Functional Benchmarking Definition
Functional benchmarking is the process of comparing the performance of a company’s products or services against those of its competitors. The purpose of functional benchmarking is to identify areas where the company can improve its own performance.
To carry out a functional benchmarking study, a company first needs to identify its competitors. It then needs to collect data on the performance of both itself and its competitor in the areas being studied. This data can be collected through customer surveys, interviews, focus groups, or other research methods. Once the data has been collected, it needs to be analyzed in order to identify any areas where the company’s performance falls short of that of its competitors.
Once areas for improvement have been identified, the company can then develop plans to address these issues. In some cases, this may involve making changes to existing products or services. In other cases, it may involve developing new products or services that are better than those offered by competitors. Whatever course of action is taken, the goal should be to improve the company’s overall performance in the marketplace.
