Benchmarking: Learning from the Best
Posted: Tue Dec 24, 2024 8:10 am
Benchmarking , a powerful tool for identifying weaknesses in a company's operations, will help overcome a crisis, increase sales, and work on the competitiveness of a product . The term itself is translated from English as "fixed mark", which very accurately defines the essence of the process.
When is benchmarking used?
The main objective of benchmarking is to improve the company's processes to reach a higher level of sales or management by implementing other people's already tested methods, processes, and technologies. Thus, comparative analysis allows the company to approach or successfully compete with industry leaders or to reach a leading position itself.
Typically the criteria analyzed are quality, time and cost.
To conduct a comparative analysis, another company armenia email lis is selected to serve as a benchmark. After collecting and processing the data, the findings are applied in practice. In addition to processes and technologies, even the strategy of the benchmark company is carefully analyzed, which can be adapted to your needs.
Benchmarking gives you the opportunity to learn from the best, so it is applicable to any company, regardless of the type of business, even in e-commerce . Comparative analysis is not carried out with the aim of copying someone else's experience, but to identify the potential for improving your own performance.
When is benchmarking used?
Types of benchmarking
Some analysts divide benchmarking into two main types, based on the area of research:
Internal – comparison of performance and efficiency indicators between departments (teams, branches), i.e. within the company. Such analysis is used at the initial stage before comparison with the benchmark company or to improve the work of the market leader itself.
External - a comparative analysis of the performance indicators of one company with another or several.
Depending on the objectives, benchmarking is divided into:
Strategic – a study of the common strategies and procedures of successful competitors. This form of comparative analysis is most often used to achieve market leadership or to go beyond the boundaries of one’s industry.
Competitive – analysis to assess one’s position in the industry (categorization based on the performance of products and services).
Comparative – studying processes and comparing indicators with the best companies that offer similar products.
Functional – comparison with partners from other industries to find ways to improve work processes.
How is information collected and processed for comparative analysis?
To obtain information about another company, use the following sources:
Company website, media publications.
Statistical data from open sources. For example, APQC (American Productivity and Quality Center) provides more than 3,300 indicators for comparison.
Dismissed or working specialists of a benchmark company.
It is clear that competitors are not always ready to share information and technologies, but personal connections and acquaintances provide excellent results for understanding processes.
Thus, to conduct a comparative analysis, the company takes the following steps:
Selects an object (product, method, process) for analysis and comparison.
Selects a benchmark company. It is important to determine what similarities are present so that the comparison is correct.
Collects data (collection of primary and analysis of secondary information).
Identifies performance deficiencies and their causes.
Identifies and implements steps to achieve improvement.
Comparative analysis does not involve bribery or theft of technology, otherwise it will be classified as industrial espionage, not analytics.
How is information collected and processed for comparative analysis?
Benchmarking can be implemented in different ways. It is used to identify methods for achieving better performance. This applies, for example, to operational efficiency or product design. Benchmarking is also useful for comparing a company’s upcoming expenses. 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 a company.
When is benchmarking used?
The main objective of benchmarking is to improve the company's processes to reach a higher level of sales or management by implementing other people's already tested methods, processes, and technologies. Thus, comparative analysis allows the company to approach or successfully compete with industry leaders or to reach a leading position itself.
Typically the criteria analyzed are quality, time and cost.
To conduct a comparative analysis, another company armenia email lis is selected to serve as a benchmark. After collecting and processing the data, the findings are applied in practice. In addition to processes and technologies, even the strategy of the benchmark company is carefully analyzed, which can be adapted to your needs.
Benchmarking gives you the opportunity to learn from the best, so it is applicable to any company, regardless of the type of business, even in e-commerce . Comparative analysis is not carried out with the aim of copying someone else's experience, but to identify the potential for improving your own performance.
When is benchmarking used?
Types of benchmarking
Some analysts divide benchmarking into two main types, based on the area of research:
Internal – comparison of performance and efficiency indicators between departments (teams, branches), i.e. within the company. Such analysis is used at the initial stage before comparison with the benchmark company or to improve the work of the market leader itself.
External - a comparative analysis of the performance indicators of one company with another or several.
Depending on the objectives, benchmarking is divided into:
Strategic – a study of the common strategies and procedures of successful competitors. This form of comparative analysis is most often used to achieve market leadership or to go beyond the boundaries of one’s industry.
Competitive – analysis to assess one’s position in the industry (categorization based on the performance of products and services).
Comparative – studying processes and comparing indicators with the best companies that offer similar products.
Functional – comparison with partners from other industries to find ways to improve work processes.
How is information collected and processed for comparative analysis?
To obtain information about another company, use the following sources:
Company website, media publications.
Statistical data from open sources. For example, APQC (American Productivity and Quality Center) provides more than 3,300 indicators for comparison.
Dismissed or working specialists of a benchmark company.
It is clear that competitors are not always ready to share information and technologies, but personal connections and acquaintances provide excellent results for understanding processes.
Thus, to conduct a comparative analysis, the company takes the following steps:
Selects an object (product, method, process) for analysis and comparison.
Selects a benchmark company. It is important to determine what similarities are present so that the comparison is correct.
Collects data (collection of primary and analysis of secondary information).
Identifies performance deficiencies and their causes.
Identifies and implements steps to achieve improvement.
Comparative analysis does not involve bribery or theft of technology, otherwise it will be classified as industrial espionage, not analytics.
How is information collected and processed for comparative analysis?
Benchmarking can be implemented in different ways. It is used to identify methods for achieving better performance. This applies, for example, to operational efficiency or product design. Benchmarking is also useful for comparing a company’s upcoming expenses. 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 a company.