Building a Test Automation Business Case

Author: Nessta Jones, Afor Director

Introduction

"I've had the privilege of working with talented people in the SW Testing Industry for over 30 years and seen the challenges, opportunities and risks that organisations face as they embark on their Test Automation journey.

Many organisations are surprised to find out that up to 70% Test Automation Implementations fail to deliver intended outcomes.

I wanted to share my views on what we at Afor call the “Automation Paradox” and how to overcome this.

This is the first of five blogs doing a deep dive into AI Enhanced Test Automation each authored by one of our experts in the field of Software test automation."

— Nessta Jones, Director, Afor

Failure Rate of Automation Implementations

*Many organisations are surprised to find out that up to 70% Test Automation Implementations fail to deliver intended outcomes.*
**Source: Afor Research 2025**

Why Traditional ROI Calculations Often Fall Short

When advocating for investments in test automation, relying solely on traditional Return on Investment (ROI) calculations can be limiting. While metrics like time and cost savings are tangible, they often overlook broader strategic benefits that resonate with senior leadership. A comprehensive business case should encompass not only financial returns but also factors like risk mitigation, competitive advantage, and alignment with overarching digital transformation goals.

Recognising the True Cost of Inadequate Testing

Quantifying the Impact of Delays and Defects

Inadequate testing can lead to significant delays and defects reaching production, adversely affecting customer satisfaction and brand reputation. For instance, manual testing processes are often time-consuming, delaying software releases and increasing the likelihood of defects slipping through. These defects can result in costly post-release fixes and potential loss of business.

Hidden Costs in Manual Processes

Manual testing isn't just about the visible expenses; hidden costs lurk beneath the surface. These include the time spent on repetitive tasks, the increased likelihood of human error, and the resources required for extensive post-release support. Such inefficiencies can inflate project budgets and divert resources from strategic initiatives.

Building Your Business Case Framework

Calculating Tangible Savings

Begin by assessing the direct cost savings achievable through automation. This involves comparing the time and resources spent on manual testing versus automated testing. Automated tests can be executed faster and more frequently, leading to quicker feedback loops and reduced time-to-market. Additionally, automation can decrease the reliance on extensive manual testing teams, resulting in labour cost savings.

Measuring Risk Reduction

Beyond direct savings, consider how automation mitigates risks. Automated testing enhances test coverage, ensuring that critical functionalities are consistently validated. This reduces the probability of defects in production, thereby lowering the risk of costly emergency fixes and reputational damage. Furthermore, automation supports compliance with industry standards by ensuring consistent and repeatable testing processes.

Aligning with Strategic Initiatives

Test automation should be positioned as a catalyst for broader strategic objectives. For organisations undergoing digital transformation, automation facilitates agile development practices, enabling faster and more reliable releases. It also supports scalability, allowing testing processes to adapt seamlessly as the organisation grows or pivots. By aligning automation with strategic goals, the investment becomes integral to the organisation's future readiness.

“Automated tests can be executed faster and more frequently, leading to quicker feedback loops and reduced time-to-market”

— Nessta Jones

How to Present Your Business Case Effectively

Use clear, jargon-free language and focus on outcomes that align with the organisation's mission and objectives.

Speaking the Language of Business Stakeholders

When presenting to senior leadership, frame the benefits of test automation in terms that resonate with business priorities. Emphasise how automation contributes to faster time-to-market, improved customer satisfaction, and competitive differentiation. Use clear, jargon-free language and focus on outcomes that align with the organisation's mission and objectives.

Addressing Common Objections

Anticipate and prepare for potential objections. Common concerns include the initial investment cost, the time required to implement automation, and the potential disruption to current processes. Address these by highlighting long-term savings, presenting a phased implementation plan, and showcasing case studies or benchmarks from similar organisations that have successfully transitioned to automated testing.

Next Steps: From Business Case to Action Plan

Begin by documenting your current testing challenges and mapping them to specific business impacts.

Collect data on release delays, defects reaching production, and time spent on repetitive manual testing.

Approach your finance team and ask for assistance to put together a Test Automation ROI calculation aligned to your organisations specific business case requirements (every business has their own criteria and metrics so generic calculators are not as effective) to quantify potential savings based on your organisation's specific metrics and testing volumes.

Map out who your key stakeholders are in the approval process and tailor the messaging for the initiative to their outcomes. Meet with each of them one to one first to float the initiative and get their feedback to improve your business case.

Try and broker consensus one to one first before holding a strategic planning session with key stakeholders to align your testing improvement initiative with broader business objectives before presenting your formal business case.

Make sure you acknowledge the feedback and improvement suggestions from your stakeholders in this meeting. The outcome of this meeting should be to build consensus to move forward with a business case for change.

By building a comprehensive business case that extends beyond traditional ROI calculations, you position test automation as a strategic investment that delivers multifaceted value to the organisation.