Scope Management in SCRUM-based ERP Projects

This report is based on an organization working in the technical industry such as Holmes Software Technologies and needs to consider the basics of the project management area. Enterprise Resource Planning projects are usually very demanding and there is always the requirement for changes. To meet these needs, many businesses such as Holmes Software Technologies included it with Scrum which is an agile framework for project management. SCRUM is organized in important iterations that make it easy to rearrange them and prioritize work to improve collaboration. This flexibility introduces challenges concerning scope particularly because projects can change quite frequently in unpredictable ways and they are likely to affect the timelines of the project as well as the budget needed for its completion. The company Holmes Software Technologies has raised issues concerning the relative changes to scope in SCRUM compared to more conventional approaches. Unlike waterfall which is sequential and very structured SCRUM gives continuous feedback hence scope can easily change during the life cycle of the project. Holmes Software Technologies is concerned that such changes might affect the project plan and increase the project budget which might hurt the company’s profitability. This report focuses on the following research question related to the challenges of scope management in SCRUM-based ERP projects. It will analyze the effect of scope alteration on project success and offer methods of change management and control.

Literature Review

Conclusion Model for choosing the suitable approach to a project

According to Thesing et al., 2021, it is important to note that there are dynamic changes taking place in the market due to these new technologies an organization must give attention to the perfect method that can assist them in completing that task on time with efficiency (Thesing et al., 2021, p.2(1)). SCRUM is one of the Agile methodologies that shape modern project management due to flexibility, development by iterations, and heavy customer involvement. SCRUM is a radically different model from methodologies such as Waterfall, as the above works are oriented to short developmental phases called sprints and include changes that fall entirely under feedback. So according to the situation where requirements for projects may change in ERP the agile method is useful. As should be noted this flexibility is usually directly combined with scope change throughout the project. From the literature, it is evident that SCRUM has the potential to enhance outcomes within a project, for the communication processes and management of change but also the repetition is almost classical which seems to call for efficiency, especially in managing the scope of the project to meet this continually changing process.

Exception in handling Scope changes in SCRUM

According to Mun et. al., 2020, the management of scope changes in Scrum projects is generally difficult further compounded in large-scale ERP environments. While any program will need to adjust when scope creep occurs the EVM is very well suited for making this type of modifications in the midstream for AI-type projects (Mun et. al., 2020, p64(2)). Sprints may also experience changes in scope due to ever-changing user needs, and feedback from the stakeholders, and a pure scrum framework is an iterative process. Such chains of frequent scope adjustments are realized in terms of project costs and time overruns that remain critical for Holmes Software Technologies. The study demonstrates that, as an example, the decentralized management approach of the SCRUM makes it adaptable to change while at the same time protecting scope creep. To rectify these problems, the next steps are to define how the management will communicate with stakeholders and how or when changes in scope are acceptable. Scope in SCRUM has to be managed throughout the project and it is best managed with a highly participative cross-functional team that is disciplined in managing the backlog as any uncontrollable changes in scope could lead to astronomical costs and time overruns.

Waterfall provides a fast-paced process in project management

According to Aroral, 2021, scope control is critical to the definition of what is in a project and therefore what is not in a project. Waterfall concerns people involved in Waterfall project management are expected to undergo rigorous planning sessions to outline a fixed project scope. Unlike waterfall which provides for incremental changes and as such, scope management is also cumulative (Aroral, 2021, p.93(2)). The main issue with SCRUM is to find a way to be flexible and keep the change of scope from affecting a project plan and its cost. Successful scope management therefore requires written descriptions, communication, and regular reviewing of scope. Such practices keep the scope intact on strategic goals throughout the process since SCRUM is an iterative process.

Figure 1 Waterfall Approach

Source: (Aroral, 2021, p93)

Procedures for conducting Scope variations in SCRUM

According to Marnada et. al., 2022, the main aim of this study is to make an evaluation on the challenges and discover the best practices for handling the scope and change in SCRUM. It was developed a lot of excuses on how change management can be implemented especially on the aspect of scope which includes sprint planning, daily scrum, and backlog reforming (Marnada et. al., 2022, p.292(3)). Specifically, sprint planning enables defining what is to be done in a sprint, and deciding goals, and these goals must be made visible. The stand-ups daily allow more time to focus on the problems in question throughout the day and work on them collectively. Even though backlog grooming is performed on a repeated basis, it ensures that the product backlog is prioritized and the new tasks that are brought match the project objectives. As demonstrated by the results of this research, these processes not only contribute to the management of scope but also manifest an enhancement to the flexibility of teams. In working through case studies of ERP projects, the authors noted that teams employing these SCRUM practices effectively dealt with change as well as producing quality projects.

