Test automation ROI: 5 ways to show the business benefits | TechBeacon (2024)

Done well, test automation can return multiples of the amount of time and effort invested. Setting expectations with stakeholders and business owners is key to helping ensure that everyone is moving toward the same vision of success. Just as important is setting expectations of returns and communicating with them after.

After working for years to help clients across the US develop great test automation, I have come up with five ways of defining test automation returns.

The business benefits of test automation

1. Faster delivery

One of the largest unaccounted costs in software development is the fixing of defects. Long delays between the development of code and the finding of a defectincrease the time and effort it takes to fix thedefect. Test automation can help. Creating a tighter feedback loop between the development of code and the testing of whether the code does what was intendedis key. What used to take developers days to fix because they had to relearn their own code written months agotakes minutes when test automation is ready to run the moment code is complete.

Decreasing defect costs is one of many outcomes with test automation. Consider the cost of missing market opportunities because testing held up development. The opportunity cost there can be big enough to sink a company.

One way to measure faster delivery is by calculating total time of delivery before test automation and after. The total time must include all the time developers, product owners, customer service, testers, and anyone else spendon identifying, prioritizing, and fixing defects before test automation is created. Then compare that result to the result after test automation is used. Take the total number of hours and multiply by a reasonable average hourly rate, including benefits (usually 40% or more above salary).

In this and each item below, return on investment (ROI) will be the total return (the number we just found) minus the total invested, divided by the total invested. If you’re getting a number greater than 1, you’ve made money. If not, you’ve lost money so far.

2. Find more regressions

Finding regressions more frequently after the introduction of test automation is typical. The differenceis that regressions are generally found so quickly and fixed so easily that they may not be reported as they would have been in the past. A developer may see a failed test in the continuous integration (CI) environment, recognize the issue, and fix it quickly, rather than documenting it. So counting found regressions may take a bit more effort.

Account for number of regressions before and after introducing test automation and assign a value to them. Averages are helpful. If you take the average cost of a regression to fix before automation and multiply by the count of regressions, then do the same for regressions after the introduction of test automation;the difference is the gain. The hope is that the average time to fix a defect will trend downward after some time and that the number of regressions found will trend up for a period of time.

While finding more regressions may be a higher cost to you now, the contrast in cost compared with users finding them is stark.

3. A more testable product

A funny thing happens when you commit to test automation across your product development process: People start creating more testable products. Imagine!

Organizations can define benefits both qualitatively and quantitatively. Ask seasoned test automation engineers if your product is highly testable. They’ll be able to respond right away. Many times in working with clients at Beaufort Fairmont, I get a sense of the product’s testability in a short phone call. Other times, I need to dive into thecodebase. This is the qualitative aspect of this return.

The quantitative side can be found by answering the question, “How long does your product take to create a test for a feature?” If this time is trending downward over significant periods of time, you’re experiencing a gain in testability. When a product is more testable, you can go to market faster, test in more ways, and have less chance of missing use cases in your testing. Stakeholders and product owners end up loving more testable products because they have confidence in what the product does.

Generally, teams also get better test coverage and code coverage by supplementing testing efforts withtest automation and eventually having a more testable product.

4. Shift left

When are test cases written? When were they written prior to introducing test automation? The closer they are to being created at the same time as when tasks are defined, the farther “left” your testing has shifted. Moving the activity of creating test automation and planning for it to the left also forces the clarification of features and user paths. Test automation written earlier means earlier detection of defects, which means faster delivery and delivery of a better product.

5. Less painful regression

For many organizations, regression is painful. It’s slow and it rarely finds significant issues. Test automation can help with this. Replacing manual checks with machine checks provides us with several benefits. First, we know the check was performed as it’s always performed. Software doesn’t vary its procedures. Second, we can run it more often for lower cost. Third, we can easily check whether a regression has happened at any time.

What’s the return on testers’ morale?

Repeating the same test cases over and over is mind-numbing for testers. Removing this can energize testers, fueling them to find the really costly defects.

Before and after test automation is in full swing, survey developers, testers, and product owners about how they feel about regression testing. How confident are they that regression testing is identifying regressions? How do they feel about the time they spent on regression? How much time did they spend on regression?

Additionally, the ability to run regression anytime with the press of a button and not having to wait days or weeks for results is a major time-saver and speeds delivery.

Measuring the ROI

The ROI in test automation can be huge. Most teams only consider the amount of time it takes to run a suite of tests in comparison to how long it took before test automation. There are many other benefits, both qualitative and quantitative. When making a case for test automation, keep in mind the many ways test automation can return on your investment.

