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QEx Whitepaper
Digitalization
Leading to
New Age Testing
Business
Assurance
& Testing
AuthOr:
Prakash Ijral
Nidhi Godi
Abstract 3
Strategy 28
Summary 34
Authors Profile 35
References 36
WHAT IS DIGITALIZATION?
First, it’s not digitization. That is about zeros and ones. Digitalization is about something altogether bigger and fundamentally
more important. It’s about the transformation of your business. Digital business applies unprecedented combinations of new
technologies to generate revenue and value. It starts with digital assets and capabilities. For business, it means digital products,
services and customer experiences conducted through digital channels from the front office all the way through the value chain.
- Gartner
The proliferation of digitalization over the past two decades has been substantial, marking one of history’s most rapid rates of
adoption of new technologies. The number of personal computers (PCs) in use worldwide surged from 100 million in 1990 to
1.4 billion by 2010. There were 10 million mobile phone users in the world in 1990; today there are more than 5 billion. The
number of Internet users grew at an even more rapid rate over the same decades, from 3 million to 2 billion.
A very interesting aspect is also how companies are seeing new options in the way they interact with customers and develop
and release products while they are empowered by constant connectivity, the rise of social networks, and an increasing amount
of software in products. They are speeding up cycle times and shortening learning curves by testing new products or ideas with
consumers using mock-ups, computer-generated virtual products, and simulations.
This paper explores the significance of digitalization for testing organizations to excel in the digital industrial economy in order
to become more technologically capable and sophisticated for the digital era.
CONSUMER TECHNOLOGY
BUSINESS
Businesses are investing in IT
to meet the digital
transformation initiatives
INFORMATION TECHNOLOGY
Agile, faster delivery cycles, and
newer, more complex
technologies bring changes in
how we test
TESTING
yy Internet search
yy Digital content
yy Social media
yy Mobile applications
yy E-commerce
Here are some statistics by International Telecommunication Union, 2014 which provide very useful insights:
By end 2014, almost 3 billion people were using the Internet, corresponding to a global penetration rate of 40.4 per cent .This
compares to 2.7 billion people and 38 per cent penetration a year earlier, and 2 billion people and 30 per cent penetration four
years earlier. The numbers also show that there are still 4.3 billion people worldwide who are not yet using the Internet, 90 per
cent of whom live in the developing world. While more than three out of four people are online in the developed countries, one
out of three is online in the developing world.
90% 80.0
60% 55.9
50.0
%
50%
% 40.0
40% 40.6 40.4
30.0
32.4
30%
20.0
20%
19.0
10% 10.0
0% 0.0
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 Europe Americas As Arab States World Asia Pacific Africa
Fig: Individuals using the Internet, by level of development, 2005-2014 (left) and by region, 2014* (right)
Social media sites have become the most accessed websites by users in
both developed and developing countries. Since its creation in 2004,
Facebook has grown to comprise 1.3 billion active users by end 2013, a
growth of 22 per cent over the past year, although a single user could be
operating several accounts and therefore the numbers do not represent
unique Internet users (ITU, 2011). Twitter, the leading international
microblogging service, founded in 2007, has grown to comprise 646
million active registered users by end 2013 (and 115 million active
monthly users), and some 58 million tweets were posted daily in the
past year.
A leading research organization has analyzed the speed at which various industries are going to get impacted by digitalization.
