“SAP Benchmarking is a hidden gem ...and one that that many customers do not realise is a free service that is available to SAP Customers around the world. It's easy to participate in, results are confidential and it is your chance to see how your organisation measures up and what you can do to move your organisation to new levels of performance”.
Paul Kurchina, KurMeta Group, 9/07/2010, http://www.sdn.sap.com/irj/scn/weblogs?blog=/pub/wlg/20025
Looking internally at your company’s performance does have its merits though it is difficult to know how much better your performance could be, should be or how it measures up to your competitors unless you compare it to those of similar companies. Competitive benchmarking involves measuring the company’s performance with that of other comparable businesses against key credentials and comparators such as finance, products and services, organisation, technology, research and development and personnel policies.
The SAP benchmarking program was piloted in 2004, and rolled out largely in 2005. The mission of the program was to develop a forum for SAP customers where year on year performance metrics, and best practices could be readily assessed and contrasted.
To date the program has involved 8,500 participants making it one of the largest benchmarking programs in the world and most notably of all it’s free to SAP customers.
Participants receive a detailed benchmarking study of their businesses processes. Key performance indicators are highlighted within the High Impact Strategies Framework; strategies which are believed to create and have the biggest impact on value creation for the particular business relative to its industry and competitive forces within it.
With over 4,000 survey’s complete the comparable data is all embracing encompassing areas such as financial excellence, customer value life cycle, strategic IT, operational excellence and product and service leadership; moreover, this list is not exhaustive.
The increased competitive pressure within today’s business environments driven by the dynamic, turbulent economic conditions is now compelling organisations to seek new ways to improve their performance and sustain their positions. Measuring of internal performance is no longer sufficient as it can breed complacency and result in positions being challenged, bypassed and potentially pilfered by the competition.
Benchmarking allows for gaps in performance to be identified and then the challenge is how to change the company’s strategies and practices to fill these gaps and reside more competitively.
Businesses should be given every opportunity to excel and reach their full potential. SAP recognise the need for businesses to gain support in improving, building upon successes, strengths and overcoming weaknesses to take advantage of opportunities and minimise threats. According to the now famous business and management consultant, Albert Humphrey, fundamentally this is the basic premise upon which strategy should consistently be cultivated.
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