Cyprus in the digital age: Where businesses are winning and where they are falling behind

The pandemic brought about a steep increase in the digitisation efforts of businesses in the EU and companies in Cyprus were no exception.

While they have taken notable steps, however, much remains to be done in terms of strengthening their digital actions.

Indicative of the whole effort on the part of the government is the recent approval by the Council of Ministers of the ‘Modern professional development for the green and digital transition’ action plan, with the aim of promoting green and digital skills, quality, and safety at work.

Below the EU average.

According to the ‘Digitalisation in Europe 2022-2023: Evidence from the EIB investment survey’ report, in 2022 more than half (53%) of businesses in the EU had taken steps to strengthen their digital presence, such as offering online services.

However, in Cyprus the number of businesses doing this was considerably lower, reaching 38%, even after the acceleration of digitisation projects after COVID-19.

Regarding the adoption of advanced digital technologies, such as advanced robotics, big data analytics and artificial intelligence, Cypriot businesses managed to reduce the gap in 2022 reaching 60% compared to 69% in the EU. The figure stands at 71% in the US.

Larger companies are more digital

Larger companies in Cyprus progressed to a greater extent in the implementation of digital solutions compared to small ones. Specifically, around eight out of ten large businesses are using advanced digital technologies, while almost half have become more digital since the pandemic. At the same time, seven out of ten medium-sized businesses are implementing advanced digital technologies, while four out of ten have strengthened their digital presence.

On the other hand, more than 40% of small and very small businesses in Cyprus implement advanced digital solutions, while around 30% became more digital due to COVID-19.

The types of technology

Regarding the use of advanced digital technology in Cypriot businesses by type of technology, half use digital platforms, over 40% the Internet of Things (IOT), about 30% advanced robotics (the figure stands at over 50% in the EU), big data, and artificial intelligence.

At lower levels compared to the EU countries is the use in Cyprus of drones, 3D printing, and augmented virtual reality.

It is also estimated that 63% of Cypriot businesses use advanced digital technology to take action to protect against climate risks, as opposed to 33% that do not apply advanced digital technology.

(Source: InBusinessNews)