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The Future of Testing in
Finance



Paul Gerrard
paul@gerrardconsulting.com
Twitter: @paul_gerrard
Web: gerrardconsulting.com
Download from businessstorymethod.com/
                    Intelligent Testing, Improvement and Assurance   Slide 1
Thank-you

• Thank-you to Dr Richard Sykes and Susan
  Windsor for allowing me to pick their brains

• This PowerPoint can be downloaded from:


       gerrardconsulting.com
              Intelligent Testing, Improvement and Assurance   Slide 3
There have been some negative
waves recently
• Testing is Dead
• Death to the Testing Phase
• Testing has contributed little to quality
  improvement in the last ten years
• Being a tester is a „bad thing‟

• Is testing really DEAD?

               Intelligent Testing, Improvement and Assurance   Slide 4
My crystal ball
• Changes in our business
  demand a rethink of
  testing
• Ten five-year predictions
• Some test lead/manager
  career suggestions
• It‟s personal, partial and
  fallible!


                Intelligent Testing, Improvement and Assurance   Slide 5
“You can fool some of the people all the time and
 you can fool all the people some of the time but
    you can’t fool all the people all the time.”
                 Abraham Lincoln

 “If you are right, you’ll be hailed as a visionary.
     If you are wrong, no one will remember”
                     Bill Hetzel

        “How did I get myself into this?”
                      Me
              Intelligent Testing, Improvement and Assurance   Slide 6
Theme:
Changes in our business
    Software product and
 demand a re-think of
 service companies and user
 where testingaffected
  companies are all fits in
   systems projects
       Intelligent Testing, Improvement and Assurance   Slide 7
Technology, Hype and
  How Innovations
 Become Mainstream

    Intelligent Testing, Improvement and Assurance   Slide 8
Intelligent Testing, Improvement and Assurance   Slide 9
Not all innovations
make it across the
“chasm”




              Intelligent Testing, Improvement and Assurance   Slide 10
The Hype Cycle

   Agile, The Cloud and Mobile
  computing have made it across
            the Chasm
     Where are YOU in the
          Adoption Cycle?

         Intelligent Testing, Improvement and Assurance   Slide 11
The Cloud



Intelligent Testing, Improvement and Assurance   Slide 12
Software as a
Service dominates
the growth of public
cloud markets




 Intelligent Testing, Improvement and Assurance   Slide 13
The industry changes its mind –
again
• Moving to Infrastructure as a Service will save
  some money
• The IT Director can glory in the permanent
  cost savings for a year – and then what?

• The “Business” will want to take advantage of
  the flexibility that the move to the cloud
  offers.

              Intelligent Testing, Improvement and Assurance   Slide 14
Massive re-architecting of systems
and companies – work in progress
• Many (most?) public websites will be replaced
  by mobile apps – depends on who you talk to
• SaaS will represent 26% of all packaged
  software (so what?)
  – To re-architect an installed base of software and
    create new systems will be a monumental effort
  – The challenges of integration, security,
    performance and reliability will be daunting.
       http://forrester.com/rb/Research/sizing_cloud/q/id/58161/t/2

                  Intelligent Testing, Improvement and Assurance      Slide 15
The Effect on Suppliers



     Intelligent Testing, Improvement and Assurance   Slide 16
Out with the old…
• “Old model” hardware suppliers
  – Motivated to sell more hardware; not motivated
    to utilise; requires high labour support
  – Motivated to sell new licences (e.g. operating
    systems); not motivated to sell SaaS; open source.
  – Commercial model and company culture relies on
    this mindset
• Can they change quickly enough? Or at all?
• Where are their new markets?

               Intelligent Testing, Improvement and Assurance   Slide 17
In with the new?
• New model cloud suppliers
   – Motivated to sell infrastructure as a service
   – Have tools in place to manage set-up and tear down with
     very little manual intervention; very low labour costs
   – Rely on high capacity, utilisation, open source
   – Motivated to sell flexibility
• Small number of very highly skilled people
• A cheaper business model, they can reduce current
  costs by 75-90% and still make a profit
• Expect prices to fall as competition hots up, but can
  the oldies, being late to market, compete?
                 Intelligent Testing, Improvement and Assurance   Slide 18
“Bottoms on seats” service models
• Traditional IT service suppliers - applies to all
  IT, not just testing
• Operational costs are HIGH (people)
• Low technology – high human support
• No incentive to be efficient
• High utilisation equals high profits
• Moving towards …

               Intelligent Testing, Improvement and Assurance   Slide 19
Brains, not bottoms
• High technology – fewer resources
• Moore‟s law applies – smart people doing more
  with less
• Companies are used to business process
  outsourcing
• Development and test is becoming a commodity
  supported by lots of tools
• Companies may outsource to Service Factories
• Their incentive is always to be efficient
• Niche specialist skills always in demand.

