When someone mentions the term business optimization, most imagine it refers to business process optimization used to improve various elements of a business. It’s an activity that often involves procuring the services of a business consultant who analyzes the business, identifies process issues and recommends changes to optimize the operation.
This procedure, if not carefully managed, often results in minimal gain and less than satisfactory results because of the difficulty external consultants have in really understanding a business.
This doesn’t mean business optimization doesn’t work, nor that it isn’t important. Many organizations, especially manufacturers, have adopted various business optimization techniques such as lean manufacturing, Six Sigma and the Toyota Way with great success.
In fact, every business should be constantly seeking ways to improve efficiencies, reduce waste and optimize resources as part of their ongoing business practices. Business optimization works best when driven internally and supported by decision support software that helps executives determine which of the many possible business optimization strategies offers the best return.
What Is Meant by the Term Business Optimization?
The dictionary definition of optimization includes phrases such as:
- Make as perfect as possible
- Fully perfect
- Most effective
Business optimization is the process of identifying and implementing new methods that make the business more efficient and cost effective. Examples of business optimization include:
- Introducing new methods, practices and systems that reduce turnaround time
- Reducing costs while improving performance
- Automation of repetitive tasks
- Machine-learning techniques that improve equipment operation
- Increasing sales through enhancing customer satisfaction
- Reducing all kinds of waste such as wasted time, scrap production and repeat work.