Quantum
technologies:
How to prepare your organization
for a quantum advantage nowINTRODUCTION
Quantum technologies can manipulate electrons, photons,
and atoms to solve problems previously thought insolvable– and to open up exciting new opportunities. Quantum evenenables us to work with counterintuitive principles such as
superposition (the ability of a particle to be in two or morestates simultaneously) and entanglement (the theory thatchanging the state of one particle can influence the behaviorof another, at distance).
Quantum technologies promise exponential speed-up
vis-à-vis the best available supercomputers, tap-proof
communications, and ultra-precise and fast measurements– a phenomenon commonly known as the ‘quantum
advantage’ – over classical systems that are in use today.
Such technologies can bring a huge shift in the way in whichbusinesses solve problems around optimization, mechanicalsimulation, and machine learning. Quantum can bring greater
efficiencies than current technologies in risk management,
cybersecurity, logistics, scheduling operations, discovery oflightweight materials or new drugs, and addressing climatechange, among other areas.
Quantum technologies are still at an early stage –organizations are still exploring proofs of principle andconcept. Most problems solvable using current quantum
computers, for example, can also be solved more quickly
and cost-effectively using conventional computers. Classicalapproaches will continue in the foreseeable future, quantum
technologies will mostly be used alongside. Nevertheless, inrecent years, research advances have accelerated, and thetechnology has started to move out of lab environments andinto real-world applications.

2

Quantum technologies: How to prepare your organization for a quantum advantage nowOrganizations are creating ecosystems in which they cancollaborate and experiment to broaden their understandingof quantum technologies, and how they can be used intheir own particular contexts. For example, Airbus has been
exploring the applications of quantum technologies for atleast five years, such as by identifying complex problems
in its aircraft manufacturing processes, developing securecommunications for aerospace platforms, or working on
space-based gravimeters.1 In 2018, it set up a quantum
technology applications center to work on a set of problems
in the field.2 It collaborated with experts around the world tosolve five problems around flight-physics through quantum
computing, in a Quantum Challenge in 2019.3 Two years
later, it acquired a stake in quantum sensing startup, Q-Ctrl.4
Similarly, several large organizations have moved intodevelopment of quantum technology use cases in selectedareas:• JP Morgan used a hybrid classical-quantum approach todetermine the optimum portfolio of financial assets, which
it claims can be scaled to work with portfolios of any size.5• Volkswagen Group demonstrated the first real-timetraffic-routing system based on quantum computing, tominimize wait and travel times. 6

Although there is a significant hype surrounding quantum
technologies, recent breakthroughs suggest that it will reachproduction stage in the next few years. Some quantum
technologies are already being tested/piloted.
This research aims to answer the following questions:1.

Should businesses invest in quantum technologies now?

2. What opportunities are available in quantum computing,communications, and sensing, for organizations?
3. How can organizations identify potential quantum
advantage?
To bring an implementation perspective, we surveyed
200 executives at global organizations who are either
already working with, or planning to work with, quantum
technologies (out of 857 organizations in total). Moreover, we
conducted detailed interviews with more than 30 industry
executives, researchers, academics, ecosystem experts, andventure capitalists in this field. The research also considers
classical technologies that simulate the behavior of quantum
particles. Quantum technologies will continue to have aclassical component for the next many years.

• Pharma major GSK is exploring how quantum optimization
approaches would potentially scale in future, in area of
drug development.7• Korea Gas Corp. is testing a quantum sensing-based
gas-safety system. Compared to the widely used infraredsystem, it promises to detect leaks from significantly
further away and identify leaks with a lower concentrationof gas.83

EXECUTIVE SUMMARY –KEY TAKEAWAYSA HANDFUL OF ORGANIZATIONSHAVE REACHED EARLYIMPLEMENTATION STAGE

QUANTUM COMPUTING IS ONLY
5–10 YEARS FROM POWERINGCOMMERCIAL APPLICATIONS

Overall, 23% of organizations stated that they are either
working with, or are planning to work with, quantum
technologies. However, many are yet to reach testing/piloting stage. Nevertheless, investment is rising and 43% oforganizations working on quantum technologies expect them
to become available for use in at least one major commercial
application within the next 3–5 years.

Organizations that have launched successful proofs ofconcept (PoCs) are more optimistic about achieving quantum
advantage: for quantum computing, 20% of them believethat this goal is less than five years away, compared to 13%
overall. The pace of development has accelerated, driven by
investor interest, expanding use cases, and breakthroughs intechnology frontiers. Improvements in quantum hardware,algorithms, and techniques could provide significant
speed-up over classical technology models.

ORGANIZATIONS CONDUCTING
EXPERIMENTS ARE TARGETINGHUGE PAYOFFS IN TERMS OF
TRANSFORMATIVE IMPACT
Companies moving early into quantum will benefit fromgreater process efficiencies and enhanced security. Sevenin ten organizations in our survey agreed that due tolong product-development cycles, they need to integratequantum technologies into their processes now, to avoid
missing out. Early-mover industries include energy, chemicals,
automotive, aerospace, life sciences, and banking. The
amount of investment needed to gain a foothold in quantum
technology is relatively small, for large enterprises (with morethan $1 billion of annual revenues).

QUANTUM-SECURE INFORMATIONSOLUTIONS ARE ALREADY AVAILABLE
Quantum communication provides unbreakable encryption.
Quantum-secure information solutions are alreadycommercially available on a limited scale. Infrastructure andsoftware providers, startups, government bodies, standardsetting organizations, and end-user organizations are coming
together to form a thriving quantum communications
ecosystem.
• 58% of organizations are waiting for standards to emerge
before prioritizing quantum-safe security. However,organizations can start with protecting sensitive andcritical information using demonstrated techniques ofquantum encryption.

43%of organizations working on quantum technologies expect them to become
available for use in at least one major commercial application within the next
3–5 years

4

Quantum technologies: How to prepare your organization for a quantum advantage nowQUANTUM SENSING HAS NOVELAPPLICATIONS WHICH CANPROVE REVOLUTIONARY FOR
SOME INDUSTRIESOf late, many quantum sensors are emerging from lab
environments to industrial applications. Although quantum
sensing is niche, quantum sensors can play a transformativerole in: 1) prospecting or surveying land or water in mining,
construction, telecom, defense; 2) GPS-free navigation inaerospace, automotive, and defense; 3) biomedical imaging;and 4) industrial process control and safety.

HOW CAN YOUR ORGANIZATIONPREPARE FOR THE
QUANTUM ADVANTAGE?
We recommend a five-step approach to harness quantum
advantage as soon as it arrives:• Assess whether investing in quantum technologies makes
sense for your business. For example, quantum computing
is advantageous for specific categories of problems; it isprudent to explore them only if those problems are part ofthe organization’s business challenges.
• Build a small team of experts. Ideally, this team isorganized centrally with a lead researcher reporting to theorganization’s head of R&D or innovation.
• Translate the most potent use cases to small-scalequantum experiments. It will help assess whether there isa potential of quantum advantage to be gained, as well as
test the capabilities of your teams.
• Strike long-term partnerships with technology
providers to tide over technical obstacles. Around a thirdof organizations prefer setting up innovation centers inpartnership with IT services/software/hardware companies
with expertise in the field.
• Develop a long-term strategy to scale up the talentand skill base. As quantum programs with greater scopeand scale start to be implemented, plan for developing
appropriate skills in-house.

5

DEFININGQUANTUM TECHNOLOGIESThis research focuses on three broad quantum technologies: Quantum computing, Quantum communication and security,
and Quantum sensing. By ‘traditional’ or ‘classical’ computing, we mean computing systems currently in use that do not harness
quantum properties.

Quantum computing
Use of quantum properties to perform computations. The most basic unit of quantum computation iscalled a qubit. Qubits can acquire any value between 0 and 1 at the same time. Quantum computing, insome cases, provides an exponential speed-up in computing power.

Individual qubits
represent many
possible states
simultaneously…

What is it
and how
does it work?

