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Cost Benefit Analysis

Every person in business world is curious about finding ways to get more benefits for the growth of their business. Cost & Time are one of those growth factors of your business which are the key drivers that, if tweaked properly, can give your company the boost it needs to grow faster and stronger.

Cost vs. Cost Benefit Analysis

Cost refers to “Any type of investment to get something you are looking for. This investment can be in terms of money, time or resources you are using etc”.

Whereas Cost Benefit Analysis is “A process by which we estimate our expected cost against expected benefits”.

Now come back to the original point we actually want to discuss and share that is; cost benefits of software automation testing. Automation changes the complexion of testing and the test organization from design through implementation and test execution. It usually has broad impacts on the organization in such things as the tasks performed, test approaches and even product features. There are tangible and intangible elements and widely held myths about benefits and capabilities of test automation. It is important to really understand the potential costs and benefits before undertaking the kind of change automation implies if only to plan well to make the most of them.

One should need to start their cost-benefit analysis during requirement phase of any project. As you develop your requirements, you should be able to determine what type of testing you are going to adopt. The rough idea in your mind that what you will automate by making this early plan will give you benefit on alter stages.

Basic Steps to Perform Cost Benefit Analysis:
First step is to define:

  • What are you going to test and what are you planning to automate?

Can get the relevant information from:

  • Requirements
  • Test Plan
  • As well as your previous automation experiences

Further can proceed as follows:

  • Identify potential structures
  • Document assumptions
  • Estimate costs
  • Estimate benefits
  • Compare the alternatives

Cost doesn’t mean only the money you are required to complete a project but it also refers to:

  1. Time required for completing a project.
  2. Resources required for completing any project.
  3. Cost of hardware required for automation.
  4. How much tests to be automated?
  5. Purchasing of automation tools.

When you have all the calculations of above mentioned points, then you will be able to estimate the cost of the projects. It’s quite easy to estimate the cost of your project by keeping in mind the above mentioned points, but the real difficulty is to estimate the cost profit of your project/product.

To better estimate the benefits, you should clearly list-down the maximum benefits you can get from your “Project” and with the support of “Automated Testing Team”.

So, Project benefits may include:

  • Less manual testing time for current and future iterations.
  • Use Automation testing that would otherwise be impossible or difficult with manual testing (i.e. performance testing).
  • Reusability of work if the project is quite large.

Automated Testing Team benefits possibly will:

  • Ability to reuse the previous knowledge of automation.
  • Reduction of the level of risk of implementing the project.
  • Reduction of maintenance requirements.
  • Increased reliability.
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