Innovation in
Creative
Benchmarking management
thinking
methods
Keep pace
with science Cope with
and competitive
technology markets
changes
Meeting
customer
expectation
What to Benchmark?
• Product and Services
-Finished goods
-Product & Service Features
• Work Processes
-Manufacturing
-Supplying
-Ordering
-Maintenance
Cont.…
• Support Functions
-Human Resource Management
-Financial Management
-Marketing
• Organizational Performance
-Sales
-Profitability
-Cost
-Quality
-Manpower
Cont.…
• Strategies
-Cost Leadership
-Differentiation
• Internal benchmarking – is a process in which a company or an organisation looks
within its own business to try and determine the best practice or methodology for
conducting a particular task. The aim is to find the best practice available to get
the job done with minimum effort or resources
Levels of Benchmarking in
Competitive environment:
Levels of Benchmarking in
Competitive environment:
• Competitive benchmarking – is the process of comparing
your products, services, processes and practices to a direct
competitor using standard measurements.
• This may be done to evaluate
• Your current competitive position
• Develop strategies and evaluate performance.
Levels of Benchmarking in
Competitive environment:
• Generic benchmarking
International Benchmarking
Identifies and analyses best practitioners elsewhere in the world
Benchmarking Process
Planning
Implement Collecting
ation Data
Analysis
Planning
• Determine the purpose and scope of the project
• Select the process to be benchmarked
• Generally be core activities that have the potential to give the business in question a
competitive edge.
• Such processes would generally command a high cost, volume or value
• Performance can be measured
• Conduct honest appraisal of the company's strengths, weaknesses and
problem areas would prove to be of immense use when fine-tuning such a
process
• Choose an appropriate benchmark against which their performance can be
measured.
• Set the objectives of the benchmark
Collecting Data
• Conduct background research to gain thorough understanding on the
process and partnering organizations
Increased competitive
Improved advantage Grater
process + Customer
Increased profitability satisfaction
Benchmarking leads to fill the market niche
Benchmarking
Market Organizatio and
Needs nal Continuous
capabilities
improvements
Market space
Success Factors for Benchmarking
• Phase 4: Action
• Develop action plans;
• Implement specific actions & monitor progress;
• Recalibrate benchmarks.
• Phase 5: Maturity
• Attain leadership position
• Fully integrate practices into processes.