…making it
possible to carryout complex
calculations inparallel…

This allows writing
quantum algorithms
which can run orders ofmagnitude faster, saving
computing resources…

…while also enabling
solution or simpliﬁcationof problems that are
diﬃcult for classicalcomputers, e.g.,
Drug discovery in life
sciences
Derivatives pricing
in ﬁnancial services

QubitsQuantum
Processor

Quantum
algorithms
delivering a
speed-up

Design or supply
chain optimization,
production schedulingacross various
manufacturingindustries

Current state• Quantum computers solve ‘toy’ problems that are representative of real-world problems• Organizations are identifying the right problems to solve with quantum computers andexperimenting with potential use cases, which can be scaled up once error-free quantum computerswith large-enough number of qubits are available.

Key
opportunities• Solving problems requiring complex optimization, simulation, or machine learning.

Key
challenges

6• Current quantum computers have outputs that are ‘noisy’ (i.e. have high error rates).
• They require speciﬁc conditions (e.g. superconducting qubits require ultra-cold temperatures inwhich to operate eﬃciently).
• At-scale applications require thousands of qubits while current quantum computers provide a
fraction of that.

Quantum technologies: How to prepare your organization for a quantum advantage nowQuantum communication and security
Transmitting and controlling information using the laws of quantum mechanics i.e. by using qubits as
opposed to bits. Quantum security involves securing information transfer using quantum theory.
Quantum-key distribution (QKD) is a key distribution protocol to generate “quantum” keys that can beused for secure information exchange over a classical channel with classical cryptography techniques.
The keys are distributed using rules of quantum mechanics where any act of listening in leaves adetectable sign of snooping.

What is it andhow does itwork?

1. Alice and Bob generate and sharequantum keys using QKD
2. Alice then encrypts her message using
this quantum key and any classicalencryption algorithm

3. Only Bob, who has access to quantum
keys, can access this message.
4. When used in a provably secure encryption
like one time pad, the quantum keys
guarantee that the message cannot
be hacked.
HackerAlice

Quantum-securecommunication link

Bob

Current state• The quantum communication network, albeit simplistic (mostly point-to-point or requiring
non-quantum, lower security interfaces like “trusted nodes”), is already a reality.
• Dutch network operator KPN recently demonstrated a QKD system, in which multiple users canconnect to a central node and securely exchange information.9

Key
opportunities• Secure communication and networking.
• Secure data transfer that is critical to conﬁdential computing, data storage, and sharing.

Key
challenges• Transmitting quantum information securely over long distances.

7

Quantum sensing
Use of quantum properties or phenomena to measure a physical quantity with high precision

Using quantum
eﬀects to measure:

What is it andhow does it
work?

TimingAcceleration and rotation

Gravitation

Electric or magnetic ﬁeld

Quantum sensors provide unprecedented precision in measurement. These sensors are alreadydeployed in areas such as biomedical imaging, timing synchronization of satellites, and detection of gas
leakages.

Current stateKey
opportunities• There are many diﬀerent quantum sensing methods, and they have diverse technology readinesslevels and application areas.
• Recently, many quantum sensors have emerged from lab environments to be used in industrial
applications.
• Measuring electric and magnetic ﬁelds accurately.
• Measuring physical quantities against atomic properties.
• Areas where current technologies are diﬃcult to deploy, such as navigation in complex terrain(underground/underwater).
Over the long term, development in quantum sensing could advance GPS-free navigation forautonomous vehicles and early-warning systems for natural disasters, understanding of neurologicaldiseases, etc.

Keychallenges

8• Uneconomical trade-oﬀs in cost vs improvements in performance.

Quantum technologies: How to prepare your organization for a quantum advantage now

Any company that does not start this journey today is
a company that is at severe risk of losing any sort ofmeaningful position within its industry in the next
5–10 years,”André König

Managing Partner
Entanglement Capital

9

01
ALTHOUGH THE TECHNOLOGY IS
NASCENT, ITS IMPACT COULD
BE TRANSFORMATIVE
Many key quantum technologies are still in their infancy.
Some projects have reached proof-of-concept stage, buttangible, real-world advantages over existing technologies
remain elusive. However, quantum’s impact can be broad
and transformative. Across industries, the use cases abound,
ranging from optimization to machine learning, simulation,
precision sensing, and security. For businesses, thistranslates into greater speed, instant results, more precise
measurement, and more secure communications.
Gaining a foothold in this transformative technology, then,is important to achieving competitive advantage over peers.
Conversely, there is no reward in waiting for the technology
to emerge before investing. Organizations, that are at
implementation, state that there is a lead time of at least two
years in identifying the right problems to solve, learning how
to use the technology to solve them, and building a talentbase to implement it. Most organizations are already working
towards becoming ‘quantum-ready’ – having the resources
and processes in place to test and align quantum technology
for use in their unique environments. Additionally they arecommitting greater resources - as per our research, 20% of
all organizations and 85% of the ones working or planningto work with quantum expect to increase investments in thetechnology in the next year.

WHY INVEST
IN QUANTUM?
According to Nadia Haider, Lead Applied Electromagnetic
Scientist at Netherlands-based QuTech, an institute forquantum computing and quantum internet, founded by TNO,an applied scientific research organization, and TU Delft
University, “Now we are able to control quantum systems muchbetter, we can use entanglement or superposition. Our ability
to really work with this technology has exponentially increased.
There is more trust that this is not only useful for fundamental
research, but we can bring it to real applications.”

ADVANCES IN QUANTUMTECHNOLOGIES ARE GATHERINGPACE AND EARLY APPLICATIONS ARE
EXPECTED WITHIN THE NEXT
FIVE YEARSQuantum technologies have gained mainstream
industrial attention:• In China, the world’s first integrated quantum
communication network was established in 2021,
combining ground optical fibers with two ground-tosatellite links to achieve quantum key distribution (QKD)
over 4,600 kilometers. It can serve banks, municipal power
grids, and e-government websites.10• A Goldman Sachs prediction from 2021 states thatquantum computing could begin to yield quantum
advantage on practical financial applications within thenext five years.11

23%
of organizations are either working or planning to work on quantum technologies.

10

Quantum technologies: How to prepare your organization for a quantum advantage now

US AND CHINA LEAD IN PUBLICATIONS RELATED TO QUANTUM TECHNOLOGY
The race to advance quantum technologies is heating up. US, China, and European countries have announced significant
public funding in the technologies. They also lead in the number of publications in the field. Among the top five countries inpublications (from 2010 to 2020) on quantum technologies, US and China lead, while UK and Germany follow each other closely.

Figure 1. US has led in publication of research papers on quantum technologies during 2010-2020
Quantum publications by country (2010-2020)
Others
26%

Japan

26%

US

7%
9%

23%
9%

Germany

China

UK

Source: Harvard Kennedy School, Belfer Center for Science and International Affairs, “The Great Tech Rivalry: China vs the U.S.,”
December 2021. Numbers have been rounded.
The countries also differ in terms of focus: US is strong in quantum computing, while China leads in quantum communications.12
The UK’s quantum technology program has a strong focus on quantum sensing technologies.13

Our ability to really work with this technology has
exponentially increased. There is more trust that this is not
only useful for fundamental research, but we can bring it toreal applications.”

Nadia Haider

Lead Applied Electromagnetic Scientist
QuTech11

Figure 2. Likely evolution of quantum technologies/key use cases

Quantum simulation –chemistry

Quantum navigation

Quantum simulation –material science

Quantum-safe
networks
Quantum key
distribution

Fault-tolerant
quantum computing

Quantum imaging

Quantum annealing
Quantum internet

NISQ era computing
Quantumtechnologies

Quantum machinelearning

Atomic clocks
Available for use

Emerging

On the horizon

Evolution timeline
Quantum computing

Quantum communications

Quantum sensing

Source: Capgemini Research Institute analysis.
Definitions of stages:
Available for use: Ready to be deployed in a limited way to at least one commercial application.
Emerging: several proofs of concept developed, but not ready for commercial deployment.
On the horizon: At proof-of-principle stage; requires several technical breakthroughs to advance to the next stage.
For definitions of terms used, refer to the Appendix.

