cost-optimization

Vocabulary Word

Definition

Cost-optimization is the process of adjusting company's strategies, operations, and budget to lower costs as much as possible while maintaining quality. It's like finding a balance between maintaining quality and minimizing costs in a business.

Examples in Different Contexts

In IT infrastructure, cost optimization might include investing in cloud computing to reduce the costs of maintaining physical servers. An IT manager might explain, 'Our move to the cloud is a key part of our cost optimization strategy, reducing capital and operational expenses.'

Practice Scenarios

Aerospace

Scenario:

The construction of our new satellite model seems pricey. Let's explore strategies to limit the increased costs.

Response:

We could cost-optimize by designing more fuel-efficient models.

Tech

Scenario:

The annual cost of maintaining our servers is getting excessively high. Perhaps, we could think about some alternatives.

Response:

Yes, you're right. Implementing cloud-based solutions might cost-optimize our server maintenance.