Shruti Bhat PhD, MBA, Lean Six Sigma Black Belt
  • Home
  • About Shruti
  • Consulting
  • Workshops
  • Patents
  • Articles
    • Case Studies
    • Innovation Portfolio Development & Patents
    • Drugs-in-the- making
    • Culture Change & Business Transformation
    • Operational Excellence, Quality & Continuous Improvement
  • Books
  • Digital
  • Blog
  • Videos
  • Contact

Role of Benchmarking in Business Process Improvement/ Business Process Redesign

1/13/2014

0 Comments

 
Benchmarking is a business term that defines the comparison of a business against others in terms of understanding where the business stands and how it can be advanced.
Role of benchmarking in business process improvement business process redesign
Benchmarking typically compares the practices used in one’s business in comparison to others to find out the standards or practices which are most applicable and helps to improve overall performance.
 
Different types of benchmarking include the following- 

  -    Process benchmarking
  -    Financial benchmarking
  -    Benchmarking from investor, public sector perspective.
  -    Performance benchmarking.
  -    Product benchmarking
  -    Strategic benchmarking
  -    Functional benchmarking
  -    Operational benchmarking
  -    Best-in-class benchmarking

The benchmarking tool is used in organizations for business improvement, as it clearly shows the way business processes are approached, in what manner they’re being done, how others are doing it, how current performances measure against other organizations and ways in which it can be improved. 
 
Benchmarking, including process benchmarking, entails the development and learning involved by using comparisons as indicators, such as quality, time, productivity, cost, profit and/or value. This practice can take a lot of time to set up since it requires a great deal of development and analyzing of current practices. 
 
Process benchmarking can be performed in increments or to the organization as a whole. It is viewed as a tool for continuous improvement as opposed to a single event. 
  
The reason that process benchmarking is vital to the success of a business is because it clearly shows- where the business can make necessary changes, where there are challenges, suggest new methods for improvement, possibilities, strengths and weaknesses, and ways in which to make the business more efficient and effective. 
 
The main types of process benchmarking include: internal, competitive, functional and generic benchmarking. Internal benchmarking compares one specific process in the organization to another company’s method. It is the simplest form of benchmarking since it requires less research and implementation activity. 
 
Competitive benchmarking refers to the comparison of a current process against main competitors (instead of the entire industry). This is viewed as the most challenging form of benchmarking due to the information that is required.

​Functional benchmarking uses the comparison against other organizations within the entire industry and general requires much less research than competitive benchmarking. 
 
Generic benchmarking makes comparison between one’s organization against those of any industry, which may or may not be related to the company’s industry vertical. This makes it easier to avoid legal difficulties as well as increases the chances of gaining information. 
  
The information gathered through process benchmarking can significantly advance a business and help develop a greater advantage over competitors. It is also a good tool for motivating the company into a new and more successful direction. 

​
Follow Shruti on Twitter, Facebook, YouTube, LinkedIn


#ContinuousImprovement #BusinessProcessManagement  #BPM  #ProcessBenchmarking
0 Comments

Your comment will be posted after it is approved.


Leave a Reply.

    Shruti Bhat, global leader in business turnaround, operational excellence and continuous improvement

    New Book Released!

    top ten strategic decision-making tools for operational excellence

    Shruti's YouTube Channel ...

    Picture

    Blog Categories

    All
    3D Printing
    5S
    Agile
    Artificial Intelligence
    Automation
    Balanced Score Card
    Biotechnology
    Books
    Business Turnaround
    Case Studies
    Change Management
    Chemical Industry
    CMMI
    Continuous Improvement
    Design Thinking
    Digitalization
    Drug Delivery
    External News Links
    Food Industry
    Hall Of Fame
    Healthcare
    Hoshin Kanri
    HR Development
    Innovation
    ISO
    Just In Time
    Kaizen
    Leadership
    LEAN
    Lean Six Sigma
    Life Sciences
    Machine Learning
    Manufacturing
    Medical Devices
    Mistake Proofing
    Motivational Cards
    Nanotechnology
    Operations
    Packaging
    Patents
    Personal Products
    Process Improvement
    Product Development
    Productivity Increase
    QbD
    Quality Management
    Robotics
    Scrum
    Service Industry
    Six Sigma
    Strategy
    Supply Chain Logistics
    Telecom Industry
    TQM
    Videos
    Voice Of Customer
    Workshops

    Shruti's books...

    Picture
    shruti bhat, business process management, continuous improvement
    kaizen for pharmaceutcials, medical devices and biotech industry book by Dr Shruti Bhat
    Book on Continuous improvement tools by Dr Shruti Bhat
    kaizen for leaders, continuous process improvement tool to increase profit and organizational excellence by shruti bhat
    kaizen, shruti bhat, continuous improvement, quality, operations management
    Picture
    how to overcome challenges of creating effective teams
    how to lead a successful business transformation

    ​Micro-Learning
    ​Partner

    Picture

    Publishing Partner

    fast read books, business management books, health and wellness books, spiritual guidance books, best online book store

    Wellness
    ​Partner

    Picture
© Copyright 1992- 2022 Dr. Shruti Bhat ALL RIGHTS RESERVED.
See Terms and Conditions for details on this site usage.
SHRUTI BHAT, CONTACT
Click to connect.
Created by Macro2Micro Media