A tool designed to quantify the financial return on investment derived from implementing automated software testing processes. It typically involves assessing the initial costs (software, hardware, training) against projected savings (reduced manual testing hours, faster release cycles, decreased defect rates). For example, such a tool might project cost savings based on a reduction in regression testing time, factoring in the cost of test script development and maintenance.
The significance lies in justifying the upfront expense associated with test automation. Demonstrating a positive return helps secure budget approval and guides strategic decisions regarding which tests to automate and when. Historically, calculating this return was often based on estimations and assumptions, but advancements in data analysis have led to more accurate and reliable projections. This allows organizations to make informed choices, optimizing their testing strategies and ultimately improving software quality and time-to-market.