## How Ukraine’s Business Digitalization Is Measured

Forbes Ukraine and KPMG have conducted a study on the state of business digitalization in Ukraine in the third year of the war. The average Ukraine’s Business Digitalization Index stands at 55.7 out of 100.The index consists of two sub-indices:       - Digitalization of core operations. Evaluates how companies integrate digital tools into their business processes.       - Digitalization of the production process. Measures the adoption of technology in manufacturing and automation.Each sub-index includes five key indicators assessing digital maturity.


## Key Findings

Manufacturing companies scored between 30 and 40 points, while service-based businesses ranked between 70 and 80.The Top 10 includes 8 service companies and 2 manufacturing companies.The highest digitalization levels are in IT, telecommunications, construction, oil & gas, and retail, while energy and pharmaceuticals rank the lowest.Large companies have an average index of 59, medium-sized companies 55, and small businesses 41, confirming the importance of scale in digital development.


## Digitalization Acceleration and Investment Trends

Since the start of the full-scale war, 63% of surveyed companies have accelerated digitalization.99% of companies have included digital transformation in their long-term strategies.88% of companies, particularly large and medium-sized businesses, name cost optimization as the key driver of digital transformation.Small enterprises focus on creating conditions for effective remote work.Most companies invest 1-5% of their annual revenue in digitalization, while food industry, telecom, and financial sector companies often allocate over 20%.


## Technology Adoption

Cloud storage is the most widely used technology, with 94% of companies investing in it.AI adoption remains low, with only 38.2% of companies currently investing in artificial intelligence.However, 91% of manufacturing companies and 97% of service companies plan to implement AI and machine learning in the future.One in three companies plans to implement robotics, 3D printing, AR/VR/XR, and IoT.


## Research Methodology

Between August and November 2024, 203 Ukrainian companies from 11 economic sectors participated in the study. Based on survey analysis, a shortlist of 68 companies was selected, including 51.5% service companies and 48.5% manufacturing firms.