Imagine being stuck in an endless email chain…just to get a simple approval. Or worse, imagine wasting hours pulling data from disconnected spreadsheets only to realize it’s already outdated. 

The fact is, most internal processes are a mess.

Teams jump between tools. Spreadsheets do things they were never meant to do. Manual workarounds become the standard. Everyone knows it’s inefficient, but…no one knows how to fix it. Or, they’re just used to it.

That’s where internal tools come in.

Internal tools are custom apps built to solve problems inside your business. They help your team work faster, cut out repetitive tasks, and replace duct-taped processes with real solutions.

Better yet, they fit into your own infrastructure and unique business processes. When done right, these custom internal tools are invisible. They just work. They streamline processes and never get in the way.

The best part? Creating internal tools isn’t that hard. You don’t need a huge development team or a massive budget. With the right plan (and the right tools), anyone can build internal tools that make a real difference.

In this article, I’ll walk through how to do it. You’ll learn what works, what to avoid, and how to make internal tools a real advantage for your business. 

Sound good? Let’s get into it.

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What Are Internal Software Applications?

Internal software apps are tools built for your team, not your customers.

They’re designed to fix problems inside your business. For instance, things like tracking orders, managing approvals, pulling reports, or replacing clunky spreadsheets.

Some are simple. A form that sends requests to the right person. A dashboard that pulls live data. A tool that automates processes.

Some are more complex. A custom CRM. An internal portal. A system that ties into your ERP.

While they could be anything, here are a few of the most common examples:

• Approval workflows: Automate repetitive tasks like expense approvals, purchase orders, time-off requests, and new-hire onboarding.
• Customer Relationship Management (CRM) Systems: Manage customer data, track customer interactions, and streamline lead management.
  
• Employee directories: Provide a simple way to access employee contact info, roles, and reporting lines.
  
• Inventory management software: Custom internal applications that streamline inventory management, track assets in real time, and integrate with multiple data sources.
  
• Dashboards: Visualize key data and KPIs using intuitive data visualization features. From a simple sales dashboard to more detailed reports, these internal apps help in displaying disparate information clearly, ensuring a user-friendly interface for all stakeholders.
• Project Management Apps: Help teams keep projects on track, assign tasks, collect feedback, and automate processes.
• Time tracking systems: Automate payroll, timesheet submission, and hourly data entry. These custom internal tools cut down on repetitive tasks and help streamline operations across HR and accounting teams.
  
• Knowledge management systems: Centralize your company’s documentation, SOPs, and internal resources.
  
• Incident management systems: Quickly log, track, and resolve IT or operational issues. These custom apps allow engineering teams to gather feedback, maintain audit logs, and manage data connecting seamlessly across multiple platforms.
  
• Employee onboarding portals: Help new hires navigate initial training and paperwork, reducing the time required to get up and running in their new position. 
• Fleet Management Tools: Track vehicle locations, manage maintenance schedules, and optimize routes. Fleet management internal apps automate tasks like mileage logging and incident reporting.
  

These are some of the more common examples, but not a comprehensive list by any means. An internal tool in your business is whatever you need it to be.

The key is this: they’re built around how your business actually works. Not how some off-the-shelf software thinks you should work. 

I remember working with one client who had a manual, month-long budgeting process. Because the process was so unique, they couldn’t use off-the-shelf budgeting tools. I won’t get into all the details, but it required a lot of manual effort and took a month to complete.

The good news: They automated it with a custom application, and now they get their budgets instantly. It fits their budgeting process like a glove. That’s the power of good internal tools!

The big takeaway here: They didn’t bend their process to fit the tool. They created a tool that fit the process. 

That’s what internal software applications are all about.

Why Internal Apps Matter

The biggest reason: Bad (or missing) internal tools waste time.

For instance, here are a few signs that your internal tools need some help:

• Employees are stuck copying and pasting data between disconnected systems.
• Reporting takes days and involves Excel gymnastics.
• Employees create “workarounds” to get things done.
• New hires are confused by scattered onboarding materials.
• Managers have no visibility into project progress.
• Inventory is tracked on paper or spreadsheets.
• Slow customer response times due to disorganized data.
• Missed deadlines because tasks weren’t assigned or tracked.
• Finance teams are stuck chasing missing expense reports.
• Employees doing things manually that should’ve been automated years ago?

Internal apps fix that.

