Digitalization leading to New Age Testing€¦ · We communicate via digital phones and cell phones, we watch digital TV, we read digital newspapers, we inform ourselves digitally

Business Assurance & Testing

WHITEPAPER July 2015

www.hcltech.com

Digitalization leading to New Age Testing

QEx Whitepaper

AuthOr:

Prakash Ijral Nidhi Godi

2DIGITALIZATION OF A TEST ORGANIZATION

Abstract 3

Why digitalization should be taken seriously? 4

Consumers are embracing digital 4

Technology eruptions are leading to digitalization 7

Businesses are being reborn digital 8

IT in businesses moving to digital 10

Testing role in Digital era 12

IT spending on Digital initiatives 25

Key components for reorganizing testing to prepare as a digital QA enterprise 26

Strategy 28

Summary 34

Authors Profile 35

References 36

Table of Content


ABSTRACTWithout most of us taking notice, our world has gradually been digitalized during the last 20 years. Digital products and services can be found in almost all areas of our life. We communicate via digital phones and cell phones, we watch digital TV, we read digital newspapers, we inform ourselves digitally using the Internet, we shop digitally, we document our lives with social media, and we work digitally with computers. It is hard to find a part of our lives that has not been affected by the digitalization revolution. Even more, our social welfare, our jobs, our social order, on the medium run, everything is dependent on technical progress and digital innovation.Executives in all industries are using digital advances such as analytics, mobility, social media and smart embedded devices – and improving their use of traditional technologies such as ERP – to change customer relationships, internal processes, and value propositions. Other executives, seeing how fast digital technology disrupted media industries in the past decade, know they need to pay attention to changes in their industries now. A handful of such organizations have also started embracing Digitalization to create a competitive advantage.

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.


TECHNOLOGY

Consumers embracing digitalization forcing business to reborn as digital

Technology eruptions and changes leading businesses to go digital

Businesses are investing in IT to meet the digital transformation initiatives

Agile, faster delivery cycles, and newer, more complex technologies bring changes in how we test

CONSUMER

BUSINESS

INFORMATION TECHNOLOGY

TESTING

WHY DIGITALIZATION

SHOULD BE TAKEN SERIOUSLY?


In our perspective, digitalization should be taken seriously by testing service providers because of the below mentioned factors:

y Consumers are embracing digital

y Technology eruptions are leading to digitalization

y Businesses are being reborn digital

y IT in businesses moving to digital

CONSUMERS ARE EMBRACING DIGITAL

Consumers worldwide have embraced digital offerings with relish, leaving few traditional products or services unaffected, including:

y Internet search

y Digital content

y Social media

y Mobile applications

y 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.

74.8

65.5

55.9

40.6 40.4

32.4

19.0

0.0

10.0

20.0

30.0

40.0

50.0

60.0

70.0

80.0

Europe Americas As Arab States World Asia Pacific Africa

%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

Developed World Developing Low developed

%

Source: ITU World Telecommunication/ICT indicators database

Fig: Individuals using the Internet, by level of development, 2005-2014 (left) and by region, 2014* (right)


Over the past decade, the number of websites has been growing at exponential rates and, according to estimates by Netcraft, there were over 850 million host names and approximately 185 million active sites at the beginning of 2014. Google remains the leading search engine in most countries, and accounts for around 90 per cent of the search market. The number of daily Google searches reached almost 6 billion by end 2013 and the total number of searches made through Google in 2013 exceeded 2 trillion.

Fig: Growth in daily Google searches, 2007-2013

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.

Fig: Growth in Facebook monthly active users, 2004-2013 (millions of users)

TECHNOLOGY ERUPTIONS ARE LEADING TO DIGITALIZATION

One of the key changes over time, throughout various IT evolutions, has been the exponentially increasing processing power of computers, and the steady growth in the number of computing devices, applications and users. The table below shows the rough magnitude of these changes across the various computing eras – dates and numbers are approximate just to give a sense of the order of magnitude.

IT Era Dates approximate

Computers| approximate

Applications| approximate

Users approximate

Mainframe 1950-1965 ~100,000 Thousands MillionsMini-Computing 1965-1980 ~10M Thousands Tens of millionsPC & Client/Server 1980-1995 ~100M Tens of thousands Hundreds of millionsInternet (Web) 1995-2010 ~1B Hundreds of thousands BillionsSMAC 2010-2025? Tens of billions Millions Billions

The world is going through a massive digitalization in the consumer ecosystem due to the influence of social, mobile, analytics, and cloud (SMAC). The evolution of SMAC throws integration challenges in front of enterprises, forcing them to handle various SMAC endpoints in the simplest way. Technology changes around the SMAC ecosystem are happening at a rapid pace, and hence the integration architecture must have an interface layer where the enterprise can adapt to those changes quickly and seamlessly. Traditional integration methods have difficulty aligning with the expectations of SMAC. SMAC is not just leading to the digitalization of products and services but of the digitalization of entire business models.