The Efficiency of assessment in SCRUM and Waterfall model

According to Prasetya & Pratama, 2021, SCRUM’s principal advantage is also its major weakness as compared to traditional approaches. SCRUM provides for scope change because teams work in successive sprints. They make it easier for teams to respond to new knowledge or information or what the client demands at a particular time. The current research also reveals that the rate of scope changes in SCRUM projects is higher than in Waterfall projects. This is someone owed to the core principle of SCRUM where value is delivered in small increments forcing the team to evolve as they gain more understanding of project needs (Prasetya & Pratama, 2021, p. 108(3)). Although this enables creative outcomes, it comes with potential substantial scope issues that may be dealt with insufficiently and must be surrounded by strict scope control to avoid ruining project success. The study argues for proper prioritization of the project’s backlog and proper integration of stakeholders through the project to address such changes.

Figure 2 Backlog Model

Source: (Prasetya & Pratama, 2021, p108)

Effective Scope management strategies in SCRUM

According to Hema et. al., 2020, the selection and management of a concise product backlog in communication and updates in the SCRUM organization with the holding of a sprint retrospective. Studying is aware that keeping the backlog properly groomed is the way to keep the project proper to its objectives. Sprint analytics held on a daily or weekly basis make it possible for the team to review each sprint and recognize where in the management of scope the team could improve. SCRUM is a simple, easy to understand, and tough master method to manage, control processes, and sustain critical products to develop software that satisfies business requirements (Hema et. al., 2020, p.3(5)). In the case of ERP projects, it should be clearly defined at the beginning what the scope of a project includes, and this backlog should be updated frequently by the feedback received. It has been identified by this study that successful SCRUM teams focus on scope management by setting up boundaries concerning scope change and always involving stakeholders in the process. Applying these strategies in Holmes Software Technologies can reduce the risks related to any change of scope enabling the firm to launch ERP projects at the right time without going over the set financial plan.

Figure 3 Workflow of SCRUM

Scope: (Hema et. al., 2020, p. 5)

SCRUM and other Process facing Issues in System Management

According to Shafiee et al., 2020, waterfall and many other more traditional methodologies operate with the scope being fixed from the start of a project and not changing for its duration. This makes the job of defining the scope of the project relatively easy but this process provides very few opportunities for change. In contrast, SCRUM resolves scope flexibility as cyclic by integrating the sprint cycles and feedback techniques. According to this research, SCRUM is scalable since it offers organizations flexibility in terms of orientation to meet new project requirements at the expense of pointing towards the necessity for requiring more scope control (Shafiee et al., 2020, p.4(4)). SCRUM may be utilized for ERP projects insofar as the requirement may vary since the latter can provide a competitive advantage in terms of making the change quickly. What they established is the fact that the frequency of scope creep or change, and project duration is higher to call for efficient scope management practices to allow flexibility and enforce control.

Involvement of Stakeholders and Scope Control in SCRUM

According to Verwijs & Russo, 2023, managing the scope of SCRUM is very much dependent upon a lot of the key stakeholders. SCRUM involves the stakeholders constantly and through the sprint review and feedback sessions, stakeholder engagement is highly embraced. As a result of this, the thesis is that ongoing involvement assists teams in managing scope alterations successfully since stakeholders can warrant directions on projects promptly (Verwijs & Russo, 2023, p. 10(4)). In the case of an ERP review, the feedback of stakeholders forms an important component in defining the implementation scope of the project as an effort towards achieving the company’s strategic goals. Constant discussions with stakeholders allow for regulating the reflecting of the changes in the scope of work to the actual needs and avoid misalignments of a scope of work with the priorities set in the project.

The Adoption of Agile methodologies for ERP program

The product backlog is the functional inventory of all work with continuously reprioritized project deliverables of customer-centricity in terms of market value. Conducted on the last day of a sprint, reviews assist the team in evaluating that which has been accomplished and alter the backlog as needed. As captured by these practices, scope change has to be respectively aligned somewhere with the objectives of the project. This is especially important in ERP projects where regular change requests happen to have a nicely ordered backlog to govern SCOPE (Toomey, 2021, p12(2)). It was evident that teams that care about trimming their backlog as well as carrying out sprint reviews are better placed to handle this negative impact of scope change without overwhelming the project. Like in any project, the implementation of these can help Holmes Software Technologies within projects introduce the change within scope without losing control which can best be done by having the right method for the practice.

