Business Optimization is a systematic process of planning, integrating, coordinating and executing all dimensions of enterprise activities for best-possible mission-focused results. It is a sub-field of management science. The purpose of Business Optimization is to answer the basic question “What do we need to do to earn best-possible profits under continually changing market conditions?” As a practical field of management Business Optimization is both a science and an art.
In the end, the best practice for business optimization is a thorough understanding of what true optimization looks like.
Business Optimization defines 5 types of resources: Capital, Procurement options, Sales opportunities, Production capabilities, and Information.
In the end, the best practice for business optimization is a thorough understanding of what true optimization looks like. It’s not guesses. It’s not whim, or thoughtless cuts and expenditure increases. Real optimization happens when an organization takes a step back, gathers in data from top to bottom, and uses that data to improve the whole.