However, there is a great deal of information which can be obtained from customers, common suppliers and public domain information. Functional Benchmarking Investigates the performance of core business functions. Does not need to focus on direct competition but, depending on the function to be benchmarked, the benchmark partner may need to be in a similarly characterised industry for useful comparisons to be made. Best Practices Benchmarking Applies to business processes. It breaks the function down into discrete areas that are the targets for benchmarking and is therefore a more focused study than functional benchmarking.
Some business processes are the same regardless of the type of industry.
Attempts to benchmark not only work processes, but also the management practices behind them. Product Benchmarking Commonly known as reverse engineering or competitive product analysis. Assesses competitor costs, product concepts, strengths and weaknesses of alternative designs and competitor design trade-offs, by obtaining, stripping down and analysing competitors' products. The four different types of benchmarking are evolutionary beginning with product, through to functional, process and strategic. For the purposes of this document and the corresponding document 'Guide to Benchmarking' best practice benchmarking will be used due to its focus on processes.