Test Automation Strategy (1): Strategic Prioritization

When implementing test automation, the first challenge organizations face is "Which tests should we automate first?" Automating all tests is neither realistic nor efficient.

This article explores "test automation prioritization" – the strategic foundation of successful automation implementation.

Why Is Test Automation Prioritization Critical?

Many companies approach test automation with a "let's automate first and figure it out later" mentality, attempting to automate whatever seems easy or convenient without strategic planning.

Common problems when implementing automation without prioritization:

• Automation Without Priorities: Organizations deploy automation tools but still manually verify critical functions like payments and approvals "just to be safe"

• Ignoring Business Frequency: Teams spend weeks automating functions used only 1-2 times per year while continuing to manually handle daily critical operations

• Ineffective Automation Choices: Automating simple, low-impact functions creates a false sense of accomplishment while failing to deliver meaningful business value or quality improvements

These issues stem from failing to strategically prioritize test automation. The consequences include:

• Increased maintenance costs

• Reduced testing efficiency

• Abandoned automation systems

Therefore, test automation prioritization is the foundation of your entire strategy and the key determinant of ROI.

Priority Framework for Test Automation Selection

When selecting test automation priorities in practice, the following framework proves most effective:

Priority Framework:

• Priority 1: High-frequency repetitive tasks → Efficiency gains through reduced testing time

• Priority 2: Business-critical processes with high disruption risk → Enhanced reliability and stakeholder confidence

• Priority 3: Complex business logic scenarios → Long-term value through improved quality

Following this priority framework ensures rapid impact and builds confidence in your automation investment.

Priority 1: High-Frequency Repetitive Business Scenarios

ERP systems typically involve scenarios used frequently by multiple users. It's crucial to validate various use cases with production-like data that mirrors real operational conditions.

Finance/Accounting

• Daily/monthly closing processes (FI/CO document creation, account reconciliation, balance verification)

• High-volume document processing (ERS documents, auto-calculation documents)

• Bank data integration and automated matching

Sales/Logistics

• High-volume order processing (VA01 → VL01N → VL02N workflows)

• Regular delivery processing and shipment confirmation

• Inventory adjustments and cycle counting

Procurement/Materials

• Regular purchase order and goods receipt processing

• Bulk material master updates

• Vendor evaluation and settlement processes

Priority 2: High Business Disruption Risk Scenarios

Business-critical processes are prone to unexpected edge case failures. Comprehensive automation that validates various exception scenarios is essential for these workflows.

Integrated Processes

• Complete Order-to-Cash flows (order → shipment → billing → collection)

• Complete Purchase-to-Pay flows (purchase requisition → purchase order → goods receipt → payment)

• Production planning and execution processes (PP-PI integration)

System Integration Interfaces

• Real-time data synchronization with external systems

• EDI/API integration processes

• Legacy system data exchanges

Priority 3: Complex Business Logic Scenarios

Complex business logic typically involves multiple interconnected processes. These scenarios require systematic automated validation due to the difficulty of creating consistent test data and coordinating multiple stakeholders.

Pricing and Discount Policies

• Multi-tier discount application logic

• Customer/product-specific pricing calculations

• Promotion and rebate processing

Multi-country/Multi-currency Processing

• Currency conversion and revaluation

• Country-specific tax processing logic

• Localization requirements

Priority Comparison Methods (Practical Examples)

Here are comparative evaluation methods you can use to prioritize among multiple automation candidates.

1. Scoring Comparison (Task A vs Task B)

Example: Task A vs Task B Priority Comparison

Task A: Daily Sales Settlement Process

• Frequency: Daily (3 points)

• Business Impact: Revenue-critical, enterprise-wide impact if errors occur (3 points)

• Automation Impact: Current 2 hours → 10 minutes after automation (3 points)

• Total: 9 points

Task B: Monthly Report Generation

• Frequency: Monthly (1 point)

• Business Impact: Reference report, limited business impact if errors occur (1 point)

• Automation Impact: Current 3 hours → 30 minutes after automation (2 points)

• Total: 4 points

Conclusion: Prioritize Task A with the higher score for automation

This quantitative comparison enables objective prioritization decisions.

Scoring Criteria (1-3 points each)

• Frequency: 3 points: Daily | 2 points: 2-3 times per week | 1 point: Monthly

• Business Impact: 3 points: Revenue/service critical | 2 points: Core business support | 1 point: Reference/support functions

• Automation Impact: 3 points: 70%+ time reduction | 2 points: 30-70% time reduction | 1 point: Less than 30% time reduction

2. Matrix Visualization (Importance vs. Frequency)

Using an 'Importance vs. Frequency' matrix helps easily categorize automation priorities:

• High Priority: Primary automation targets (e.g., login, order processing, approval workflows)

• Low Priority: Deprioritized automation (e.g., annual processes, frequently changing UI elements)

Quantifying criteria makes test automation prioritization much clearer.

Priority Selection Process

When implementing priority selection in practice, follow the 'List → Evaluate → Validate → Expand' workflow:

1. List Automation Candidates → Catalog all current testing activities

2. Evaluate Priorities → Score each activity by frequency, importance, and automation impact

3. Select Top 3-5 → Rank candidates by highest scores

4. Pilot Implementation → Execute pilot with top-priority item to validate actual benefits

5. Gradual Expansion → Expand to 2nd and 3rd priorities after validating effectiveness

Industry-Specific Automation Scenarios

Recommended automation scenarios by industry, applying the priority framework:

• ERP/Finance: Master data entry, business partner creation, approval processing

• E-commerce/Retail: Product registration, order→payment→cancellation workflows, shipment tracking

• Manufacturing/SCM: Production planning, inventory movement processing, inbound/outbound operations

Standardized repetitive processes in these domains offer the highest automation ROI.

Conclusion: Strategy Before Technology

Test automation requires 'strategic planning' before 'technology implementation'. Scope selection is the critical factor determining automation success.

Start small but start strategically. In our next article, we'll explore "Test Automation Strategy: How to Automate" focusing on tool selection strategies.