              Intelligent Testing, Improvement and Assurance   Slide 20
Impact on selecting and managing
supplier relationships?
• Even our contracts and purchasing processes
  have to change
• Testing has an important role to play of
  course.




             Intelligent Testing, Improvement and Assurance   Slide 21
A Methodological Shift

  From staged, structured projects to
 iterative and Agile and now, towards
          „continuous delivery‟

        Intelligent Testing, Improvement and Assurance   Slide 22
Changes ahead
• System users and service vendors moving to
  new business models based on new
  architectures
• SaaS is an enabler for very rapid deployment
  of new functionality onto a range of devices
• SaaS and maturing Agile approaches mean the
  promise of Continuous Delivery can be
  achieved.

             Intelligent Testing, Improvement and Assurance   Slide 23
And Continuous
   Delivery is...

From requirement to deployment in
   24 hours… every 24 hours?


       Intelligent Testing, Improvement and Assurance   Slide 24
From traditional delivery…




… to Continuous Delivery



         Intelligent Testing, Improvement and Assurance   Slide 25
The Deployment Pipeline


                                                 • Automated Unit
                                                   tests
                                                 • Automated
                                                   Acceptance Tests
                                                 • Manual User Tests




         Intelligent Testing, Improvement and Assurance        Slide 26
Structured … Agile?
We are in transition
• A re-think is in progress
• Adopting new architectures and a more streamlined
  approach to development
• Requirements half-life of weeks or months
• Agile approaches are homing in on continuous delivery
• Kanban-Ichiwichi-Hokikoki-Kamikaze-Driven
  Development – Whatever!
• A hybrid Agile-Structured process:
   – Structured Analysis, Agile Delivery?
   – That would be SAAD!

                  Intelligent Testing, Improvement and Assurance   Slide 27
What does this mean for
practitioners?
• Re-distributed functional testing
• A focus on continuous test and assurance
• Service integration replaces system integration
• Non-functional skills, design and test
  particularly UX, security, privacy, performance
  are in demand („twas always so)
• The ability to balance competing non-
  functional requirements in demand too.
              Intelligent Testing, Improvement and Assurance   Slide 28
The real squeeze on testing
• From the „low-value‟ unskilled, downstream
   A Redistribution of
  test role to upstream, business-savvy,
  workflow-oriented, UX-aware testing
   Testing and checking –its tools
  specialists with new tools
  – Developers absorb the
                             not with
  –death - is inevitable.
    Business analysis owns acceptance
  – New focus on requirements management
  – Under-skilled testers, relying on clerical skills to
    get by will be squeezed out.
                Intelligent Testing, Improvement and Assurance   Slide 29
Board Level Messages

 Is testing a Board-Level concern?



       Intelligent Testing, Improvement and Assurance   Slide 30
The New Testing: A Wider
Resource Orchestration
• The creation & delivery of systems with
  assurance in this new environment calls for
     Testing Through
  new approaches to development and testing
• Assurance is required across the full life cycle,

      the Lifecycle
  in an increasingly virtualised environment
• This requires orchestration of people, process
  & technology throughout the lifecycle
  increasingly in the virtual.

               Intelligent Testing, Improvement and Assurance   Slide 31
The assurance of outcomes, not
just deliverables
• Testing assures the quality of deliverables, as ever
            We Test
• But stakeholders commission systems to achieve
  business outcomes

          Systems, not
• Confidence in the delivery of outcomes is, for a
  business, an operational and strategic strength

         Just Software
• Testing should, above all, be about delivering
  confidence in outcomes.

                Intelligent Testing, Improvement and Assurance   Slide 32
My Five-Year
Predictions



Intelligent Testing, Improvement and Assurance   Slide 33
#1
50% of in-house testers
 will be reassigned or
      outsourced

      Intelligent Testing, Improvement and Assurance   Slide 34
#2
  Business test planning
 will become part of up-
front analysis and design
   (where it should be)
      Intelligent Testing, Improvement and Assurance   Slide 35
#3
Specification by Example
  will become the new
  buzzword (includes
 ATDD, BDD, TDD etc.)
      Intelligent Testing, Improvement and Assurance   Slide 36
#4
Developers will adopt
  behaviour‐driven
development and new
       tools
     Intelligent Testing, Improvement and Assurance   Slide 37
#5
Some system tests and
most acceptance tests
will be business model-
         driven
      Intelligent Testing, Improvement and Assurance   Slide 38
#6
 Business models plus
stories will increasingly
 become „contractual‟