Thus, while SMAC continues to blow, they redefine enterprise IT and serve as the driving force of enterprise-level IT for decades to come. The combined technologies of the SMAC stack erase geographical barriers, cut costs, and enhance the operations of any given business. SMAC technologies are transforming companies today, while simultaneously preparing them for the business challenges of tomorrow through digitalization.

According to multiple estimates, by 2020:

y The SMAC stack will represent $5 trillion in spending.

y As many as 100 billion computing devices will be connected to the Web.

y Corporations will be managing 50 times the data currently managed.

The real promise of SMAC technologies in the growing market will not remain restricted to their individual contributions or their cost savings and process efficiencies for IT, but will expand their potential to support the continued digitization and automation of business models and processes leading to “Digital industrial evolution”.

BUSINESSES ARE BEING REBORN DIGITAL

As society and national GDPs continue to migrate to the Internet economy, traditional business processes, business models and even entire industries are being disrupted as products and services become ever-more digitized. While many industries have already experienced this disruption, such as those in media and entertainment whose primary product or service has become completely digitized (e.g. books, music, movies, maps), the next wave is now being felt as other industries see aspects of their physical value chain become ever-more technology-enabled and optimized.

A leading research organization has analyzed the speed at which various industries are going to get impacted by digitalization. Inference is as below:

Manufacturing

Trade/Retail

Business Services/Construction

Media/Entertainment

Infrastructure

Financial Services & Insurance

Public Sector & Healthcare

SpeedExpected speed of digitization

impact in this industryType of Impact

Market-facing impactExpected intensity of digitization impact on

products/services/ go-to-market in this industry

Operational ImpactExpected intensity of digitization

impact on production and internalenterprise productivity

Fast

Medium

Low

Medium

Fast

Medium

Medium

Medium

Medium

Low

High

Low

High

Medium

Medium

Medium

Medium

Medium

High

High

High

Industry Barriers to entry Information Intensity (Downstream/

Market-Facing) End Consumer Exposure

Information Intensity (Upstream/Operations)

Human/Physical Capital IntensityDrivers

Source: Booz & Company analysis, 2014


The impact on the industries will be something as below:

CUSTOMER INSIGHT/REACH PRODUCTIVITY NEW VALUE POOLS/

BUSINESS MODELS

Manufacturing(Oil, Gas, Chemicals,Pharmaceuticals, High-Tech,Consumer, Automotive)

Trade/Retail

Business Services/Construction(Transport, Construction, Professional Services)

Media/Entertainment

Infrastructure(Utilities, Telecoms)

Financial Services &Insurance

Public Sector & Healthcare

Patient health record statistics, virtual trials

Crowdsourcing and customer labs

Store optimization/segmentation Augmented reality Social shopping

Digital commerce/marketing, digital ticketing, digital maps

Personalized content Digital distribution Long-tail monetization

Up - and cross-selling, over-the-top services, digital/social marketing

Multichannel, including m-payments Individualized insurance

Data analytics-driven exploration/drilling

Digital real-time supply chain and production lines

Automatic stock deployment Track and trace

Health card and national patient health records, patient portals

E-polling/e-voting

Congestion charging, self-guided cars Smart buildings, bridges

Automated news Digital production Content management

Demand response, smart grids Self-healing networks/zero

intervention

Virtual branch/self-service End-to-end process digitization

(trading, claims management, offer processing)

(Hospital) asset management, chronic medication assurance

E-government

Made-to-order Digital prototyping and testing On-demand cloud

Virtual goods (e.g., in-game) Virtual stores (e.g., prêt-à-porter) Made-to-order

Digital cloud-based design/ prototyping

Digitization consulting

User-generated content Digital aggregation (e.g., Hulu)

Smart cities, sensor-signal processing

High-speed trading Analytics-driven forecasting Digital wallets/savings/credit

Peer-to-peer services, online health services

Digital identity

Source: Booz & Company analysis, 2014

We also analyzed a number of companies across industries being reborn digital:

Industry Company Traditional Business Model Innovation Digital Business Model Impact

