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From Food Tech Innovation Portal

Benchmarking

Why to deal with this? A positive, proactive process by which a company examines how another company performs a specific function in order to improve how it performs the same, or similar function. Operational processes must be comparative or analogous if the highest degree of knowledge transfer between benchmarking partners is to be achieved.
When is it suitable/applicable? The technique initially used to compare existing corporate strategies with a view to achieving the best possible performance in new situations (see above), has recently been extended to the comparison of technical products. This process is usually referred to as technical benchmarking or product benchmarking. Its use is well-developed within the automotive industry automotive benchmarking), where it is vital to design products that match precise user expectations, at minimal cost, by applying the best technologies available worldwide. Data is obtained by fully disassembling existing cars and their systems. Such analyses were initially carried out in-house by car makers and their suppliers. However, as these analyses are expensive, they are increasingly being outsourced to companies who specialize in this area. Outsourcing has enabled a drastic decrease in costs for each company (by cost sharing) and the development of efficient tools (standards, software).
When is it NOT suitable/applicable? Although benchmarking involves making comparisons of performance, it is not:
  • just competitor analysis - benchmarking is best when it involves collaboration
  • comparison of league tables - the aim is to learn about the circumstances and processes that underpin superior performancea quick fix, done once for all time
  • catching up - in rapidly changing circumstances, good practices become dated very quickly and anyway you want to gain competitive, or possibly prime mover, advantage
  • copying - the fact that others are doing things differently does not necessarily mean they are better
  • spying or espionage - openness and honesty are vital for successful benchmarkingwarning.png"Although benchmarking involves making comparisons of performance, it is not:
  • just competitor analysis - benchmarking is best when it involves collaboration
  • comparison of league tables - the aim is to learn about the circumstances and processes that underpin superior performancea quick fix, done once for all time
  • catching up - in rapidly changing circumstances, good practices become dated very quickly and anyway you want to gain competitive, or possibly prime mover, advantage
  • copying - the fact that others are doing things differently does not necessarily mean they are better
  • spying or espionage - openness and honesty are vital for successful benchmarking" cannot be used as a page name in this wiki.
What costs are related to it (financial, time effort etc.)? Benchmarking projects may extend over a number of months or even years, and it is vital to repeat them periodically so as not to fall behind as the background environment changes

The three main types of costs associated to benchmarking are:

  • Visit Costs - This includes hotel rooms, travel costs, meals, a token gift, and lost labor time.
  • Time Costs - Members of the benchmarking team will be investing time in researching problems, finding exceptional companies to study, visits, and implementation. This will take them away from their regular tasks for part of each day so additional staff might be required
  • Benchmarking Database Costs - Organizations that institutionalize benchmarking into their daily procedures find it is useful to create and maintain a database of best practices and the companies associated with each best practice now.

What’s the relevant HTE output? Hightech Europe cannot provide you with numerical benchmarks. However, this website (Food Tech Innovation Portal) can provide valuable information on the (technical) state-of-the-art.
Whom can I talk to from the HTE team? ZENIT, Agropolis International, TEIN, Qualiméditerranée, TRITECC

DLG, ARC

Relevant internet links Links:
Online databases and tools Tools:

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Where to get advice, consultancy? Support:
  • Industry associations
  • Chambers of Commerce and Industry
  • private organizations offering data (for business ratios, performance figures)
  • private management consultants
Related innovation sheets Porter five forces analysis, SWOT Analysis, Business Plan, Management x pre feasibility, Management x feasibility, [[[Management x development]], [[[Management x launching]]

Title Benchmarking
Aspect Management
Latest Version 14.06.2012
Completed by ZENIT


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Created by Hte zenit on 14 June 2012, at 11:55