      Intelligent Testing, Improvement and Assurance   Slide 39
#7
  System Tests will be
generated from stories
 or will be outsourced

     Intelligent Testing, Improvement and Assurance   Slide 40
#8
 Manual system test
  execution will be
outsourced (and in the
       cloud)
     Intelligent Testing, Improvement and Assurance   Slide 41
#9
   Maybe half of all
acceptance tests will be
  automated in CI…
      …forever
      Intelligent Testing, Improvement and Assurance   Slide 42
#10
New tools that manage
 the full requirements,
   stories, scenarios,
   workflows, testing
  pipeline will emerge
      Intelligent Testing, Improvement and Assurance   Slide 43
Some Doors Close, but
  Other Doors are
      Opening
 What are the new opportunities for
    Test Leads and Managers?


        Intelligent Testing, Improvement and Assurance   Slide 44
#1
   Upstream with
  stakeholders and
 analysis – providing
testing and assurance
  skills to business
     Intelligent Testing, Improvement and Assurance   Slide 45
#2
 Managing Business
   Requirements
knowledge; analysing
 business impact of
      change
    Intelligent Testing, Improvement and Assurance   Slide 46
#3
Testmaster: Providing an
 assurance function to
  teams, projects and
 business stakeholders
      Intelligent Testing, Improvement and Assurance   Slide 47
#4
       Managing the
    information flows
to/from the Continuous
  Integration process
     Intelligent Testing, Improvement and Assurance   Slide 48
#5
Managing/monitoring
 outsourced/offshore
teams who detail and
    execute tests
    Intelligent Testing, Improvement and Assurance   Slide 49
Close



Intelligent Testing, Improvement and Assurance   Slide 50
The phase after development is
REWORK, not Testing
• Managers will never name this phase correctly
• Testing must align with development, not
  follow it
• Manual test phase will fade away replaced by:
  – Up-front test design mostly automated
  – Integrated with code change and software delivery
• Testers must embrace the change, not resist it
• Make that leap across the chasm!
              Intelligent Testing, Improvement and Assurance   Slide 51
Perhaps testing and the
 role of testers can at
  last mature to what
    they should be?

      Intelligent Testing, Improvement and Assurance   Slide 52
Thank-You



Intelligent Testing, Improvement and Assurance   Slide 53
The Future of Testing


Paul Gerrard
paul@gerrardconsulting.com
Twitter: @paul_gerrard
Web: gerrardconsulting.com

    Download from businessstorymethod.com/
                    Intelligent Testing, Improvement and Assurance   Slide 54