Oil & Gas Shell Lack of automation and analytics leading to deep water reserves being difficult to find

Built-in GPS, wind sensors, motion sensors and compasses, allows Shell to drill wells with new precision

Predictive analytics making it possible for Shell to exploit previously uncharted oil and gas fields

40% fewer workers required on drilling ships also reducing the time to build an oil rig by 50%

Retail & Logistics WW Grainger Traditional fixed price facilities management

Expanding service delivery through e-commerce platform, cross service delivery

Multi-level, multi-channel facilities delivery

30% revenue through e-commerce

BFSI Deutsche Bank 18 different Kordoba-based legacy

systems to run payments operations in each of its operating centers

Partnered with SAP to create a single platform with standardized processes for all payment types

High-volume payment processing for 14 million customers.

Secure straight-through processing of more than 7.4 billion payment transactions a year

80% reduction in time to market of new payments products; 40% reduction in time to respond to mandatory regulatory requirements

Life Sciences Bayer Pharmaceutical manufacturing, research and distribution

Tie-up with Nintendo for delivering blood glucose monitoring system - DIDGET

Better, enhanced and superior drug delivery

10% faster drug delivery and better control over production

Manufacturing BMW Traditional manufacturing of automobiles through LEAN processes

BMW eKanban – LEAN process monitoring with mobility apps

Better, enhanced production control Savings of $82mn in the first year


IT IN BUSINESSES MOVING TO DIGITAL

Corporate IT has been around for decades, growing in importance and expense. Its bosses, styled for 20-odd years as chief information officers, may perch only a rung or two from the top of the corporate ladder.

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:

y 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.

y “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.

TESTING ROLE IN DIGITAL ERA


The figure below provides an insight on the penetration and market sizes of the market forces considered:

A

B

C

DE

F

G

H

28% penetration among total world population

Market to grow from $2.5B in 2013 to $16.2B by 2018, attaining a CAGR

of 45.7% in the forecast period

Expected growth from $1.9 trillion in 2013 to

$7.1 trillion in 2020

Enterprise spending on cloud computing

expected to amount to a $235.1B in 2017

Market size of $2..2 B in 2013

Expected CAGR of 9.9% in the next 5

years

93% penetration among the total

world population.

Market Forces

1. SOCIAL

2. MOBILE

3. ANALYTICS & BIG DATA

4. CLOUD

6. Omni-channel

5. INTERNET OF THINGS

7. 3D PRINTING

8. USER EXPERIENCE

Worldwide market size to reach $1.471 trillion

in 2015

Customer Experience Management Market

to grow from $3.77 billion in

2014 to $8.39 billion in 2019

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:

Market forces

Penetration of the market force

(Statistics)

Key Impact of the market force on the below Key considerations for the service providers

Case in Point Business IT Testing Skills Testing Solution Operating

ModelCommercial

ModelSocial Total World Population

– 7.18 billion

• Active Internet Users- 2.95 billion (41% penetration)

• Active Social Media users -2.03 billion (28% penetration)

• Active mobile social users -1.56 billion (22% penetration)

*Source –Global Digital Statistics report , August 2014

Change in business due to social media is as below :

• From Selling to connecting with customers

• From large campaigns to small Acts

• From “ Controlling messages” to Transparency

• From “Hard to Reach “ to “ Available Everywhere”

Need of Integration with the social Platform

Key challenge to simulate testing for real user across various demographics

Testers would need to possess end user perspective and think beyond documented testing requirements

The below mentioned types of testing will have higher role to play :

• User Experience Testing

• Functional Testing

• Performance Testing

• SOA testing

• Security Testing

• Mobile Testing

• Business driven development

New workforce will evolve where full time employees would be replaced by part time testers from different demographics

Outcome based pricing will become crucial and outcome world be based on views , clicks , click to conversion ratios and other such parameters

Ford Motor Company Ford has brought the social experience to the forefront of their marketing efforts. Each time they add a new blog post, they pull in the image, headline of the post and the comments from readers onto the front page of their website. Those new to the site or those browsing for a new car get to experience the company and its culture from a social viewpoint right from 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.


Market forces


(Statistics)



ModelCommercial

ModelMobile Total World Population

– 7.18 billion

• Mobile Subscribers -6.67 billion (93% penetration)

• Unique active mobile users -3.61 billion (50% Penetration)

*Source –Global Digital Statistics report , August 2014

• Websites are being moved to Mobile Version or Mobile Native version of their application

• Mobile is allowing users to access enterprises or consumer application and take decision instantly

• High enterprise Mobility Implementa-tion happening in Sales, Operation, Analytics, SAP mobile

• Key focus by enterprises on Consumer Mobile Experience like mobile E-commerce, Social Networking and Location based services

Adoption of Mobile-first approach, such as developing for the smallest form-factor and go towards the bigger form factor.

