What exactly is the digitalization of businesses?
Since 2015, Eurostat has been compiling a composite indicator known as the “Digital Intensity Index.” The European Union uses it within its action program for the digital decade.
The program was formally established in December 2022. It sets digital transformation objectives for 2030, across four areas: connectivity, digital skills, the digitalization of businesses, and the digitalization of public services.
The mechanism for tracking the progress of member states rests on about fifteen KPIs, including the share of small and medium-sized enterprises (SMEs) using at least 4 of the 12 technologies encompassed by Eurostat’s index.
The EU does not publish a fixed list of technologies, and for good reason: year by year, the index’s composition evolves. The latest incarnation includes:
| At least 50% of employees have access to the Internet for professional use |
| Internet connection of at least 30 Mbps downstream |
| At least 1% of turnover in e-commerce |
| At least 1% of online sales with at least 10% in B2C |
| Purchase of cloud services |
| Purchase of cloud services “sophisticated” or “mid-range” |
| Having a website |
| Using at least one social network |
| Carrying out data analysis, including via an external provider |
| Using at least one AI technology |
| Using an ERP |
| Using a CRM |
Each dimension has its own specifics. For e-commerce, for example, offline purchases are taken into account. By “AI technology,” the index includes both customer-service chatbots and big data based on machine learning, among others.
Cybersecurity has fallen off the radar
Between 2015 and 2025, the first three sub-indicators (Internet access, bandwidth, e-commerce) have remained unchanged.
The criterion “1% of online sales and at least 10% in B2C” did not enter the index in 2018 and 2020. Instead, big data practices on internal or external data were the focus.
The criterion “purchase of cloud services” has not always been present, at least not in this form. From 2015 to 2020, Eurostat measured the share of companies providing “devices with mobile Internet connectivity” (cellular network detail in 2018 and 2019) to at least 20% of their employees. In 2022 and 2024, it looked at those that documented their cybersecurity measures, practices, or procedures.
From 2015 to 2018, as well as in 2020, the sixth sub-indicator was not about buying “sophisticated” or “mid-range” cloud services, but about having a website that offered at least one of the following features:
- Description of goods and services
- Display of prices
- Ability for visitors to customize or design goods and services
- Order tracking
- Content personalization for returning visitors
In 2019, 2022 and 2024, for the same sub-indicator, Eurostat measured the share of companies informing employees of their cybersecurity obligations.
Instead of the criterion “having a website,” there was in 2019, 2022 and 2024 “adopting at least 3 cybersecurity measures.” In 2021 and 2023, “using at least two social networks.”
When IoT, 3D printing, robotics, and online advertising were criteria
In 2018, the criterion was not to use at least one social network, but to have a site with links or references to the company’s social profiles. In 2020, the criterion was to use 3D printing. And in 2022 and 2024, to provide IT training to staff.
Historically, the ninth sub-indicator often focused on the employment of ICT specialists (2017, 2018, 2020, 2022, 2024). In 2015 and 2016 as well, but with an extra option: relying on ICT roles largely performed by external providers. In 2019, it required using social networks for at least two purposes. And in 2021, using IoT.
The sub-indicator “using at least one AI technology” is brand new. In 2015 and 2017, Eurostat looked at companies that electronically shared data related to managing the supply chain with customers or suppliers. In 2016 and 2018, at those that purchased online advertising. And in 2019, at those that conducted online sales in other EU countries. In 2020 and 2022, firms were assessed on their use of industrial or service robots.
Electronic invoicing, a temporary indicator
“Using an ERP” appeared intermittently. In 2016, electronic invoicing was required. In 2018 and 2020, purchasing cloud services at an “intermediate or high” level. The 2022 and 2024 editions analyzed the provision to employees of remote access to email, documents, or applications.
There was also intermittent coverage for “using a CRM.” In 2016, this sub-indicator was limited to medium-high cloud services. In 2018 and 2020, electronic invoicing. Eurostat also examined the organization of online meetings in 2022 and 2024.
