Most SMEs operate in a highly dynamic world, where both internal and external requirements may change. Changes may come from the need to be more cost-effective, from customers in the form of requirements for new products and product variants, from government agencies in the form of regulations, or by advances in technology.
Often the SME is the weaker part in a supply chain and thus the ability to adapt to changes imposed by customers or suppliers will be an important competitive factor. Most SMEs have utilized the flexibility that comes from having a lower number of orders, customers, employees, etc. when changing processes and practices. It is therefore important that this flexibility is retained when new IT systems are implemented.
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