What is opportunity cost in prioritization?

Opportunity cost (alternative cost) in prioritization is the value of the missed opportunity, i.e., the benefit of the best option not chosen. In product management, this means that when choosing one task or feature for implementation, the team forgoes other potentially useful tasks.

Understanding opportunity cost helps make more balanced decisions by evaluating not only the direct benefits of the chosen option but also the losses from not pursuing other options. This contributes to optimal resource allocation and maximization of product value.