alt Hacker NewsThis isn't really just a big company problem, lots of start-ups fail too. It plays out a bit differently at big companies, as those failures tend to be more public but also done in a way that lets the company shuffle people around to the next project. There were lots of start-up companies that tried to build social networks or ERP systems or map applications that most people don't hear about.
Sure, in all cases, acquiring knowledge of what the (potential) customers want is difficult. The point of the article is that vendors of layer N tend to think they know what it takes to succeed at layer N+1, but they don't, because that customer base (N+2) is different.
The other (more important, maybe) thing the article points out is that building layer N-1 turns out to be easier, because layer N is the customer and understands those needs already.