• Britain lags behind Germany when it comes to “digital health”, report claims
  • Smaller businesses tend to rank less favorably, Zoho finds
  • Those who focus on AI are considered ‘healthier’

Although an increase of nine percentage points has been observed compared with the previous year, still only 28% of UK businesses reported good “digital health” in 2024, new research has claimed.

Moreover, more than one in three reported average digital health (36%), and another third had poor digital health (36%), a report from Zoho found, claiming larger businesses seemed more prepared than smaller businesses.

Zoho revealed 40% of large businesses had good digital health, compared with 27% of medium businesses and just 18% of small businesses. However, while Britain was outpaced by Germany, with an average score of 33%, other European countries like Spain (27%), France (20%) and the Netherlands (19%) lagged way behind.

Small European businesses don’t have great digital health

The report explored the correlation between good digital health and attitudes – it found that businesses with good digital health were more likely to see artificial intelligence as critical (46%) compared with average (24%) and poor (65%) health businesses.

More than half (54%) of the British businesses analyzed plans to invest heavily in artificial intelligence.

However, Britain’s digital transformation is still underway, with one in three operating at least half of their operations digitally and a further one in four running the majority of their operations digitally.

Customer experience, efficiency, and improved employee experience were all highlighted as key focus areas for digitization in the year ahead.

“Good digital health is a critical foundation in order to realize ROI from investment in digital tools and technology,” noted Zoho UK Managing Director Sachin Agrawal.

Agrawal added vendors should, “take a long-term view in their relationship with customers” to help them deploy tools, educate users, and drive adoption more effectively, thus increasing their ROI.

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