Benchmarking is a means of comparing your company, operations, or processes against other companies of the same industry or in the larger marketplace. Benchmarking has the ability to be applied against any product, process, function or approach in business.
Benchmarking equips organizations to increase efficiency and revenue. Additional benefits include:
- Increases awareness of key performance metrics and improvement across the organization.
- Promotes team building to become more competitive.
- Fosters employee’s knowledge of cost structures and internal processes.
Benchmarking allows companies to test its products and services against something else to quantify how it compares to other products or services. Benchmarking is generally seen as the standard method of comparing one product to another. In the tech industry, benchmarking is especially used against competitor products to achieve an objective measure of quality. Benchmarking is used since most tech products increase steadily in metrics such as speed and storage size when compared to prior versions from the same organization.