4%of all surveyed organizations are already early movers in quantum technologies conducting experiments and pilots, and achieving early results

12

Quantum technologies: How to prepare your organization for a quantum advantage now

ORGANIZATIONS REACHING IMPLEMENTATION STAGES HAVE BEEN WORKING ON
QUANTUM TECHNOLOGIES FOR MORE THAN TWO YEARSOverall, 23% of organizations are either working or planning to work on quantum technologies. Of these, many are yet to reachthe testing/piloting stage.

Figure 3. 23% of organizations are experimenting or planning to experiment with quantum technologies
Is your organization working on or planning to use quantum technologies?
Don't know/Can't say
11%
23%

Yes

66%
No
Source: Capgemini Research Institute Quantum Technologies Survey, N=857 organizations, November–December 2021.
“China and the Netherlands have the largest share of companies working on or planning to work on quantum technologies, wellahead of Germany and the UK”

Figure 4. Most quantum technology adopters come from China and the Netherlands
Quantum technology adoption by country(% indicate share of organizations working or planning to work with quantum technologies)
Netherlands
(42%)
UK
(26%)

Germany
(26%)

US
(22%)

France
(23%)

Spain
(14%)

China
(43%)

Italy
(15%)
India
(21%)

South Korea
(14%)
Japan
(19%)

Source: Capgemini Research Institute Quantum Technologies Survey, N=857 organizations, November–December 2021.

13

Figure 5. Quantum technology adopters by sector(% of organizations who are working or planning to work on the technology)

Telecom and Public sector(defense, space tech, other)

41%

36%

Aerospace and Automotive

30%

Life sciences

24%

Energy and Chemicals

22%

Banking and Insurance

Source: Capgemini Research Institute Quantum Technologies Survey, N=857 organizations, November–December 2021.

As Figure 6 shows, 6% of organizations (within the 23% oforganizations who are planning or working on quantum
technologies) have reached initial implementation stages.
Seventy-two percent of these organizations have beenworking on this tech for two or more years. This implies
that even to reach implementation, companies need toinvest time in building a base (the right skills, identifying
problems/use cases, conducting lab experiments, or striking
partnerships). Once these technologies are mature enough,there is likely to be strong competition for skills or resources.
The companies that already have these in place are likely
to gain significant advantage over their peers. As Gopal
Karemore, Principal Data Scientist at a Denmark-based

14

multinational pharma company, suggests,“Some businesses
think that the technology is not mature right now, [so] why
should we invest? But what if the technology is successful in the
future and all your competitors started the journey long beforeyou? All the low-hanging fruits are gone.”
Additionally, 13% of organizations (within the 23% sample)
are conducting experiments with the technology. Taken
together, 19% of organizations who are planning or working
on quantum technologies are ‘early movers’ into quantum
technology. Effectively, early movers constitute 4% of thetotal sample of organizations.

Quantum technologies: How to prepare your organization for a quantum advantage now

Figure 6. 6% of organizations have launched limited-scale pilots or have early promising results fromquantum technologies
State of quantum technology implementation(for organizations who are working or planning to work on the technology)

Implementers

We have promising early results fromexperimentation with Quantum Technologies

3%

We have launched limited-scale pilots/
proofs-of-concept on Quantum Technologies

3%

We have integrated Quantum Technologies
within our tech/R&D agenda/roadmap andare now conducting experiments

Planners

Beginners

We have identiﬁed the right problems andare now integrating Quantum Technologies
within our tech/R&D agenda/roadmap

13%

23%

We are identifying the most appropriate
problems to solve with Quantum Technologies

30%

We have started research to understand thefundamentals of Quantum Technologies

30%

Source: Capgemini Research Institute survey, N=200 organizations working or planning to work on quantum technologies;
numbers may not total 100% due to rounding.

15

ENERGY AND CHEMICALS,AEROSPACE, AND LIFE SCIENCES LEAD
IN QUANTUM IMPLEMENTATION
sensing and mitigating harmful industrial gases. Similarly,
life sciences companies are trying to shorten the drugdevelopment cycle using quantum computing.

In energy and chemicals, it has become a common cause
to improve sustainability. Popular use cases range fromdiscovery of new materials for battery manufacturing, toFigure 7. One in five energy, chemicals, and life sciences organizations are implementers - launching experiments,
pilots, and achieving early results
State of quantum technology implementation by industry(for organizations that are working or planning to work on the technology)

Energy and chemicals

55%

25%

20%

Life sciences

58%

22%

20%

Aerospace and automotive

63%

Banking and insurance

56%

Telecom and public sector

67%

Beginners

20%

27%

17%

20%

Planners

17%

13%

Implementers

Source: Capgemini Research Institute survey, N=200 organizations working or planning to work on quantum technologies
Note: The data points are directional in nature. The definitions of implementers, planners, and beginners follows from Figure 6.

16

Quantum technologies: How to prepare your organization for a quantum advantage nowFOUR AREAS WHERE QUANTUM TECHNOLOGIES CAN BOOST SUSTAINABILITY
Quantum computers can be used to develop and evaluate the technologies that we need to get to net-zero emissions. Figure 8
shows four key areas where quantum technologies can help in improving environmental sustainability. For example, electricity
production accounts for 25%14 of greenhouse gas emissions. Quantum computing can help through simulations of novel
photovoltaic materials that either improve the efficiency or reduce the costs of manufacturing solar panels.
Similarly, manufacturing accounts for nearly 21%15 of total emissions. A way to curb its environmental impact is to make stronger
concrete using quantum simulations to find the right combination of polymers.

Figure 8. Four key areas where quantum technologies can help cut carbon emissions.
Share of carbon emissions contributed by respective sector
and how quantum technologies can mitigate thoseGreen agriculture• More eﬃcient fertilizer production• High-yielding crops throughplant genome simulation

Clean manufacturing• Stronger concrete• Hydrogen-powered steel
production• More eﬃcient supply chains

24%

25%

21%

14%
16%

Clean electricity• More eﬃcient solar panels• Eﬃcient energy grids• Development of
next-generation nuclear power

Green mobility• More eﬃcient electric vehicles• Hydrogen-powered heavy transport

Others
Source: Capgemini Research Institute analysis; US Environment Protection Agency (EPA).
Quantum computing can directly be applied to optimize energy usage within an organization. Although still uncertain,
computing on quantum systems can reduce the overall energy consumption compared with getting the same output fromclassical systems. Quantum computers can process complex computation more easily but, in some cases, it also requires
specialized cooling equipment to maintain quantum states. As quantum computing scales, it is expected that the requirement ofcooling equipment will not scale linearly, saving energy intensive compute resources.

We also found a step-change in perceptions of quantum
technologies. In the last year, organizations working on
quantum technologies have observed improved awareness,understanding, and support for the technologies within theirentities. Compared to the previous year:• 60% said they had a more nuanced understanding ofquantum technology• 58% had secured C-level support for quantum initiatives• 51% stated that they were more aware of the potential ofquantum technology.
Companies have also expressed more optimism about
quantum technologies reaching implementation stage:around 10% of organizations expect quantum technology to
become available for use in at least one major commercial
application in their business within the next three years.

17Figure 9. 10% of organizations expect quantum technology to become available for use in at least one majorcommercial application in 1–3 years.
By when will quantum technology be commercialized in your business?
77%

10%

6%

2%

Already available
for at least one
major application2%

1–3 years

3–5 years1%

5–10 years

More than 10 years

2%

Can't say/Don't know

No plans to workon quantum
technologies

Source: Capgemini Research Institute survey, N=857 organizations, including 77% of those which are neither working norplanning to work on quantum technologies.

IMPLEMENTERS ARE LIKELY TO MAKECONSIDERABLE GAINS WITHMINIMAL INVESTMENT
For large enterprises, investment needed to build a quantum
lab are relatively small. For several of the experts that we
spoke to across sectors, the overall set-up cost was lessthan $5 million. Assuming IT spend to be around 2%16 ofrevenue for organizations with revenue over $20 billion, thisrepresents a small proportion. Organizations can dedicate
a few members from their existing innovation labs to add
new skills (e.g. quantum physicists to set up a lab). Access toquantum hardware can be run like cloud on a pay-per-use or
per-unit-of-time basis.

