<p>This study examines how a traditional insurance firm adopts a top-down digital transformation strategy and consequently creates a digital ecosystem around its existing service. To do this, on the one hand, the firm seeks external partners who can provide add-on complementary services to fill the resource gap and offer bundled services. On the other hand, the underlying process of this digital transformation involves incorporating digital elements within the existing services and leveraging digital technologies to foster collaboration and integration between the firm and the complementors, thereby, making both digital and non-digital elements integral to the process. Yet, progression of digital transformation strategy and creation of ensuing digital ecosystem have thus far, mostly, been studied in silos, lacking a holistic alignment between the two. This study addresses this gap and using an in-depth qualitative longitudinal case study set in life insurance context, follows the progression of a firm’s top-down digital transformation strategy being implemented and the subsequent process of creating a digital rewards-based insurance ecosystem model. Theoretical implications of these findings are discussed.</p>