What do we mean by the Voice of the Market? Immediate customers as well as competitors / The customers of competitors / Potential competitors and potential customers
Benchmarking: A Benchmark is an organization recognized for its exemplary operational performance. e.g.: Toyota for processes; Intel for design; Motorola for training; Scandinavian Airlines (SAS) for service, and Honda for rapid product development // To be a benchmark a company must be willing to open its doors and allow others to view its operations and tour its facilities. Benchmarking is the sharing of information between companies so that both can improve. Why is this a good practice? “The worst thing for a business is a weak competitor.” …Openness provides an impetus to continual improvement.
“We do not mind if the others come to see how we produce our product. Once they see what we can do, they will not want to compete against us.”
Purposes of Benchmarking: Learning from success,Borrowing ideas,Best-in-firm,Beating industry standards,Best-in-class,National Leadership,Best-in-world
Types of Benchmarking:
Process - comparing prices // Financial - comparing business results // Performance - cost structure, speed, quality levels // Product - product attributes and functionality // Strategic - firm competitiveness along several dimensions // Functional - How another firm performs a particular function