They automate repetitive tasks. They connect your systems. They give your team tools that match how they actually work.

Here’s what that means in real life:

• Less busywork. Automate the stuff that slows people down.
• Fewer errors. No more manual copy/paste or version mix-ups.
• Faster decisions. Real-time data. Custom dashboards. One place to see it all.
• Happier teams. People like using tools that make their jobs easier.
• Lower costs. Save time. Save money. Skip the bloated enterprise software.

Done right, internal apps free up your people to focus on real work.

We worked with one company that gives a perfect example of this in action. One employee used to spend 20 hours every week on manual data entry. They created an internal tool that moved this data automatically, which saved 20 hours per week (and an estimated $30,000 per year). Now, the employee focuses on more important tasks.

That’s just one, but I could share successful examples like this all day. The key takeaway: automating these internal processes not only save time, they free up employees for more valuable tasks.

Build vs. Buy: What Makes Sense?

When it comes to internal tools, you might think there are just two options: build from scratch or buy off-the-shelf. 

Both options have their pros and cons, but the cons often outweigh the pros. Let’s explore each one and then highlight a better option that combines the advantages of both.

Buying Off-the-Shelf

Off-the-shelf tools are tempting. They’re quick to set up and usually cheaper upfront. But they come with trade-offs.

• One-size-fits-all: The problem with “one-size-fits-all” tools is they rarely fit anything 100%. They might fit most of your requirements, but there’s always a few areas that you’ll need to work around.
• Limited customization: Customizing an off-the-shelf tool is either impossible or expensive. Sure, you can always tweak the settings and make it a close fit, but you’ll have to pay a pretty penny if you want the vendor to make it custom. In short, you must adapt to the tool, not the other way around.
• Fees add up: Many charge per user, which gets expensive as your team grows. Also, watch out for the fees that crop up as you use the tool. For instance, maybe you hit their data limit or need to unlock new features…which require more fees.
• Integration limitations: The best internal tools deliver seamless integration with your existing system. However, connecting off-the-shelf software tools to legacy systems is a challenge.
• Data security concerns: You don’t always control where or how your data is stored.

I can’t tell you how many times I’ve seen companies give up on an off-the-shelf tool after realizing it would never do exactly what they needed. 

That being said, they do have a place. If your business has a generic problem, they work great! When you need something to fit a unique problem or process, custom solutions are the way to go.

Building from Scratch

Building from scratch sounds like the perfect alternative, right? After all, internally developed custom tools are perfectly tailored to your needs. It’s rarely that simple. Here are a few issues that often arise:

• Development time: Manually coding a solution means extensive coding and a long development process that often grows longer over time thanks to the dreaded scope creep.
• Expensive: Custom development costs add up fast. You need designers, developers, testers, and project managers.
• Maintenance: You’re on the hook for updates, bug fixes, and support. What happens if the developer who built it decides to get a different job? You better hope they documented everything correctly and wrote clean code.

I’ve seen companies sink months into internal tool development, only to watch it get delayed, go over budget, and be obsolete before launch.

That being said, there are situations where building from scratch is the best choice. If you have unique integration requirements, need specific programming languages, or have an incredibly complex (and unique) project, custom internal software might be best.

The Low-Code Advantage

Low-code strikes a balance between these two options. It gives you the flexibility of custom internal software development without the complexity and long timelines. Building internal tools with a low code platform makes it easy to create personalized apps that fit your unique business processes without extensive coding.

• Faster delivery: Low-code tools simplify the app development process. They let you build internal tools in days or weeks, not months. 
• Fewer resources: Custom application development with a low-code platform only requires one developer, not a whole team.
• Custom-fit solutions: A good low-code tool will still let you customize your applications however you need. Be careful though, many low-code tools do limit your customization options. If you go this route, make sure you find a platform that offers full customization. If you need some guidance, we have a white paper that explains how to choose the best low-code platform for your business.
• Easier integration: Low-code tools let you connect to your databases, ERPs, and CRMs with less hassle. The most versatile tools even let you install on-premise over your existing database tables. This makes integration far simpler.
• Control and security: The right low-code tool will let you decide where your data lives and how it’s secured. Keep in mind, not all tools give you this option. Find a tool (like m-Power) that lets you control where it’s installed and runs.

In short, low-code lets you build custom internal software that work the way you do, without reinventing the wheel. It’s the middle ground that’s fast, flexible, and built to scale.

