What is often the first step in the benchmarking process?

The first step in the benchmarking process typically involves identifying the key products and competitors. This initial phase is crucial as it sets the foundation for the entire benchmarking exercise. By recognizing which products are similar in nature and which competitors are relevant, organizations can define the scope of their study.

Identifying key products helps to focus on those that are critical to the market and to the company’s strategy. It allows you to gather specific data related to performance, features, quality, and customer satisfaction. Furthermore, understanding the competitive landscape enables a business to draw meaningful comparisons and derive actionable insights.

Without this foundational step, any subsequent process—such as data analysis, implementing changes, or planning for cost reductions—would lack direction and relevance. Establishing which products to benchmark against is essential to ensure that the findings will provide valuable insights that can lead to improvements and strategic advantages.