Agile tools to manage Scope in SCRUM projects

According to Milojevi? et. al., there are so many agile tools out there that one can use when implementing SCRUM to manage the change of scope some of the tools that are commonly used are Jira and Trello. These tools comprise the use of track and trace of tasks, backlog, and real-time work which is very useful in enhancing visibilities and collaborations. Jira is the most comprehensive tool for managing big agile projects, while Asana and Trello, are more suitable for small teams and startups (Milojevi? et. al., 2023, p787(2)). This study was able to conclude that the employees who went to work with the agility tool were in a better position to attend to the uncertainties that arise about the scope of the work because it offers the maximization of an easy operational base. For instance, Jira has come up with methods that can help a team split work into the smallest possible tasks, sort, and track them all of which are crucial when dealing with scope in SCRUM.

Discussion

Analysis of Literature review

From the literature, the authors found out that the scope management in SCRUM is flexible in achieving client and project requirements as it can be frequently changed to meet project requirements. Such flexibility does not present a problem in agile principles but is a hindrance to controlling a project this is in view, especially with ERP projects where there could be frequent changes in requirements. The literature shows that SCRUM improves agility since it is a cyclic process, and helps teams attend to new requirements immediately. This capability implies that teams have to handle the potential for scope changes, which threaten the schedule and cost outlooks of projects. SCRUM in comparison with other types of project management methodologies, research shows that while the flexibility of the project scope is higher with agile, the customer's satisfaction at the end of the project is likewise high due to the relatively continuous feedback cycles.

The impact of a Change of scope on a project

It is shown that scope changes can influence the results of SCRUM-based ERP projects and have an impact. Though in traditional project management, project scope constitutes a major factor of planning, and changes during the implementation process are not allowed, SCRUM manifests a wholehearted acceptance of scope changes. This characteristic helps SCRUM to produce the product that meets the needs of the client in a better way but at the same time points to risks connected with the changeability of requirements. Literature review proves that emergent and constant scope changes have negative impacts on the project and this is something that Holmes Software Technologies has discovered. These changes can also bring about better innovative solutions since the teams can also address feedback in real time. In the context of ERP systems, the projects typically comprise numerous interrelated integrated modules that have to continue being supported long-term, and unlimited scope modifications might compromise the integrity and usability of the systems.

Approaches of Scope Management

To meet the above challenges that Holmes Software Technologies is likely to face adequate scope management that fits the SCRUM method will be implemented. Of these, they are proper management of product backlog, constant assistance of the stakeholders, and use of contracts like Jira that will allow real-time monitoring of the scope. A mature backlog management practice does not allow for such situations where there are differences between the work’s scope and the business's priorities. Engagement with stakeholders is also ongoing, in order to get feedback for fine-tuning project particulars with comparatively fewer incursions. For the same reason, agile tools also ensure that change becomes visible to a team, making sure that the team acts to correct its scope regarding the change. Scholars foster these strategies arguing that they improve communication, improve work cooperation, and demonstrate how the project will address changes.

Conclusion

Consequently, as the result of the further peculiarities of the scope management definition within the framework of SCRUM-based ERP projects, as well as benefits determination, this report has been constructed. Unlike other approaches to project management, SCRUM supports an iterative sort of approach and, therefore is more flexible with the scope which is quite useful when dealing with clients. But this increases the opposite issue of variability in the quantity of work where in many occasions this influences either the time or the costs. Such concerns have been elucidated for consultation with Holmes Software Technologies more in particular to the number of times the size of the projects changes within the company that may cause the instability of projects and cost increases. Risk management in the context of scope management has been explained using a literature review on Managing scope in SCRUM and some of the best practices include having a prioritized product backlog, engaging stakeholders at all levels, and use of agile tools to manage the risk of scope in real-time. On this basis, it appears that all these strategies have a balance that can enable Holmes Software Technologies to manage scope changes while at the same time being able to exploit the flexibility of the SCRUM in order to develop good ERP solutions.

References

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Challenges of Scope Management in SCRUM-based ERP Projects

Table of Contents

Introduction