Even though the term “digital transformation” seems to be everywhere, there is a lack of agreement about what it means. According to Gartner, “The overwhelming majority of oil and gas companies, 89%, now have digital initiatives at some stage of development.” 1 It is common for organizations to define digital transformation as whatever high-profile technology initiative they are currently working on, such as cloud, Internet of Things (IoT), or machine learning. Any or all of those can play a part, but the circular logic of defining transformation as whatever you are already doing misses the point. It also makes it harder to find the value potential for your organization. Those best practices provide guardrails to help ensure that the hundreds of millions of dollars being invested are spent wisely. Ultimately, transformation efforts must contribute to core goals of the business, such as finding oil faster and then recovering it and bringing it to market more effectively, while reducing the cost and operational risk of doing so. The potential value of creating new agile business models based on digital technologies is clear. Accenture reports that a 30-35% improvement in earnings before interest, tax, depreciation, and amortization (EBITDA) is possible for oil and gas companies, in addition to capital expenditure (CapEx) reductions in both upstream and downstream operations. 2 To help the oil and gas industry get the full value of digital transformation, Red Hat offers the approach described in this paper.