MBADM 850 | Session 11 | Benchmarking and Competitive Analysis for Innovation

MBADM 850 | Session 11 | Benchmarking and Competitive Analysis for Innovation Introduction: The essential practices of competitor analysis and benchmarking are important for both startups and established companies seeking innovation and a competitive edge. Competitor analysis for a startup involves identifying rivals, understanding their products and market segments, evaluating their strengths and weaknesses, and using this information to anticipate reactions or attract customers. For new markets, the traditional X/Y axis competitive graph is often inadequate, so the recommended "Petal Diagram" is used to visualize potential customer segments from neighboring markets. Benchmarking is a systematic process, separate from competitor research, that measures performance against best practices or world-class standards, often outside one's own industry, to identify performance gaps and promote continuous improvement. Various types include process, strategy, and performance benchmarking, with Net Promoter Score (NPS) frequently serving as a key comparative metric. In large organizations, recent data shows a shift, with less time and resources allocated to transformational innovation (Horizon 3) and more focus on incremental and adjacent innovations. The success of innovation initiatives and the ability to secure additional resources depend heavily on gaining leadership support and demonstrating impact on revenue, although innovators often cite politics, turf wars, and cultural issues as their main challenges.