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BVM - Value-Based IT Benchmarking
   
Benchmarking is critical to understanding your position within the market and achieving a competitive advantage. It is an opportunity for a company to compare its processes and performance ratios or metrics to competitors within its industry or from other industries or even with another division within its own company.  A target value is created by using a selection of comparables. In most cases the target value is that of the best quality, price or time.

Comparing oneself to the best is not the only measure.  
 
  
For example, a new entrant into the market may not expect to reach the best, however they would find value in knowing how they were positioned within the group of examples.  More particularly they would be interested in any movement in their position or their relationship to the average. Benchmarking produces a series of metrics and data points, some more valuable than others.  Measuring processes against those “that do it best” is called “best practices”. While benchmarking is most notably known for “best practices” there are many other factors and statistics to consider.

Benchmarking is not without its challenges. No two companies are alike, differences imbedded in processes and costing make comparison difficult. Accounting treatments related to inventories, allocation methods associated to overheads and costing policies are unique to each company. So how do you compare the incomparable?
   
Benchmarking Methodology
   
At Baix we know that benchmarking allows companies to understand their position within the industry and facilitates process improvements. As a result, we take the time to understand the industry were comparing to. Partnering with you, we will develop a comparison matrix (standard Baix process) that allows us to see “like” processes and process components as well as identifying the differences within each of the processes.

Benchmarking is about more than just comparing unit costs and production time lines. The Baix team will work with you to obtain a comprehensive benchmarking list of metrics with which to examine and compare your company’s value and ensure you get the most value from the benchmarking process.
   
The Baix IT Chargeback Framework Focuses On:
 
  
  Analysis of benchmark companies
  Finance treatments, methods and policies
  Identify areas for improvement
  Internal and external comparisons of "like" processes
  Target values, data points and metrics
   

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