T15 Thursday, October 30, 2003 3:00 PM I NCREASE THE V ALUE OF Y OUR - - PDF document

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BIO PRESENTATION T15 Thursday, October 30, 2003 3:00 PM I NCREASE THE V ALUE OF Y OUR T ESTING WITH B USINESS - ORIENTED M ETRICS Claude Fenner Arsin Corporation International Conference On Software Testing Analysis & Review October


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BIO PRESENTATION International Conference On Software Testing Analysis & Review October 27-31, 2003 San Jose, CA USA

T15

Thursday, October 30, 2003 3:00 PM

INCREASE THE VALUE OF YOUR TESTING WITH BUSINESS-

ORIENTED METRICS

Claude Fenner Arsin Corporation

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Claude Fenner

Claude Fenner has over 20 years experience in the software industry as an engineering manager, quality analyst, and software designer. His experience includes enterprise application software, mission-critical system software, and commercial and military embedded software. Across these industries he has transformed organizations to deliver high-quality software at lower cost through automation and globalization Arsin Corporation is a software reliability services and product company, specializing in enterprise testing, quality, and readiness assessment. Arsin provides expertise and tools to several Fortune 100 companies. Arsin also partners with major tool vendors such as Mercury Interactive and has a wholly-owned subsidiary Arsin Limited in India. Claude Fenner is responsible for driving Arsin’s tools and processes into market-ready product solutions. During his career, he has driven large-scale quality and testing programs for major quality-

  • riented companies including Compaq, Tandem Computers, and SAIC. At Tandem, he built and

led the quality teams that delivered Tandem’s high availability database and transaction processing technologies used for stock exchanges and ATM networks. At Compaq he defined and drove the Y2K process that successfully updated Compaq’s more than 1000 NonStop branded products. Recent enterprise experience includes high volume B2B and B2C middleware for financial transactions. Beyond the enterprise arena, his experience includes developing processes and building tools for assuring the reliability of commercial nuclear safety systems and embedded military systems. He earned degrees in EE/CS from the University of California Berkeley.

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ARSIN Corporation

ARSIN Corporation

Powering Collaborative e-Business

Increase the Value of your Testing with Business-Oriented Metrics Claude Fenner – StarWest 2003

October 30, 2003

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A lot has changed in the last decade Now

Brand

Then

Brand

Your systems are in the hands of consumers and partners like never before Your business reputation is on the line like never before

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Good News – Business owners care about quality

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Not everyone’s perspective on quality is exactly the same

Customer thinks: “I’ve paid for a service, so give me what you promised” Service Quality Process Quality Customer Producer Business Owner Producer thinks: “I’ve been told what customers want, so that’s what I’ll build” Owner thinks: “I want customer satisfaction and I want to produce value for business stakeholders” Business-value Quality

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Ok, you’re visible to business owners … Now what!

Bad News: Traditional metrics don’t resonate with business managers

?!?

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Let’s take a closer look at a business owner

They say things like …

Are these tests really assets? Are they worth it? Why? Can I squeeze more out of them? Can I get by with less? Are things good enough for now? Can I wait later to invest? What about assets needed for future demand?

Here are things they think about …

Are our customer being served? What is the best mix of people, capital, geographical locations? What things are assets? What is an investment vs. expense?

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You’d better get ready to think like a business owner …

Customer Satisfaction

Threat/Risk to service quality

Business Value

TCO (Total Cost of Ownership) of testing Test asset investment and potential asset gaps over time

Hint: Quality Theory is not the answer Answer: Business-Oriented Metrics

Business-oriented metrics bridge the gap between the activities your test organization performs and the benefits to the business

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First, a little introduction to business-oriented metrics

The face of a business owner accountable to stakeholders and customers. Sadly for him, he didn’t know about business-oriented metrics

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Here are some metrics. Are they useful?

http://www.caiso.com/SystemStatus.html

Predicted potential supply Maximum supply Actual demand Predicted demand

These metrics serve the customer pretty well … but not the producer or the business owner

California Electric Supply & Demand for one day

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How well do these metrics serve their audience? Customer A+

Good for predicting daily outage risk and when outage might occur.

Producer D-

Doesn’t indicate anything useful about the operation of a powerplant (generation efficiency, power quality (brownouts), TTF)

Business Owner F

Too tactical: Only tells owner supply and demand for ONE DAY Big gaps are uninformative: Sense of false security. Disaster could strike without warning! (unplanned failures, demand spike, plant decommissioning) Worse, a big gap could erroneously suggest over-investment

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And look what happened

Lesson: Gray Davis didn’t see how increasing demand was threatened by under-investment in assets and lack

  • f asset health.
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How to transform these into business-oriented metrics …

coal hydro

  • il

nuclear

  • il
  • 4. Indicate future demand

for assets

  • 3. Add time (past and future)
  • 1. Show assets individually
  • 2. Indicate asset growth and

decay (health)

time

Revised metrics show business owner the demand for assets and asset health

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But don’t forget, business owners also care about value

Efficiently run businesses run close to the edge.

Business value is always critcal. No such thing as quality at any cost!

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Business-Oriented metrics in the Testing World

Before starting, remember what you’re trying to do

Talk to business owners in terms they understand Influence decisions by demonstrating and defending testing value Get them to participate (be a stakeholder) in your process Compete against others for scarce resources and win

Always remember the basics of metrics: It’s a sequence of steps from objectives to actions.

