Preparing a business case/plan for investment in Test Top 10 Tips Preparing a business case/plan for investment in Test Copyright © Insight Test Services 2008

“To provide some guidelines to secure investment in Test” Objectives “To provide some guidelines to secure investment in Test” While setting up it is good to start with the Client talking and establish the pattern. The goal is for Insight to listen at least 50% of the time. We want to understand their business and priorities, demonstrate our interest and knowledge. We want to understand their IT and Development priorities We want to establish are there specific problems or opportunities we can address. If we identify an interest area we should go their immediately to gather information, and qualify. The rest of the presentation is really just to highlight who we are and perhaps prompt them to identify areas of interest. It also serves to help us navigate consistently Copyright © Insight Test Services 2008

Copyright © Insight Test Services 2008 Business Case/Planning Services from Insight Education & Training Top 10 Tips (1 Hour overview) Workshop (1/2 Day) 2 Day training course “Preparing a Plan “ Services Preparation of QA & Test Business Case Business Case Review While setting up it is good to start with the Client talking and establish the pattern. The goal is for Insight to listen at least 50% of the time. We want to understand their business and priorities, demonstrate our interest and knowledge. We want to understand their IT and Development priorities We want to establish are there specific problems or opportunities we can address. If we identify an interest area we should go their immediately to gather information, and qualify. The rest of the presentation is really just to highlight who we are and perhaps prompt them to identify areas of interest. It also serves to help us navigate consistently Copyright © Insight Test Services 2008

“It all comes down to the numbers” What & Why “It all comes down to the numbers” Do they add up Are they Understandable Are they traceable Are they credible Are the believable While setting up it is good to start with the Client talking and establish the pattern. The goal is for Insight to listen at least 50% of the time. We want to understand their business and priorities, demonstrate our interest and knowledge. We want to understand their IT and Development priorities We want to establish are there specific problems or opportunities we can address. If we identify an interest area we should go their immediately to gather information, and qualify. The rest of the presentation is really just to highlight who we are and perhaps prompt them to identify areas of interest. It also serves to help us navigate consistently Copyright © Insight Test Services 2008

Copyright © Insight Test Services 2008 Top 10 Tips for Test Business Case/Plan Brainstorm, What do you think they are? Copyright © Insight Test Services 2008

Copyright © Insight Test Services 2008 Top 10 Tips for Test Business Case/Plan Just in case we don’t get off the early slides here is our list Copyright © Insight Test Services 2008

Copyright © Insight Test Services 2008 Top 10 Tips Understand the environment this investment must impact What are the business and test drivers ? Who are the primary test stakeholders & what are their needs ? What QA & Test performance measures are in place today and How do we want them to change ? What tools are available to the team to prepare the case/plan Who can help ? Options & Alternatives Assumptions Risks & Contingencies - sensitivity Demonstrate successful ROI – It will make the next time easier While setting up it is good to start with the Client talking and establish the pattern. The goal is for Insight to listen at least 50% of the time. We want to understand their business and priorities, demonstrate our interest and knowledge. We want to understand their IT and Development priorities We want to establish are there specific problems or opportunities we can address. If we identify an interest area we should go their immediately to gather information, and qualify. The rest of the presentation is really just to highlight who we are and perhaps prompt them to identify areas of interest. It also serves to help us navigate consistently Copyright © Insight Test Services 2008

Copyright © Insight Test Services 2008 Conclusions Link Test Plan/Case to business goals Alignment Identify the KPI’s you want to impact These will lead to the drivers Validate Assumptions Credibility of numbers Do the numbers Include sensitivity analysis Communicate the Value Prop. Quantitative & Qualitative Copyright © Insight Test Services 2008

Copyright © Insight Test Services 2008 Software QA, Test & Compliance Solutions Consulting: Assessment, Advice, Support Capability Building: Training, Coaching Test Management & Teams: (Fn& Non Fn) Managed Test Solutions (Out-sourcing) Resources: Specialists & Experts Full Procurement and Development Lifecycle best practices (Process, Tools, Stds, Regulations) Business Driven independent advice and services (Benefits & Results focus) Easy to work with ! Messages our focus and differentiation The intention here is to quickly give a flavour of who we are and what we do Software solutions are important to our clients business Our style is partnering where we take responsibility Independent Full Service provider Copyright © Insight Test Services 2008

