February 16, 2020

Benchmarking as a Tool for Improving Efficiency

We will talk about what benchmarking is, about the difference between benchmarking and competitor analysis and about stages of the benchmarking. We will show how our solution boosts the efficiency of Belgian hospitals.

What Is Benchmarking?

Benchmarking is a comparative analysis of the performance of one’s own company or organization and the average indicators in the industry taking into account a number of criteria. It came about as a result of global competition and is a popular managerial tool used to improve the quality and efficiency of managing business.

The benefit from benchmarking by bringing your performance level closer to that of the bests in the industry and by developing a strategy for making managerial decisions based on data. This upgrades your business to a new level of competitiveness.

Examples of analytical reports from the solution developed by Smart Analytics are given below. The solution allows benchmarking general indicators of the Belgian hospitals’ activities against those of other healthcare market players in Belgium.

Benchmarking vs Competitive Analysis

Benchmarking often resembles the competitive analysis. However, the two are quite different. Competitor analysis is comparatively more widespread than benchmarking, although it is up to you to decide which tool is more relevant to your business based on your time and resources. The two approaches are compared in the table below:

Benchmarking Competitive Analysis
Aimed at comparing self with other industry players (answers the question ‘Where are we compared with our rivals?’) Aimed at measuring efficiency indicators (answers the question ‘What are our rivals doing?)
Strives for continuous improvement Strives for prompt focused improvement
Co-operation for exchanging information Considered by some as industrial espionage
A competitive advantage needs to be maintained It is a good idea to implement this competitive advantage
Implementing best practices after analysis Attempting to copy somebody’s experience/process

Stages of Benchmarking

The basic benchmarking stages include:

  1. Choosing indicators for benchmarking
  2. Collecting information about similar companies for further comparison
  3. Collecting information about their inner performance indicators
  4. Thoroughly analysing the collected information to define points for improvement in own company
  5. Сoming to conclusions based on the research in analytical reports
  6. Using the new information for ideas about implementing changes in own company

Thanks to solutions from Smart Analytics, a company is able to automate most of the stages mentioned: from the collection, validation and harmonization of data from different sources and building calculation models, as well as calculating analytical indicators to generating over 200 types of analytical reports.

Benchmarking is not only a benign methodology for maximizing organizational performance but also a determinant of working reality for managers and/or planners.

Carlos A. S. Passos & Rosana B. B. Haddad

Centro de Tecnologia da Informação Renato Archer

For continuous improvement of its performance a business must be aware of its strong and weak points. This is what benchmarking is for – it is an analysis aimed at devising ways that would help to remain on a par with competitors and implement changes easily.


  • Data Visualization
  • Dashboards
  • Data Analytics
  • Benchmarking
  • Healthcare

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