Tests are often the unsung heroes of software development. They ensure that applications run smoothly before they reach users. At the same time, testing can consume significant amounts of time, resources, and budget-especially if not approached strategically. But what if testing were more than just a necessary expense? What if it could become an efficient, cost-saving success factor?
This article explores how radical business principles can be applied to risk-based testing and how they can transform testing processes-especially for large applications-into a strategic advantage.
At a glance:
- The Pareto Principle, also known as the 80/20 rule, provides clear guidance: 20% of testing can cover up to 80% of risk.
- By focusing on critical functionality and applying the Pareto Principle (80/20), teams can achieve significant results with less effort.
- The concept of marginal utility analysis in risk-based testing shows that test resources are optimally used when the value of a test case justifies its cost.
Not all parts of an application are equal. A glitch in the search bar may frustrate users, but a broken checkout could spell disaster. This is where risk-based testing comes in. By identifying critical components, teams can allocate resources effectively. For example, in a logistics application, route calculation algorithms require more rigorous testing than an administrative dashboard. Prioritizing these sensitive areas reduces the risk of serious errors while optimizing the overall testing process.
Testing large applications, such as e-commerce platforms, is challenging: hundreds of features and thousands of lines of code require a strategic approach. Prioritization is key to maintaining focus and working efficiently.
For test scenarios, prioritizing and quantifying risks using a burndown chart offers clear benefits. A risk burndown strategy systematically reduces remaining risk by focusing on high-risk cases and eliminating unnecessary work.
Establishing a defined end point-such as reducing risk to 20%-ensures that testing activities are completed as soon as that goal is achieved. This eliminates wasted resources and reduces costs, even if it means sacrificing quality. These strategies highlight how systematic risk management strengthens innovative business solutions.
Marginal Utility Analysis: Efficient testing strategies for maximum value
Another economic principle applicable to risk-based testing is marginal utility analysis. Marginal utility reflects the incremental value of performing one more test case. Like consumers evaluating goods and services, software testers evaluate the value of each test case compared to its cost.
Net Utility = Value – Cost
The value of a test case often lies in its ability to reduce risk. A successful test case uncovers potential bugs or vulnerabilities, reducing the overall risk in the final product. The cost includes the time and resources required to perform the test.
This relationship can be visualized in a graph:
- X axis: Test cases, from high value (left) to low or even negative value (right).
- Y-axis: Total net benefit of testing.
The graph illustrates an important relationship: initially, total net benefit increases as additional test cases uncover potential defects. But after a certain point, the benefit begins to decrease. The peak represents the optimal testing rate-where the last test case provides the highest value. Continuing to test results in diminishing returns, as additional tests provide less value than they cost.
Teams should stop testing once this peak is reached, as further effort provides no additional value. The focus remains on optimizing the use of time and resources to maximize the value of testing. Unlike the linear burndown chart approach, this endpoint is flexible and tailored to the specific needs of a project, rather than rigid principles such as the 80/20 rule.
Data-Driven Decision-Making
Testing no longer has to be a costly bottleneck. By applying economic principles such as the Pareto principle and marginal utility analysis, risk monitoring in test processes becomes a strategic advantage that is better aligned with project goals.
The integration of these approaches into mgm’s test management tool Q12-TMT Test Management Tool is planned for 2025.
Try it now
Try Q12-TMT now – free and in > 1 minute or connect directly with Richard Hönig on LinkedIn to dive deeper into the topic!