18

Seven in ten organizations in our survey agreed that, due tolong product development cycles in their businesses, theyneed to integrate quantum technologies into their processes
now. Some early mover industries include life sciences,chemicals, energy, automotive, aerospace and defense.
Venture capital investments are pouring in too. By November
2021, quantum technologies had attracted $3 billion ofprivate funding, compared with an aggregate of $5 billion
since 2002.17 “Any company that does not start this journey today
is a company that is at severe risk of losing any sort of meaningful
position within its industry in the next 5–10 years,” according toAndré König, Managing Partner at Entanglement Capital,a venture capital firm focused on quantum technologies.

Quantum technologies: How to prepare your organization for a quantum advantage now

Some businesses think that the technology is notmature right now, [so] why should we invest? But what
if the technology is successful in the future and all yourcompetitors started the journey long before you? All the
low-hanging fruits are gone.”

Gopal Karemore

Principal Data Scientist
Denmark-based multinational pharma company

19

02
2-

QUANTUM
COMPUTING

THE QUANTUM TECHNOLOGYWITH THE GREATEST POTENTIAL
IS LESS THAN 10 YEARS AWAY
FROM POWERING COMMERCIALAPPLICATIONS

Quantum computing has the highest potential of all quantum
fields but it is also the least mature. On average, respondents
to our survey believe that the first commercial quantum
computing applications are five years away (see Figure10). Early-mover organizations are more optimistic about
achieving commercialization and quantum advantage: 20%
believe that it is less than five years away, compared to 13%
overall. In other words, those closest to the action show mostconviction.

Figure 10. 20% of early movers and 13% of all organizations expect quantum computing to become available for use
in at least one major commercial application in less than five years
By when will quantum computing be commercialized in our business?

23%

1%

1% 0%

Already available
for at least one
major application

6%

11%

6%

1-3 years

7%

8%

7%

3-5 years

Overall4%

Working/planning to workon quantum technologies

1%

5%

3%

More than 10 years

5-10 years

Early movers

0% 3%

2%

3%

Can't say/Don't know

The rest

Source: Capgemini Research Institute survey, N=857 organizations, including 77% of those that are neither working norplanning to work on quantum technologies.

20

Quantum technologies: How to prepare your organization for a quantum advantage now2%Development has accelerated, driven by investor interest,
expanding use cases, and technology breakthroughs.
Improvement in quantum hardware, algorithms, andtechniques is boosting progress.
Peter Bordow, SVP & principal architect for Advanced
Technology & head of Quantum and Emerging
Technology Research & Development at Wells Fargo
says it’s appropriate to be cautiously optimistic aboutdevelopments in quantum computing: “It can take quite a
bit of time for advances and breakthroughs in the laboratory
to reach commercialization or production. So, you have to bediligent about your research and what your expectations are. Yet,
I’m hopeful that quantum advantage in some use cases, such asmodeling complex systems, financial portfolio optimization, anddrug development, looks promising in the next three tofive years.”

QUANTUM COMPUTING HAS THE
POTENTIAL TO SOLVE COMPLEX
BUSINESS PROBLEMS
The principal reason for optimism is the broad applicability
to problems in business. While quantum has long been used
to test ‘toy’ problems that demonstrate the precision ofquantum simulation, these have a lot in common with a rangeof real-world business problems across industry verticals(see below).

Source: IBM.

21

WHICH PROBLEMS ARE RIPE FOR A QUANTUM ADVANTAGE?
There are several problem categories that are complex even for today’s high performance computers – aggregation ofcomputing power to perform calculations at high speed. These problems have mathematical equivalents more suited forquantum computers, as they can perform multiple calculations in parallel (see Figure 11).

Figure 11. Key high complexity problems suited for quantum computers
Problem type/domain

Business/industrial applications

Travelling salesman problem: Given a list of cities anddistance between them, what is the shortest possible routethat visits each city once and returns to the origin?

Supply chain optimization, distribution androuting, circuit design, production scheduling,ﬂeet management and insurance, telecom andelectrical network optimization

Knapsack problem or bin packing problem: Filling aknapsack in an optimal way with a given set of weights andassociated values, so that the total weight is less than orequal to a limit and total value is as large as possible.

Cargo loading optimization for trucks orcontainers, last-mile delivery, portfolio optimization, lot sizing, design optimization

Molecular simulation and protein folding: How to simulate
the behavior and interaction of molecules in chemical
reactions? How a protein’s amino acid sequence dictates its
3-D structure?

Drug discovery, EV battery development, newmaterial development, carbon capture,
studying chemical reactions and behavior ofsuperconducting materials for medical scanners

Integer factoring or prime factorization: How todecompose a large number into a product of smaller
integers/primes?

Cryptography, digital signatures, computing
Fast Fourier Transforms (FFT) which are used in
MRI, music, astronomy, and robotics

Source: Capgemini Research Institute analysis.
Quantum Machine Learning is also a significant area for problems involving classification, convolutional neural networks,
generative adversarial networks, etc. and can be used for generating synthetic datasets for training, say, autonomous vehicles.
Computational complexity theory classifies various problem types into the exact boundaries of these various classes ofproblems are still discussed and debated among mathematicians and computer scientists. As new algorithms to solve complex
problems continue to emerge, our understanding of quantum advantage will evolve as well.

22

Quantum technologies: How to prepare your organization for a quantum advantage nowWe realized that there were, let’s say, lower-hanging fruits
around quantum simulation for materials – to help us
discover materials to capture and convert CO2 efficiently.
And, secondly, we looked at optimization problems in oursystems, operations, mobility, and offshore wind farms”

Philippe Cordier

Research Program Director, Scientific Computing,
Data Science & AI
Total Energies

As the market environment becomes increasingly dynamic,
problems will become more computationally intensive (i.e.
harder to solve). Consider pricing of complex derivatives. As
the market evolves towards more complex products, theestimation of these products is dependent on more criteria
and is getting further and further away from the calculation
capacities of current high performance computers.
Philippe Cordier, Research Program Director – Scientific
Computing, Data Science & AI at Total Energies, explains
the problems they’re looking to tackle with quantum
computing: “We realized that there were, let’s say, lowerhanging fruits around quantum simulation for materials – to help
us discover materials to capture and convert CO2 efficiently. And,secondly, we looked at optimization problems in our systems,
operations, mobility, and offshore wind farms.”

BANKING AND LIFE SCIENCES
ORGANIZATIONS HAVE STARTEDPILOTING KEY USE CASES
Solutions to the above problems translate into a wide variety
of use cases in business, involving combinatorial optimization(routing, scheduling, etc.) and simulation. As a result, scoresof use cases across industries have been identified and manyare being tested. (See Figure 12)

Joydip Ghosh, Quantum Computing Project Lead at
Ford Research & Advanced Engineering told us about
the variety of problems they have tried to tackle withquantum computing: “We have been experimenting withsolving optimization problems such as vehicle route optimizationand classification using quantum machine learning. Quantum
speed-up has big potential in these areas for the
automotive industry.”23

Figure 12. Leading quantum computing use cases being tested, by industry

Automotive

Leading
quantum
computing use
cases being
trialled, by
industryTraﬃc ﬂow
management
Car design
optimization

Aerospace

Chemicals

Air traﬃc control

Modelling andoptimization ofchemical
reactions

Airplane design
optimization

Crash simulation

Optimize ﬂeet,crew, fuel, etc.

Battery
manufacturing

Cargo loading
optimization

Industrial
eﬃciency

Supply chain
optimization

Battery
manufacturing
Molecular
simulation anddiscovery

Financial Services
Risk
management

Biological target
identiﬁcation

Dynamic
portfolio
management

Compound lead
identiﬁcationand optimization

Derivatives
pricing

Drug target
interactions

Fraud detection

Diseasediagnosis
Clinical trial
optimization

Supply chain
optimization
Manufacturing
use cases acrossverticals

Potential
beneﬁts

Life Sciences

New materials
discovery

PlantschedulingEﬃcient car
manufacturing
and sales, Better
materials design,
entry into new
mobility markets

Eﬃcient aircraft
manufacturing
and logistics

Production
process
optimization
Entry into newmarkets throughnovel materials;
eﬃcient
production

Supply chain
optimization

Predictive
maintenanceBetterunderstandingof risk
exposures,
superior
portfolio
returns, low riskof fraud

Faster drug
launches,eﬃcient drug
development,
higher return on
capital, entry
into newmarkets

Source: Capgemini Research Institute interviews and secondary research.

