The evolution of industries is constantly forcing enterprises to adapt to ever-changing market dynamics. Companies are challenged by remodelling their resources, processes, and competencies as well as to define new goals in accordance with evolving complex and dynamic environments. Virtual Factory as a dynamic, cognitive, open, and holistic system promises a potential for an adaptive enterprise modelling tool to support manufacturing companies in dealing with such challenges. This short paper attempts to frame the theoretical concepts for evolving markets and adaptive organisations (systems) in terms of the theory of industrial cycles, systems theory, and competence theory. Furthermore, the Virtual Factory concept is presented and discussed based on framed theories and four dimensions of competence theory.