Why 9/10 corporate applications fail in their first year?

Development
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Why 9/10 corporate applications fail in their first year?
Every year, companies invest millions in corporate IT products: internal portals, CRMs, ERPs, HR systems, analytics dashboards. And every year, most of them… quietly die. Not because the code is bad. Not because “the developers failed".
Let’s break down why corporate applications fail within their first year - and what you need to do to make sure your project doesn’t end up on that list.
The result:
  • overloaded interface;
  • dozens of use cases;
  • zero clarity;
  • users afraid to click the wrong button.
Corporate products die from feature overload faster than from missing functionality.
Start with one thing:
  • one key process;
  • one pain point;
  • one success metric.
An MVP is not a “cut-down version.” It’s the most valuable solution to a real problem.
How to avoid it
A classic scenario: “Let’s build one system that covers all company processes.”

Failure #1. The app tries to do “Everything at once” - and ends up doing nothing

Spoiler: they won’t.
If a system:
  • complicates work;
  • requires heavy training;
  • breaks familiar workflows.
users will:
  • bypass it;
  • sabotage it;
  • keep their own Excel files “just in case”.
Involve users before development starts:
  • interviews;
  • prototypes;
  • scenario testing.
Corporate UX isn’t about looking pretty. It’s about saving time and nerves.
How to avoid it
Many corporate applications are built like this:
  • business decides;
  • IT implements;
  • users “will adapt”.

Failure #2. Users were never asked (and it shows)

As a result:
  • data is duplicated;
  • statuses don’t match;
  • integrations are “planned for later”.
The system becomes just another layer of chaos.
Design processes, not screens:
  • how data enters the system;
  • how it’s processed;
  • who owns what;
  • where automation fits.
A good corporate app is embedded into the ecosystem - not running alongside it.
How to avoid it
The app exists. The processes exist. But together - they don’t work.

Failure #3. The product lives separately from real processes

Without analytics, you can’t improve a product - only rewrite it from scratch.
Build analytics in from day one:
  • events;
  • funnels;
  • operation timings;
  • behavioral patterns.
If you don’t measure it - you don’t control it.
How to avoid it
Many corporate systems launch without answers to basic questions:
  • who actually uses the product?
  • which scenarios work?
  • where do users get stuck?
  • what breaks the process?

Failure #4. No analytics = managing blindly

Treat the product as a living system:
  • roadmap;
  • support;
  • iterations;
  • clear ownership.
A corporate product without ongoing ownership quickly turns into technical debt - wrapped in a nice interface.
How to avoid it
Corporate projects often launch on enthusiasm. Then: the budget runs out, priorities shift, the team is dissolved. The product stays “as is” and becomes outdated within six months.

Failure #5. “We’ll improve it after launch” - but “after” never comes

But users care about something else:
  • does work get faster?
  • are there fewer errors?
  • are decisions easier to make?
If technology doesn’t deliver measurable value, it becomes dead weight.
Start with this question: “How will this improve the work of a specific person?” Not: “What’s trending right now?”
How to avoid it
AI, blockchain, microservices, complex stacks - all sound impressive.

Failure #6. Technology for the sake of technology

They save time, reduce errors, and become indispensable.
The ones that succeed:
  • solve a specific pain point;
  • are embedded into real processes;
  • are understandable without manuals;
  • evolve gradually;
  • are driven by data;
  • are supported by the business - not just IT.

Corporate applications can be successful

Write to us, and we’ll help turn your corporate software into something that truly simplifies work and delivers results.

Want your corporate application to become a tool - not a burden?

23/12/2025
Contact us and together we'll figure out how to make your ideas to reality.
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