Inference is as below:
Business Services/
Medium Low Medium
Construction
Financial Services
Medium High High
& Insurance
Up - and cross-selling, over-the-top Demand response, smart grids Smart cities, sensor-signal processing
Infrastructure services, digital/social marketing Self-healing networks/zero
(Utilities, Telecoms) intervention
Health card and national patient health (Hospital) asset management, chronic Peer-to-peer services, online health
Public Sector & records, patient portals medication assurance services
Healthcare E-polling/e-voting E-government Digital identity
Oil & Gas Shell Lack of automation and analytics Built-in GPS, wind sensors, Predictive analytics making 40% fewer workers required on
leading to deep water reserves being motion sensors and compasses, it possible for Shell to exploit drilling ships also reducing the time
difficult to find allows Shell to drill wells with previously uncharted oil and gas to build an oil rig by 50%
new precision fields
Retail & Logistics WW Grainger Traditional fixed price facilities Expanding service delivery Multi-level, multi-channel facilities 30% revenue through e-commerce
management through e-commerce platform, delivery
cross service delivery
BFSI Deutsche Bank 18 different Kordoba-based legacy Partnered with SAP to create a High-volume payment processing 80% reduction in time to market
single platform with standardized for 14 million customers. of new payments products; 40%
systems to run payments operations in
processes for all payment types reduction in time to respond to
each of its operating centers Secure straight-through processing
mandatory regulatory requirements
of more than 7.4 billion payment
transactions a year
Life Sciences Bayer Pharmaceutical manufacturing, Tie-up with Nintendo for Better, enhanced and superior drug 10% faster drug delivery and better
research and distribution delivering blood glucose delivery control over production
monitoring system - DIDGET
Manufacturing BMW Traditional manufacturing of BMW eKanban – LEAN process Better, enhanced production control Savings of $82mn in the first year
automobiles through LEAN processes monitoring with mobility apps
There is still plenty going on in the back office: the advent of cloud computing means that software can be continually updated
and paid for by subscription, and that fewer companies will need their own data centers. But the truly dramatic change is
happening elsewhere. Demands for digitalization are coming from every corner of the company. The marketing department
would like to run digital campaigns. Sales teams want seamless connections to customers as well as to each other. Everyone wants
the latest mobile device and to try out the cleverest new app. And they all want it now.
The old IT with industry speed continues to be accelerated into digital speed, the aging technology and complex process go under
siege; the business functional silos also start to break down via enterprise social platform, and the most important thing is still
about people: the silo mindset starts to shift to holistic ecosystem view.
Key considerations on why adapting to digitalization becomes a need of hour for IT is as below:
yy Business Wholeness: Digital technology continues to blur the functional and organizational borders, and helps businesses
climb up the new level of organizational maturity: Business as a whole is getting more effective than sum of pieces. Business is
not just working within industry, but also permeating cross-ecosystem.
yy “Delight” in Enterprise Architectural Design: With new wave of digitalization, both smart device and data generated are
growing by an order of magnitude, the speed and scale of coming transformation thus, is greatly outpace the prior shift, from
EA perspective, business cannot just stop at “functioning” stage, but need move up to “firm” as well as “delight’ level.
In theory, this is a fine opportunity for the IT department to place itself right at the center of corporate strategy. In practice, the
rest of the company is not always sure that the IT guys are up to the job—and they are often prepared to buy their own IT from
outsiders if need be. While advancing the digital agenda is taking lots of senior-management time and attention, IT departments
doubt their own ability to keep up with the pace of the digital age.
Customer behavior and competitive situations are evolving quickly, and an effective digital strategy calls for extensive cross-
functional orchestration that may require CEO involvement in organizations.
Digital capabilities increasingly will determine which companies create or lose value. Those shifts take place in the context of
industry evolution, which isn’t monolithic but can follow a well-worn path: As new trends emerge, disruptive entrants will appear
with their products and services embraced by early adopters. Advanced incumbents finally will begin to adjust to these changes,
accelerating the rate of customer adoption until the industry’s level of digitization reaches a tipping point. Eventually, what was
once radical is normal, and unprepared incumbents run the risk of becoming the next Blockbuster. Others, which would have
successfully built new capabilities, would have become powerful digital players.
As IT budgets continue to be limited and technology continues to get more complex, disruptive market forces bring-in a digital
transformation. This requires organizations globally to look for new ways to improve quality and speed and lower cost. Agile,
faster delivery cycles, and newer, more complex technologies as a result of disruptive forces are changing how we test.
As the volume of data is increasing, so is the number of disparate data sources that feed into data warehouses and business
intelligence solutions. End to end IT automation has become a linchpin in that automates the integration and movement of
data between these disparate sources to improve data quality and reporting and hence brings need of extreme test automation
going beyond just ‘functional automation’ and encompassing all aspects during development cycle and thereby minimize manual
testing process to the extent possible. To drive change that is more effective in the long run, QA managers think beyond tester
performance, test coverage, or per-project quality levels. They have evolved to understand what role quality plays from a business
perspective and negotiate for business input into defining quality strategies for future test design and execution.
