Definition
The baseline performance of a system shows the current state at which the system is running. Establishing the baseline therefore, helps quantify the gap between current performance and required performance which will drive the development of action plans to close the gap.
Examples
If it is known that the current billing process takes 1 minute to process a transaction, this provides the baseline against which any improvement actions can be measured.
Application
Baselining is a key ingredient for capacity planning.