“Both enable consensus, decision making and support” A Case or a Plan Business Plan: Outlines to stakeholders where and how the unit will bring value to the organisation. Sets the direction and road map for stakeholders to deliver the value Benchmark to measure against Business Case: Outlines to stakeholders where a specific investment will deliver measurable value to the business. Clearly outlines the steps to achieve Benchmark to measure performance against We are structured and flexible and have a set of processes and tools that are used by our teams and clients “Both enable consensus, decision making and support” Copyright © Insight Test Services 2008

“Both enable consensus, decision making and support” A Case or a Plan Business Plan: (Global-Strategic) Looks at overall importance of test to the business and target impact: Improved quality impact on customers and markets. Information for functional performance improvement How Test add value to business Business Case: (Specific - Tactical) Outsourcing Bring back in house Test Automation Additional resources Test Environment We are structured and flexible and have a set of processes and tools that are used by our teams and clients “Both enable consensus, decision making and support” Copyright © Insight Test Services 2008

Copyright © Insight Test Services 2008 Business Planning Model Objectives While setting up it is good to start with the Client talking and establish the pattern. The goal is for Insight to listen at least 50% of the time. We want to understand their business and priorities, demonstrate our interest and knowledge. We want to understand their IT and Development priorities We want to establish are there specific problems or opportunities we can address. If we identify an interest area we should go their immediately to gather information, and qualify. The rest of the presentation is really just to highlight who we are and perhaps prompt them to identify areas of interest. It also serves to help us navigate consistently Copyright © Insight Test Services 2008

Copyright © Insight Test Services 2008 Conclusions Link Test Plan/Case to business goals Alignment Identify the KPI’s you want to impact These will lead to the drivers Validate Assumptions Credibility of numbers Do the numbers Include sensitivity analysis Communicate the Value Prop. Quantitative & Qualitative Copyright © Insight Test Services 2008

Understand The environment Why ? Any Corporate investment will be in the context of what is happening internally and externally – Failure to recognise this or changes weaken the business case. External – Our Organisations Market Place Competition, Regulations, Political, Geographic, Technologies, Business Models etc Internal – Test interfaces & Stakeholders Methods, Processes, Tools, Make versus Buy, Competition, Geographies, Political, Time to Market, Benchmarking etc Tip 1 Messages our focus and differentiation Software solutions are important to our clients business Our style is partnering where we take responsibility Independent Full Service provider “Investment decisions will be made in the context of what is happening in our environment” Copyright © Insight Test Services 2008

External – Business Drivers Internal – Test Drivers Why ? They represent the underlying activities that influence the performance of the business (costs, savings & revenues). If the organisations market is moving towards commodity costs will be a big driver so investments must create savings as an example External – Business Drivers New or changing Markets, Offerings, Products, Competition, Channels, Business Models, Activities, Locations, Regulations. ( Revenue streams from above, or costs driven by activity or headcount) Internal – Test Drivers Headcount, Defects, Waiting Time, No of projects, No of components, No of changes, No of releases, No of test cases, No of environments etc Tip 2 Messages our focus and differentiation Software solutions are important to our clients business Our style is partnering where we take responsibility Independent Full Service provider “Financials are underpinned by drivers” Copyright © Insight Test Services 2008

Test Stakeholders & their needs Why ? They are the customers & suppliers of test who stand to benefit from any investment, they will have a direct or indirect influence on any investment decision (They may compete for scarce funds) Who are They and what are their drivers ? End customer, End User, BA’s, Development, Management, Business Groups, IT etc – each may have slightly different drivers/priorities and can create drivers on test How does/will test address their needs ? Test is an information and service provider, how do they influence the priorities of stakeholders and how will this investment play into this. Tip 3 Messages our focus and differentiation Software solutions are important to our clients business Our style is partnering where we take responsibility Independent Full Service provider “QA & Test Metrics usually underpin test drivers” Copyright © Insight Test Services 2008

Activity and valuing indicators QA & Test Performance indicators (Metrics) Why ? We measure what is important and what we want to improve and/or change – they often underpin performance, cost and/or value indicators Defects, found at test stage, test cycle time, test cases, test set up, execution time, rework, re document, platforms, training days delays, headcount – may be measured in test, up or down stream Activity and valuing indicators We can put a price/cost on most indicators or the activity that causes the indicator value. Any investment will be targeting improvement in one or more indicator Tip 4 Messages our focus and differentiation Software solutions are important to our clients business Our style is partnering where we take responsibility Independent Full Service provider “No metrics, No Drivers, No Case” 1 Copyright © Insight Test Services 2008

