The competitiveness of a business model is determined by the benefit it can achieve in relation to its market competitors. This advantage can be explained by means of a series of questions that business in a prominent position. In this perspective, the competitiveness indicators are tools that help to measure the strength of a company.
We have prepared this text with the objective of clarifying what these indicators and how to implement them in the company. Check it out now!
What are competitiveness indicators
Competitiveness indicators can be conceptualized as a model of performance indicator that acts in the management optimization, helping to analyze the company's market position, notably in comparison with other businesses.
There are several ways to measure competitiveness, whether through productivity, quality, market share, return on investment indicators, among others. In fact, each manager is responsible for choosing the indicators competitiveness that are more effective in ascertaining the situation of the business, department or team.
Thus, the tendency is for KPIs to be used to simplify and optimize the company's processes, taking into account the quality of each one instead of just quantity.
Know the main
In such a competitive market, business success is indicated by Market Share. This indicator shows how much the company dominates its niche and its position in comparison to its competitors. Each business uses efficient means to estimate its market share and that of its competitors, such as net revenue, customers, sales quantity, etc.
This index is directly linked to the talents that your business is able to attract. For example, from monitoring employee turnover, you can review investment in human capital and the HR policies used in the company.
O Return on Investment demonstrates how much your business has been able to capture returns from third party or own investments. With this index, it is possible to detect which problems may have led to an eventual negative return on the money invested in a given segment.
The efficiency-related indices measure the production quantity carried out in relation to the desired production, without taking into account the resources employed and the means used. Depending on the company's sector, the effectiveness indicator can be based on the volume of items manufactured, the number of services offered, sales revenue, among others.
How to implement them
It is important to select which indexes will be part of your management of indicators, considering the process you are managing, as well as the periodicity of the analysis, so that the effort in following them is effective.
From there, you can start tracking these indicators in your day-to-day business. In order to communicate the results that are being obtained, it is important to promote process performance meetings, which are occasions when your team of employees meets to analyze and reflect on the indicators.
These meetings are essential, since, in addition to aligning everyone involved with the performance of these indexes, it helps to create a commitment to the quality of indicators.
Now that you understand what competitiveness indicators are, you need to put them into practice. For this, it is necessary to determine the parameters evaluated according to the particularities of your company. That is, what are the problem areas, and those that most generate value to the business. With this analysis in hand, it will certainly be easier to choose your indicators.
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