Customer facing processes and the overall customer experience take prime focus with backward mapping of ERP/CRM

Need to develop awesome UI screens, the best interactions, and the most optimized process flow without worrying about the back-end while always collaborating with the business users in doing so.

Enterprises to target their apps into native, hybrid and web app flavors and also considering to target different mobile form factors

Need to ensure mobile applications work as expected, Mobile app development organization has to follow Mobile Quality Testing.

Need to consider different Testing types starting from functional, platform compatibility, network, performance, usability in the Testing Strategy.

Sound Experience in Mobile Manual Testing w.r.t all the aspect of Mobile Platforms, Mobile Automation Testing and Mobile Performance and Security Testing

• Functional Testing

• Laboratory Testing


• Memory Leakage Testing

• Interrupt Testing

• Usability testing

• Installation testing

• Certification Testing

• Mobile software compatibility testing

A dedicated mobile Test CoE consisting of highly skilled workforce in mobile technologies would be required to test

• Time and Material

• Fixed bid Model (end to end development, support and maintenance)

• Staff Augmentation

BMW mobile campaign in Germany

The auto company created a highly targeted yet rather basic MMS promotion that sent customers personalized messages with specific tire recommendations. The $60,000 campaign resulted in $45 million in sales and a 30 percent conversion rate.

Analytics and Big data

• Advanced and Predictive Analytics (APA) software market is projected from grow from $2.2B in 2013 to $3.4B in 2018, attaining a 9.9% CAGR in the forecast period

• Global spending on Big Data hardware , software and services will grow at a CAGR of 30% through 2018 , reaching a total market size of $114B

• Cloud based Business Intelligence (BI) is projected to grow from 0.75B in 2013 to $2.94 in 2018 , attainting a CAGR of 31%

• Better communica-tion and knowledge sharing

• Better management and alignment of business goals

• Competitive advantage

• Faster response to opportunities and threats

• Decreased time to market

IT will embrace new Hadoop like platforms

Long terms view required to build focused Center of Excellence for Analytics and Big Data

• Analytical and Technical Skills

• Database knowledge

• ETL Testing

• Database Testing

• Business Intelligence testing


Emergence of testing data scientists and dedicated CoE

Existing commercial models like Time and Material , fixed bid etc. may continue unless scale is achieved

One home-appliance company, for example, typically spent a large portion of its marketing budget on print, television, and display advertising to get into the consideration set of its target consumers. Yet analysis of the consumer decision journey showed that most people looking for home appliances browsed retailers’ websites—and fewer than 9 percent visited the manufacturer’s own site. When the company shifted spending away from general advertising to distributor website content, it gained 21 percent in e-commerce sales.


Market forces


(Statistics)



ModelCommercial

ModelCloud 2017, enterprise

spending on cloud computing will amount to a projected $235.1B, triple the $78.2B spent in 2013 according to the research firm’s analysis. In 2014, global business spending for infrastructure and services related to the cloud will reach an estimated $174.2B, up 20% from the amount spent in 2013.

The total SaaS revenue will shift from just over 10% of the total enterprise software market in 2010 to just over 16% by 2015, and predict that SaaS and cloud-based business application services revenue will have grown from $13.5B in 2011 to $32.8b IN 2016.

Cloud is breaking down barriers in the supply chain and creating more effective and timely interaction between clients and suppliers.

It is delivering speed, agility and cost reduction to IT and other functional areas within the enterprise. Its transformative impact can readily be seen in areas such as HR, CRM and IT Infrastructure.

Key changes can be mentioned as:

• CAPEX to OPEX

• Pay per use commercial model

Emergence of Virtual environments

Emergence of

Service virtualization

Security and performance

Traditional testing service will have to transform themselves to be consumed in cloud on utility model

Key testing skills would be required in Cloud computing, Service virtualization, Security testing, Performance testing, SOA testing

Testing as a Service Testing technical architects roles will be critical to deliver these services

• Utility based model

• Pay per use

InterContinental Hotels Group is building a private cloud environment to move its core CRM systems off mainframes and onto industry-standard equipment. It's using public cloud infrastructure for application development and testing, and also to host Web content closer to customers worldwide. And it's evaluating moving key proprietary systems such as room reservation software into the cloud

RehabCare Group, a 28-year-old provider of therapeutic services, is using hosted software and an unlikely device--the Apple iPod Touch--to make its field workforce of 11,000 physical therapists more effective.

