Project Scope Statement: Automating Invoice Processing at Orange Inc.

This project scope statement details a project aimed at implementing an Enterprise Resource Planning (ERP) system, specifically SAP S/4 HANA with SAP Leonardo, to automate invoice processing for Orange Inc. The document outlines the business objectives, including the need to address the inefficiencies of the current manual accounts payable system, which struggles with the high volume of transactions. The proposed solution involves replacing the older system with SAP S/4 HANA to automate invoice processing and improve speed. The project scope encompasses deliverables such as an agile implementation, the functionalities to automate invoice processing, and the reduction of AP operating costs. The project's constraints, including a budget of $15,000,000 and a 12-month timeline, are also defined. The document identifies stakeholders, project milestones, resource requirements, and estimated costs, as well as a requirement traceability matrix to ensure all project requirements are clearly linked to their origins and responsibilities. The successful implementation aims to reduce AP operating costs, decrease cycle time, and provide real-time insights into invoice processing.

Project Name:
Short SOW:
Contributors:
Date:
Use this template to guide your scope statement creation. As part of this document, be sure to include a
requirement traceability matrix. After reading this document, the reader should be able to trace exactly
where each project requirement came from and who’s responsible for it. This document is relatively simple
compared to many scope statements but it will give the reader a good idea of what you’re trying to
accomplish along with relevant details.
A. Executive Summary
Nowadays, the increase in production and customer base has occurred so much in the Retail
Industry that the daily transactions between an organisation and the business providers as well
as the customers have increased at an alarming rate. Such that the daily transactions in the
business organisation within a day are huge in number. The retail organisations especially, big
organisations like Apple and Walmart find it extremely difficult to handle the agreed today
account transactions. Furthermore, these transactions take up a lot of time which further
hampers the transactional procedures and also the traditional system that has involved a lot of
workforce which is again unnecessary human power involved. The amount transaction in that a
retail business goes to an entire day is a huge amount. To handle them all with the manual and
traditional accounting system is muscles problem and presenting invoice processing for all
these transactions happening in a day is one of the most time consuming aspects of large
Enterprises. Therefore the magnitude of the problem in having a traditional accounting system is
large in established and big Enterprises.
B. Business Objectives
1. Business Need/Opportunity/Objectives
The business need/opportunity should be stated in business terms and should provide an
understanding of:
 What created the need, or how the opportunity was recognized
The current situation that had risen was found to be the problem in organizing the pile loads of
transactions that occurs throughout the business process in a day. The huge retail organizations
have to process millions and millions of transactional invoices every day to make payments to
their vendors and also holds the information about the transactions made between the business
organization and their customers. Furthermore, these transactions take up a lot of time which
further hampers the transactional procedures and also the traditional system that has involved a
lot of workforce which is again unnecessary human power involved. The magnitude of the need/opportunity

The amount transaction in that a retail business goes to an entire day is a huge amount. To
handle them all with the manual and traditional accounting system is muscles problem and
presenting invoice processing for all these transactions happening in a day is one of the most
time consuming aspects of large Enterprises. Therefore the magnitude of the problem in having
a traditional accounting system is large in established and big Enterprises.
 Contributing factors, such as workload increases or staff reductions, and fiscal
constraints
Of course with such a huge amount of transactional problems the workload of normal staff
increases and also there are incidences of staff reductions because a huge number of staff is
required to collect all the data about accounting information.
 An understanding of the extent to which the need/opportunity would be addressed if an
appropriate alternative were implemented
If the need for the opportunity of the problem be addressed with respect to the bladder
Enterprises and their traditional accounting system it would first and foremost try to reduce
the time consuming way in which the traditional operations performed. Secondly it would
most likely to be reducing the amount of workload that the traditional accounting system
uses and also it will address the lesser needs of human workforce into the system.
2. Product Description (Solution)
Describe the proposed solution and state how it meets the business goals. This would
include a solution description, benefits of doing the project, and the criteria by which the
project will be deemed successful.
A solution that has been offered to Orange Incorporation for their traditional manual AP or
automatic payment system would be the replacement of the older system with enterprise
resource planning or ERP software called SAP S/4 HANA. it can automate the invoice
processing mechanism using SAP's newest offerings known as SAP Leonardo. this provides
machine learning capability that would automate the invoice coding making use of the historical
data and also creating decisions for what the invoice would process and which would be the
entries to the accounting system that would be generated by seeing the history of the vendor
and invoice in the system.
3. Deliverables
Tangible products or things that the project will produce, stated at a high level.
This project can be achieved through an agile implementation wherein Orange Inc. will
implement SAP Leonardo to automate invoice processing across the organization.
Implementing SAP Leonardo will come with an entire package of functionalities that will
automate invoice processing and increase the speed at which the vendors of Orange Inc. are
paid today.
C. Project Description
1. Scope
Includes:
Describe the functionality or results that are included within the project.

