Cost optimization is a continuous discipline aimed at reducing costs while maximizing business value. It involves streamlining processes, optimizing workloads, and using automation to manage resources more efficiently. Cost optimization is a long-term, continuous process to reduce unnecessary spending so that organizations can maximize investment in areas that yield the most return on investment.

Here are some best practices for cost optimization:

• Create a prioritized list of your most promising cost optimization opportunities based on a shared cost management framework to prioritize investments.
• Obtain the best price for business purchases.
• Standardize and simplify costing technologies.
• Automate and digitize IT and business operations for cost savings across an organization.
• Manage demand and supply resources.
• Optimize over time.

Cost optimization is important for businesses because it can help reduce outgoings, increase profits, conserve resources, and maximize business growth. By taking a strategic cost optimization approach, business leaders can make more informed budgeting and spending decisions while investing for growth and digitalization.

In summary, cost optimization is a continuous discipline aimed at reducing costs while maximizing business value. It involves streamlining processes, optimizing workloads, and using automation to manage resources more efficiently. Cost optimization is important for businesses because it can help reduce outgoings, increase profits, conserve resources, and maximize business growth.