Getting locked in to a digital platform ecosystem brings all sorts of tensions and anxieties even if you are currently satisfied. Here are some mitigation strategies to allow you to keep the flexibility to switch when you need to

By Ilan Oshri, Heiner Himmelreich, Paolo Scala, Anthony Vlasic, Anas Zaidani, and Hrishi Hrishikesh

In today’s enterprise IT landscape, platform lock-in is not a failure, it’s a strategic trade-off. The 2025 BCG study, alongside the publication Managing the Dynamics of Digital Platform Lock-In, shows that while companies are generally satisfied with their digital platforms, they remain cautious about the risks of over-dependence.

This tension between satisfaction and strategic vigilance highlights the need to understand and manage various forms of lock-in within digital platform ecosystems. In this report, we identify four distinct types of lock-in and propose mitigation strategies that help companies maximise the value of their platform ecosystems while preserving the flexibility to switch platforms when needed.

Technical lock-in: the architecture trap

Technical lock-in stems from the complexity of integrating platform-specific technologies into business operations. According to BCG, 75 per cent of firms are concerned about technical migration costs, and 65 per cent cite API integration issues. These concerns are amplified by the gravitational pull of data—once embedded in a platform, data becomes harder to extract and migrate.

Mitigation strategies
Effectively mitigating technical lock-in relies on strategic architectural choices that prioritise component independence and data portability

Modular architecture: designing systems with loosely coupled components allows organisations to isolate platform-specific dependencies. This modularity makes it easier to swap out or upgrade individual components without disrupting the entire system.

Open standards: platforms that support open APIs and standardised data formats reduce the complexity of integration and migration. This ensures that data and workflows can be transferred more easily across systems.

Data sovereignty: retaining control over your own data model rather than adopting a platform’s native structure preserves portability. It also reduces the risk of being locked into proprietary formats that hinder future transitions.

Contractual lock-in: the cost of commitment

Contractual lock-in arises from long-term agreements, opaque pricing models, and rigid licensing. While only 27 per cent of clients express concern about damaging relationships with current providers, a significant majority are wary of contract termination costs (46 per cent) and downtime during transitions (63 per cent).

Mitigation strategies
To counter contractual lock-in, companies must focus on negotiating agreements that provide financial transparency and flexibility for future pivots.

Flexible contracts: negotiating contracts with early termination clauses, modular service options, and performance-based reviews gives organisations room to pivot. This flexibility helps avoid long-term entrapment in underperforming agreements.

In-house governance: managing platform relationships internally ensures tighter oversight of service quality, compliance, and cost. It also empowers organisations to respond quickly to issues and renegotiate terms when needed.

Sourcing intelligence: using analytics to monitor platform usage, cost trends, and vendor performance provides transparency. This data-driven approach strengthens negotiation leverage and supports informed decision-making.

Strategic lock-in: the customisation dilemma

Strategic lock-in occurs when platforms are deeply embedded through customisation. The study shows that 72 per cent of firms heavily tailor their platforms, increasing stickiness and reducing switching agility.

Mitigation strategies
Managing strategic lock-in requires a disciplined approach to customisation, documentation, and the change management process itself.

Selective customisation: customising only where it adds significant business value helps balance functionality with flexibility. Over-customisation can create dependencies that are costly to unwind.

Documentation and modularity: keeping detailed records of customisations and designing them in modular fashion facilitates replication on other platforms. This approach reduces the effort required to migrate or reconfigure systems.

Change management: investing in staff retraining, testing, and quality assurance during transitions minimises disruption. Proactive planning ensures smoother adoption of new platforms and reduces productivity loss.

Relational lock-in: the human factor

Relational lock-in refers to the emotional, reputational, or collaborative ties between clients and platform providers. Interestingly, this type of lock-in appears to carry less weight in the current platform landscape.

Only 27 per cent of respondents expressed concern about the impact on relationships when switching providers, suggesting that platform contracting is largely transactional.

Mitigation strategies
The strategies for relational lock-in focus on ensuring platform relationships remain objective, transactional, and performance-driven.

Transactional framing: treating platform relationships as service-based engagements rather than long-term partnerships reduces emotional or reputational dependency.

This mindset supports objective evaluation and switching when necessary.

Performance-based loyalty: prioritise measurable outcomes over brand loyalty or historical ties. This ensures that decisions are based on value delivery rather than sentiment.

Diversified sourcing: engaging with multiple providers across different functions prevents over-reliance on any single relationship. It also fosters competitive tension, which can improve service quality and pricing.

While relational lock-in may not be a dominant concern today, it can still influence decision-making in cases where platforms are co-developed or deeply embedded in strategic initiatives.

Conclusion: living with lock-in

Platform lock-in is inevitable - but it need not be limiting. Firms must exercise active oversight, aligning platform strategy with business goals. By understanding the types of lock-in and deploying targeted strategies, organisations can transform lock-in from a constraint into a source of competitive advantage.

Professor Ilan Oshri, is the Director of the Center of Digital Enterprise at the University of Auckland.