Naturally, the industries that are likely to generate atransformative impact are also the ones that have been
active in the field of quantum computing. We believe thefollowing three industries are best-suited to the high-impact,
high-adoption category (see Figure 13):
Financial services – Where a large number of optimization
opportunities exist, such as using a Monte Carlo simulation(used in pricing derivatives and evaluating risk that is complex
and computationally intensive for risk evaluation, financial
planning, derivatives pricing, etc.). Monte Carlo simulation
provides a range of possible outcomes and attachedprobabilities to each outcome for an action.
“Because of the volume of data a quantum computer canmanipulate, [a volume] not possible with the classical computer,this could bring better-quality results as we can manipulate moredata to get a precise outcome, meaning reduced risk or better
pricing to clients. Secondly, we expect faster answers, allowing us
to adapt our strategy more quickly,” according to Eric Mely, IT
project director and Quantum community leader atSociété Générale.

24• Life Sciences – Where there is high failure rate ofmolecules reaching late-stage development.
High-potential use cases include accurate simulation of
drug molecules and their interaction with biological targets,
optimizing the design and development of new molecules,
and optimizing the screening of target molecules for
drug development.
“In the case of small molecule therapeutics design, there are1060 chemicals that can be synthesized as a potential drugcandidate. Also, in the biologics therapeutics design, there
are D to the power of K design solutions, D being amino acidsequence identity, and K being designable sequence position.
This computational drug design involves an astronomically large
search space beyond traditional classical computers’ capacity.
Quantum computing can help select contenders for pharmaAPIs, which is potentially useful in the further stages of drug
development. I think the design of experiment (DoE) and lead
optimization is going to be the most important beneficiaryof quantum computing in the process of drug development,”

Quantum technologies: How to prepare your organization for a quantum advantage now

suggests Gopal Karemore from a Denmark-based
multinational pharma company.

• Manufacturing (across verticals) – Which offers
substantial scope of bringing efficiencies in plant
operations, supply chain, and materials research.

Figure 13. Top sectors with high potential applications of quantum computing

Financial Services

Life Sciences

Manufacturing/ Automotive
DaimlerGoldman Sachs

Toray Industries

Problem statement

Complex calculations neededfor Monte Carlo simulation are
typically executed only once,
which means that, in volatile
markets, traders are forced touse outdated results.

During drug discovery, theprocess of lead identiﬁcation –which involves identifying themolecule which can mitigate
infection – takes almost two
years and has a high riskof failure.

Quantum speed-up
or advantage

Quantum algorithms canperform Monte Carlosimulations 1,000x fasterthan classical methods.

Using combinatorial
optimization, quantum
computing can help compress
the time to identify the leadmolecule to about eight weeks

Quantum simulation will help
design the next generation ofbatteries as they have thepotential to precisely simulate
the fundamental behavior ofmolecules

Solution approach

Goldman Sachs applied ashallow Monte Carlo algorithm
that’s 100x faster than classicalmethods, and could be used ona machine likely to be available
in the next 5–10 years

Toray Industries used
quantum-inspired digital
annealers to more precisely
identify drug leads for further
development, reducing
failure rates.

Daimler used quantum
computing to researchnext-generation lithium sulfur(Li-S) batteries, which are
expected to be more
powerful, longer lasting, andcheaper than widely usedlithium-ion batteries.

Electric vehicles (EVs) face
limitations due to the relatively
low capacity and charge speedof their batteries

Source: Tudor Giurgica-Tiron et al, “Low depth algorithms for quantum amplitude estimation,” December 2020. Fujitsu,“Disrupting and accelerating drug discovery for faster and more accurate lead identification,” 2021. IBM website, “IBM and
Daimler use quantum computer to develop next-gen batteries,” January 8, 2020.

Because of the volume of data a quantum computer canmanipulate, [a volume] not possible with the classicalcomputer, this could bring better-quality results as we canmanipulate more data to get a precise outcome, meaning
reduced risk or better pricing to clients. Secondly, we expect
faster answers, allowing us to adapt our strategy
more quickly”

Eric Mely

IT project director and Quantum community leader
Société Générale.
25

HARDWARE AND ALGORITHMIC
LIMITATIONS ARE EASING
Recent advances in relation to the major practical limitations(decoherence, error-correction, or low qubit count) on
quantum computing are promising. Below are two examplesof recent breakthroughs related to these limitations:• Decoherence: Due to unwanted interaction of qubits
with their environment, the quantum state collapses.
To mitigate this, in February 2022, researchers at theMassachusetts Institute of Technology (MIT) were able tomaintain qubits in the quantum state for 10 seconds, up
from a few microseconds or milliseconds.18• Error-correction: Adding more qubits increases the error
rate of output. To tackle this, in July 2021, Honeywelldemonstrated the ability to detect and correct the two
types of errors found in quantum computers, in real-time.19
These limitations are all interrelated. For example, achallenge in error correction is that it requires more qubits,
but currently qubit count is also limited. Furthermore, thetopology of qubits (how qubits are organized and interact
with each other) plays an important role. Quantum volume(QV), a holistic metric that includes not only the qubit
count and quality, but also topology, is used to evaluate
the capability of quantum computers. In December 2021,
Honeywell reported a QV of 2,048 on its quantum computers,
a 16-fold increase on the quantum computer it had launchedin October 2020.20

Another challenge in developing scalable quantum
computers is the verification of results produced. Because
quantum computers are designed to tackle problems
considered intractable for classical computers, thesolutions can also be difficult to verify for correctness using
conventional computers.
Elham Kashefi, Professor of Quantum Computing at
the School of Informatics, University of Edinburgh, who
has been researching this area for nearly a decade, told
us, “Quantum verification is going to be a critical enabler toquantum computing. How do you verify whether the output of
the quantum computer is correct at all? We have successfully
demonstrated a verification protocol to test a quantum
computer’s ability to perform measurement-based
quantum computations.”
Once quantum computers are ready, the ability to accessthem securely and privately will be of paramount importance.
A protocol developed by Professor Kashefi’s team called
Blind Quantum Computation will play a critical role. Professor
Kashefi comments: “Blind quantum computation allows a user
to carry out a quantum computation on a quantum computerwith input/output data, with the computation remaining
completely private.” The technique can allow for multiple use
cases that involve distributed computing. Companies can
exchange data securely with other organizations and use
the resultant aggregated data for insights, which could
be of huge importance for the public services andhealthcare sectors.

Quantum verification is going to be a critical enabler
to quantum computing. How do you verify whether the
output of the quantum computer is correct at all? We havesuccessfully demonstrated a verification protocol to test aquantum computer’s ability to perform measurement-based
quantum computations.”

Elham Kashefi

Professor of Quantum Computing
School of Informatics University of Edinburgh

26

Quantum technologies: How to prepare your organization for a quantum advantage nowINTERVIEW WITH PETER BORDOW, SVP & PRINCIPAL
ARCHITECT FOR ADVANCED TECHNOLOGY & HEAD OFQUANTUM AND EMERGING TECHNOLOGYRESEARCH & DEVELOPMENT,WELLS FARGO
Q. Please tell us about Wells Fargo’s vision and objectives for quantum computing?
A. I categorize our objectives into two broad areas: quantum advantage and quantum resiliency. On the quantum advantage
side, we are looking for quantum speedup in ways in which the quantum platforms can provide some level of advantage overtraditional compute systems. And on the resiliency side, we’re working to develop our skills internally, developing algorithms
and broadening the understanding of quantum computing concepts. In addition, we are identifying and mitigating the eventual
threats to the security landscape following the introduction of cryptographically-relevant quantum computers.