Internet of things (IoT)

IoT product and service suppliers will generate incremental revenue exceeding $300 billion in 2020. IDC forecasts that the worldwide market for IoT solutions will grow from $1.9 trillion in 2013 to $7.1 trillion in 2020.

The installed base of active wireless connected devices will exceed 16 billion in 2014, about 20% more than in 2013. The numbers of devices will more than double from the current level, with 40.9 billion forecasted for 2020. 75% of the growth between today and the end of the decade will come from non-hub devices: sensor nodes and accessories.

More than two thirds of consumers plan to buy connected technology for their homes by 2019, and nearly half say the same for wearable technology. Smart thermostats are expected to have 43% adoption in the next five years

• Addresses real time and emergent needs in a predictive manner

• Product refreshes through over the air updates and has synergy value

• Information convergence creates the experience for current products and services

• Enables recurring revenue

• Adds personalization and context ; network effects between products

• Understands how other ecosystem partners make money

Infrastructure and new software upgrades

Product testing solutions for both infrastructure and software

Infrastructure testing

Automation tools

Network level testing skills

Virtual and simulation kind of examples across various IoT components

Testing Labs for IoT devices

Dedicated center of Excellence for IoT devices


Nest (Google)

For solving yet another pain point in building the smart home. Following its game-changing "learning thermostat," Nest released the Protect smoke detector, again infusing a previously design-neglected home appliance with modern detail and functionality. From the Protect’s hands-free silencer and voice controls to its smartphone notifications and battery monitor, Nest has produced the first non-annoying smoke detector—and picked up $3.2 billion in cash from Google along the way.


Market forces


(Statistics)



ModelCommercial

Model3D Printing Global 3D printing

market will grow from $2.5B in 2013 to $16.2B by 2018, attaining a CAGR of 45.7% in the forecast period

U.S. market for 3D printer manufacturing in the U.S. will reach $1.4B in 2014, attaining a Compound Annual Growth Rate (CAGR) of 22.8% from 2009 to 2014

Worldwide 3D printer unit sales and installed base will grow at a combined compound annual growth rate of 59% through 2017, with the value of shipments attaining a 27% CAGR in the forecast period

The first big implication is that more goods will be manufactured at or close to their point of purchase or consumption. This might even mean household-level production of some things. (You’ll pay for raw materials and the IP—the software files for any designs you can’t find free on the web.)

Goods will be infinitely more customized, because altering them won’t require retooling; only tweaking the instructions in the software. Creativity in meeting individuals’ needs will come to the fore, just as quality control did in the age of rolling out sameness.

These implications will cause businesses all along the supply, manufacturing, and retailing chains to rethink their strategies and operations. And a second-order implication will have even greater impact.

Infrastructure and new software upgrades

Product testing solutions for both infrastructure and software

End to end spectrum of testing solutions might be required for 3D printing including , infrastructure , performance , security etc.

Security testing

Compliance testing

Performance testing

Dedicated center of Excellence

New models of pricing based on the requirement will emerge

3D printing has been used to print organs from a patient’s own cells. This means that patients may no longer have to wait a long time for donors in the future. In the past, hospitals implanted structures into patients made by hands. 3D printing has drastically improved this process.

Using 3D printing, Dr. Anthony Atala at Wake Forest’s Regenerative Medicine department was able to create artificial scaffolds in the shape of an organ with living cells. First the scaffold is printed and then it is coated with living cells. Now the Regenerative Department is working on building 3D printers that can print artificial scaffolds and living cells at the exact same time.

During Dr. Atala’s TED Talks speech about the 3D printing organs, he said that “90 percent of the patients on the transplant list are actually waiting for a kidney. Patients are dying every day because we don’t have enough of those organs to go around.” Dr. Atala said that they can reconstruct the entire volume of a kidney from the CT scans of patients.


Market forces


(Statistics)



ModelCommercial

ModelOmni-channel

Business-to-consumer (B2C) ecommerce sales worldwide will reach $1.471 trillion in 2015, according to new figures from eMarketer, increasing nearly 20% over 2013. As internet usage continues to mature across the world, ecommerce growth will slow over time, settling around 10% by the end of our forecast period. However, with sales reaching $2.356 trillion in 2018, a 10% growth rate still represents more than $200 billion new dollars that year.

