Benchmarking
Being an entrepreneur isn't just about having an idea. It's about putting that idea into practice. In this sense, every entrepreneur must understand what it is and know how to apply the technique of Benchmarking.
This effective technique involves comparing performance, actions, and even organizations. The goal is to surpass previous results and improve products, services, or practices.
Introduced by Xerox in the 1970s, benchmarking is one of the most widely used techniques in the business world. The American company would take apart its Japanese competitors’ equipment to understand how those companies were able to sell their products at more competitive prices. Ford, Kodak, and Johnson & Johnson are also examples of companies that successfully apply this technique.
Advantages:
– A deeper and clearer understanding of the market;
– Process improvement;
– Reduction in errors;
– Low costs;
– Business expansion;
– Identify objectives and priorities;
– Introduce new forms of assessment;
– Greater customer focus.
Disadvantages:
– Simply copying systems;
– Excessive concentration among competitors;
– The lack of a rigorous comparison process can be detrimental to the company itself.