Q. When do you believe quantum computing applications will be ready for commercialization?
A. You have to be cautiously optimistic about these developments. So, while the technology has yet to mature, there arepossibilities of breakthroughs. Quantum technology is in a state where it can take quite a bit of time for advances andbreakthroughs in the laboratory to reach commercialization or production. So you have to be diligent about your research andcautious with your expectations. Yet, I’m hopeful that quantum advantage in some use cases such as modeling complex systems,
financial portfolio optimization, and drug development looks promising in the next three to five years.

Q. What are the current challenges in the development of quantum-ready applications?
A. I think there’s a lot of groundwork to be done in the fundamentals of constructing algorithms and circuits. A lot of workaround shoehorning what we would like to run on the quantum systems into the limitations today in terms of not just qubit size,
but also the fidelity of the hardware. I think it begins with small-scale experimentation – getting familiar with the gate-based
machines, getting familiar with the operators, and then at the same time, expanding the knowledge base within the enterprise,democratizing access to the platforms and the algorithm libraries so that more contributions can be made. I think that leads to a
proof of concept where the results can be measured, communicated, and the value quantified.

Q. How is Wells Fargo bolstering cybersecurity resilience to guard against new threats thatmight emerge as soon as quantum computers are able to break current encryption standards?
A. Transforming the cryptography landscape is an enormous endeavor for any enterprise. I think a quantum cyberattack is not aquestion of “if,” it’s a question of “when.” But projecting an end date for that is the tricky part. In some circumstances, it can taketen years or more to migrate your cryptography to a more robust model. But frankly, I don’t think we have that long. The solution
is an aggressive transformation to quantum resiliency while also creating a more agile cryptographic landscape. We need toconstantly update our thinking on threats about which we don’t know what we don’t know. That’s the area I’m most concerned
about and focused on.

27

INTERVIEW WITH BHUSHAN BONDE,HEAD OF INNOVATION DEVELOPMENT, IN-SILICO R&D,
EVOTEC, A GERMAN DRUG DISCOVERY AND DEVELOPMENTCOMPANY (FORMERLY HEAD OF IT - EARLY SOLUTIONSINNOVATION DEVELOPMENT, UCB, A BELGIAN
PHARMA MULTINATIONAL)
Q. What was the first trigger to use quantum technologies at UCB?
A. It was costing millions to burn in-house high-performance computing (HPC) capacity. The main cost is electricity to cool HPCs
down and to continue and so the budget was exponentially increasing every year. Furthermore, within 3-5 years you have toreplace all of your internal infrastructure too and quantum computing is emerging as an alternative to this. It might not solve all
the problems, but it might complement classical technologies in solving a lot of problems

Q. Apart from hardware cost reduction, where can pharma companies generate quantum advantage?
A. Most promising is obviously drug development. The speedup from quantum computing can help us save 2-3 years out of the
10-14 that it typically takes a drug from R&D to production. Even if you remove certain phases using the right computing in thistime period, that will be a big advantage. Another advantage is in lowering attrition – the time required to identify projects tobe discontinued. Quantum computing can help the pharma industry to focus efforts on right compounds thereby reducing the
likelihood of failure of large scale investments at a later stage, resulting in big cost savings.
Over time, the biggest benefit of quantum computing will be to augment its processing ability much beyond the limit of current
computing capacity. In biology, we do a lot of experiments to identify where the distribution of the fluxes in the body are. Herewe put some radio labeled substances, feed it to the cells or our organs and then identify how much is coming out of the thing
to understand if the body is at steady state. I spent three years in trying to identify using classical computer and there is so muchapproximation. It gives you wrong answers every time you run it or it may be just misleading you and it’s not reaching to theglobal minima (smallest value in a function). It’s getting trapped always somewhere into local minima (appears to be the smallest
value in a function but is not actually the lowest point).
With quantum computing, you really get a robust answer, and it is robust because you can then dilute the instrument and verify
the output.

Q. In the absence of more capable quantum computers, how can organizations gain quantum
advantage in the NISQ era?
A. Rather than waiting for a higher qubit computer to emerge, we can take, let’s say, 2D structure problems at an abstract leveland do some smart algorithm development. Let’s say, Benzene ring. There are six carbons which are symmetric in the Benzene
ring. So, you don’t have to solve for each bond angle (the angle formed between three atoms across at least two bonds)
separately. Can we use one qubit to solve it for the bond angle and then replicate for six bond angles? So, these are the smart
algorithms that we are building instead of using six qubits where we can use just one qubit. We could replicate this approach tothe other problems in the organizations, such as in finance.

Q. How to identify the right problems to tackle using quantum computing?
A. Companies can start with use cases where they are burning high performance computing (HPC) today. What are theproblems that are challenging on HPCs? We take a problem from HPCs to a quantum computer and if we can show that there is apossibility of a better answer and benchmark it, then that is what you can develop further. That is where you start.
Importantly, there should be ambassadors inside the organization which promote the idea of quantum computing even tofinance or operations people. They then start to think about optimizations challenges within their processes which are currently
unsolvable or provide sub-optimal outputs.

28

Quantum technologies: How to prepare your organization for a quantum advantage nowQUANTUM COMPUTING CAN ENHANCE MACHINE LEARNING MODELS AND EVEN
GO BEYOND
Machine learning has created strong impact across industries but require huge computational resources, are energy intensive,and can be time-consuming. Quantum machine learning (QML) techniques aim to enhance the performance of classicalML algorithms. such as through faster algorithms, or better model representations which yield superior performance for agiven amount of training data. Other applications being researched include neural network verification, or improving model
explainability using quantum ML techniques.
According to Davide Venturelli, Associate Director at Universities Space Research Association, working at NASA Ames
Research Center, “One of the problems I’m working on, with collaborators at Stanford, is neural network verification. Suppose thatin a neural network to direct a drone flight, we need to ensure that certain choices are blacklisted. Like, the aircraft will never be told toU-turn at a certain speed. So you will want to mathematically verify that your neural network will never violate those safety rules. So you
can cast this problem into an optimization problem which turns out to be very hard. We are looking at the performance to solve thesekind of problems with quantum inspired hardware or QML techniques.”

Figure 14. QML can potentially enhance ML performance and thus, applications across sectors
Example use cases by sector

ML models areenergy intensive,
time-consuming,and lead to highcomputational
power consumption.

QML can improve theaccuracy of output,
reduces computation
costs, and is faster.

Financialservices• Market forecasting• Fraud detection• Financial synthetic data generation• Portfolio optimization• Risk simulation• Asset pricing

Pharma/healthcare• Clinical trials data generation• NLP* for literature search• Drug development• Compound screening• Imaging analysis for accurate diagnosis

Manufacturing• New materials discovery
through simulation• Anomaly detection for quality control

Mobility• Autonomous vehicles(generating training datasets)• Crash simulation*NLP – Natural-language processing
Source: Capgemini Research Institute analysis.
Like quantum computing, QML is at a nascent stage. Many of the above advantages are theoretical and require significant
research, such as how to efficiently load classical data onto quantum computers.21

29

03

QUANTUM
COMMUNICATIONS AND
SECURITY TECHNOLOGIES ARE
ALREADY AT IMPLEMENTATION

Quantum communications refers to the use of quantum
mechanics to transmit data in a provably secure way, or even‘teleporting’ quantum information (transferring information
without traversing physical space between nodes).

ways: using quantum mechanics in information transfer oraltering current encryption standards on classical networks
to make them quantum-safe, which is called post-quantum
cryptography (PQC).

Over 7.9 billion data records are compromised every year.
A combination of the growing incidence of cyberattacks,
rising demand of next-gen security solutions for cloudand IoT technologies; and stricter data-privacy legislations
necessitates secure ways to transmit information.
Security is the single-most important feature of quantum
communications. Often, such systems involve quantum
key distribution (QKD) – an unhackable technique to shareencryption ‘keys’ between locations using a stream of single
photons.