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Test automation ROI: 5 ways to show the business benefits | TechBeacon (2024)

FAQs

Test automation ROI: 5 ways to show the business benefits | TechBeacon? ›

Another benefit of automation is the early detection of defects. Tests that are part of an automated pipeline can detect defects at an earlier stage than manual or production tests. The earlier a defect is detected, the lower is the development cost, and the better is return on investment (ROI) for your automation.

What are the benefits of automation ROI? ›

Another benefit of automation is the early detection of defects. Tests that are part of an automated pipeline can detect defects at an earlier stage than manual or production tests. The earlier a defect is detected, the lower is the development cost, and the better is return on investment (ROI) for your automation.

How to measure ROI for automated testing? ›

Return on investment (ROI) is an average/approximate measure of profit on your investment. You can calculate ROI by subtracting the initial investment cost from its final value and then dividing the new number by the cost of the investment. And to get the accurate percentage, multiply it by 100.

How could you decide which tools to use for automation testing provide five 5 reasons? ›

Key Factors to Consider When Choosing a Software Test Automation Tool
  1. Project Requirements. ...
  2. Learning Curve or Your team's Skills. ...
  3. Budget. ...
  4. Ease of Maintenance and Test Case Creation. ...
  5. Reusability. ...
  6. Data-Driven Testing Capabilities. ...
  7. Reporting Mechanism. ...
  8. Collaboration Support.
Mar 9, 2024

What are the benefits of test automation? ›

Automated Testing Saves Time and Money

Manually repeating these tests is costly and time consuming. Once created, automated tests can be run over and over again at no additional cost and they are much faster than manual tests. Automated software testing can reduce the time to run repetitive tests from days to hours.

What are 4 benefits of automation? ›

The benefits of automated operations are higher productivity, reliability, availability, increased performance, and reduced operating costs. Moving to lights-out operations yields a good return on investment.

What are the benefits of ROI in business? ›

Advantages of ROI
  • ROI is a key consideration when deciding whether to move through with an investment, expand a firm, or allocate resources. ...
  • ROI aids in coordinating investment choices with particular monetary objectives. ...
  • ROI makes it possible to keep an eye on your investments.

What is the best way to measure ROI? ›

Return on investment (ROI) is an approximate measure of an investment's profitability. ROI is calculated by subtracting the initial cost of the investment from its final value, then dividing this new number by the cost of the investment, and finally, multiplying it by 100. ROI has a wide range of uses.

What is ROI in automation Anywhere? ›

Execution-based ROI evaluates the return on investment based on the successful execution counts of the automation. It calculates how many times the automation runs in a day and aggregates it based on week, month, quarter, and so on.

How do you measure test automation value? ›

You can measure this by comparing the time it takes to perform manual tests against automated ones for the same functions. Defect Detection Rate: Automated testing can identify bugs and errors faster and earlier in the development cycle, reducing the cost and impact of defects.

What are the 5 ways in which automation has helped in manufacturing industry? ›

The increased efficiency, improved quality control, reduced labor costs, increased safety, and higher customer satisfaction that automation provides all contribute to the importance of this technology in modern manufacturing.

What are the five 5 scripting techniques that you will use to test automation? ›

What are the five 5 scripting techniques that you will use to test automation? Those five are linear, structured, data-driven, shared, and keyword-driven scripting techniques.

What is ROI in test automation? ›

Therefore, the return on investment (ROI) will be the total return (the number we just found) minus the total invested, divided by the total invested. If the result is greater than 1, it is a profit else; it is a loss.

How does test automation help business? ›

Test automation enables you to decrease the feedback cycle and generate faster validation for phases in the improvement of your product. Test automation is extremely beneficial because it assists you to detect problems or bugs first during the advancement phase, which enhances the team's efficiency.

Which of the following are benefits of automation? ›

Advantages commonly attributed to automation include higher production rates and increased productivity, more efficient use of materials, better product quality, improved safety, shorter workweeks for labour, and reduced factory lead times.

What are the benefits of RPA ROI? ›

When strategically implemented, Robotic Process Automation (RPA) can yield substantial returns on investment. According to Automation Anywhere's latest Now & Next report, businesses typically achieve an average ROI of 250%, recouping their initial investment within six to nine months after RPA deployment.

What are the benefits of ROI model? ›

By using ROI, businesses can determine whether an investment is generating a profit, which is ultimately the goal of any investment. This can help businesses make better decisions about where to allocate their resources, which can lead to increased profitability over time.

What is ROI in robotics? ›

Return on Investment (ROI) is an important aspect to calculate when deciding whether or not a robotic system would pay off in your shop. Basically, ROI is the amount of time it would take for a robot's production to pay itself back to the company through labor and savings.

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