Different studies suggest that organizations do not experience process problems due to an inefficient design but from an inability to handle "exceptions" to the rule. Process problems occur either when the individuals and groups executing the processes fail to adapt appropriately to the unexpected situations or when a creation, change or replacement of the existing processes is required to address a new strategy. If the firm does not address exceptions, customers may discern a gap between the expected and perceived service leading to customer dissatisfaction and customer switching which can erode competitive advantage. Studies have shown that walking the fine line of skillfully adapting the system as opposed to mindlessly following a script provides customer satisfaction. Since exceptions make the rule, the robustness of a process can be tested by analyzing how the process handles exceptions. Extrospecting for root causes of failed transactions holds the key to improving operational capabilities.

It has long been argued that inward-looking organizations are unable to execute customer-focussed strategies despite embracing the new paradigm. Company after company seems to embrace customer-orientation, customer-relationship management, customer-oriented product design, co-creation strategies, and associated technology, but are perhaps too proud to admit that they do not know what is new or different about the emerging customer-focussed paradigm. Hasn't the customer always been the key? The difference is a perspective that is subtle. Organizations have always believed—"You need me more than I need you". They worry and obsess about achieving their own goals—that of maximizing shareholders' profit—and use customers as a means to that end. Preoccupied with their own goals, they do not think about customers' needs and fail to keep pace with the rapid and fluctuating demands of the customers. They stay inward—focussed on their own controls and dashboards despite their best efforts to synchronize with the market.

Consider the experience of shopping at Amazon.com. Huge matrices that store customers in rows and their Stock Keeping Unit (SKU) inventory in columns are updated per transaction and stored. Cluster Analysis groups customers who make a number of similar purchases into segments. Recommendation agents then attempt to personalize your online shopping experience with messages such as "Customers who bought this item also bought….". Useful. Interesting. Hi-tech.

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