Quantum cryptographic solutions are already being
implemented, especially point-to-point networks for securedata exchange between two parties. Doing so over very long
distances is a challenge; once successfully scaled, however,quantum has the potential to emerge as the standard for all
secure communications.

Furthermore, current security standards are based on
factorization of large composite numbers, which althoughimpossible to break with the available classical computers,a sufficiently large quantum computer will be able to doso. There are rising threats to information that needs to beprotected or stored for longer periods of time, from ‘harvest
now, decrypt later’ attacks, too.

QKD systems have already reached PoC stage, withdemonstrations on point-to-point connectivity and security.
Similarly, developments are under way to set the standards
for PQC. No one organization can provide or manage every
aspect of quantum communications because of the costand required skills. So it is necessary to look outside theorganisation. Building up or being part of an ecosystem isessential.

According to Reena Dayal, Board Chair of the Quantum
Ecosystems and Technology Council of India, “Once wehave a scalability breakthrough in quantum computing, it cansuddenly threaten organizations’ information security, assumingthat the commercialization of the scalable quantum computer
takes six months to a year after the breakthrough. This meansorganizations get only that much time to quantum-proof theirsystems. Thus, they need to start post-quantum security work
today, because the efforts (to secure their data and networks)
will be extensive and long drawn.”
There is ongoing debate on when and in what form thequantum computers can break the current encryption
standards, and on how to make information quantumresistant. Information security can be achieved in one of two

30

A QUANTUM CRYPTOGRAPHYECOSYSTEM EMERGESOf late, a large ecosystem of players is developing,from device vendors to research institutions, standardsetting bodies (such as NIST (National Institute ofStandards and Technology) in the US and ETSI (European
Telecommunications Standards Institute, or IEEE, OpenQKD,etc.) in Europe, or VCs, and importantly, end users (primarily
those working with sensitive data such as banking, defense,
healthcare, public sector, and cloud data center providers).
Organizations creating or protecting IP, such as productdesigns in automotive, molecular formulations in life
sciences, or locations of strategic assets in oil and gas, arealso early end users. (see Figure 15)

Quantum technologies: How to prepare your organization for a quantum advantage now

Once we have a scalability breakthrough in quantum
computing, it can suddenly threaten organizations’information security, assuming that the commercializationof the scalable quantum computer takes six months to a year
after the breakthrough. This means organizations get onlythat much time to quantum-proof their systems. Thus, theyneed to start post-quantum security work today, because theefforts (to secure their data and networks) will be extensive
and long drawn.”

Reena Dayal

Board Chair of the Quantum Ecosystems and Technology
Council of India
Figure 15. The quantum communications ecosystem is thriving
Provide components (quantum
transmitter chips, lasers, beam-splitters,
single photon detectors, link encryptors, etc.)
Commercialize quantum-safe
communications; bringreal-world implementer’s
perspective

R&D fortechnology
breakthroughs,
talent, test facilities
Devicemanufacturers
Research
institutions/academia

End users

Funding,
marketing andbusiness expertise,go-to-market
approach

Quantum
communications
ecosystem

Privateinvestors(VCs/PEs)

Standardsetting bodies

Softwareintegrators(consultants
and startups)

Government(includes
sovereignfunds)

Finance large
quantum network
initiatives, brings
togetherstakeholders

Networks
providers(telcos andsatellitecos.)

Advance thedevelopment ofenabling infrastructure suchas ﬁber optics or satellites

Set standards, shareleading practices

Cryptographic algorithms
and software development
kits, systems integration services
Source: Capgemini Research Institute analysis.

31

Several PoCs have been implemented successfully in the
recent past:• BT and Toshiba have collaborated to deploy a quantumsecure network, based on the QKD system. The system
was deployed to generate thousands of quantum-secure
cryptographic keys per minute over 6 km of fiber-optic
cable, with a range extending up to 120 km.23 This can help
secure point-to-point communications links between
two locations.

ORGANIZATIONS ARE ALREADYSECURING THEIR CRITICALINFRASTRUCTURE AND INFORMATIONUSING QUANTUM
Of the survey respondents working on quantum
communications, the top three (out of seven) ranked
promising applications are:

• Netherlands-based KPN ran test traffic between Delftand the Hague using QKD from a central node in Rijswijk.
The central node can’t learn the secrets transmitted
between the end nodes. Current range between the nodes
is 150 km, but KPN is aiming to upgrade the system toreach 250 km.24 For organizations, extending the range of
QKD links will help broaden the set of use cases to include
IoT, identity, and access management over long distances,
securing data in motion from remote servers, secure
messaging, etc.

1.

Similarly, PQC, which aims to develop systems that are
secure against both quantum and classical computers, andcan interoperate with existing communications protocols
and networks, is developing fast. In October 2021, The US
Department of Homeland Security (DHS), in partnershipwith NIST, released a roadmap to help organizations protect
their data and systems and to reduce risks related to theadvancement of Quantum Computing technology. DHS’s new
guidance will help organizations prepare for the transition to
post-quantum cryptography by identifying, prioritizing, andprotecting potentially vulnerable data, algorithms, protocols,and systems.25• Babcock, a security solutions provider, partnered with
Arqit, a UK-based quantum encryption services startup,
to secure manned and unmanned aerial vehicles, maritime
connectivity, etc.26

Secure information exchange with external parties

2. Protection of critical infrastructure (IoT and cloudenabled technologies) within the organization
3. Security of cloud data centers.
Others included “removing vulnerabilities to quantumenabled cyber attacks;” “network security in general;”“implementing privacy-by-design;” and “secure data
migration.”• Toshiba Corp. backed up around 80 GB of genome analysis
data from universities and hospitals to multiple sites using
QKD. Genome analysis data is directly linked to individuals
and therefore requires strict processes to protect against
data leaks. To use it in genomic medicine, this data will also
require back-ups across multiple sites to protect data fromsystem failures or natural disasters. This is a step changeover physically transporting genome analysis data using
tape or other media from a remote storage location.27• SK Telecom partnered with ID Quantique to trial QKD at
its clients, including to secure an emergency broadcasting
network at a nuclear plant; protect administrative data
at public institutions; a hydrogen car-design technology
center; a cloud-based medical system; or personal
information used by autonomous robots.28

PQC and QKD are not opposing solutions. We can create alink that is secured with QKD physically, then, on top of that,
there can be a layer that uses PQC and the quantum-derived
key in order to secure the communication between two ends.
So, if one thing fails, there is still the other to protect it.”Victoria Lipinska
Quantum Advisor
KPN

32

Quantum technologies: How to prepare your organization for a quantum advantage now

BOTH POST-QUANTUM CRYPTOGRAPHY AND QKD APPROACHES WILL CREATE ABACKBONE OF QUANTUM-SAFE COMMUNICATION
Both Post-Quantum Cryptography and Quantum Key Distribution are likely to emerge as dominant techniques in securing
information in the post-quantum future. Our research indicated notes that both technologies have their own advantages andwill be needed for developing robust and cost-effective security solutions. Using both approaches for different layers (such as
application or physical), timescales and data types, can provide a secure quantum link. Organizations can implement PQC-based
solutions now and then use QKD to guarantee the security of the transition from classical computing to quantum computing.
According to Victoria Lipinska, Quantum Advisor at KPN, “PQC and QKD are not opposing solutions. We can create a link that issecured with QKD physically, then, on top of that, there can be a layer that uses PQC and the quantum-derived key in order to secure thecommunication between two ends. So, if one thing fails, there is still the other to protect it.” She adds, “However, there are specialized
applications where the lifespan of data is really important, such as government, military, police, etc., and where it really makes sense toconsider securing the communication for as long as possible. And, for this, QKD could be a good choice.”

Figure 16. A comparison of PQC and QKD
Post-Quantum Cryptography

Quantum Key Distribution

Technology

Adds a software-based encryption layeron existing networks/applications

Hardware-based encryption
using quantum channel.
Requires specialized equipment

Cost

Relatively low cost

Relatively highComplexity of
implementation

Low – existing protocols available for use

High – point-to-point links required

Security level

Security cannot be 100% guaranteed

Ultra-secure and tamper-proof

Distance

Not limited by distance

Only a few hundred kilometers

Information which needs to be protected
for shorter duration or data at rest

Information which needs to be
fully protected for long duration
or data in motion

Recommendedfor

Source: Capgemini Research Institute analysis.

