IT Benchmarking

IT Benchmarking

In a Benchmark LEXTA compares an IT service’s scope and quality to the prices or costs connected to it. We analyze deviations based on extensive market data and from these derive detailed levers. The goals benchmarking can achieve are extremely varied. Here are some of our customers’ questions:

  • Are our service prices at market level?
  • Where is our cost saving potential?
  • Have our processes been designed efficiently?
  • Are we using our budget for the right things in IT security?
  • What is the best indicator for development?

Types of Benchmarks

Based on the question posed and the framework involved we differentiate following benchmarks:

Price Benchmark Cost Benchmark Peer-to-Peer Benchmark Process Benchmark
Comparison of contractual IT services and prices with up-to-date market data to identify savings potential and evaluate market conformity Evaluation of performance of internal IT compared to the market based on cost comparisons and analyses of cost structures Benchmark driven exchange of experience in the participant group, on request with the market perspective based on comparative values from the LEXTA data base Evaluation of process efficiency and disclosure of productivity via maturity level analysis - optimization approaches can be derived from the comparison to best practice approaches

Services

We can practically subject your entire IT to a market comparison:

  • Standard IT services (such as for example client PCs, servers)
  • SAP and individual applications (operation and development)
  • Personnel (demand, prices and costs)
  • Overheads (number of staff, content, cost)
  • IT security

Here we can depict different levels of detail, from business oriented key figures to technically oriented key figures, from total costs to unit costs.

Procedure

A Benchmarking project with LEXTA can roughly be divided into three blocks:

  1. Determining your services,
  2. Creating comparability via normalization as well as selecting a comparison group and
  3. The actual comparison and derivation of suitable measures.

As-is analysis: As part of the as-is analysis our consultants define service content, amount, service quality and specifics using standardized questionnaires in on-site workshops. The questionnaires form the base of the analysis and are continuously adapted to the latest technical developments. Individual contractual, technological and customer specifics are taken into consideration and the data is reviewed for plausibility. At the end of this phase, we have removed ambiguities together and the benchmark is defined in full.

Comparability: Within the framework of normalization we evaluate deviations of the company being benchmarked to the market using transparent and comprehensible markups and markdowns. Here we draw on our longstanding experience in projects and our extensive benchmarking database. When selecting the comparison group we choose the benchmark companies based on qualitative and quantitative criteria. These criteria (e. g. industry focus, quantity structure, location dispersion, comparability of service levels) are put together individually based on our customer’s stipulated goals and requirements.

Comparison: For the quantitative benchmark we compare the costs or prices of individual services to the data of the defined benchmark companies. Additionally, within the framework of qualitative benchmarks we identify relevant key figures and levers per IT service based on the performance analysis and the results of the quantitative benchmark. Consequently, the levers indicate individual courses of action to achieve competitive costs or prices. The key figures and levers can be identified both for individual performance elements (hardware, software, staff level) and IT structures, processes, purchases etc.

We are happy to meet you in person and arrange a joint workshop to identify the possibilities and potential of benchmarking for your company. .