The NetSuite upgrade is imminent, and one of the key applications of this 2024.2 version is Benchmark360.
Benchmark360
The Benchmark 360 SuiteApp allows an organization to compare its essential metrics with those of other businesses within the same industry and geographical area, with the aim to enhance the company’s performance. This SuiteApp features a dashboard that displays crucial industry benchmark information, including the Top 25%, Median, and Bottom 25% for five selected Key Performance Indicators (KPIs).
When examining data, the phrases “Top 25%”, “Median”, and “Bottom 25%” are utilized to characterize various segments of a distribution:
- Top 25%: This term denotes the upper quarter of the dataset. When all values are arranged in ascending order, the top 25% consists of those values that exceed the 75th percentile. Essentially, it encompasses the highest 25% of data points.
- Median: The median represents the central value within a dataset when it is sorted from lowest to highest. In cases where there is an even number of data points, the median is calculated as the average of the two central values. It effectively splits the dataset into two equal parts, with half of the values lying below it and half above.
- Bottom 25%: This term refers to the lower quarter of the dataset. It includes those values that fall below the 25th percentile. In other words, it comprises the lowest 25% of data points.
The KPIs used as benchmarks consist of Days Cash on Hand, Days Sales Outstanding, Days Payable Outstanding, Employee Turnover Rate, and Revenue per Full-Time Equivalent (FTE). NetSuite obtains the industry benchmarks for these KPIs from the American Productivity and Quality Center (APQC).
The company can utilize the Benchmark 360 SuiteApp to review industry benchmarks for five KPIs displayed on the dashboard. Additionally, it allows the business to define specific performance metrics and establish adjustable target values for each of these metrics. Furthermore, the SuiteApp enables comparisons of organizations' performance metrics against those of other companies within the same industry and region, facilitating a comprehensive analysis of the business standing.
Overall, Benchmark 360 seeks to equip businesses with the necessary tools and insights to enhance their performance and attain improved outcomes within their respective industries.
This article features one of many enhancements that we will be highlighting leading up to the NetSuite 2024.2 release on September 1. Be sure to subscribe and follow Continuous Scale on all channels to learn more!
