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Ten Steps to Building Software Test Automation That Works

Step 2: Define Budget and ROI

Defining a budget for building software test automation is the easy part. The difficulty lies in predicting the results in the form of a Return on Investment. Think about it. How do you put a value on reducing the release cycle time by 50%?

We have identified seven areas for savings and only 1 or 2 are tangible and easy to measure. That’s precisely why many organizations don’t even bother. In the era of cost cutting and lean organizations, developing ROI numbers could be labeled a non value added task and unnecessary. Most numbers are forecasts at best. If it makes sense, just do it.

If you still need it...

Defining Budget and ROI

The majority of organizations require an estimate of savings or return on investment as part of the budget approval process. Automation projects are no exception. In order to calculate a Return on Investment (ROI), let's start with the savings.

It may be difficult to determine your expected level of results without some outside assistance. Because there is no QA Automation Handbook, most companies who are investigating QA Automation are not aware of:

  • The level of success to expect
  • The speed of results attainable
  • The cost of maintaining the automation
  • The importance of an effective methodology
  • The importance of designing software for the ease of automation
  • The impact on the development process
  • The potential benefits to the bottom line

Savings

The reduction of repetitive manual testing is a tangible value to measure. By replacing repetitive manual testing with automation, savings in-person-hours may be realized. This alone may be enough to achieve a healthy ROI. But this may be understated if an inadequate amount of testing is currently being completed. Be careful.

Here are the some areas to consider for savings.

  1. Reduce the need for repetitive manual testing
  2. Compress the release cycle time
  3. Slash the number of defects released to the field
  4. Cut the time developers spend fixing bugs reported from the field
  5. Reduce the number of fixes or interim releases required by the field
  6. Decrease the need for additional helpline and maintenance personnel
  7. Increase the productivity of the development group

MYTH:
Manual testing will be eliminated by implementing automated testing.

REALITY:
The reality is that no organization will be able to eliminate the need for manual testing. However, if test automation is implemented successfully, major accomplishments can be achieved:

  • Manual testing team will be able to focus on the new features
  • Manual testing team will be able to spend time writing new test plans to be automated later
  • Manual testing team will be analyzing results of automation test runs
  • Manual testing team will not be blamed for being a bottleneck to the release process

It is often difficult to determine specific dollar savings when considering the manual testing process. Not only will reductions in repetitive manual testing produce measurable savings, but the reduction in the test time required will permit running the test more frequently. This will impact savings in other areas especially the cycle time and reduction of defects.

Investment

Developing test automation that works requires an investment. Below are some of the cost elements that need to be budgeted.

  • Tool Licenses
  • Additional headcount including benefits and any overhead
  • Hardware
  • Outside services
  • Classroom training
  • Mentoring of resources

Once the savings and the costs are defined, the numbers can be plugged into a ROI formula to calculate your return on investment. Below is a simple ROI calculation formula:

ROI = savings divided by the cost of automation, Where savings = Cost of manual testing minus the cost of automated testing

For a FREE ROI calculator developed by using data from a number of actual client cases, please visit the following link: qasignature.com/resources Stay tuned for the next topic: "Analyzing Existing QA and Development Processes."

Please e-mail your comments to cblaylock@qasignature.com or call 617 510-6545.

Click here for a PDF copy of the complete white paper:

Proof of Concept Service

To Companies Who Want To Build QA Automation - But Can't Get Started. Take qaSignature For A Test Drive.

An effective approach to getting started with test automation is the qaSignature Proof of Concept Service. Standard test automation produces limited results and is difficult and costly to maintain. The qaSignature methodology is different. We'll prove it. Give us your most difficult automation challenge. We will:

  • Recommend the optimal automation tool (or use yours)
  • Build the automation as a proof of concept and show you how our methodology works
  • Let you change the code, we will update the test and rerun
  • Show you the results in our easy to follow test logs
  • Prioritize areas for automation based on results from a cost benefit analysis
  • Give you a fixed price estimate for a fast start program

Here's what our clients had to say.

"The amount of automation that they were able to develop in a couple of days including fact finding was impressive. Their competition could not even begin the process without first learning the application."
Keith Hillyard, Custom Engineering SQA Manager, Kronos

"The qaSignature proof of concept is a "no brainer." They delivered much more than we expected. The process helped us map out our QA Automation Framework."
Frank F. Frazier Jr., Senior Program Manager, ZANTAZ

"The dedication, enthusiasm and passion of the qaSignature team was refreshing. I would recommend them to anyone who needs to develop QA Automation."
Paul Bradley, Systems Consultant, DAFCA Inc.

"The proof of concept demonstrated the applicability of applying the qaSignature QA Automation Methodology to our Agile Development Process."
Keith Hillyard, Custom Engineering SQA Manager, Kronos

"I was impressed by qaSignature's objectivity. They recommended the right tool for the job even though it wasn't their standard offering. They really know QA Automation."
Larry Leonard, Director of Development, SmartTime

Call us now @ 617 510-6545

Click on the link below for details:

Proof of Concept

Need assistance calculating your ROI? We can help.

Unfortunately, there is no QA Automation Handbook. As a result, most companies who are investigating or expanding QA Automation coverage may have difficulty determining the following:

  • The level of success to expect
  • The speed of results attainable
  • The impact on the development process
  • The potential benefits to the bottom line

We are happy to share our experience building automated testing solutions with dozens of companies by helping you determine your potential savings. And we'll help for no charge.

Call us now @ 617 510-6545

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