How Legacy Firms Orchestrate Digital Platform Transitions without Disrupting Core Operations: Strategic Choices, Capability-Building, and Governance

Abstract

In the era of rapid technological advancement, legacy firms—long-established organizations with deeply entrenched business models and operational processes—are compelled to adapt to the evolving digital landscape. The proliferation of digital platforms, characterized by multi-sided markets, network effects, and data-driven value creation, has fundamentally altered competitive dynamics across industries. For legacy firms, transitioning to digital platforms presents both existential risks and transformative opportunities. However, such transitions are fraught with challenges, particularly the risk of disrupting core operations that underpin the firm’s current value and market position.