve the performance of the market leader itself.
- External - a comparative analysis of performance indicators of one company with another or with several.
Depending on the tasks, benchmarking is divided into:
- Strategic - the study of general strategies and procedures of successful competitors. This form of comparative analysis is most often used to reach the first positions in the market or outside the boundaries of one's industry.
- Competitive – analysis to assess your position in the industry (categorization depending on the company's performance).
- Comparative – study of processes and comparison of indicators with the best companies that offer similar products.
- Functional - comparison with partners from other industries to find ways to improve work processes.
How information is collected and processed for comparative analysis
The following sources are used to obtain information about another company:
- Company website, media publications.
- Statistical data from open sources. For example, APQC (American Center for Productivity and Quality) provides more than 3,300 benchmarks for comparison.
- Dismissed or employed specialists of the reference company.
It is clear that competitors are far from always ready to share information and technologies, but personal connections and acquaintances give excellent results for understanding processes. To learn more about arrest fact, follow the link.
So, to perform a comparative analysis, the company takes the following steps:
- Selects an object (product, method, process) for analysis and comparison.
- Chooses a reference company. It is important to determine what the common features are so that the comparison is correct.
- Collects data (analysis of secondary information, collection of primary information).
- Identifies performance deficiencies and their causes.
- Identifies and implements steps to achieve improvement.
Bribery or theft of technology is not used for benchmarking, otherwise it qualifies as industrial espionage, not analytics.
Benchmarking can be implemented in different ways. It is used to identify methods of achieving better performance. This applies, for example, to operational efficiency or product design. Benchmarking is also useful for comparing the company's future costs. In addition, benchmarking allows you to focus on resources that can bring strategic benefits. Finally, benchmarking can be used to find ideas and share experiences within the company.
