The Digital Cyprus Survey has been instrumental in tracking the digital transformation efforts of Cypriot businesses. Launched by IMR/University of Nicosia, Capacitor Partners, and CITEA, the survey provides detailed insights into the adoption of digital technologies and the readiness of businesses to navigate the evolving digital landscape.
This year’s survey included 500 businesses across various sectors and company sizes, offering a balanced representation of the Cypriot business ecosystem.
39% were small enterprises with 1-9 employees
35% were medium-sized businesses with 10-49 employees
Larger businesses with 50-250 employees represented 20%,
and corporations with over 251 employees accounted for 6%.
The geographical distribution of the sample saw:
57% of businesses based in Nicosia
26% in Limassol
9% in Larnaca
8% followed in Paphos and Ammochostos.
The businesses surveyed represented a variety of sectors, and data was collected through a combination of electronic surveys and structured telephone interviews in June 2024.
Key Insights from Digital Cyprus Survey 2024
Cybersecurity: A decrease in reported cyberattacks was observed, with 18% of businesses indicating they experienced cyberattacks in 2024, down from 26% in 2023. Nevertheless, 82% of respondents emphasized that cybersecurity remains a crucial component of their digital strategies, reflecting the ongoing importance of safeguarding digital infrastructures.
Artificial Intelligence (AI) Adoption: AI adoption is on the rise, with 58% of businesses now utilizing AI tools, primarily for automating routine tasks and data analysis. AI is mainly being implemented for task automation and data analysis, with 62% of businesses using it to automate repetitive tasks. Furthermore, 55% of respondents indicated that they are also using AI to support decision-making, highlighting the shift towards a more data-centric approach to business operations.
Workforce Digital Skills: Digital Transformation is undeniably a human-centric process, as 89% of businesses report prioritizing the development of digital skills within their workforce.
Cloud Technology Adoption: Cloud technologies continue to be a critical area of focus, with 83% of businesses perceiving cloud-based solutions as important to enhance scalability, operational flexibility, and support for remote working environments.
Customer Experience: Improving customer experience through digital means has become a priority for 80% of businesses, who highlighted the importance of a user-friendly digital interface.
CRM and Business Tools: The use of customer relationship management (CRM) systems has steadily increased since 2022 and 2023, with 63% of businesses leveraging these tools to manage client interactions.
Investment in Digital Transformation: The intent to invest in digital transformation continues to grow, with 92% of businesses planning to allocate resources towards digital initiatives in the coming year. Of these, 43% aim to invest between €1,000 and €10,000, while 42% plan to invest €11,000 to €100,000, indicating a shift towards targeted digital improvements. It is worth noting that 57% report the limited availability of resources to invest in new digital tools as a key challenge to their digital transformation.
The CITEA Index 2024: Measuring Digital Maturity
The CITEA Index, draws on the data of the Digital Cyprus Survey, to offer a clear measurement of the digital maturity of businesses in Cyprus.
It categorizes companies into five distinct levels based on their digital readiness, providing a roadmap for organizations to understand their current position and the steps needed to progress further.
These categories are:
Beginner (0-20%): In 2024, 30.6% of businesses were classified as Beginners, up slightly from 30.2% in 2023. These businesses are just beginning to engage with digital technologies.
Explorer (21-40%): 26.2% of businesses were classified as Explorers in 2024, down from 27.4% in the previous year. This decrease suggests that some businesses have moved beyond the exploratory phase into more advanced stages of digital adoption.
Competent (41-60%): The percentage of Competent businesses increased slightly from 18.6% in 2023 to 18.8% in 2024, indicating steady progress in the adoption and use of digital tools.
Transformer (61-80%): Businesses classified as Transformers increased to 12.9%, up from 12.5% in 2023. This rise reflects a growing number of companies innovating and optimizing their digital processes.
Leader (81-100%): 11.5% of businesses reached the Leader level in 2024, a small increase from 11.3% in 2023. These companies are setting the benchmark for digital transformation in their industries, leading through the strategic use of advanced technologies.
For a detailed view of the Digital Cyprus Survey 2024, click here.
*Last Updated on October 28 2024.
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