1.Define Objectives and Metrics 2.Collect Data 3.Reveal Trends 4.Make Decisions 5.Take Actions

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Business-Oriented testing metrics defined

Test Asset Trajectory metric (benefit-side)

Identifies testing assets and measures how adequate they are at meeting testing demand. Also shows asset benefit, health, and risk. The term trajectory is used to indicate that the metric is always measured over time.

Test Asset Leverage metric (cost-side)

Identifies the costs associated with the testing assets. The term leverage is used to indicate that the metric subdivides cost into components that are useful for identifying best utilization of resources.

Together they form the total asset value picture.

asset-value = benefit-side + cost-side

Note: One simple building block is key to both metrics

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Test Asset Trajectory metric

Manual Automated Functional Stress Demand End-to-end Performance Manual Automated Functional Assets & Types Automated Functional Performance Manual End-to-end End-to-end Performance Manual Automated Functional Automated Manual Stress Today Manual Performance Automated Functional TIme Timeframe & Events Completeness & Health Manual Automated Functional Stress End-to-end Performance Manual Automated Functional Automated Functional Performance Manual End-to-end End-to-end Performance Manual Automated Functional Automated Manual Stress Manual Performance Automated Functional

Single, clear statement of asset composition, benefit, and risk

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Test Asset Leverage metric

End-to-end Performance Manual Automated Functional End-to-end Performance Manual Automated Functional Automated Manual Stress Automated Functional Performance Manual End-to-end Performance Automated Functional TIme Automated Functional Stress Manual

3 5 3

People Machines Dollars Time People Machines Dollars Time People Machines Dollars Time People Machines Dollars Time

Single, clear statement of the asset cost by component

Asset Cost by component Assets Total Cost

= 11 + +

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Test Asset metrics building block

Asset cost (in all-or-nothing chunks) # People (by geography, by FTE/Contractor, Outsourcer) # Machines (clusters, labs, in some cases single units) Dollars for tools or testing supply Asset benefit %completed (degree to which demand is met by asset) %healthy (how much of asset is fully fit for service) Asset Type Definition Name: manual, performance, automated, etc Demand (e.g. function points, list of test items, test scenarios)

Every building block contains the same information. Demand, asset trajectory and asset leverage metrics are computed by aggregating the information from all the building blocks.

Duration asset is tied up (generally one quarter)

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Case Study – Software Product Company

Profile

Web services product for handling B2C and B2B financial transactions.

Major business events related to Testing

New Functionality Functional Tests Rapid Adoption Scalability & Performance Technology Changes Regression Acquisition Geographical Distribution Automation Manual Test Conversion Customer-driven Releases Rapid Regression Workforce Redistribution Employees, Contractors, Outsource

Actions and Results

Team transformed from handling a single product line to three product lines with 75% less people! Scalability for multiple thousands of users

  • proven. Outsourcing option enabled.
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Case Study – Test Asset Trajectory (3 products 2 years)

Demand Assets & Types Timeframe & Events Completeness & Health TIme Product A release Product A dot releases Product A scalablity 5k Product A scalablity 10k Product C release Product B acquisition Technology change Financial misfortune Workforce reorg Outsourcing Stress Manual Automated Functional Performance Manual End-to-end Automated Functional Performance Manual End-to-end Automated Functional Performance Manual Automated Functional Performance Manual Automated Functional Performance Manual

A

Manual Manual Automated Functional Manual Automated Functional Manual Automated Functional

B

Automated Functional Performance Manual Automated Functional Performance Manual

C

Stress Manual Automated Functional Performance Manual End-to-end Automated Functional Performance Manual End-to-end Automated Functional Performance Manual Automated Functional Performance Manual Automated Functional Performance Manual Manual Manual Automated Functional Manual Automated Functional Manual Automated Functional Automated Functional Performance Manual Automated Functional Performance Manual

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StarWest 2003 Start: 8 people for 1 product End: 5 people for 3 products Due to automation investment

Case Study – Test Asset Leverage (3 products 2 years)

TIme Stress Manual Automated Functional Performance Manual End-to-end Automated Functional Performance Manual End-to-end Automated Functional Performance Manual Automated Functional Performance Manual Automated Functional Performance Manual

A

Manual Manual Automated Functional Manual Automated Functional Manual Automated Functional

B

Automated Functional Performance Manual Automated Functional Performance Manual

C

People Machines Dollars 8 10 12 18 16 10 8 5 4 5 6 7 7 7 7 6 5k 5k 10k 10k 10k 5k 5k 5k

Trends:

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Roadmap - Suggestions for how to proceed immediately

  • Collect Data (step 2)

Choose a small, well-differentiated set of asset types.

Trade-offs are easier to make when options are distinct.

Build your model around events that create discontinuities

Upgrades, new customer deployments, configuration changes and hardware expansions, shifting organizational responsibilities, outsourcing

Predict demand accurately

  • Include project managers, product managers, service planners, outsourcers
  • Reveal Trends (step 3)

Don’t present too many options. Make sure your top 3 are visible. Make points business-owners care about, especially using events Always anticipate tension and prepare to defend yourself right to the edge Appreciate your audience. KISS

  • Some really good news

These aren’t weekly metrics. Generally quarterly although sometimes non- quarterly when there are significant events or discontinuities

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Questions