What Is Benchmarking Analysis?

Benchmarking refers to comparing your own situation with the best situation in the same field, identifying gaps, analyzing causes, and imitating behavior. To find or develop evaluation indicators, and quantify or score the indicators. The benchmark analysis of user analysis refers to first finding the key evaluation indicators of the target product by the consumer or user, and then asking the consumer to compare the target product with the ideal product, and to score the differences of each indicator separately To find out the shortcomings of the target product and make improvements.

Benchmarking

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The role of benchmarking is mainly reflected in:

Benchmarking analysis of competitors is helpful for determining and comparing the components of competitors' business strategies.

Through benchmarking analysis of first-class companies inside and outside the industry, valuable information can be obtained from the best companies in any industry, used to improve their own internal operations, and establish corresponding catch-up targets.

Doing cross-industry technical benchmarking is beneficial to cross-industry penetration of technology and process.

By comparing and analyzing the benchmarking analysis made by competitors with the needs of customers, we can find out the shortcomings of the company, thus combining market, competitiveness, and target setting.

Through benchmarking analysis of competitors, the company's

Generally, there are two classification methods for benchmarking analysis. One classification method is to divide the benchmarking analysis into three categories according to the different levels of enterprise operations targeted, namely the benchmarking analysis at the strategic level, the benchmarking analysis at the operation level, and the benchmarking analysis at the management level.

The benchmarking analysis at the strategic level is the key factor in comparing successful strategies with the strategies of the company and the strategies of the company.

The benchmarking analysis of the operation layer is mainly focused on comparing costs and product differences, with emphasis on functional analysis, which is generally related to competitive costs and competitive differences.

The management's benchmarking analysis involves the supporting functions of discounted companies, and specifically refers to human resource management, marketing planning, management information systems, and so on. Its characteristic is that it is difficult to measure with quantitative indicators.

Another classification method is to divide the benchmarking analysis into benchmarking analysis of competitors and benchmarking analysis targeting first-rate companies. The former is generally limited to companies that produce similar products or provide similar services. The main purpose is to discover the advantages and disadvantages of competitors, learn from their advantages and disadvantages, and choose breakthroughs based on their disadvantages. The scope of the latter is much broader, and any good company can be selected for analysis. The advantage is that it is more able to learn from others. In addition, because there is no competitive relationship, there are fewer obstacles to information exchange.

In general, benchmarking analysis of competitors is mainly at the operational level, while management of top-tier companies is more at the management level. The main contents of benchmarking analysis include: design, research and development, procurement, manufacturing, warehousing, transportation logistics, sales, marketing, human resources, finance, and management.

The implementation of benchmarking analysis methods mainly includes determining content and selecting targets. When using the benchmark analysis method, enterprises should follow the following steps: collect analysis data, determine action targets, implement plans, and track results.

Determine the content. That is, determine the specific project to be benchmarked.

Select the target. Once the project for benchmarking analysis has been determined, the specific objects need to be selected. Often competitors and industry leaders are the first choice for benchmarking.

Collect analysis data. The data should include the situation of the company and the company being benchmarked (either competitors or non-competitors). The analysis data must be based on a full understanding of the status of the company and the status of the benchmarked analysis of the company, and it is mainly aimed at the business processes and activities of the company, not just the business results.

Determine the action plan. After finding the gap, what is required of him is to determine the action goals and measures to reduce the gaps. These goals and measures must be integrated into the business plan of the enterprise.

Implement the plan and track the results. Benchmarking analysis is an effective way to identify shortcomings, improve operations, and achieve optimal results. The entire process must include regular measures to assess the extent to which goals have been achieved. If the goal is not achieved, corrective action is required.

Finally, it should be noted that researching larger processes requires more resources and is distracting, and it is easy to lose focus. Researching smaller processes can have limited improvement results, and the two need to be balanced.