How to Build an Internal Tool (Step-by-Step)

You don’t need a 6-month roadmap to get started.

Just follow a simple process. Keep it focused. Build what people actually need. Here’s how:

1. Find the problem

If you’re like most organizations, this is the easy part. You likely know where your inefficiencies lie. Or, employees already complain about certain processes.

If the problems aren’t obvious, dig a little deeper. Look for manual steps, delays, repeated mistakes, or places where people build their own workarounds. What slows your business down?

That’s where internal tools shine.

Talk to employees. Ask them what takes too long. What do they hate doing? What slows them down the most? What tools do they wish existed? 

Then solve that.

Keep in mind, employees may not realize there’s a problem. Maybe they’ve “always done it that way.” They don’t know it’s inefficient. 

That’s why you need to ask them about their work. What are they responsible for? How do they accomplish those tasks? 

Here are a few red flags to look for:

• They use Excel a lot
• They’re copying/pasting data from different sources
• They’re constantly chasing people down in email for approvals or updates
• They’re using non-sanctioned software tools because they need to

You’ll find that people get used to inefficient processes. They don’t know there’s a better way. 

2. Map the workflow

Before you build anything, map out the steps. Every click. Every data point. Every decision.

This involves working with the users again. Really understand the process inside and out. 

Where does the data come from? Who needs to approve what? What happens when something goes wrong?

Keep in mind: the process might not be perfect in its current state. How would the user like to see it flow? Do they have “pie in the sky” ideas?

Get clarity on the workflow first. It’ll save you from messy rewrites later.

I’ve worked with some companies that had to scrap an internal software development project for this very reason. There wasn’t enough communication with the users. The developers built what they thought was needed. The result: an internal tool that was confusing and didn’t really fit the user’s workflow.

3. Pick your approach

As touched on above, there are multiple options for building internal tools. 

• Go full-code if you:
  • Have a large internal development team that can handle a big project
  • Have unique integration requirements
  • Need it built in a specific programming language
  • Are working with very old legacy systems
  • Have an incredibly complex workflow that can only be built with custom code
• Go off-the-shelf if you need a generic solution that doesn’t require customization
• Use low-code if you:
  • want development speed without giving up flexibility
  • Don’t have a large development team
  • Need a custom solution built quickly

The right approach depends on your timeline, your resources, and general needs.

4. Build the MVP

Resist the urge to solve everything in version one.

Instead, ask: What’s the smallest version of this app that still delivers value?

Grab the list of requirements from step #2, and figure out what’s needed to prove it out. How can you show your users the basic idea without building the entire thing? 

Once you have that, run it by your users. This is a great approach because you can get real feedback right away and adapt as needed.

This is also one huge advantage of using low-code. You often build these basic apps in hours, get feedback, and keep building. Repeat this process until you have a completed solution.

Here’s another great example of this in action. An automotive services company uses a “low-code sprint method” to incrementally build internal tools. They build solutions in increments, show them to the users, and adjust based on feedback. This way, they know they’re on the right path. If they find they’re on the wrong path, it’s no big deal. It’s easy to start over.

5. Test it with real people

Once you have a final draft, hand it to your users. One of the most overlooked parts of internal app development is user testing.

Don’t just ask “Do you like it?” Watch how they use it and collect data. Where do they hesitate? What do they ignore? That’s where your real design issues live.

Ask them what they think should change. Is it missing features? Is the UI clunky? Does it fit their processes 100%?

Then, keep iterating until you get it right. Again, low-code is great for this as it lets you build and change applications rapidly.

6. Launch it like a software product

Even if it’s just for 20 employees, treat your rollout like a product launch. 

Announce it. Train people. Write quick-start docs. Offer support.

People won’t use a tool just because it exists. And people hate to change their routines. You need to show them why it’s better than what they’re doing now. 

If you’ve involved the users from the beginning, this step is easier. After all, you’re solving a problem that they’ve asked you to solve. 

That being said, users still need some hand-holding and good training to get them going. 

7. Keep it updated

Every internal app needs an owner. Someone to track bugs, gather feedback, and keep improving it.

Create a way for users to request changes or report bugs. 

Schedule check-ins. Ask users what’s changed. Add what’s needed. Remove what’s not.

The best internal apps are never “done.” They grow with the business.