We have identified eight key market forces for QA decision makers to consider. By looking at how these market forces affect
companies, and understanding how organizations can prepare to meet these challenges, decision makers can increase their chances
for success in adapting to the digital transformation.
Customer Experience
8. USER EXPERIENCE Management Market
to grow from 28% penetration among
1. SOCIAL
$3.77 billion in total world population
2014 to $8.39 billion
in 2019
Market to grow
from $2.5B in 2013
to $16.2B by 2018,
attaining a CAGR H A 93% penetration
among the total
of 45.7% in the
forecast period
world population. 2. MOBILE
7. 3D PRINTING G B
Market
Forces
F C
Market size of $2..2 B
Worldwide market size E D in 2013
Expected CAGR of
to reach $1.471 trillion
in 2015 9.9% in the next 5
years
3. ANALYTICS &
6. Omni-channel BIG DATA
Enterprise spending on
Expected growth from
cloud computing
$1.9 trillion in 2013 to
expected to amount to
$7.1 trillion in 2020
a $235.1B in 2017
The detailed table below radical shifts in market forces translates to radical shifts in business models. It also covers the key com-
ponents of an appropriate testing innovation strategy that ties in with the corporate vision and company capabilities and helps
in determining the best ways of fostering and sustaining organic innovation:
Key Impact of the market
Penetration of Key considerations for the service providers
Market force on the below
the market force Case in Point
forces Operating Commercial
(Statistics) Business IT Testing Skills Testing Solution
Model Model
Social Total World Population Change in business Need of Key challenge to Testers would need The below mentioned New workforce Outcome based Ford Motor Company
– 7.18 billion due to social media is Integration with simulate testing to possess end types of testing will will evolve pricing will become Ford has brought the
as below : the social Platform for real user user perspective have higher role to where full time crucial and outcome social experience to
• Active Internet
across various and think beyond play : employees would world be based on the forefront of their
Users- 2.95 billion • From Selling to
demographics documented testing be replaced by views , clicks , click to marketing efforts. Each
(41% penetration) connecting with • User Experience
requirements part time testers conversion ratios and time they add a new
customers Testing
• Active Social Media from different other such parameters blog post, they pull in
users -2.03 billion • From large • Functional Testing demographics the image, headline
(28% penetration) campaigns to small of the post and the
• Performance
Acts comments from readers
• Active mobile social Testing
onto the front page of
users -1.56 billion • From “
• SOA testing their website. Those
(22% penetration) Controlling
• Security Testing new to the site or those
messages” to
*Source –Global browsing for a new
Transparency
Digital Statistics report • Mobile Testing car get to experience
, August 2014 • From “Hard the company and its
• Business driven
to Reach “ to culture from a social
development
“ Available viewpoint right from
Everywhere” the start.
Their blog,
The Ford Story, is
also unique. In the
image below you can
see their innovative
layout where viewers
can start reading the
comments before
they read the article,
putting their fans’ and
followers’ viewpoints
first. Introducing
your blog and your
readers’ comments
to new viewers sets a
welcoming and friendly
first impression for any
company.
Analytics and • Advanced and • Better communica- IT will embrace Long terms view • Analytical and • ETL Testing Emergence of Existing commercial One home-appliance
Big data Predictive Analytics tion and new Hadoop like required to build Technical Skills testing data models like Time and company, for example,
• Database Testing
(APA) software knowledge sharing platforms focused Center scientists and Material , fixed bid typically spent a large
• Database
market is projected of Excellence for • Business dedicated CoE etc. may continue portion of its marketing
• Better knowledge
from grow from Analytics and Big Intelligence testing unless scale is budget on print,
management
$2.2B in 2013 to Data achieved television, and display
and alignment of • Performance
$3.4B in 2018, advertising to get into
business goals Testing
attaining a 9.9% the consideration set
CAGR in the • Competitive of its target consumers.
forecast period advantage Yet analysis of the
consumer decision
• Global spending • Faster response to
journey showed that
on Big Data opportunities and
most people looking
hardware , software threats
for home appliances
and services will
• Decreased time to browsed retailers’
grow at a CAGR
market websites—and fewer
of 30% through
than 9 percent visited
2018 , reaching a
the manufacturer’s
total market size of
own site. When the
$114B
company shifted
• Cloud based spending away from
Business general advertising to
Intelligence (BI) is distributor website
projected to grow content, it gained 21
from 0.75B in 2013 percent in e-commerce
to $2.94 in 2018 , sales.
attainting a CAGR
of 31%
After years of revving their engines, many companies are gaining momentum with their digital initiatives. Executives say their
CEOs are more involved in digital efforts than ever before and that their enterprises are now investing enough to meet their
overall digital goals.
