An ELECTRE-based decision aid tool for stepwise benchmarking: An application over EU Digital Agenda targets

a r t i c l e i n f o The study offers a decision support tool for stepwise benchmarking. Within a benchmarking exercise, we propose a method for selecting a preferable development path that consists of a sequence of intermediate benchmarks. First, an outranking multi-criteria approach is used to establish the hierarchical position of benchmarking units. For each unit, we evaluate possible development paths and distinguish those that are characterised by balanced improvement steps along the whole path. The proposed method can help decision makers to 1) detect disparities among benchmarking units and 2) identify intermediate benchmarks for less successful ones in each stage of their progress toward the ultimate benchmark target. The method is applied to benchmark European Union Member countries against Digital Agenda key performance targets. Benchmarking is a management tool defined as a systematic process of measuring products, services or business practices against those recognised as business leaders [1]. The idea behind benchmarking is to evaluate one's own performance relative to the others to select the best practice exemplars and to consider performance improvements by learning from more successful competitors. All of these considerations require specific decision-making activities that range from how to gauge pertinent statistics on performance and pinpoint areas that need improvement to setting goals and finding ways to meet them. Hence, there are a number of DSS (decision support systems) that exploit benchmarking as an underlying method, whereby prevails its use as a tool to compare and/or to set target values. A recent example is the study of Dong et al. [2], who presented the model that identifies the managerial benchmark (for the purpose of comparison). Similarly, Tremblay et al. [3] define three types of benchmarks to use for comparisons. There are two essential elements of benchmarking. The first involves comparing with other practice exemplars, which allows for a more objective evaluation of one's own performance. The second involves evaluating against other benchmarks—the term refers to a point of reference, a target, or the best in class standard, that is, someone or something to revere. Originally, benchmarking was used to measure and improve processes and performances of various types of business entities, but over time its scope and level of implementation have been extended. At the international level, benchmarking serves as a tool for comparing national successes in a specific field of interest. Benchmarking involves determining how well a country is doing …