This project can be achieved through an agile implementation wherein Orange Inc. will
implement SAP Leonardo to automate invoice processing across the organization.
Implementing SAP Leonardo will come with an entire package of functionalities that will
automate invoice processing and increase the speed at which the vendors of Orange Inc. are
paid today.
2. Completion Criteria
Describe what will be created in terms of deliverables (and their characteristics) and/or what
constitutes a successful phase completion.
A successful implementation will reduce AP operating costs by enabling a touchless
invoice processing, diminish cycle time between invoice receipt to payment, and provide
real time insights into invoice processing.
3. Constraints
All projects have constraints, and these need to be defined from the outset. Projects have
resource limits in terms of people, money, time, and equipment.
A pre-approved budget of $15,000,000 has been approved by the steering committee for the entire
implementation. However, it will be contingent on a successful initiation phase that has a budget of 1.5
$ million. $2,000,000 will be allocated as an emergency fund in case the project is pro-longed, and can
only be allocated after approval from the steering committee. The timeline of this project will be 12
months.
4. Measures of Project Success
This section describes the metrics that will be used on the project to determine how success
will be measured.
The project would be declared as a successful one only when the newest implementation of the
automatic ERP accounting system would provide feasible solution to the problems reducing the
workload and the consumption of time for the Orange Incorporation organization an invoice generation
at random everyday would not be a problematic factor.
5. Assumptions
Project assumptions need to be defined before project activities take place so that time is
not spent on a project that has no basis for funding. For example, support and attention will
be provided by the Business Sponsor and the Steering Committee; resources will be
available to adequately staff the project, etc.

MGT590 Scope Statement
D. IDENTIFY STAKEHOLDERS
This table may be larger or smaller, depending on your needs.
Name Role
The project IT engineers Their role would be to develop
the entire ERP system and
implement it into the organization
so that the business process
could be feasibly carried out.
Project directors Their role would be to lookout
about the progression of the
project.
Management The Project Managers would take
orders from the project directors
about the development of the
project as per the needs of the
project and the business process
and would bridge the gap
between the project directors and
the project team members.
Employees of Orange Inc. Their job is to understand the
latest implementation completely
and provide feedback as per the
implemented project and how it
performs in the business process
Vendors and suppliers They would be at the end of the
MGT590 Project Management
Sullivan University

receiving end so their feedback
would be necessary to bring
about sufficient changes in the
entire process.
E. Project Estimates
1. Estimated Schedule
Key Project milestones relative to project start are as follows:
Project Milestones Target Date
Project Start 11/02/18
Proper discovery in office 11/02/18
Proper discovery at the shop floor 11/04/18
Documentation of project charter 11/06/18
Documentation about the existing business process 11/08/18
Assessment of business process and exact placement of the software 11/11/18
Reengineering of the business process 11/12/18
Allocation of needed resources 11/15/18
Employee training 11/15/18
End user training 11/15/18
Feedback processing 11/16/18
Risk evaluation and mitigation 11/12/18
Change management techniques 11/17/18
Project Completion 01/02/19
2. Resource Requirements – Team and Support Resources
Not all resources required are known at the scope statement development stage of a project. Team and support resources may be
estimated, however, based on what is known about the deliverables and the approach. Resource assumptions are stated here as
well.
The following personnel resources are required to complete this project:
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Personnel Resource Types Quantity
IT developer resources 12
Total Personnel Resources
Identify any resource assumptions.
3. Estimated Cost
Expense Original
Budget
Current
Budget
Spent to
Date
Est. to
Complete
Current
Forecast
Variance
Labor 12000 14000 7500 7500 15000 3000
Internal 6000 7000 3750 3750 7500 1500
External 6000 7000 3750 3750 7500 1500
Hardware 10000 10000 10000 10000 10000 0
Software 10000 10000 10000 10000 10000 0
Other 10000 10000 10000 10000 10000 0
Total 54000 58000 45000 45000 60000 6000
Identify any budget assumptions.
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F. Requirements Traceability Matrix
This is a very general template for the matrix. You will want to adjust it to whatever fits your needs best.
Project Title: SAP ERP implementation Date Prepared: 11/02/18
Requirement Information Relationship Traceability
ID Requirement Priority Category Source
Relates to
Objective
Manifests in
WBS
Deliverable Verification Validation
Proper discovery in
office
High
Proper discovery at the
shop floor
Low
Documentation of
project charter
Low
Documentation about
the existing business
process
Medium
Assessment of business
process and exact
placement of the
software
High
Reengineering of the Low
7

business process
Allocation of needed
resources
Low
Employee training Medium
End user training High
8