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The Future of Testing

  • 1. The Future of Testing in Finance Paul Gerrard paul@gerrardconsulting.com Twitter: @paul_gerrard Web: gerrardconsulting.com Download from businessstorymethod.com/ Intelligent Testing, Improvement and Assurance Slide 1
  • 2. Thank-you • Thank-you to Dr Richard Sykes and Susan Windsor for allowing me to pick their brains • This PowerPoint can be downloaded from: gerrardconsulting.com Intelligent Testing, Improvement and Assurance Slide 3
  • 3. There have been some negative waves recently • Testing is Dead • Death to the Testing Phase • Testing has contributed little to quality improvement in the last ten years • Being a tester is a „bad thing‟ • Is testing really DEAD? Intelligent Testing, Improvement and Assurance Slide 4
  • 4. My crystal ball • Changes in our business demand a rethink of testing • Ten five-year predictions • Some test lead/manager career suggestions • It‟s personal, partial and fallible! Intelligent Testing, Improvement and Assurance Slide 5
  • 5. “You can fool some of the people all the time and you can fool all the people some of the time but you can’t fool all the people all the time.” Abraham Lincoln “If you are right, you’ll be hailed as a visionary. If you are wrong, no one will remember” Bill Hetzel “How did I get myself into this?” Me Intelligent Testing, Improvement and Assurance Slide 6
  • 6. Theme: Changes in our business Software product and demand a re-think of service companies and user where testingaffected companies are all fits in systems projects Intelligent Testing, Improvement and Assurance Slide 7
  • 7. Technology, Hype and How Innovations Become Mainstream Intelligent Testing, Improvement and Assurance Slide 8
  • 8. Intelligent Testing, Improvement and Assurance Slide 9
  • 9. Not all innovations make it across the “chasm” Intelligent Testing, Improvement and Assurance Slide 10
  • 10. The Hype Cycle Agile, The Cloud and Mobile computing have made it across the Chasm Where are YOU in the Adoption Cycle? Intelligent Testing, Improvement and Assurance Slide 11
  • 11. The Cloud Intelligent Testing, Improvement and Assurance Slide 12
  • 12. Software as a Service dominates the growth of public cloud markets Intelligent Testing, Improvement and Assurance Slide 13
  • 13. The industry changes its mind – again • Moving to Infrastructure as a Service will save some money • The IT Director can glory in the permanent cost savings for a year – and then what? • The “Business” will want to take advantage of the flexibility that the move to the cloud offers. Intelligent Testing, Improvement and Assurance Slide 14
  • 14. Massive re-architecting of systems and companies – work in progress • Many (most?) public websites will be replaced by mobile apps – depends on who you talk to • SaaS will represent 26% of all packaged software (so what?) – To re-architect an installed base of software and create new systems will be a monumental effort – The challenges of integration, security, performance and reliability will be daunting. http://forrester.com/rb/Research/sizing_cloud/q/id/58161/t/2 Intelligent Testing, Improvement and Assurance Slide 15
  • 15. The Effect on Suppliers Intelligent Testing, Improvement and Assurance Slide 16
  • 16. Out with the old… • “Old model” hardware suppliers – Motivated to sell more hardware; not motivated to utilise; requires high labour support – Motivated to sell new licences (e.g. operating systems); not motivated to sell SaaS; open source. – Commercial model and company culture relies on this mindset • Can they change quickly enough? Or at all? • Where are their new markets? Intelligent Testing, Improvement and Assurance Slide 17
  • 17. In with the new? • New model cloud suppliers – Motivated to sell infrastructure as a service – Have tools in place to manage set-up and tear down with very little manual intervention; very low labour costs – Rely on high capacity, utilisation, open source – Motivated to sell flexibility • Small number of very highly skilled people • A cheaper business model, they can reduce current costs by 75-90% and still make a profit • Expect prices to fall as competition hots up, but can the oldies, being late to market, compete? Intelligent Testing, Improvement and Assurance Slide 18
  • 18. “Bottoms on seats” service models • Traditional IT service suppliers - applies to all IT, not just testing • Operational costs are HIGH (people) • Low technology – high human support • No incentive to be efficient • High utilisation equals high profits • Moving towards … Intelligent Testing, Improvement and Assurance Slide 19
  • 19. Brains, not bottoms • High technology – fewer resources • Moore‟s law applies – smart people doing more with less • Companies are used to business process outsourcing • Development and test is becoming a commodity supported by lots of tools • Companies may outsource to Service Factories • Their incentive is always to be efficient • Niche specialist skills always in demand. Intelligent Testing, Improvement and Assurance Slide 20
  • 20. Impact on selecting and managing supplier relationships? • Even our contracts and purchasing processes have to change • Testing has an important role to play of course. Intelligent Testing, Improvement and Assurance Slide 21
  • 21. A Methodological Shift From staged, structured projects to iterative and Agile and now, towards „continuous delivery‟ Intelligent Testing, Improvement and Assurance Slide 22
  • 22. Changes ahead • System users and service vendors moving to new business models based on new architectures • SaaS is an enabler for very rapid deployment of new functionality onto a range of devices • SaaS and maturing Agile approaches mean the promise of Continuous Delivery can be achieved. Intelligent Testing, Improvement and Assurance Slide 23
  • 23. And Continuous Delivery is... From requirement to deployment in 24 hours… every 24 hours? Intelligent Testing, Improvement and Assurance Slide 24
