Technology benchmarking incorporates measures of the performance of your business against your competitor in the same industry domain. Comparing the business from your competitors is crucial to improving your understanding of business potential and performance.
The technology benchmarking offers insight into how your business is performing, enabling you to discover what areas of improvement are required while developing a plan to accomplish those improvements.
Technology benchmarking is a tool for business that helps to identify the opportunities for improvements, like:
· Recognizing and prioritizing the main areas of opportunity.
· Understand the need of your customers better.
· Recognizing your weakness and strength.
· Setting up performance and goals expectations.
· Tracking the performance and changing the managing effectively.
· Understanding your competitor’s perspective to be more competitive.
Primary Classifications of Benchmarking
Certain kinds of benchmarking can be classified into three main categories — internal, strategic, and competitive.
1. Internal benchmarking is used when an organization already has established and proven best practices and basically needs to share them. Again, depending on the company's size, it may be large enough to address a broad range of performance (i.e., cycle time for opening new accounts in branches coast to coast). Internal benchmarking also may be necessary if comparable industries are not readily available.
2. Competitive benchmarking is used when a zx wants to evaluate its position within its industry. Moreover, competitive benchmarking is used when a company needs to recognize industry leadership performance targets.
3. Strategic benchmarking is used when identifying and analyzing world-class performance. This benchmarking is used most when a company needs to go outside of its industry.
Six steps to successful benchmarking
Use the following steps to practically benchmark your business against your competitors:
1. Competitive Landscape — Check what all similar technologies or solutions are present and the solutions under development through technology landscape or scouting services.
2. Identify Key Areas of Innovations and Development — From the technology landscape or scouting report, you can analyze the areas or technical fields with the most innovations and developments and areas for improvement. Identify effective techniques used by your competitors and areas in which their business is performing better.
3. Finalize Benchmarking Parameters — Benchmarking parameters should cover all the aspects of the scale of benchmarking such as intellectual property (IP) protection, key advancements or innovations, technical features, unique selling propositions, consumer or customer reviews, technical reviews from several secondary sources, number of citations over publications and technology scoring.
4. Allocating Weightage to Benchmarking Parameters — After finalizing benchmarking parameters, it is essential to weigh all the parameters according to the value they should be having in the total score or rank. Make sure you give required weightage to technical parameters, business parameters, and IP parameters to benchmark required solutions or technologies in a right way
5. Scoring and Evaluation — Scoring and evaluation involves some mathematical calculations and models depending upon the gathered information or required output which helps you to provide rank or score to each solution or technology
6. Planning and Taking Better Strategic Decisions — Benchmarking results can help you make better strategic decisions, be ahead of your competitors, know consumer demands and how the industry is addressing those, know the potential of competitors, and analyze the future competition.
No comments:
Post a Comment