Benchmarking involves comparing a company's business processes and performance metrics to best practices from other industries. It helps organizations understand their strengths and weaknesses, satisfy customer needs, motivate employees, and improve competitive advantage. There are different types of benchmarking such as process, financial, performance, product, and strategic benchmarking. Benchmarking has advantages like product and process improvement, reduced time and costs, and competitive strategy development. However, benchmarking also has disadvantages if the wrong comparisons are made or if organizations are reluctant to share information.

1. What is Benchmarking?
Benefits of Benchmarking
 At its simplest, benchmarking means: “Improving
ourselves by learning from others”.
 Benchmarking is the process of comparing one’s
business process and performance metrics to
industries bests and/or best practices from other
industries.
 “Benchmarking is the practice of being humble
enough to admit that someone else is better at
something and wise enough to try and learn how to
match and even surpass them at it.”
 Benchmarking measuring own performance against
best-in-class organizations to determine how they
achieve their performance levels and use the
knowledge to improve own performance.
 Helps organizations understand strengths and
weaknesses.
 Helps better satisfy the customer’s needs by
establishing new standards and goals.
 Motivates employees to reach new standards and to be
keen on new developments.
 Allows organizations to realise what level of
performance is really possible by looking at others.
 Documents reasons as to why these differences exist.
 Helps organizations improve their competitive
advantage.
 Cost-effective and Time-effective way of establishing a
pool of innovative ideas.
Type Of Benchmarking
Benchmarking Process
 There are a number of different types of
benchmarking, which are driven by different
motivating factors and thus involve different
comparisons. Some of the major types of
benchmarking are as follows:
1) Process Benchmarking
2) Financial Benchmarking
3) Performance Benchmarking
4) Product Benchmarking
5) Strategic Benchmarking
6) Functional Benchmarking
Advantages/Disadvantages Of Benchmarking
References
Advantages:
 Product and Process Improvement
 Time & Cost Reduction
 Competitive Strategy
Disadvantages:
 What is best for someone else may not suit you
 Poorly defined benchmarks may lead to wasted effort and
meaningless results
 Incorrect comparisons
 Reluctance to share information
• https://www4.uwm.edu/cuts/bench/bm-desc.htm
• http://en.wikipedia.org/wiki/Benchmarking
• https://www.youtube.com/watch?v=TcSjoJY5N60
BENCHMARKING
JEELKUMAR PATEL (18BCL039)
Civil Department, Institute of Technology, Nirma University, Ahmedabad