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Box Paradox: How Key Account Management Contributes to Business Model Innovation Box Paradox Box Paradox Box Paradox Key Account Management is the way a firm handles its largest and How Key Account Management Contributes most important customers. Significant resources are dedicated to to Business Model Innovation accomplish both short-term sales objectives and strategic long-term goals. KAM is increasingly strategic, not least because the sales and selling activities are becoming digitalized and automatized. A par- ticularly important dimension of KAM concerns how the firm de- velops long-term customer relationships. However, the truly strategic part of KAM is about innovation, and this dissertation explains how Ebba Laurin business model innovation emerges in key customer relationships. This dissertation presents in-depth case studies in the fields of mili- tary training, editorial outsourcing, and large events. It conceptu- alizes KAM principles and examines the strategic contribution of KAM to business model innovation. The findings show that cus- tomer co-created proof of concept projects and processes of trial and error may be used to test emerging business model innovations. The dissertation introduces the Customer Engagement Model as a result of the research. The model assists in analyzing three KAM processes in which people are central. They are KAM Creating, KAM Disrupting and KAM Anchoring, and they function in rela- tion to customer engagement. Ebba Laurin is a teacher at Stockholm School of Economics and a researcher at SSE Institute for Research. She has pre- viously been an executive at Ericsson and a consultant Ebba Laurin for over 10 years. She advices entrepreneurs, execu- tives and management teams on strategic customer relationship and sales, leadership, innovation and or- ganizational development. • 2017 ISBN 978-91-7731-025-9 Doctoral Dissertation in Business Administration Stockholm School of Economics Sweden, 2017 Box Paradox Box Paradox Box Paradox Key Account Management is the way a firm handles its largest and How Key Account Management Contributes most important customers. Significant resources are dedicated to to Business Model Innovation accomplish both short-term sales objectives and strategic long-term goals. KAM is increasingly strategic, not least because the sales and selling activities are becoming digitalized and automatized. A par- ticularly important dimension of KAM concerns how the firm de- velops long-term customer relationships. However, the truly strategic part of KAM is about innovation, and this dissertation explains how Ebba Laurin business model innovation emerges in key customer relationships. This dissertation presents in-depth case studies in the fields of mili- tary training, editorial outsourcing, and large events. It conceptu- alizes KAM principles and examines the strategic contribution of KAM to business model innovation. The findings show that cus- tomer co-created proof of concept projects and processes of trial and error may be used to test emerging business model innovations. The dissertation introduces the Customer Engagement Model as a result of the research. The model assists in analyzing three KAM processes in which people are central. They are KAM Creating, KAM Disrupting and KAM Anchoring, and they function in rela- tion to customer engagement. Ebba Laurin is a teacher at Stockholm School of Economics and a researcher at SSE Institute for Research. She has pre- viously been an executive at Ericsson and a consultant Ebba Laurin for over 10 years. She advices entrepreneurs, execu- tives and management teams on strategic customer relationship and sales, leadership, innovation and or- ganizational development. • 2017 ISBN 978-91-7731-025-9 Doctoral Dissertation in Business Administration Stockholm School of Economics Sweden, 2017 Box Paradox How Key Account Management Contributes to Business Model Innovation Ebba Laurin Akademisk avhandling som för avläggande av ekonomie doktorsexamen vid Handelshögskolan i Stockholm framläggs för offentlig granskning fredagen den 3 mars 2017, kl 13.15 sal Torsten, Handelshögskolan, Sveavägen 65, Stockholm Box Paradox How Key Account Management contributes to business model innovation Box Paradox How Key Account Management contributes to business model innovation Ebba Laurin ii BOX PARADOX Dissertation for the Degree of Doctor of Philosophy, Ph.D., in Business Administration Stockholm School of Economics, 2017 Box Paradox: How Key Account Management contributes to business model innovation © SSE and the author, 2017 ISBN 978-91-7731-025-9 (printed) ISBN 978-91-7731-026-6 (pdf) Front cover illustration: © Ulf Collovin, 2017 Back cover photo: Model House Stockholm, 2014 Printed by: Ineko, Göteborg, 2017 Keywords: Key account management, customer relationship, business model innova- tion, B2B sales, selling, value creation, co-creation, proof of concept. Life can only be understood backwards, but it must be lived forwards. Søren Kierkegaard To Molly and Svante Laurin and to our friends, good colleagues, good neighbours and family in loving memory and in honour of my father, Lars Laurin. Foreword