Strategy Library

Benchmarking

Benchmarking is a process by which the product or processes of a company are compared with the best of the competition. Benchmarking thus provides a solid assessment of how good your own products and processes really are compared to the competition. At the same time, the existing optimization potential can be identified.

Definition of Benchmarking

Benchmarking is a process by which the product or processes of a company are compared with the best of the competition. Benchmarking thus provides a solid assessment of how good your own products and processes really are compared to the competition. At the same time, the existing optimization potential can be identified.

Benchmarking should be carried out in a systematic way on a continuous basis in order to provide the business with real added value. It aims at the identification of possibilities for improvement and the subsequent implementation of the potential.

At the same time, it has a certain motivational function, as the comparison with the best in the industry can be a real incentive for your company to become even better. Benchmarking can therefore be used very well as an approach to the top companies in the industry, but it can also be used to create competitive advantages.

Description of Benchmarking

The benchmarking process consists of four phases – planning, data collection, analysis and implementation. The planning phase includes the analysis of one's own strengths and weaknesses as well as the selection of criteria for benchmarking. The data collection via the Benchmarking Partner can be done on the basis of internal data, but also with the help of public information sources such as databases, chambers of commerce and the like. This collection of data can be quite difficult if access is made more difficult due to direct competition. On the basis of the collected data, the analysis of the data via the benchmarking partner takes place. The analysis and comparison of own data with the benchmarking partner shows the potential for improvement as well as the possibilities for implementation. It should be noted regularly that this will lead to changes in the company. Innovations and innovations offer a plethora of conflict potentials, so that it is not enough to simply identify the potential for improvement. The improvements are to be identified and, depending on the nature, to be conceptualized before implementation. Only then does the actual implementation begin, which should always be preceded by a sound change management in order to involve the employees in the pending innovations in good time. Otherwise, there is a risk that new products and processes will be rejected even before they are introduced, which means that every benchmarking loses its power.

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