Question.630 - Develop a paper that explain the benefits of benchmarking. What are some of the best-in-class benchmarking metrics utilized by companies? If you were the manager of a company, what processes would you choose to benchmark, and how would you go about it?
Answer Below:
Benchmarking is one of the most common and relevant business processes to make the production process better and improve its growth. Benchmarking helps to identify the loopholes or the flaws in the business performance against the competitors and this is a continuation process that brings continuous changes to the business process (Ohri, 2021). One of the most important and beneficial types of benchmarking is product benchmarking. It is a tool to measure the products of a company with another and find out the strengths and weaknesses accordingly. It helps in assessing the quality and variation of products within a specific KPI similar to products with same size and shape (Ohri, 2021). Moreover, measuring the performance of the product helps a business to understand both competitive advantage and the weak point at the same that helps the company to work upon the weaknesses and fix the competitive advantage. This is important because without product benchmarking, it becomes difficult and uncertain for a company to analyse its loopholes when the particular company experience loss and poor reviews from customers. Every business becomes productive and efficient when product and service are preferable to the customers and in the market globally. Therefore, product benchmarking will help in setting business goals more efficiently by developing innovative strategies to implement in improving the products (Ohri, 2021). Moreover, identifying competitive advantage or strength helps a company to discover new opportunities to increase growth and success. The best-in-class benchmarking refers to the top performing outcome that is done through a particular metric in measuring the overall performance of a business. Some of the best-in-class benchmarking metrics are- branding, cost, performance, customer service, safety, process (Spacey, 2017). Out of all these metrics, I think all are equally important but the most significant one in customer service because the entire growth of a business is dependent on it. For example, Amazon is the company that monitors and prioritizes customer service metrics because the mission of the company is to server its customers through online and physical stores and focus on selection, price and convenience (Tiwari, 2018). If I would have been the manager of a company, I would have used product benchmarking process because I feel product and service are the main source for generating revenue for a company and this is interconnected with customer service. When the product will be upto the mark, it is obvious that the company can achieve customer satisfaction. Moreover, the product should not be manufactured and produced as per companys desire rather the product should be based on customers taste and preference. When a company can satisfy the customer, the growth increases and the company gains the competitive advantage. Therefore, I would measure the function of products and this will be the first benchmark in the company. Through this process, I will be able to discover new products and able to change or modify the function of products if it matches with the relativity of product of the competitors. In order to implement benchmark in a company, I would implement the process through four steps- collecting, analysing, planning and implementing (Lucid Content Team, n.d.). I will collect substantive data related to the products and analyse those data by measuring the performance. This will help me to understand where the products are falling behind and it will help me to compare the performance of the products whether it has reached customer satisfaction or not. Eventually with the identification of the drawbacks and accordingly plan to incorporate the best strategies and techniques to implement those changes and make sure that the employees work effectively to fulfil the common goal in improving the growth of the products and increase the productivity rate (Lucid Content Team, n.d.). References Ohri, A. (2021).?What is Product Benchmarking? An Easy Guide In 4 Points. Jigsaw Academy. Retrieved 11 May 2022, from https://www.jigsawacademy.com/blogs/product-management/product-benchmarking/. Spacey, J. (2017).?8 Examples of Best in Class. Simplicable. Retrieved from https://simplicable.com/new/best-in-class#:~:text=Best%20in%20class%20is%20a,results%20in%20a%20particular%20areaLucid Content Team.?8 Steps of the Benchmarking Process | Lucidchart Blog. Lucidchart.com. Retrieved from https://www.lucidchart.com/blog/8-steps-of-the-benchmarking-process. Tiwari, S. (2018). Amazon: customer first approaches. Ohri, A. (2021).?What is Product Benchmarking? An Easy Guide In 4 Points. Jigsaw Academy. Retrieved from https://www.jigsawacademy.com/blogs/product-management/product-benchmarking/.More Articles From Operation Management
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