It’s evident that digitization has become a critical asset in many companies’ quest for growth. More than three-quarters of
executives say the strategic intent behind their digital programs is either to build competitive advantage in an existing business
or to create new business and tap new profit pools.
Large enterprises - mostly those with over $500 million in annual revenues — will be spending on an average of $100 million of
their income into digital technology initiatives in the next one year, says a recent report. However, only a handful of them have
embarked on the journey. This would mean that the next one year is likely to witness a spate of well-funded crash programs in
various digital platforms across enterprises.
Despite mixed opinion, enterprises across industries and regions are making huge investments in digital initiatives to the tune of
$113 million on average this year, says the report. While Telecom companies are investing the maximum, around $189 million
this year, they are closely followed by enterprises in the banking, insurance and financial services sector, that are spending $142
million on an average.
However, as digital becomes more integrated into businesses, executives acknowledge that some investments must change. Across
the trends, respondents are most likely to say their companies are underinvesting in big data and analytics—though they predict
that in three years’ time, big data will become a higher spending priority .More broadly, only one-fifth of executives report that
their organizations spend at least 5 percent of their current cost base on digital programs; nearly one-third of respondents expect
their spending will reach this level in three years’ time. In North America and in information-intensive sectors such as financial
services, high tech, and telecommunications, executives report even higher levels of spending, both now and in the future.
Many companies (and leaders) have recognized the importance of digital and focused their digital strategy and spending. Yet
many still have a long way to go in creating an organization that is well positioned to see digital efforts scaled across the company
and achieve the large financial impact that respondents expect. One such challenge is the struggle to recognize value from existing
digital efforts.
The key components for re-organizing testing to prepare as a digital QA can be as below:
yy Future ready testing organizations to carve out budgets to invest in niche capabilities
–– One key component would include upfront investments by testing organizations on relevant domain expertise, infrastructure
including test labs, and testing tools & techniques. The organizations lagging here would have challenges to catch up with
increasing customer requirements and technological ecosystems.
–– Change in testing workforce
–– The testing workforce in the changing ecosystem would be required to possess end user perspective and think beyond
documented requirements. One key testing challenge would be to simulate real user across various demographics and to
address this need new testing workforce may evolve where organizations replace full time employees by part time testers
from different demographics.
We propose a 4 step strategy for software testing service providers to use digital technology to address challenges and provide new
opportunities
Build,
Roadmap
Access Optimize Buy or
Design
Partner
ASSESS
Phase 1
Digitalization Assessment of the overall organization
Organizations need to assess the organization’s portfolio of businesses and understand the impact of investing in digitalization on its valuations. This will also help them
address gaps and focus on building the right capabilities to infuse digitalization into their testing portfolio.
As an IT service organization, rate yourself on a scale of 1-5 on the below mentioned capabilities
Phase 2
Testing maturity assessment for digitalization
Assessment of testing maturity towards digitalization through
• Standardized process of calculating the digital test maturity index of an Organization
• Well laid out steps to calculate the digital maturity index
• Eliminating individual’s judgmental bias by bringing in a definite and rationalized criteria to get a consistent output for digitalization
Create Dashboard to show the current state of maturity of the Test Organization by using TPI model to assessed 20 KPAs w.r.t
digitalization, broadly grouped under 4 groups.
Please note: A, B, C, D are the maturity levels as defined by TPI. All areas will not have all 4 levels based; the measurement of
these levels depends on their criticality of the area to a test organization. . E.g. “D” is the most mature level for Strategy and the
current test organization is Partially mature for topics listed under A and B, and not reaching up to the levels in C and D.
Metrics
Office environment
Defect management
Prepare current state analysis report by study of key group’s maturity; calculate overall maturity and reach to a Digital test
maturity SCORE.
