Automation Testing has become more critical than ever before given the high expectations that end-users have from software companies. As the audience is becoming more tech-savvy with time, they are constantly seeking advanced features and switching between different software solutions to enhance their user experience.

It has become a necessity to deliver high quality software revisions within record time. As a result, thorough and speedy testing has become an even more essential part of the development process to ensure user delight and retain valued customers. Businesses today have dedicated teams for Automation Testing and a set budget to ensure milestones are met.

Nevertheless, it is important to scrutinize whether the automation testing method put in place is actually adding value to the business or it is yet to meet the expectations set by the management. It is essential to keep a pulse on the efficiency of the Test Automation practices. However, keeping track of ROI (Return on Investment) from Test Automation is largely neglected by organizations, as it is often assumed that Test Automation will perform efficiently on its own.

But here’s the catch! Test Automation undoubtedly would perform well in its standalone capacity, but not every business has the same requirements. So, the One Size Fits All theory falls short here despite Test Automation performing as expected.

Since every business is unique in its own way and has its own set of requirements, the operational flows and structures have to be custom-built to serve the optimum benefits. In a similar way, having a pre-set Test Automation process in place may or may not generate the best of the results.

Hence, it is essential for companies to evaluate the Test Automation systems in place to ensure they are achieving the expected ROI.

This would help the company attain lean management in terms of financial aspects and also ensure user confidence. At the same time, routine evaluation would also highlight ongoing opportunities for improvement that can be attained through system overhauls and improvements.

Now that we have a clear picture of why keeping track of ROI from Test Automation is essential, let us understand how it can be calculated and see the way ahead.

How to calculate ROI from Test Automation?

To calculate Return on Investment from Test Automation, we need to first understand the key metrics which define whether a Test Automation system works efficiently or not.

  • Quality of Software Product:
    Test Automation is meant for Quality Assurance of the Software Product, hence, the primary criteria to judge its efficiency is the Quality of the final product. This means, if the Software Product is of high quality and mostly defect-free, where all the major defects are successfully identified and mitigated, then we can consider that the Testing system has fulfilled its purpose.
  • Time:
    Time is another key factor while evaluating performance, especially in this case, where the timeline of the product development cycle is very stringent (a few weeks mostly) and has to be met to continue to retain customers. In this context, the time is taken to identify defects and root cause is crucial.
    Thus, the shorter the span of time taken to address the defects, the more efficiency. Moreover, the time taken to execute the test cases is also taken into account while evaluating the ROI from the Test Automation process.
  • Cost incurred:
    Maintaining close attention to costs incurred is important for any business to generate optimal profits. Hence, costs are closely monitored and controlled to ensure expected profit margins are attained. Spending on Test Automation is an investment for the business that requires constant evaluation to ensure ongoing efficiency and quality gains are realized.
    This cost includes license fees, infrastructure costs, resource salary, and other operational costs.
  • User Experience:
    While the above metrics are Quantifiable, User Experience covers the Qualitative Aspects of the ROI. Moreover, it is the User Experience of the customers and the target audience which is the most important to any business.
    Through feedback, user response, and surveys to understand users’ preferences, User Experience of the customers can be largely known. This helps the company to continuously improve on many fronts, as well as provide insight on how efficient and effective the current Test Automation process is.

These metrics would largely indicate the efficiency of Test Automation and specify the areas where more work needs to be done in the form of fixes, enhancements, and overhauls. The fixes would depend upon the business requirements and the capability of the changes to address the key issues.

To calculate the ROI of Test Automation, advanced technologies like Artificial Intelligence and Machine Learning are used to keep track of all the testing-related activities end-to-end. These advanced methodologies are used to check the previously run Automated Tests, the new planned Automation Tests, and the areas that are yet to be addressed.

Algorithms are used to evaluate the given parameters, then are compiled, and presented using modern Data Visualization techniques to help management and stakeholders easily comprehend the results.

In addition, every time the tests are run, their details are monitored in real-time, and recommendations are duly suggested. The system would generate comprehensive reports using Business Intelligence that offer a one-stop reference for decision-making related to the performance of Test Automation and would serve its purpose to make the Test Automation process Lean.

The way forward

To leverage the benefits of tracking ROI from the Test Automation System of your business, it is essential to find the right tools to do so with the utmost efficiency. The right tech partner will help you identify the issues with the existing Test Automation System and would help in designing for the future.

UReport (Unified Report Platform) by BrickRed Systems offers the in-depth scrutinizing of the Test Automation System while offering a single, holistic platform that is compatible with all test frameworks, compiling all the important information into a single dashboard. This will help management make well-informed decisions related to Test Automation of the product.

Try Now and know your ROI from Test Automation!

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