Originally Posted by
JudicatorPrime
Are we talking strictly about going from one media platform to another, like from books to movies, or just changes in general, no matter the medium?
I think the more arrogant assertion is to say that a character and their lore can't be improved upon ever. Most of the really popular characters didn't start out that way based on their original concept. It took someone other than the original creator to take that character and elevate him/her, typically by altering some aspect of the source material.
Take Thor. Anyone familiar with the mythological concept of Thor will tell you that at minimum Marvel's version is a bastardization of the God of Thunder myth. Further, as different Marvel writers have worked on Thor over the ages, the divergence from the source material ebbs and flows. When you're trying to keep a character like Thor current and fresh for modern consumption, some elements about the character must change. Static franchise characters are a company death knell.
So to answer the question, when is it necessary to make changes from the source material? Whenever you feel the need to capture and maintain the audience's fleeting attention. For better or worse.
The second reason would be, obviously, to tell a more engaging story.