Traditional multiple-choice testing is often insufficient for measuring practical digital capability. If credentials are to remain meaningful, assessment must move beyond testing what candidates know and towards demonstrating what they can do. This session explores how the ICDL Foundation is using in-application and simulation-based testing to create more authentic digital skills assessments. Drawing on global practice, it will show how candidates can be assessed inside realistic software environments, completing tasks and workflows that better reflect workplace expectations. Attendees will gain: • Insight into how in-application and simulation-based testing improves authenticity and candidate relevance. • Practical considerations for designing fair, standardised performance-based assessments. • Lessons on balancing innovation with trust, comparability, and scalable delivery. • Ideas for keeping digital skills credentials aligned with evolving technologies and workforce needs.