Test a software application for production readiness or put into production? Your company has determined that it is time to roll out a custom software application that you and your team have been developing for over a year. This application has enterprise-wide implications in that if it works well the entire organization will run more efficiently, but if there are problems those problems can interfere with a large part of daily operations at varying levels of disruption. Your management wants to roll out the application with minimal testing because they are feeling pressure from the executive committee to show results for the ongoing development investment. Members of your team feel that more testing is needed before the application is ready for production. Your teams analysts have developed some estimates of how much a disruption could cost the company in profits, the likelihood of it happening and the amount of time it would take to correct the error. They have prepared these estimates and they are included in the table below. Comprehensive testing of the application is estimated to require 60 days and cost around $125,000.

How would you evaluate the situation?

How would you evaluate the financial aspects of this decision?

What are the direct, tangible factors that influenced your decision?

What are the intangible ones?

How would you determine the uncertainties involved?

Would you do the testing or release it to production as is?

Without Testing	Cost to Correct/Hour	Likelihood	Hrs to Correct	Frequency
Minor Corrections	$10,000	80%	3 to 7	>10
Major Corrections	$30,000	35%	6 to 15	4 or less
With Testing	Cost to Comp/Hr	Likelihood	Hrs to Fix
Minor Corrections	$10,000	30%	3 to 7	5 or less
Major Corrections	$40,000	10%	6 to 15	1 or less