Benchmarking: what it is in business

Benchmarking - what is this term that entered the lexicon of domestic entrepreneurs much later than management and marketing? In its essence, this concept means the search and use in practice of someone else's positive experience. On the one hand, everything is clear and simple, but in reality it is quite difficult to implement this method. Nevertheless, recently this method of business management is among the three most popular. So, benchmarking, what is it? Just a new term or an opportunity to become a successful businessman?

Benchmarking: Pros and Cons

The experience of companies that apply benchmarking in practice does not always encourage the use of this technique. There are doubts that the business giants and representatives of small companies are far from each other. Benchmarking of processes is something large and far from our realities. For this reason, managers of medium-sized businesses do not particularly favor consultants who suggest using someone else's experience to solve pressing problems. And experienced marketers, who know the methodology of benchmarking, what it is and how to apply it in practice, prefer to work for large companies, rather than small businesses. In addition, this method involves a two-way exchange of information and experience. That is to get, you need to give. But, despite this, it is possible and even necessary to adopt the experience of competitors or foreign partners.

Benchmarking: what it is in practice

If you ignore the routine, which takes a working day, you can see hundreds of companies that, in one way or another, contact with yours. They have experience and knowledge, and your task is to make sure that they share what they have acquired. But do not expect that European suppliers or major manufacturers will suddenly want to share their experience with the company from Russia. But your partners, dealers, suppliers, with whom you have good relations, can become suitable candidates for the exchange of experience. In addition, the prosperity and growth of your business and in their interests.

Benchmarking: examples

The largest mobile operators in America and Europe create whole divisions, the main task of which is the search, processing and sale of information. Any call or message sent is marked on the mobile tower. This information is recorded, and the operator on its basis can track the movement of people around the city or region. In the modern world, the issue of geolocation is very important. Therefore, such information is very valuable. Knowing the demographic composition of the population is one thing, but understanding how many people are going and on what matters is quite different. Consequently, benchmarking takes marketing research to a new level, making it more accurate and directed.

Reasons for the popularity of benchmarking

Benchmarking - what is it? This is the use of someone else's experience, which is very important in the era of business globalization. Companies understand how important it is to learn and then use the best achievements of competitors for their own survival. So, global competition can be called one of the reasons for the emergence and development of benchmarking. In order not to lag behind their competitors, all companies, irrespective of size and scope of activity, must constantly study and apply experience in the field of production and business technologies.