When Digital Transformation Drains a Business — and How to Avoid It

Digital Transformation (DT) and AI investments often fail not because of technical execution, but because distorted situational judgment and misaligned expectations shape flawed investment decisions—baking failure into the project from the planning stage. This paper lays out a drain structure driven by external dependence, fixed-cost behavior, and declining organizational autonomy. It then proposes viewpoints and checkpoints for exit decisions and investment design by managing initiatives in two categories—ROI-driven and non-ROI-driven. Contact: contact.mk.jp@gmail.com