Improving business functions through connectivity

• Deploying new technologies in the value chain to achieve transparency /visibility

• Connecting the value chains between and across external businesses and between business partners

User experience (demography ,region changing specifications)

Security and Performance

Regulatory compliance

Testing would be done in terms parameters like Conversion Rate AOV (Average Order Value)RPV (Revenue Per Visitor) Checkout Funnel Steps Add to Cart Rate Product Page Views Category Page Views

User perspective

Product testing

Regulatory and domain

Automation testing Security testing Integration SOA testing Business Process Testing Internationalization and Localization

Ecommerce will emerge as a dedicated new CoE and competency center

Fixed price , outcome based , SLA driven

Zappos shoes, clothes and accessories retailer

For this $1.6 billion revenue a year e-tailer, helpful web design elements have played a major role in taking visitors from browsers to buyers.

Customers can swiftly move between product categories using the top navigation menu. As they hover over each category name a large drop down box appears, giving a clear and immediate snapshot of the products available in that section. In addition, the left hand navigation divides products by female, male, kids, clearance, specialty needs (wide and narrow shoes, plus size etc.) and niches (outdoors, running, high end fashion and more).

Each product page includes seven images of the product from different angles, some with additional videos of Zappos staff ‘modelling’ the range. Finally, there are customer product reviews and star ratings, a 365-day return policy and they offer free shipping.

User Experience

Customer Experience Management Market to grow from $3.77 billion in 2014 to $8.39 billion in 2019. This represents a Compound Annual Growth Rate (CAGR) of 17.3% from 2014 to 2019

Improvements to the customer experience come in many forms — it could be a new mobile app, it could be data-driven proactive outreach and troubleshooting, it could be cross-platform messaging. Whatever tactic you choose to improve the user experience, the bar will be set and the stakes will be raised for expectations.

Need to possess end user perspective and think beyond documented requirements

Testers from various demographics might be required for simulating real time scenarios to test

360 view on user perspective

Usability testing is the only tried and tested way to find and fix user experience issues with your existing site or application. It’s also a great way to make sure that a prototype will meet user expectations - and be easy to use

User experience has to emerge as a dedicated new CoE and competency center


Clustering is one of the hotter trends in E-commerce. Focusing on outfits, rather than individual products, is one of the basics of smart merchandising, and can help to drive up order values. Jack Jones has some good ideas to help shoppers play around with different outfits.


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.

IT SPENDING ON DIGITAL INITIATIVES


The key components for re-organizing testing to prepare as a digital QA can be as below:

y Manual to Robotize- end to end automation – Internet of things will offer advanced connectivity of devices, systems, and services that go beyond machine-to-machine

communications (M2M) and covers a variety of protocols, domains, and applications. The interconnection of these embedded devices (including smart objects), is expected to usher in automation in nearly all fields, while also enabling advanced applications like a Smart Grid.

The plethora of new application areas for Internet connected devices would expand into automation and finally end to end automation and Manual to Robotize concepts will come live in testing spaces.

y Digital Testing Leaders and architects – In an increasingly digital world, where everything from marketing to R&D and customer service is becoming digital, the

Chief Digital Officer (CDO) is more important than ever in helping drive company growth and a better connection with customers. The rise of the CDO comes at a time of much industry debate regarding the divide between business and IT. Amid the disconnect between CMOs and CIOs, the CDO promises some relief and reconciliation: CDOs understand the digital opportunities – as well as the threats of cutting corners in the interest of time-to-market – and have a solid grasp on both the technology choices and corresponding trade-offs before them.

– In the testing organizations, roles like digital testing leaders, architects and digital testers will emerge to make testing remain in pace with the faster than ever growth due to digitalization in key processes of software lifecycle.

y Pay per use pricing models – The new set of pricing models will comprise a very pivotal component in the digital testing enterprises. While organizations

move away from conventional testing model containing complex procedures (as any replication or application changes needs to be administered from beginning to end) ; there is a strong progression to the cloud model which offers a simplified solution to manage any issues around variability since the servers, connectors and their applications can be hosted on it.

KEY COMPONENTS FOR REORGANIZING TESTING TO PREPARE AS A DIGITAL QA ENTERPRISE


– Depending on the enterprise requirements, testing vendors become prepared to price the services based on the amount of infrastructure utilized which can be increased or decreased to manage the existing load. Thus the pay per use pricing model gains higher importance than ever before.

y Changing engagement models – The changing customer preferences have resulted in change in engagement models for deals; there is a reduction in the

number of standalone testing deals as customers clearly prefer integrated deals.

y 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.

y CapEX to OpEX shift – Organizations have more options because they can afford the latest and greatest technology without having to find a large

bucket of funds upfront to pay for it. Instead, they can focus on their core competencies and transition many of their Capital Expeditures (CapEx) investments to Operating Expenses (OpEx) spending, freeing up cash for those investments and other projects that drive revenue and growth. And this trend seems to be picking even while making testing decisions for organizations.


