Beta Testing

Beta testing is generally defined as external pilot-testing of a product before commercial quantity production.  At the beta test stage, the product has already passed through first-level, internal pilot-testing (alpha testing) and glaring defects have been addressed.  Beta testing puts a new product through “real world” testing by selected customers under normal, everyday conditions.

Investors should understand company policies regarding beta testing.  Product failures, once in wide spread use, can be very costly, both in financial and reputational terms.

All comments and suggestions are welcome.

Walter J. Kirchberger, CFA