What are the different types of benchmarking data?
Benchmarking means a comparison of processes, profits and a business practitioner with other businesses in the same industry. The comparison is called benchmark and is also referred to as industry standard . Business leaders sometimes use standards as goals or as a means of evaluating the progress of the company. Benchmarking data types include financial, operating, product and strategic data. Financial benchmarking data
come from a comparison of financial information such as sales, profits, investment capital and undivided profit. This type of benchmarking informs the head of the trade on the overall financial health of this industry. If the industry was struggling with sale, then the company manager would not be very interested in a decline in income. On the contrary, the decrease in the sales of the company in the high growth industry would be a reason for increased concern. Data can report any other businesses produce products. Standard standards may indicate employee efficiency as units produced on employees foran hour or some similar form of comparable data. This type of benchmarking data is very specific to the company's industry. For example, an automobile company can collect comparative data for speed and endurance of similar cars, while the soap manufacturer in the laundry can build scales for the ability of competing products to remove stains.
Strategic benchmarking data stems from long -term organizational goals and marketing procedures. Compared to other types of data, strategic data may be more difficult to measure and analyze because it deals with plans and potentials. Business leaders are trying to be a benchmarking based on strategic data can compare the similarities between strategic goals and marketing plans.
Some companies use a strategic management system known as management by goals (MBO). This includes conversion of benchmarking data into achievableOrganizational objectives and then divide these goals into departments and individual goals of employees. To create MBO not only includes benchmarking data, but the style of management also provides the basis for further comparison and analysis, both within the company and with other businesses in this industry.
The date for comparison of benchmarks is derived from a number of business elements and the necessary information varies depending on industry. For example, companies offering investors are obliged to publish some financial information that includes sales and earnings reports. Some business websites report proven operations and strategic planning procedures. Web pages, packages and business magazines with a product often present product data that can be used for benchmarking of convulsions.