THE VOICE

OF
MARKET
Rizqa Nur Amalina
Theo Manullang
 The Voice of the
Market
Chapter Objective :

1. Gaining insight through benchmarking

2. Purposes of benchmarking
3. Difficulties in monitoring and measuring performance
4. Commonly benchmarked performance measures
5. Business process benchmarking
 What do we mean by the voice
of market?

Different customer have different ideas about how to perform similar works, because of that we have
different perspective in designed product and processes.

Customers can be good source of information about competitors, the data should include the the competitors
we begin to understand the paket place

The marketplace include immediate customers as well as competitors, the customers of competitors, potential
competitor and potensial customers
 Gaining Insights Through
Benchmarking
Company Mission

Strategic Plan

Competitive Forces Strategic Quality Plan Customer Needs

(Voice of The Market) (Voice of the Customer)
 Gaining Insights Through
Benchmarking

● Benchmark
Benchmark is an organization recognized for its exemplary operational performance
Ex : Toyota for process, intel for design, scandinavian airlines for service, and
honda for rapid product development.

● Benchmarking
The sharing information between companies so that both can improve
 Gaining Insights Through
Benchmarking
There 2 parties to each benchmarking relationship

● Initiator firm -> initiates contact and studies another firm

● Target firm -> the firm being studied and enters into a reciprocal agreement to
observe the initiator firm

Benchmarking Type

• Pr
• Fi
• Pe
 Benchmarking Type

• The initiator firm focuses its observation and investigation on

Process Benchmarking business process, including, proses flows, operating systems,
prosess technologies, the operations of target firm or department

• To perform financial analysis and to compare the results with the

overall competitiveness
Financial Benchmarking
• The interaction will be between the initiator and a third party
that gathers this information
 Benchmarking Type

• Allows initiator firms to assess their competitive position by

comparing product and services
Performance Benchmarking
• Performance issues, include cost structures, productivity
performance, speed of concept to market, quality measures

• When designing new product or upgrade to current product,

including reverse engineering or dismantling competitor’s
strengths and weekness of their design and develop new idea and
Product Benchmarking
service product
 Benchmarking Type

• Involves observing how others compete.

• Firms go outside their own industries to learn lessons from

Strategic Benchmarking companies and organization in different industries.

• This involves target firms that have won prestigious honors such
as: Malcolm baldridgeaward, Shingo prize, the Deming prize.

• Where a company focuses its benchmarking efforts on a single

function to improve the operation of this function.
Financial Benchmarking
• • Ex: purchasing managers , marketing department, human
resource function, and others in many organization
 Purposes of
Benchmarking
 Difficulies in
Monitoring
and Measuring
Performance
 Business Process
Benchmarking
Inputs Inputs Inputs Inputs

Control Process loop

Customer Feedback loop

Inputs
Benchmarking Feedback
 Robert Camp’s
Business
1. Decide what to benchmark. Benchmarking
2. Identify whom to benchmark
Process
3. Plan and conduct the investigation.
4. Determine the current performance gap
5. Project future performance levels
6. Communicate benchmark findings and gain acceptance
7. Revise performance goals
8. Develop action plans
9. Implement specific actions and monitor progress
10. Recalibrate the benchmarks