Opportunity cost represents the value of the best alternative that is forgone when choosing one action over another.
In optimisation, opportunity cost helps prioritise limited resources.
Examples in Action
- Choosing one test over another
- Allocating development capacity
- Deciding between optimisation and acquisition
- Prioritising short-term versus long-term initiatives
Typical Outcomes / Results
- More intentional prioritisation
- Reduced low-impact work
- Improved strategic focus
- Better use of limited capacity
This glossary entry reflects widely used economic decision principles.
Applying this in practice
A redesign uses time and capacity that could be invested elsewhere. Our guide to choosing between redesign and optimisation explains how to compare the alternatives alongside delivery and maintenance costs.