Benchmarking certainly gives insights on how to improve performance by identifying and applying the best demonstrated practices to operations. Managers compare the performance of their processes or products with external competitors and internally with operations that perform similar activities. Although this comparison is necessary for performance improvement, incorporation of these best practices derived from benchmarking should happen not by imitating but by innovating.
Benchmarking is used to:
Identify methods of improving operational efficiency and product design
By helping companies focus on capabilities critical to building strategic advantage
Help bring new ideas to the company and facilitate experience sharing