The digital audit approach to structuring and evaluating digital strategy

Abstract

This study investigates the application of digital audit methodologies in structuring and evaluating digital strategies within traditional financial institutions in Algeria, focusing on the collaboration between Alcomnet, a local digital agency, and the Banque Nationale d’Algérie (BNA). Addressing a gap in the literature regarding the integrated use of audit frameworks in emerging markets, the research adopts a qualitative case study approach based on semi-structured interviews and document analysis. It examines how established models—SOSTAC®, the RACE framework, and the McKinsey 7S model—can be adapted to fit the Algerian financial sector. The findings demonstrate that digital audit, when approached as a continuous and iterative process, provides a comprehensive foundation for institutional digital transformation. Effective transformation extends beyond technological implementation, requiring strategic alignment, organizational culture shifts, and active stakeholder engagement. The study also underscores the critical role of localized expertise in adapting international frameworks to specific institutional and market contexts. Theoretically, the research contributes to the field by proposing a dynamic and integrated model of digital audit that bridges diagnosis, planning, and evaluation. Practically, it offers actionable insights for aligning strategic priorities, fostering cross-functional collaboration, and assessing transformation outcomes through both qualitative and quantitative dimensions. The results suggest that financial institutions in emerging markets that adopt structured, context-sensitive audit approaches are better positioned to navigate digital complexity and develop responsive, sustainable strategies in increasingly competitive environments.