  • 24. From traditional delivery… … to Continuous Delivery Intelligent Testing, Improvement and Assurance Slide 25
  • 25. The Deployment Pipeline • Automated Unit tests • Automated Acceptance Tests • Manual User Tests Intelligent Testing, Improvement and Assurance Slide 26
  • 26. Structured … Agile? We are in transition • A re-think is in progress • Adopting new architectures and a more streamlined approach to development • Requirements half-life of weeks or months • Agile approaches are homing in on continuous delivery • Kanban-Ichiwichi-Hokikoki-Kamikaze-Driven Development – Whatever! • A hybrid Agile-Structured process: – Structured Analysis, Agile Delivery? – That would be SAAD! Intelligent Testing, Improvement and Assurance Slide 27
  • 27. What does this mean for practitioners? • Re-distributed functional testing • A focus on continuous test and assurance • Service integration replaces system integration • Non-functional skills, design and test particularly UX, security, privacy, performance are in demand („twas always so) • The ability to balance competing non- functional requirements in demand too. Intelligent Testing, Improvement and Assurance Slide 28
  • 28. The real squeeze on testing • From the „low-value‟ unskilled, downstream A Redistribution of test role to upstream, business-savvy, workflow-oriented, UX-aware testing Testing and checking –its tools specialists with new tools – Developers absorb the not with –death - is inevitable. Business analysis owns acceptance – New focus on requirements management – Under-skilled testers, relying on clerical skills to get by will be squeezed out. Intelligent Testing, Improvement and Assurance Slide 29
  • 29. Board Level Messages Is testing a Board-Level concern? Intelligent Testing, Improvement and Assurance Slide 30
  • 30. The New Testing: A Wider Resource Orchestration • The creation & delivery of systems with assurance in this new environment calls for Testing Through new approaches to development and testing • Assurance is required across the full life cycle, the Lifecycle in an increasingly virtualised environment • This requires orchestration of people, process & technology throughout the lifecycle increasingly in the virtual. Intelligent Testing, Improvement and Assurance Slide 31
  • 31. The assurance of outcomes, not just deliverables • Testing assures the quality of deliverables, as ever We Test • But stakeholders commission systems to achieve business outcomes Systems, not • Confidence in the delivery of outcomes is, for a business, an operational and strategic strength Just Software • Testing should, above all, be about delivering confidence in outcomes. Intelligent Testing, Improvement and Assurance Slide 32
  • 32. My Five-Year Predictions Intelligent Testing, Improvement and Assurance Slide 33
  • 33. #1 50% of in-house testers will be reassigned or outsourced Intelligent Testing, Improvement and Assurance Slide 34
  • 34. #2 Business test planning will become part of up- front analysis and design (where it should be) Intelligent Testing, Improvement and Assurance Slide 35
  • 35. #3 Specification by Example will become the new buzzword (includes ATDD, BDD, TDD etc.) Intelligent Testing, Improvement and Assurance Slide 36
  • 36. #4 Developers will adopt behaviour‐driven development and new tools Intelligent Testing, Improvement and Assurance Slide 37
  • 37. #5 Some system tests and most acceptance tests will be business model- driven Intelligent Testing, Improvement and Assurance Slide 38
  • 38. #6 Business models plus stories will increasingly become „contractual‟ Intelligent Testing, Improvement and Assurance Slide 39
  • 39. #7 System Tests will be generated from stories or will be outsourced Intelligent Testing, Improvement and Assurance Slide 40
  • 40. #8 Manual system test execution will be outsourced (and in the cloud) Intelligent Testing, Improvement and Assurance Slide 41
  • 41. #9 Maybe half of all acceptance tests will be automated in CI… …forever Intelligent Testing, Improvement and Assurance Slide 42
  • 42. #10 New tools that manage the full requirements, stories, scenarios, workflows, testing pipeline will emerge Intelligent Testing, Improvement and Assurance Slide 43
  • 43. Some Doors Close, but Other Doors are Opening What are the new opportunities for Test Leads and Managers? Intelligent Testing, Improvement and Assurance Slide 44
  • 44. #1 Upstream with stakeholders and analysis – providing testing and assurance skills to business Intelligent Testing, Improvement and Assurance Slide 45
  • 45. #2 Managing Business Requirements knowledge; analysing business impact of change Intelligent Testing, Improvement and Assurance Slide 46
  • 46. #3 Testmaster: Providing an assurance function to teams, projects and business stakeholders Intelligent Testing, Improvement and Assurance Slide 47
  • 47. #4 Managing the information flows to/from the Continuous Integration process Intelligent Testing, Improvement and Assurance Slide 48
  • 48. #5 Managing/monitoring outsourced/offshore teams who detail and execute tests Intelligent Testing, Improvement and Assurance Slide 49
  • 49. Close Intelligent Testing, Improvement and Assurance Slide 50
  • 50. The phase after development is REWORK, not Testing • Managers will never name this phase correctly • Testing must align with development, not follow it • Manual test phase will fade away replaced by: – Up-front test design mostly automated – Integrated with code change and software delivery • Testers must embrace the change, not resist it • Make that leap across the chasm! Intelligent Testing, Improvement and Assurance Slide 51
  • 51. Perhaps testing and the role of testers can at last mature to what they should be? Intelligent Testing, Improvement and Assurance Slide 52
  • 53. The Future of Testing Paul Gerrard paul@gerrardconsulting.com Twitter: @paul_gerrard Web: gerrardconsulting.com Download from businessstorymethod.com/ Intelligent Testing, Improvement and Assurance Slide 54