Benchmarking is based on comparisons and measurement of performance.
Benchmarking is a concept that is not part of the dictionary of the Royal Spanish Academy ( RAE ). It is a notion that is used in the fields of finance and computing regarding a technique for establishing comparisons and measuring performance .
Benchmarking is a process that is developed systematically for the evaluation of work mechanisms, services and products through comparisons . Its purpose is to provide data of interest for decision-making , allowing companies to identify success stories and thus be in a position to perfect their strategies.
Its characteristics
It can be said that benchmarking consists of obtaining useful information that is then used to improve processes . The practice begins with measuring the results of other successful companies. Then the path followed to achieve these results is analyzed and finally the information is used so that the firm itself establishes its strategies and objectives.
It is important to highlight that benchmarking does not imply copying , but is based on learning . It is about improving one's own efficiency by studying the experience of successful actors. Benchmarking can be based on the study of competitors (direct or indirect) or companies from other sectors. Even in larger corporations, internal benchmarking can be developed, studying their different departments or areas.
It should be noted that benchmarking is carried out in a series of stages: planning, data collection, analysis , action, monitoring and improvement.
There are numerous internationally known companies that, at some point, have carried out a benchmarking process. This would be the case, for example, of Starbucks .
Benchmarking is important for decision making.
Types of benchmarking
Starting from that term we can establish that there are three types of benchmarking:
- Internal benchmarking , which we have already mentioned and which is defined by being what is carried out within the company itself. As a general rule, it is undertaken in large companies made up of different types of departments.
- Competitive benchmarking . Its objective is to measure the products, services, functions and even processes of competitors. In this way, the results obtained are compared with the company that carries out the benchmarking work and thus it is possible to know what improvements need to be made. It is perhaps the most complex type of all.
- Functional benchmarking , which aims to identify the best practices carried out by a company that has become a reference within the area that needs to be improved. In this way, that entity - which does not have to belong to the same sector as the person carrying out the benchmarking - becomes a kind of guide.e
The concept in computing
In the field of computing , benchmarking consists of comparing the results after executing one or more computer programs on a computer.
In this way, the performance of specific elements is analyzed in order to make a comparison with other similar equipment.