1 What tools are available ? “They are not complicated and are proven” Why ? They provide a framework for the team to analyse the environment and prepare a business case based on facts and evidence. Understanding current and future position Porters 5 forces model, Value chain analysis, Core Competence analysis, SWOT, Force Field analysis etc Building Up Data & Information (Spreadsheets) Metrics, Indicator, Driver, Unit cost, Quantity, Period costs actuals and targets. Tip 5 Messages our focus and differentiation Software solutions are important to our clients business Our style is partnering where we take responsibility Independent Full Service provider “They are not complicated and are proven” 1 Copyright © Insight Test Services 2008

Who can help ? “Ask and you shall receive” Why ? The stakeholders All the information and skill may not exist in the Test Group The stakeholders They may have data, facts and opinions that assist in building the case/plan inclusion of their inputs may strengthen the case. If they have misinformed opinions/facts then you are aware of a possible objection to proposed plan Finance These are the numbers people who have the skills to support preparing a business case/plan they also have lots of information that can be useful. Tip 6 Messages our focus and differentiation Software solutions are important to our clients business Our style is partnering where we take responsibility Independent Full Service provider “Ask and you shall receive” Copyright © Insight Test Services 2008

Options & Alternatives Why ? There is usually more than one way to achieve a goal. It is important to have considered the options Consistency Evaluate each option on a fair and consistent basis, use the indicators, activities and valuation approaches to produce evidence, include both subjective and objective information Make a recommendation Based on your evidence and analysis make a recommendation with supporting benefits and build up the case. Tip 7 Messages our focus and differentiation Software solutions are important to our clients business Our style is partnering where we take responsibility Independent Full Service provider “Be prepared to justify” Copyright © Insight Test Services 2008

They underpin the evidence State the Basis of the Assumptions Why ? Because they are important, they make the decision information transparent and allow decision stakeholders to challenge if they have relevant information They underpin the evidence Credible assumptions underpin every business case and plan. You will never have every piece of information or be able to predict the future accurately. State the Basis of the Assumptions Provide information and evidence as to why the assumptions should be considered valid. Tip 8 Messages our focus and differentiation Software solutions are important to our clients business Our style is partnering where we take responsibility Independent Full Service provider “We all make them – so make them transparent” 1 Copyright © Insight Test Services 2008

1 Risks and Contingencies “Builds confidence with the decision makers” Why ? As the future can not be predicted accurately, it is important to demonstrate you have considered what could go wrong (or just not happen to plan) and allow for it in the business case and plan. Risks Assumptions may be incorrect, the environment might change, look at risks within the investment minimise or neutralise Sensitivity Demonstrate worst and best case situation within the plan, stress the variables Tip 9 Messages our focus and differentiation Software solutions are important to our clients business Our style is partnering where we take responsibility Independent Full Service provider “Builds confidence with the decision makers” 1 Copyright © Insight Test Services 2008

Copyright © Insight Test Services 2008 Demonstrate the ROI Why ? Because any investment is not completed until the benefits have been measured and realised. In addition it strengthens credibility. Evidence Continue to measure the KPI’s and activities, measure the benefits , it creates useful information for the future More importantly It allows you change if you identify wrong assumptions, it avoids throwing good money after bad, it allows formal and successful closure of a plan. Tip 10 Messages our focus and differentiation Software solutions are important to our clients business Our style is partnering where we take responsibility Independent Full Service provider “Always close” 1 Copyright © Insight Test Services 2008

Copyright © Insight Test Services 2008 Conclusions Link Test Plan/Case to business goals Alignment Identify the KPI’s you want to impact These will lead to the drivers Validate Assumptions Credibility of numbers Do the numbers Include sensitivity analysis Communicate the Value Prop. Quantitative & Qualitative Copyright © Insight Test Services 2008

Copyright © Insight Test Services 2008 Software QA, Test & Compliance Solutions Consulting: Assessment, Advice, Support Capability Building: Training, Coaching Test Management & Teams: (Fn& Non Fn) Managed Test Solutions (Out-sourcing) Resources: Specialists & Experts Full Procurement and Development Lifecycle best practices (Process, Tools, Stds, Regulations) Business Driven independent advice and services (Benefits & Results focus) Easy to work with ! Messages our focus and differentiation The intention here is to quickly give a flavour of who we are and what we do Software solutions are important to our clients business Our style is partnering where we take responsibility Independent Full Service provider Copyright © Insight Test Services 2008

Thanks for your attention Questions? www.insight-test.com Declan.kavanagh@insight-test.com Re state what we understood were the clients issues, opportunities and priorities Re state any agreed actions on both sides. Ask for feedback on what they heard and relevance Agree action items and next meeting Ireland & UK’s largest & leading specialist software QA, Test & Validation services provider Copyright © Insight Test Services 2008