We all know that in order to learn how to do something, in addition to studying and practicing, it is very useful to observe what more experienced or capable people do. It is not about copying, but rather having the impulse to learn from others and then propose our own recipe . This is also the answer to the question of what benchmarking is.
Benchmarking is a term used in marketing, but also in business management, and consists of the act of evaluating a parameter by comparing it with a standard or reference point . In business, and especially in the digital world, it translates into comparing performance, results and other data with specific references called benchmarks , such as the industry average, category leaders or a particular competitor.
There are different types of benchmarking that can be implemented depending on the objective. Each of them, in fact, has a different purpose and serves to compare different sets of data. Effective china whatsapp data benchmarking helps to identify areas of growth and drives continuous improvement. It is an important part of strategic planning because it helps to understand the position occupied in a specific market and to compare oneself with direct competitors.
The main advantages of benchmarking lie in the possibility of improving internal processes and business strategy, as well as providing knowledge that helps management make more informed decisions.
What is benchmarking?
Having asked yourself what benchmarking is, it is a good idea to start by clarifying the meaning of the term in English, which can be translated as 'reference parameter' in a comparative evaluation and defines the standard to be related to. In essence, benchmarking is a quality tool that helps the company to continuously improve its processes by learning from the experience of others.
It was Xerox, the world's largest supplier of toner copiers, that introduced the concept of benchmarking to contemporary industry in 1979. Improving business processes by studying and imitating the most brilliant solutions devised by others had never before been considered a concept. Today, however, many companies have dedicated benchmarking departments, run by managers who are specialists in this field.
Training to be able to fill these positions that are in high demand in the labour market usually involves a university degree in economics, marketing or a Degree in Business Administration and Management (ADE) , to be completed with a Master's Degree in Business Administration and Management .
Types of benchmarking
There are several types of benchmarking:
Internal benchmarking : the only type that does not involve a comparison with external realities. It is therefore based on the analysis of the benchmark (the performance indicator) of the same company and attempts to improve these specific values by searching for critical factors.
External benchmarking : this is the classic benchmarking also defined as competitive. This type of benchmarking analyses the elements and dynamics of other companies that stand out in the same sector. An analysis of this type is very important to understand how the competition operates and how it can be improved.