IT benchmarking is a critical strategy for SMEs aiming to remain competitive in today’s market. As businesses adopt new technologies to improve efficiency and customer satisfaction, understanding where they stand compared to industry standards is essential for progress. It also helps them get ahead of the competition.
So what is IT benchmarking?
“It’s a way of comparing your performance and standards against the industry,” explains Nutbourne’s Marcus Evans. “It will show you what strengths you have, where you need to improve, and how you stack up against the industry as a whole.”
For SMEs, this is especially important because it allows them to allocate resources where they are needed most. In turn, that boosts performance and efficiency, while keeping costs and investments transparent.
“It’s common for SMEs to have budgetary constraints,” Evans says. “Regular benchmarking shows you where you need to invest, how much you need to invest, and when. That maximises your ROI and also puts you on a good footing to scale.”
So what should you benchmark?
There are several key areas within IT that SMEs should focus on when benchmarking. Generally speaking, you should take a holistic approach, especially if you haven’t done it before.
IT Operations
IT operations encompass a wide range of functions, from maintaining infrastructure to ensuring service availability and security. “By benchmarking your operations, you can compare your overheads, service reliability, and incident rates with the rest of the industry or against best practice,” Evans says. This will give you clarity on whether your internal processes are performing as they should in certain areas, or whether they require improvement.
Cybersecurity
“We say it often enough to everyone: cyberattacks are growing and getting more sophisticated,” Evans says. “If you only had to benchmark one area of your IT, it should be your cybersecurity. Standards are constantly evolving to mitigate threats, and keeping up with them is essential for your business. It’s not a ‘one and done’ situation. You have to stay on top of this year-round. Benchmarking helps with that.”
Digital Transformation
Digital transformation goes beyond merely adopting new technologies. It involves fine-tuning processes, systems, and procedures to ensure you’re in the best possible shape. “Benchmarking identifies how well you’re progressing compared to your competitors,” Evans says. “For instance, fewer than 30% of businesses successfully achieve their digital transformation goals, largely due to the misalignment of technology, culture, and skills. Benchmarking helps mitigate that.”
For SMEs aiming to compete in a digital-first economy, IT benchmarking is a powerful tool to drive digital transformation. By regularly assessing their IT operations, service management, cybersecurity, and digital efforts, SMEs can make data-driven decisions that enhance performance and productivity.
Benchmarking ensures that digital transformation efforts are not only strategic but also aligned with industry best practices, helping SMEs navigate the complexities of technological change and position themselves for future growth.