This volume is the result of a research project carried out at the Depart- ment of Marketing and Strategy at the Stockholm School of Economics (SSE). This volume is submitted as a doctor’s thesis at SSE. In keeping with the policies of SSE, the author has been entirely free to conduct and pre- sent her research in the manner of her choosing as an expression of her own ideas. SSE is grateful for the financial support provided by Handelsbankens Forskningsstiftelser and Torsten Söderbergs Stiftelse which has made it possible to fulfill the project. Göran Lindqvist Richard Wahlund Director of Research Professor and Head of the Stockholm School of Economics Department of Marketing and Strategy Acknowledgements Learning is a pleasure and a privilege. Doing a PhD is consequently both. However, it can be rather demanding depending on the circumstances. Being a student again after 15 years in business was a treat. To have ample time to read articles and dissertations, take courses, engage in vivid discussions, in- vestigate empirical phenomena and write, think, and re-write, have been great. Neither research nor writing the monograph would have been possible for me to perform without numerous acts of support and friendship. Reci- procity and mutual appreciation characterizes most of my enduring relation- ships. I express my gratitude continuously in life, quite often elaborately. Alas, brevity is expected in answering the following question: How do I acknowledge the uncountable contributions to the research process, this doctoral dissertation and to me? I disrupt tradition with a longer text than what is customary. In Appendix 2, I list a number of people who have contributed in multiple roles and in- teractions during the years of doctoral research. The massive support that I have had from good colleagues, good friends and good neighbours has enabled progress. I would have liked to acknowledge and celebrate even the smallest interaction that contributed in a positive manner, but that is not possible. My acknowledgements include my heartfelt gratitude. My grati- tude extends far beyond the scope of the doctoral process, or the disserta- tion – to life itself. Örjan Sölvell and Göran Lindqvist brought me into a cluster project. What a brilliant start. After a great introduction by Örjan and Göran to SSE, I began as a PhD-student at the Marketing and Strategy Department of viii BOX PARADOX Stockholm School of Economics (MAST). Marie Tsujita organized the PhD- role from the start and has been doing so continuously and splendidly. I thank Handelsbankens Forskningsstiftelser and Torsten Söderbergs Stiftelse for financing the doctoral process. The research would not have been possible without this support. I am deeply grateful to Björn Axelsson and Per Andersson who welcomed me, supervised me and enabled the doc- toral process in every way. I have had years of sage advice of my professors and supervisors. Their experience, engagement and guidance shaped the process and its progress. The dissertation would not have seen light of day without them. With deep knowledge of most matters in the marketing field, Björn and Per contributed with insightful support all the way. Initially, my supervising committee included Henrik Agndal, who has been a sincere and consistent source of knowledge and expertise. Our friendship evolved dur- ing Saturdays on the sixth floor. Andreas Werr entered as my supervisor mid-way and he has provided kind and excellent guidance since the day one. Lars-Johan Åge who wrote his dissertation on B2B sales has been a fellow researcher, co-teacher and my supervisor. Lars-Johan’s support with deep knowledge in the sales field and kindness has been very important. The unabated, kind and encouraging support of Richard Wahlund and Hans Kjellberg was informal during the first years. Their roles and contri- butions became highly important towards the end of the process. I doubt that the constructive result of a dissertation would have been possible without their contributions and advice. Johan Söderholm has supported in many ways. First with insight from his own doctoral process, later as a reli- able representative of The Stockholm School of Economics Institute for Research. I am grateful to Jakob Rehme who provided in-depth insights and feedback during the thesis proposal seminar. Henrik Agndal’s contribu- tion as the discussant in the mock seminar was invaluable to motivation and the direction of the analysis. To have Christina Öberg as my discussant is yet to come when I am writing this. I am sure that it will be a great learn- ing experience that I will sincerely appreciate. I am grateful for the contri- butions of everyone who has had, and will have a formal role in the conclusion of this doctoral research. Helena Lundin and the same Göran Lindqvist who welcomed me to SSE have provided support and help for which I am deeply greateful. Their CHAPTER 1 ix expertise and efforts, especially during the last stretch of writing has been most valuable. They provided great advice as to what I should prioritize and substantial assistance with the task of formatting content and layout.
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