Correctly Calculate the ROI of Automated Testing
The release of high-quality and user-friendly software is impossible without timely and thorough testing. Most companies still use a manual approach to verify their programs and applications.
However, the trend towards automation is growing, so it is important for you to know how relevant it will be in your situation.
Next, we will discuss what Return on Investment (ROI) means and identify the main indicators that you should analyze before implementing automated testing.
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What is ROI and Why You Should Consider It
Return on Investment is a metric that determines how much profit you can get by implementing test automation into your workflows. In other words, it is an indicator that helps you understand whether using a new automation QA approach will be financially profitable or, conversely, will bring losses.
Test automation has many advantages. It can save time for staff testers, minimize errors, detail reporting documentation, and improve the effectiveness of product examination. However, its implementation is not always appropriate. Some small companies may find themselves in a difficult situation when resorting to an automated approach.
Therefore, determining ROI before implementing automated testing is a way to make sure that it will benefit your future projects.
Calculation Formula
Testing is a complex and multi-tasking process. Therefore, to calculate the ROI you will often need a large number of indicators. However, the basic simplest formula is very easy to understand and requires only two metrics. These are expected profit and planned costs.
To determine the return on investment, you need to first subtract the costs from the potential profit, then divide the resulting number by the costs and multiply by 100. This will give you the percentage of the expected future benefit from implementing automated testing.
The Main Metrics to Consider
In addition to calculating the formula, you should also consider some important indicators. Sometimes determining the monetary benefit does not provide enough information about the feasibility of resorting to a new approach. There are other factors that can indicate whether it will be the optimal solution in your case.
Here are some key metrics to analyze:
- Total costs. Implementing automated testing requires significant investments. In addition, you should consider the costs of new tools and changes to the testing environment.
- Time savings. Automated testing takes less time than manual one. Your task is to determine how much time you will save if you add automated tests.
- Quality of testing. If resorting to automation helps reduce the number of errors and improve the total effectiveness of the process, it may be enough reason to implement it.
Other important metrics can be the adaptability of the team to the new approach, and the ability to scale the project and prepare it for automated testing.
Benefits of Determining ROI
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If you are hesitating whether you need to calculate your return on investment, you should familiarize yourself with the main ROI benefits of test automation.
Their list includes:
- The ability to determine the impact of innovations on business profitability.
- A clear calculation of the payback of new tools involved.
- A comprehensive analysis of potential expected and unexpected costs.
Having all the data, you can easily present your project to future investors and receive financial assistance in improving the testing process.
Some Additional Tips for Improving ROI
If you know that test automation will be beneficial for you but the ROI is not high enough, you need to consider the following tips.
Identify the Area for Automation
You don’t need to automate the entire process. It will be expensive and ineffective. Instead, you need to implement automated testing where it is most needed.
Use Modern Tools
There are many automated testing tools. Choose only proven and standardized ones.
Make Test Cases Reusable
If you will be using test cases over and over again, it will help reduce the time and money spent on re-developing them. They should be functional and informative.
Prioritize Testing
Automate the sections of testing that need a new approach first and then add new ones as you have enough funds.
Review and Improve the Approach
Calculate ROI from time to time to make sure that automation is profitable and make adjustments to the process when necessary.
Partial testing automation can significantly improve verification rates. If you do not have enough experience or want to entrust testing to professionals, you can contact TestFort. It guarantees comprehensive and reliable software examination with an automated approach.