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To show that developing proprietary software is the best alternative for many small and medium‐sized enterprises (SMEs). Full control of the software makes it possible to remain flexible and dynamic, and to conform to the need of the customer at any time.

The approach is case based.

Modern development tools make in‐house development feasible. Costs are often comparable to that of using standard ERP systems. In‐house development does not need to encompass all functions, as it is easy to integrate off‐the‐shelf systems with proprietary development. Being in control of core software is important for the day‐to‐day activities of a company, and also for gaining a strategic advantage.

In‐house development will be most useful for niche companies. Further, SMEs will have an advantage as they more easily can integrate standard …