In 2025, your software choices matter more than ever. Your systems must keep pace with changes in regulations, customer expectations, and technology. To do that, a business application strategy that scales with your organisation is now essential.
This blog sets out the fundamentals. It outlines practical steps, highlights common risks and shares examples of the challenges businesses are tackling today.
Table of Contents
What does a business application strategy mean today?
A business application strategy is the plan for which applications you adopt, maintain, retire or integrate. The aim is simple: systems should support business goals, not get in the way.
It’s easy to see applications as only an IT concern but that view is limiting. Your business teams, your customers and the regulators shaping your market all play a role in how the plan takes shape.
In 2025, the pressure is real. The UK IT services market is valued at around USD 112.5 billion and continues to expand. At the same time, AI and cloud adoption are setting new demands for what your systems can deliver.
If your apps can’t evolve, they will hold you back. A clear business application strategy keeps technical debt at bay and helps you make sound choices for the long term.
How do you set the right goals for your applications?
Your applications should align with measurable business goals. You might aim for faster order processing, better customer retention, or reduced cost per transaction.
Set goals by:
- Bringing business leaders and IT together from the start.
- Defining two to four outcomes your applications must support.
- Making speed, flexibility and return the guiding principles.
Features come later. Value comes first.
What are the trends to prepare for in 2025-2026?
A business application strategy cannot sit still. The forces shaping it are already here, and ignoring them risks wasted spend, compliance failures or systems that can’t keep pace. The trends below are the ones to keep firmly on the radar:
1. AI & Automation
- 78% of organisations now use AI in at least one business function
- In the UK, the AI market is worth approximately £21 billion in 2025
- Delayed adoption can cost up to 5% of their monthly revenue
- In public services, more than 84% of repetitive transactions could be automated
2. Cloud & “Repatriation”
- Many firms that went cloud first are moving workloads back
- Compliance, cost and performance are driving hybrid approaches
- “Cloud appropriate” strategies are replacing “cloud at all costs”
3. Cybersecurity & Regulation
- The Cyber Security and Resilience Bill will extend reporting and regulatory demands over many businesses
- Threats are immediate so controls, incident response and auditability must be built in from day one
4. SaaS sprawl & cost control
- The global SaaS market is predicted to reach ~$300 billion by 2025
- On average, organisations use only ~47 % of their SaaS licences they buy
- Only 43% of organisations track cloud costs in detail.
6 steps to build a strong business application strategy
Building a strategy is about clear steps that work together. Here is how to do it in practice:
1. Assess what you already have
Start with a full audit of your applications. Capture costs, users, integrations, and version status. Look for duplication, such as multiple tools doing the same job. Speak with employees to find out what slows them down or feels unnecessary. This often reveals inefficiencies that aren’t visible on paper.
2. Map business priorities
Applications only earn their place if they support business outcomes. Connect each system to functions such as sales, operations, finance, HR or customer service. Flag anything that doesn’t link to a priority. For 2025 and 2026, ensure the plan accounts for areas like AI adoption, regulatory compliance and hybrid working.
3. Plan integration and data flow
Poor integration causes duplication, errors and delays. Open APIs or middleware create a clean way for systems to talk to each other. Setting clear rules for how data is shared, updated, and stored keeps information accurate and reduces rework later.
4. Build for evolution, not just today
Applications should adapt as needs change. Choose modular systems that avoid lock in and allow pieces to be added or removed. Keep documentation up to date and establish testing routines. Budget not just for licences but also for maintenance, training and upgrades. This protects against costly rebuilds.
5. Pilot and expand
Replace systems gradually rather than in one sweep. Pilots allow you to test with a single department or group, measure results and refine before expanding further. This lowers risk and increases adoption rates.
6. Governance and control
Strong governance prevents surprises. Define who approves applications, manages licences and ensures compliance. Dashboards that track uptime, cost and usage keep performance visible. Regular reviews, along with clear rules on data privacy and user access, are essential as regulatory demands grow.
Common risks and how to avoid them?
Even well designed strategies can fall short. The most common risks include:
- Poor alignment between IT and business goals: Technology decisions drift if they aren’t tied to clear business outcomes. Keep both sides in the room from the start.
- Overspending on unused tools: Licences and subscriptions often go to waste. Regular audits and usage reviews prevent costs from running ahead of value.
- Neglecting training and change management: New systems only work if people use them well. Build time and budget for training and address resistance early.
- Failing to monitor and adjust: A strategy is not a one off exercise. Dashboards, reviews and governance ensure plans adapt as business needs change.
How to measure success?
A strategy only works if its impact can be measured. Choose a small set of KPIs that tie directly to business value, such as:
- User adoption rates
- Time saved per transaction
- System uptime and availability
- Cost per user or transaction
- Number of compliance risk incidents
Review these regularly and adjust as needed. Low adoption signals a need to pause new features and improve usability. Rising costs call for a closer look at licences or hosting. The goal is not just to track performance but to act quickly when the data shows something is off.
Closing Thoughts
A strong business application strategy is not optional in 2025 and 2026. It enables a roadmap to manage change, reduce risk and keep systems aligned with business priorities. By auditing current tools, linking them to clear goals, planning integration and setting firm governance, organisations ensure their applications work for growth and compliance rather than against them.
The job doesn’t end there. Regular measurement keeps the strategy relevant as conditions shift. Businesses that act now will be strongly positioned to compete, adapt and succeed in the years ahead.
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