Within the backdrop of swift digital advancements, the global emphasis on digital transformation is becoming increasingly evident. Cyprus, often observed lagging its European peers in digital integration, offers an insightful lens into this shift, as illustrated by recent research findings.

Eurostat data suggests that Cyprus sits 6 percent below the EU average concerning its population's digital proclivity. Nonetheless, the Digital Cyprus Survey 2023, orchestrated in collaboration between IMR/University of Nicosia, Capacitor Partners, and CITEA, provides an optimistic perspective on the nation's efforts in this realm.

Of the 500 businesses that participated in the survey, 85 percent identified cloud technology adoption as a crucial step in their digital strategies. This perspective mirrors the global recognition of cloud systems as pivotal in evolving business operations. Additionally, 85 percent expressed their intention to allocate resources to digital transformation in the coming year, with budgets for 46 percent of these businesses set between €11,000 to €100,000.

However, the journey to digital integration is marked with hurdles. The constantly changing digital environment demands that businesses maintain flexibility. This adaptability is reliant on continuous learning and upskilling, a perspective shared by 92 percent of survey participants. Yet, 76 percent noted the improvement of their staff's digital capabilities as a significant challenge.

Digital opportunities, while numerous, come with their set of risks. Cybersecurity's importance is magnified with 97 percent of businesses pinpointing it as integral to their digital strategies, a surge from the previous year's data. Moreover, one in four businesses acknowledged experiencing cyberattacks, reinforcing the pressing nature of these threats.

In response, Cypriot businesses have shown initiative. Defensive measures against cyber threats have risen year-on-year, with 88 percent now employing protective strategies, ranging from security audits to extensive employee training.

Comparison with the 2022 data broadens our understanding. The consistent focus on cloud technology is evident across years, suggesting its foundational role in digital strategies. While optimism regarding digital transformation's potential to drive growth remains substantial, there's an apparent recognition of the complexities involved.

The growing emphasis on cybersecurity is clear when comparing the 89 percent recognition of its importance in 2022 to the 97 percent in 2023. Moreover, the marked increase in proactive cybersecurity measures reflects a maturing approach to the challenges of the digital transition.

In summary, the transition observed from 2022 to 2023 encapsulates the goals, challenges, and actions of businesses in Cyprus. Their commitment to digital transformation, in light of evolving challenges and prior digital readiness, signifies a strategic shift. As these businesses tread this intricate path, one element remains consistent: a focused vision for a digitally integrated future in Cyprus.

Discover insights from the Digital Cyprus Survey 2023 here.