A global player in the biotech industry wanted to analyze how peer companies enhance business value. They wanted to identify and benchmark the industry best practices to improve organizational growth. To identify and focus on key performance metrics in the red biotechnology segment, the biotech industry client approached SpendEdge to devise a comprehensive approach that would help them identify and benchmark the industry best practices. A detailed quantitative analysis of various categories within the supply chain was carried out to identify and benchmark the industry best practices to be followed.
About the Client:
A multinational biotech industry firm specializing in the red biotechnology category.
The biotech industry client was facing challenges in identifying and benchmarking the industry best practices.
How did SpendEdge Help the Client?
Step 1: Determined and analyzed the processes to be benchmarked
This step revolves around the process of identifying and defining the industry best practices to be benchmarked. It is regarded as a crucial step in identifying the best practices as incorrect identification at the initial stage could result in wastage of valuable resources at later stages.
Step 2: Analyzing gathered data to determine gaps
A detailed analysis of the gathered data helped the client to discover the extent to which their present performance lags when compared to the best in that particular segment. The implementation of this step offered a clear picture of their business processes compared to that of their peers.
Step 3: Devised a three-step approach to continuously monitor and recalibrate the industry best practices
A three-step approach was devised to help the biotech industry client to continuously monitor and recalibrate the industry best practices. This also helped ensure that their business remains on the cutting edge by continuously evaluating the benchmarked industry best practices and reinstituting the benchmarking process when needed.
However, the correct implementation of the process will result in the development of realistic and unambiguous new standards for the processes involved in the identification of best practices.
Key questions answered in this industry best practices benchmarking engagement include:
Benefits of the Engagement:
The industry best practices engagement helped the red biotechnology client to identify the key performance metrics to fine-tune their strategies and drive growth. Our industry best practices experts worked as an extension of the firm to identify the success factors that uncovered major opportunities for improving their services.
Why incorporate industry best practices benchmarking?
It has been observed that a majority of the companies are reluctant to benchmark best practices. However, to withstand growing competition, biotech industry players must adopt better strategies and deliver better results at a relatively lower cost. Moreover, industry best practices benchmarking does not mean blindly ‘copying’ what competitors do, it helps organizations gain detailed insights into the acceptable standards in the industry. Thus, making it a necessity for businesses to understand where they stand vis-à-vis the specific industry standard.
In the pursuit of meeting their business goals, biotech industry players may sometimes put on blinkers and devote their time and energy to focus entirely on achieving the set goals. Such an approach to drive organizational growth not only steers the firm and digresses them from the focused path but also insulates the company from learning from the activities occurring in the business environment. Therefore, an essential way to prevent this from occurring is to constantly keep abreast of the industry best practices and evaluate the benchmarks periodically.