Best Practices for Building Internal Tools

Over the last few decades, we’ve helped all types of companies build internal applications. We’ve seen the mistakes. We’ve seen the successes. 

Here’s a word of caution: even simple internal apps can go sideways. Here’s a few best practices for internal tool development:

Start small

Don’t try to solve every problem in one tool. Also, don’t try to bake in every single requested feature at the start. That’s how you end up with bloated software nobody wants to use.

Start with a narrow, high-impact use case. Something painful, visible, and easy to measure. Fix that first. Show results. Then grow.

Small wins build trust. Trust opens the door to bigger projects.

Design for users, not just “the business”

There’s often a gap between what leadership wants and what frontline users need. Your job is to bridge it.

What happens if users find the app slow, confusing, or irrelevant? What happens if the user interface is clunky and unintuitive? They won’t use it.

Remember, it’s all about solving the user’s problems. A custom internal tool must solve a problem, deliver a seamless workflow, and have a user-friendly interface. 

Make integration a priority—not an afterthought

Your internal tools don’t live in a vacuum. They need to talk to your systems: databases, CRMs, ERPs, spreadsheets, APIs, etc…

Plan for this early. Integrating data sources must be core element of your development process. Otherwise, you’ll build an amazing tool that no one uses because it doesn’t connect to the data they need.

Assign ownership

Someone needs to be responsible for the tool post-launch. This person will handle bug fixes, feature requests, feedback, updates, and more.

If no one’s in charge, it’ll stagnate. Eventually, users will say, “Let’s just go back to spreadsheets.” 

Don’t let that happen. Make sure you assign some development resources to project maintenance.

Find your champion

User adoption is just as important as development. After all, if users don’t use it…what’s the point?

That’s why it’s so important to find a “champion” among your users. This is a user who wants to drive the project within their department. They work closely with the development team on the application’s direction. This champion understands how it works and what problems it will solve. 

Most importantly, this champion will encourage other users in their department to adopt the tool. They’re more of a “power user” who can answer questions and even help others when they get stuck.

Building a Culture of Internal Innovation

One internal app is good.

A culture where anyone can solve internal problems? That’s a game changer.

The best teams don’t just build tools, they build momentum. They make it normal to fix broken workflows. They give people the tools, freedom, and support to solve problems from the inside out.

Here’s how they do it:

Empower problem-solvers at every level

You don’t need a dev team to spot inefficiencies.

The people doing the work know exactly where the problems are. Sometimes they just need the right tools to fix them.

Give teams access to low-code app builder platforms. Let them create the applications, dashboards, and automations that they need. With the right internal app builder, even non-technical users can create their own internal tools.

Then support them with IT best practices: security, integrations, and governance. In short, give them the tools to create solutions, but in a secure manner.

What happens? Your business departments can solve their own internal tool problems without overwhelming IT. Of course, your development team can still step in and help with larger projects. But, giving users the tools they need goes a long way towards eliminating frustration and Shadow IT.

Make “internal tooling” a visible win

How can you push users to create their own internal applications? Promote the wins. 

Showcase internal apps that saved time, reduced errors, or replaced clunky business processes.

Shout it out in meetings. Turn it into a quick case study. Celebrate the team that built it.

When people see other internal tools getting attention, they bring more ideas. That’s how the flywheel starts.

Support bottom-up innovation—with top-down structure

Let teams build. But don’t let it turn into chaos. You still need to maintain control and security over the platforms and tools.

Create a simple framework, like:

• What tools are allowed?
• Who approves what?
• What data sources do we need?
• How is data secured?
• Do we have a standard user interface?
• Where is app ownership tracked?

This keeps everything running smoothly, without killing creativity.

Building internal apps isn’t just about saving time. It’s about giving your team the power (and a user friendly interface) to fix what’s broken. That’s how internal tools become a competitive advantage.

Conclusion

Internal software doesn’t have to be complex. It just has to be useful.

When you build tools that solve real problems, your team moves faster. Workflows get cleaner. People stop fighting their systems and start getting more done. You start to really streamline operations.

The best part: you don’t need a massive dev team or a six-figure budget to make it happen. You just need a clear problem, the right approach, and a mindset focused on impact over features.

The process is simple: Start small. Deliver something that makes work easier. Then keep going.

The companies that build great internal tools don’t just save time. They build momentum. They build better ways to work.

The right internal tools aren’t just a solution. They’re your secret weapon for growth.