ERP Project Scope Guide, Example & Template

An Enterprise Resource Planning (ERP) Project Scope defines the functional depth and breadth of change and benefits which an ERP implementation or upgrade brings about.

In this blog post, we'll talk about ERP project scope in detail,  including the definition, examples of ERP project scopes, and benefits and provide some free documents and templates to get you started.

If you are looking to kickstart your ERP Project Scoping process, then you can do it faster using our free ERP requirements gathering template:

What is an ERP Project Scope?

An ERP project scope is a document that details the functional requirements and changes which your ERP implementation or upgrade will cover. It is a document which communicates your ERP project requirements and needs to your ERP project team as well as ERP vendors, consultants and solution providers.

Every ERP project scope is different as it should be specific to your company and your specific needs. For example, a manufacturing ERP system may have an ERP project scope that covers:

1. Finance & Accounting

2. Supply Chain Management

3. Inventory Management & Warehouse Management

4. Production

5. CRM & Sales

These ERP project scope elements are also typically referred to as ERP modules. 

On the other hand, a professional services ERP, retail ERP or pharma ERP will have a completely different ERP project scope that is suited to the needs of those specific businesses.

As well as defining the departmental functionality your new ERP system will need, an ERP project scope may also define integration points into other business-critical systems such as your HRIS, CRM, service management or payroll systems. 

For example, you may wish to send data from your ERP finance module to your external payroll system to pay your employees each month.

An ERP Project Scope will typically also detail the coverage of your ERP implementation in terms of the geographies it will cover, how many ERP users there will be and in which of your legal entities.

Why define an ERP Project Scope?

It's super important to define your ERP project scope as early as possible in your ERP implementation project planning phase and is one of the first steps you should undertake.

Defining your ERP project scope is important as it is a way of communicating the changes that will be brought about by your project as well as enabling you to define your requirements to internal stakeholders, consultants, suppliers and beyond.

When purchasing, evaluating and implementing new ERP software, defining your ERP project scope is even more important as it clearly communicates your ERP requirements to suppliers and enables them to respond to them with their product capabilities, in a legally binding way. This ensures the needs of your ERP project are met and that there is synchronisation between you, your internal stakeholders and external suppliers.

Defining your ERP project scope early, enables you to prevent scope creep, increase alignment and clarity within your business.

How to create an ERP Project Scope

An ERP project scope is typically a spreadsheet that details your functional and technical ERP requirements. You should first decide who will be in charge of gathering your requirements and how you plan to do it. 

Many organizations will employ external consultants to gather their ERP requirements and define their project scope, whereas others will employ knowledgeable business leaders from within their organization. You can read more about building an effective ERP project team here.

This individual should then work with your business departments to gather and prioritize your ERP project scope into a workable document. 

The ERP project scope document should include your high level functional, ERP module requirements such as finance, accounting, inventory management, sales and CRM as well as a further breakdown of your needs, such as accounts payable, accounts recievable and specific requirements within those areas. 

ERP Project Scope Example & Template

Building an ERP project scope is time-consuming and may be a daunting task if you've never done it before. 

If you're looking for an ERP Project scope example, then we have some free templates available to download for ERP project managers and ERP professionals. 

Although starting off with a pre-built template for your ERP project scope is a great idea, you should ensure that you customize and tailor it to your specific company needs.

Can an ERP Project Scope change?

We recommend that you define your ERP project scope right at the beginning of your ERP project preparation, but that doesn't mean that your ERP project scope isn't able to change. It's common for your ERP project scope to adapt, decrease or expand throughout your ERP evaluation, selection, implementation and testing process.

That said, it's also key for an ERP project manager to control the changes as much as possible as changing scope can increase complexity, costs, timeline and other factors.

It's common for your business stakeholders to request dozens, if not hundreds of changes to your scope and ERP implementation, but rarely do these changes bring additional value, whereas they often have many detrimental effects on your ERP project success.

Changing your ERP project scope can be a good thing, but just make sure you bear in mind the benefits versus the costs of doing so to make an informed decision.