We propose a 4 step strategy for software testing service providers to use digital technology to address challenges and provide new opportunities

Access Optimize Roadmap Design

Build, Buy or 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

STRATEGY


1 2 3 4 5

1. Do you have capabilities to automate existing manual processes?

2. Do you have capabilities help customers to achieve built-in optimization using data from external sources?

3. Do you have capability to support creative and innovative processes?

4. Do you have capability to support modern collaborations, including social interactions, between internal users? Also, does it support creation of external user communities to increase loyalty and crowd-source ideas?

5. Do you have capability to provide a unified system irrespective of how and where customers access the system, including mobile?

6. Do you capabilities to support customer in making digital investment happen in an integrated manner, extracting the maximum possible ROI for the organization

7. Do you capabilities to help customer in building innovative systems aligning to the vision of the organization instead of merely the stated requirements?

8. Do you have capabilities to help customers in decentralize its innovation? Capabilities to make it easy for them to build innovative solutions, quickly and economically?

9. Can you help customer in collecting the data from every customer touch point and event? Including, available external data?

10. Can your capabilities support customer’s IT harness the data in real-time? Support them in decisions from data drive standard systems and processes?

Phase 2Testing 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.

Maturity achieved completely

Maturity achieved partially

Maturity not achieved

5.24

Susceptible

Key Area Groups Key Area A B C D

Life cycle Related

Test strategy, Types of Tests and Levels

Life-cycle model

Moment of Involvement

Techniques Related

Estimating and planning

Test Preparation and Test Specification techniques

Review techniques

Metrics

Infrastructure Related

Test automation and Tools usage

Test environment

Office environment

Organization Related

Commitment and motivation

Knowledge Management and training

Scope of Methodol ogy

Team structure and Communication

Traceability and Reporting

Defect management

Test Repository and Testware management

Test process methodology and management

Goals, Best practices, pain Areas and Evaluation

Low-level testing

Prepare current state analysis report by study of key group’s maturity; calculate overall maturity and reach to a Digital test maturity SCORE.


Life Cycle Techniques

Infrastructure and Tools

Organization

Key Area Groups Maturity

5.24Overall Maturity -

Susceptible

Overall Maturity

4.766.31

0.00-3.50: Unreliable-Low cost, low quality

3.51-5.50: Susceptible- High cost, low quality

5.51-8.00:Acceptable - High cost, high quality

8.01-10.00: Desirable- Low cost, high quality

Cost of Quality

6.15 5.49

Based on Digital test maturity score, reach to information on potential and expected cost of digitalization.

Start with Justification and Prioritization 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.

TESTING ROADMAP DESIGN

Due to digitalization, test automation will go beyond just ‘functional automation’ and encompassing all aspects during development cycle and thereby minimize manual testing process to the extent possible. Also, Script less automation will become more prominent with business users involvement in testing: Businesses will begin to leverage more self-service options and more comprehensive IT automation tools, thus involving business users to the end-user or to technology in this testing value chain.

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.

We believe that testing Capabilities around

y Automation y Open source tools y Testing in Production y Business driven development testing y Mobility, Social, User experience, cloud testing y Application Modernization


And, readiness towards Internet of things testing would prove as key differentiators while flexible pricing models will differentiate digital testing masters from conservatives.

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:

Cloud Enablement Cloud Enablement

Legacy Modernization Legacy Modernization Legacy Modernization

Upgrades/Implementation Upgrades/Implementation Upgrades/Implementation

Integration/Middleware Integration/Middleware

BI, Analytics, Big Data BI, Analytics, Big Data

Multichannel/e-commerce

Disruptive Technologies

Vertical Solutions

TCO Reduction

IT Ready for Change

Minimized Disruption/ Increased flexibility

TECHNOLOGY LANDSCAPE TRANSFORMATION

DATA LANDSCAPE TRANSFORMATION

PROCESS LANDSCAPE TRANSFORMATION

LEGACY TO CLOUD

DATA FABRIC

DIGITAL ENTERPRISE

Application Modernization and Cloud Testing

Data Fabric Testing Solution Business Assurance Testing for Digitally Transformed

Enterprise

Decision Impact

Single version of truth

Actionable Insights

Revenue Impact

Business Function Efficiency

Customer Delight

Cloud Enablement

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.