6.31 4.76
Life Cycle Techniques
Cost of Quality
0.00-3.50: Unreliable-
Low cost, low quality
Based on Digital test maturity score, reach to information on potential and expected cost of digitalization.
OPTIMIZE
After creation of a testing digitalization blue print for a strategic testing view of digitalization, begin the journey towards
digitalization by optimizing existing testing systems and identifying the key areas required to be digitalized.
Outcome based models in test automation will encourage collaboration and creative problem-solving as both parties work toward
common business goals. It will also provide the supplier a greater freedom to determine how to better achieve the results.
At the same time, Open Source Testing Tools will be the way to get a broader community to help with development and to
share in its costs. The need of Testing in Production will be a crucial part of overall testing strategy as it can give a good value
proposition.
The testing service providers should be designed to support organizations to start the process and succeed in their journey of
rebirth into a digital enterprise and focus on these areas. The roadmap for a testing organization can be defined as a three step
process:
Multichannel/e-commerce
A successful digital testing strategy would rest on the ability to reduce costs and time to market and increase the ability to
innovate. This is made possible through testing readiness towards platforms that can be enabled for cloud, modernizing and
migrating legacy applications to cloud platforms and flexible pricing models.
The addition of various data sources would create tremendous optimization and innovation opportunities for organizations. This
opportunity can only be leveraged by transforming the data model to integrate the various sources and create a single data flow.
These additional requirements from data are challenging for traditional organizations since existing technologies are unsuitable
for creating such a data fabric. Building capabilities for Data fabric testing would be the key step to move forward in the digital
journey.
Business process disruption is possible only if the organization takes full advantage of the transformed application landscape to
create new applications on enterprise assets that are locked in ERP systems. In the last step testing digitalization need to provide
end to end full spectrum of testing transformation solution resulting in enhanced customer experience, better collaboration,
decentralized innovation and being ready for emerging technologies like IoT and 3D printing.
Digitalization requires enterprises to answer the question, “How will we survive and thrive in an increasingly digital world.” Some
testing enterprises are already well on their way to answering this question, while most are just starting down the path. Regardless
of where you are today, this is an issue that will affect all industries and enterprises in the near future and one that will require an
effective testing strategy to ensure success.
As we’ve seen, a fundamental change is required in the mindset and approach to strategy as a result of digitalization.
Creating the testing capability required in the digital age requires changes to the Chief Testing Leaders role as well as to the IT
function. Testing architects need to look at their testing organization’s performance, ways of working, skills and experience to
ensure they are equipped to deal with the digital torrent.
Digitalization transformation initiatives will only be meaningful if they generate tangible business outcomes — significant cost
savings or top-line revenue improvements. The rule of the game is to embrace digitalization as a testing organization cultural
change, invest in the new generation of technology and improve core systems, processes, and data to support digitally innovative
testing initiatives.
Prakash Ijral heads the PMT testing business and practice head for Nidhi Godi is working as the market research analyst in
HCL test automation practice. testing practice of HCL.
He is equipped with over 18 years Extensive experience of Nidhi comes with over 5 years of experience in IT and 4
working globally and implementing Centres of Excellence (Test years in software testing. She possesses extensive experience
Factory) across multiple clients in USA and Europe. Expertise in in conducting market and technology trends analysis
spearheading complex Software Testing Projects and played roles of across various industries, business analysis and requirement
Consultant/Test Architect for various Global Operation Center’s gathering and specializes in executing end to end digital
and for many Clients in the USA, Europe and ANZ Geo. He marketing campaigns for emerging technologies.
possesses extensive Software development and testing experience
spanning across Energy Utility, Manufacturing, Financial Risk She holds a Bachelor’s in Engineering in the field of
Management, Retail, CRM, Business Intelligence, Health Care, Electronics and communications and a Master’s in Business
Publication, Vendor Management and Data center management Administration, Marketing.
areas. Prakash is trained at IIM Bangalore on Leadership and an
Engineering graduate in Electronics and Telecommunications
with Post Graduate Diploma in Advance Software Design and
Development. He is Microsoft Certified Solution Developer and
have also played role of Defect Prevention Council Head for HCL’s
CMMI5 initiative.
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