Welcome!

CRM Authors: Xenia von Wedel, Ian Khan, PR.com Newswire, Steve Mordue

Blog Feed Post

"Cost of Quality": It's More Than You Think

cost_of_qualityWe're in an era in which leading organizations must reassess the true "cost of quality" for software.  Remember: the cost of quality isn't the price of creating quality software—it’s the penalty or risk incurred by failing to deliver quality software.

Today, business expectations about the speed and reliability of software releases have changed dramatically—largely because software has morphed from a business process enabler into a competitive differentiator.  

For example, APIs represent componentized pieces of software functionality which developers can either consume or write themselves.  In a recent Parasoft survey about API adoption, over 80% of respondents said that they have stopped using an API because it was "too buggy."  Moreover, when we asked the same respondents if they would ever consider using that API again, 97% said “no.”  With switching costs associated with software like an API at an all-time low, software quality matters more than ever. 

Another example is mobile check deposit applications.  In 2011, top banks were racing to provide this must-have feature.  By 2012, mobile check deposit became the leading driver for bank selection.  Getting a secure, reliable application to market was suddenly business critical.  With low switching costs associated with online banking, financial institutions unable to innovate were threatened with customer defection.  

This sea change associated with the quality expectations of software is also reflected in the manner in which software failures are reported.  Today, software failures are highlighted in news headlines as organizational failings with deep-rooted impacts on C-level executives and stock prices.  Parasoft analyzed the most notable software failures in 2012 and 2013; each incident initiated an average -3.35% decline in stock price, which equates to an average of negative $ 2.15 billion loss of market capitalization.  This is a tremendous loss of shareholder value. 

 

Additionally, looking at organizations that endured multiple news-worthy software failures, it is clear that the market punishes repeat offenders even more aggressively. Repeat offenders suffered an average -5.68% decline in stock price, which equates to an average of negative $ 2.65 billion loss of market capitalization.

The bottom line is that we must re-evaluate the cost of quality for our organizations and individual projects.  If your cost of quality assessment exposes a gap in your quality process, it's a sign that now is the time to reassess your organization's culture as it relates to building and testing software.  In most organizations, quality software is clearly the intention, yet the culture of the organization yields trade-off decisions that significantly increase the risk of exposing faulty software to the market.

[VIDEO] Behind the Code: Cost of Quality

Want to learn more about the cost of quality for software? Check out Parasoft's new monthly web series, exploring how software quality directly affects your bottom line: Behind the Code. In this month's episode of Behind The Code, Wayne Ariola, Chief Strategy Officer at Parasoft, and Arthur Hicken, Parasoft Evangelist, discuss the true cost of software quality and why it's more than you might think.

 

 

Image credit: RambergMediaImages

Read the original blog entry...

More Stories By Wayne Ariola

Wayne Ariola is Vice President of Strategy and Corporate Development at Parasoft, a leading provider of integrated software development management, quality lifecycle management, and dev/test environment management solutions. He leverages customer input and fosters partnerships with industry leaders to ensure that Parasoft solutions continuously evolve to support the ever-changing complexities of real-world business processes and systems. Ariola has more than 15 years of strategic consulting experience within the technology and software development industries. He holds a BA from the University of California at Santa Barbara and an MBA from Indiana University.

IoT & Smart Cities Stories
Nicolas Fierro is CEO of MIMIR Blockchain Solutions. He is a programmer, technologist, and operations dev who has worked with Ethereum and blockchain since 2014. His knowledge in blockchain dates to when he performed dev ops services to the Ethereum Foundation as one the privileged few developers to work with the original core team in Switzerland.
René Bostic is the Technical VP of the IBM Cloud Unit in North America. Enjoying her career with IBM during the modern millennial technological era, she is an expert in cloud computing, DevOps and emerging cloud technologies such as Blockchain. Her strengths and core competencies include a proven record of accomplishments in consensus building at all levels to assess, plan, and implement enterprise and cloud computing solutions. René is a member of the Society of Women Engineers (SWE) and a m...
Andrew Keys is Co-Founder of ConsenSys Enterprise. He comes to ConsenSys Enterprise with capital markets, technology and entrepreneurial experience. Previously, he worked for UBS investment bank in equities analysis. Later, he was responsible for the creation and distribution of life settlement products to hedge funds and investment banks. After, he co-founded a revenue cycle management company where he learned about Bitcoin and eventually Ethereal. Andrew's role at ConsenSys Enterprise is a mul...
Whenever a new technology hits the high points of hype, everyone starts talking about it like it will solve all their business problems. Blockchain is one of those technologies. According to Gartner's latest report on the hype cycle of emerging technologies, blockchain has just passed the peak of their hype cycle curve. If you read the news articles about it, one would think it has taken over the technology world. No disruptive technology is without its challenges and potential impediments t...
If a machine can invent, does this mean the end of the patent system as we know it? The patent system, both in the US and Europe, allows companies to protect their inventions and helps foster innovation. However, Artificial Intelligence (AI) could be set to disrupt the patent system as we know it. This talk will examine how AI may change the patent landscape in the years to come. Furthermore, ways in which companies can best protect their AI related inventions will be examined from both a US and...
In his general session at 19th Cloud Expo, Manish Dixit, VP of Product and Engineering at Dice, discussed how Dice leverages data insights and tools to help both tech professionals and recruiters better understand how skills relate to each other and which skills are in high demand using interactive visualizations and salary indicator tools to maximize earning potential. Manish Dixit is VP of Product and Engineering at Dice. As the leader of the Product, Engineering and Data Sciences team at D...
Bill Schmarzo, Tech Chair of "Big Data | Analytics" of upcoming CloudEXPO | DXWorldEXPO New York (November 12-13, 2018, New York City) today announced the outline and schedule of the track. "The track has been designed in experience/degree order," said Schmarzo. "So, that folks who attend the entire track can leave the conference with some of the skills necessary to get their work done when they get back to their offices. It actually ties back to some work that I'm doing at the University of San...
When talking IoT we often focus on the devices, the sensors, the hardware itself. The new smart appliances, the new smart or self-driving cars (which are amalgamations of many ‘things'). When we are looking at the world of IoT, we should take a step back, look at the big picture. What value are these devices providing. IoT is not about the devices, its about the data consumed and generated. The devices are tools, mechanisms, conduits. This paper discusses the considerations when dealing with the...
Bill Schmarzo, author of "Big Data: Understanding How Data Powers Big Business" and "Big Data MBA: Driving Business Strategies with Data Science," is responsible for setting the strategy and defining the Big Data service offerings and capabilities for EMC Global Services Big Data Practice. As the CTO for the Big Data Practice, he is responsible for working with organizations to help them identify where and how to start their big data journeys. He's written several white papers, is an avid blogge...
Dynatrace is an application performance management software company with products for the information technology departments and digital business owners of medium and large businesses. Building the Future of Monitoring with Artificial Intelligence. Today we can collect lots and lots of performance data. We build beautiful dashboards and even have fancy query languages to access and transform the data. Still performance data is a secret language only a couple of people understand. The more busine...