BUILD, BUY or PARTNER

Once the roadmap is designed and testing areas with possibility of maximum digitalization are identified, the decision for Building or Buying or Partnering for digital testing competency enhancement can be made.


SUMMARY

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 HCL test automation practice.

He is equipped with over 18 years Extensive experience of working globally and implementing Centres of Excellence (Test Factory) across multiple clients in USA and Europe. Expertise in spearheading complex Software Testing Projects and played roles of Consultant/Test Architect for various Global Operation Center’s and for many Clients in the USA, Europe and ANZ Geo. He possesses extensive Software development and testing experience spanning across Energy Utility, Manufacturing, Financial Risk Management, Retail, CRM, Business Intelligence, Health Care, Publication, Vendor Management and Data center management 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.

Nidhi Godi is working as the market research analyst in testing practice of HCL.

Nidhi comes with over 5 years of experience in IT and 4 years in software testing. She possesses extensive experience in conducting market and technology trends analysis across various industries, business analysis and requirement gathering and specializes in executing end to end digital marketing campaigns for emerging technologies.

She holds a Bachelor’s in Engineering in the field of Electronics and communications and a Master’s in Business Administration, Marketing.

Prakash Ijral Nidhi Godi

AUTHORS PROFILE


REFERENCES y http://blogs.wsj.com/cio/2013/01/02/big-oils-big-data-push-changing-the-future-of-energy/

y http://www.internetretailer.com/2013/01/29/ww-grainger-boosts-web-sales-23-2012

y https://www.sap.com/bin/sapcom/downloadasset.deutsche-postbank--building-a-payments-processing-business-pdf.html

y http://mobihealthnews.com/7247/bayer-nintendo-bring-meter-integration-to-us/

y http://www.tedmag.com/rooms.aspx?id=17596

y http://supplychainminded.com/are-you-ready-for-the-digital-value-chain/

y Report from Booz & Company analysis, 2014

y Taking Leadership in a digital economy, Deloitte consulting, 2012

y Drive Unified Digital Customer Experiences With Better Technology Strategies by Stephen Powers and Mark Grannan, July 10, 2014

Hello there! I am an Ideapreneur. I believe that sustainable business outcomes are driven by relationships nurtured through values like trust, transparency and flexibility. I respect the contract, but believe in going beyond through collaboration, applied innovation and new generation partnership models that put your interest above everything else. Right now 105,000 Ideapreneurs are in a Relationship Beyond the Contract™ with 500 customers in 31 countries. How can I help you?

ABOUT HCL

About HCL Technologies

HCL Technologies is a leading global IT services company working with clients in the areas that impact and redefine the core of their businesses. Since its emergence on the global landscape, and after its IPO in 1999, HCL has focused on ‘transformational outsourcing’, underlined by innovation and value creation, offering an integrated portfolio of services including software-led IT solutions, remote infrastructure management, engineering and R&D services and business services. HCL leverages its extensive global offshore infrastructure and network of offices in 31 countries to provide holistic, multi-service delivery in key industry verticals including Financial Services, Manufacturing, Consumer Services, Public Services and Healthcare & Life sciences. HCL takes pride in its philosophy of ‘Employees First, Customers Second’ which empowers its 104,184 transformers to create real value for customers. HCL Technologies, along with its subsidiaries, had consolidated revenues of US$ 5.8 billion, for the Financial Year ended as on 31st March 2015 (on LTM basis). For more information, please visit www.hcltech.com

About HCL Enterprise

HCL is a $6.8 billion leading global technology and IT enterprise comprising two companies listed in India – HCL Technologies and HCL Infosystems. Founded in 1976, HCL is one of India’s original IT garage start-ups. A pioneer of modern computing, HCL is a global transformational enterprise today. Its range of offerings includes product engineering, custom & package applications, BPO, IT infrastructure services, IT hardware, systems integration, and distribution of information and communications technology (ICT) products across a wide range of focused industry verticals. The HCL team consists of over 109,643 professionals of diverse nationalities, who operate from 31 countries including over 505 points of presence in India. HCL has partnerships with several leading global 1000 firms, including leading IT and technology firms. For more information, please visit www.hcl.com

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Digitalization leading to New Age Testing€¦ · We communicate via digital phones and cell phones, we watch digital TV, we read digital newspapers, we inform ourselves digitally