COST05-02 Establishing Measurable Optimization Objectives

High

Cost optimization is a strategic investment and an ongoing process. To effectively showcase the value of cost optimization to decision-makers and stakeholders, it is essential to quantify the cost savings, especially the objectives of cost optimization. With clearly defined objectives, you can gain support from decision-makers and stakeholders for continuous optimization activities while establishing a structured process framework to measure cost optimization outcomes.

A straightforward and measurable cost optimization objective is to report cost savings. For example, you can generate a report illustrating how much the company or organization can save without compromising quality or output.

Efficiency improvement can also serve as a measurable optimization objective. For example, during the transition from the traditional IT architecture to containerization and serverless, resource utilization is improved, service development and deployment are accelerated, and thereby the response time to the market is shortened and workforce efficiency is enchained.

The ultimate goal of cost optimization is to maximize the benefits of every dollar spent by enterprises or organizations. Do not focus only on reducing costs and ignore business value. Setting clear and measurable optimization objectives helps the cost optimization team mentioned, decision makers, and stakeholders to align and reach a consensus effectively.