33

Organizations need to create a comprehensive roadmap forthe migration of their data, to address post-quantum risks.
Effecting the change across an organization will take years
and a different set of security skills than those currently
available to organizations. Security experts at organizations
need to tap into the quantum communications ecosystem
to stay up to date with recent developments in encryptions
approaches, or hardware/software suppliers. Based on
currently available encryption technologies, organizations
need to take the following steps to secure their data:• Start with identifying critical information, which needs
to be protected, both for ‘data at rest’ and ‘data inmotion’; grade this data based on high to low priority forsecure encryption.
• For datasets/networks requiring the highest level of
security, establish QKD-based point-to-point connectivity.
• Implement a PQC layer for all high-priority data.
• Assess the readiness of systems and software to adopt
the additional PQC layer for all other information.
Continuously monitor the crypto-agility (ability of

34

organizations to quickly change their quantum-safe
encryption standards without rewriting applications or
deploying new hardware) of existing systems. Embed
crypto-agility into the design of all future applications.

LACK OF STANDARDS SHOULD NOT
BE A BARRIER TO IMPLEMENTINGQUANTUM-SAFE SOLUTIONS
As indicated in our survey, many organizations are waiting
for greater standardization of security protocols before
prioritizing quantum cryptography. However, companies
need to start thinking now about transitioning their network
security to quantum. NIST is expected to publish PQC
standards by 2024. But it will also announce standardizationof PQC algorithms in early 2022. Similarly, as of March 2021,
there were 22 published QKD standards and 20 documents
under development.29 Based on these, organizations
can start migrating their critical datasets, such as legally
protected information, IP-related data, etc., from classicalcryptographic solutions to PQC algorithms.

Quantum technologies: How to prepare your organization for a quantum advantage now

Figure 17. Most organizations are waiting for standards to emerge before prioritizing quantum security
What will trigger your organization to prioritize quantum cryptography aspart of your technology strategy?

More standardization of security protocols

58%

Lower overall cost of implementation

50%

Better geographical coverage or range
oﬀered by quantum secure solutions

44%

Better scalability of quantum systems(for example, higher key rate –number of secure keys generated per second)

Assurance of huge leap in security
with quantum technologies

42%

30%

Source: Capgemini Research Institute survey, N=200 organizations working or planning to work on quantum technologies.

Current limitations of such solutions are already being
addressed. For scalability issues in QKD, KPN built ameasurement-device independent (MDI) QKD system,
which overcomes the problem of scaling in a typical QKD
system. Multiple users can be connected via a central node,
which need not be trusted. It leads to the creation of astar-type network.

Given such developments, organizations working on sensitive
information such as financial services, defense, etc., need tostart using quantum networks to transmit and receive highly
confidential information.

35

INTERVIEW WITH ANDREW LORD,SENIOR MANAGER, OPTICAL NETWORKSAND QUANTUM RESEARCH, BT

Q. Could you elaborate on BT’s quantum communication initiatives?
A. We are partnering with Toshiba to build the world’s first commercially available quantum-secured metro network in London.
The project will use QKD technology to provide quantum-secured network services to our customers. This will be an expansion
to an earlier trial of the technology. The objective of these trials have been twofold – firstly, to expand from point-to-point
quantum links to create a large-scale quantum network, and secondly to bring customers into the trials, starting with some ofour enterprise customers, to understand what services we can create from our quantum network.

Q. Which quantum communication services have you experimented with? Which ones will becommercialized first?
A. The service with the biggest potential is to provide a trusted, robust, and secure data transfer. It is going to be highly
beneficial for organizations requiring a very high level of security and consumer data privacy – for instance, defense, financial
services, healthcare, and cloud data center providers, among others. On top of this, we can potentially build quantum-encrypted
links, and quantum keys-as-a-service. We’re assessing what our customers would want – a fully encrypted link for a defined
period of time, or quantum keys charged on the basis of their usage. All of these services will be key to quantum networks of the
future. In the future, we might also be able to provide organizations connection and access to quantum computers in a quantum
computing-as-a-service model.

Q. By when do you anticipate the first commercial quantum-secure network services to be available
in the market?
A. It is a bit hard to estimate the time to market at this point of time as that’s contingent on the success of the trials. If ourcustomers are happy and we can develop a business case, we can bring the service to market within a year. Of course, assuming
there are no further hurdles. I’m quite hopeful that we can move very fast to provide a quantum-secure network to our clientssoon while also monetizing our fiber network assets.

Q. How are you working with the senior leaders and collaborating across various departments within
BT on quantum initiatives?
A. I started quantum initiatives at BT about eight years
ago, and over time grew the team around me. We now
have quantum tech experts – some of them with a deep
physics research experience, commercialization experts,
partnership managers to liaise with our partners including
the government. The team has developed some very exciting
intellectual property, filed patents, and published papers in
the last few years. Our work is very well known right up to the
top of BT. We engage quite seamlessly across BT networks,
customer-facing units, as well as security. It’s a totalteam effort.

36“I’m hopeful that we canprovide a quantum-secure
network to our clients soon.”

Quantum technologies: How to prepare your organization for a quantum advantage nowWe are now pushing for the second generation of quantum
sensors, where we use really exotic quantum properties likeentanglement and superposition to go beyond the standard
quantum limit.”

Nadia Haider

Lead Applied Electromagnetic Scientist,
QuTech37

04

QUANTUM SENSING:NOVEL APPLICATIONSWITH REVOLUTIONARY
POTENTIAL

Quantum effects are already used in precision measurement(of time, gravity, magnetism, and temperature) and areconsidered far more precise than conventional measurement
techniques. Standard clocks and watches have an accuracy
margin of around one second per day. In comparison, an
atomic clock based on quantum effects has an accuracy
margin of one second in millions of years. Quantum
sensing and its applications are fairly niche, as well as moremature, compared to quantum computing and quantum
communications. Currently envisaged applications ofquantum sensors are in the healthcare/diagnostics, defense,
automotive, civil engineering, construction, oil & gas,
space exploration, and telecom sectors. There are certain
application areas, such as medical, where it is clearthat technology needs to go beyond what is
possible conventionally.

There are many different quantum sensing methods,
and they have diverse technology readiness levels andapplication areas. For example, in 2019, a US-based defense
agency collaborated with industry and academia to create
a commercially available chip-scale atomic clock achieving ahundredfold size reduction, while consuming 50 times lesspower than traditional atomic clocks.30
Researchers are currently working on the next generationof quantum sensors, which will be more energy-efficient,
portable, and cheaper. Recently, many quantum sensors
have emerged from lab environments to be used in industrial
applications. For example, gas cell magnetometers are
revolutionizing brain imaging to manage chronic neurologicaldiseases. According to Jörg Wrachtrup, Professor at the
University of Stuttgart, “Such examinations have only beenpossible in a few European centers but, suddenly, we are on theway to making them available to practically every
family doctor.” 31

Figure 18. Most common types of quantum sensors and their applications
Quantum sensor type

Applications

Atomic clocks

Electricity and telecom networks management, navigation, space technologies

Gravimeters/
accelerometers

Prospecting, land surveys, construction, civil engineering

Magnetometers

Navigation for fully/semi-autonomous vehicles, process controls, medical diagnostics

Source: Capgemini Research Institute analysis.

38

Quantum technologies: How to prepare your organization for a quantum advantage now

SEVERAL INDUSTRIES STAND TO BE
REVOLUTIONIZED WITH THE NEXT
GENERATION OF QUANTUM SENSORS
Experts in our study indicated that, while fields, such as
computing and communications are revolutionary, quantum
sensing is evolutionary. As the overall quantum space gains
attention, companies are trying to speed up the applications
related to quantum sensing. Nevertheless, there are use
cases where quantum sensors can play a transformative roleto accelerate precision of measurement, notably in four areas
highlighted in the figure below.

developing range-finding and 3D-imaging systems fordriver-assisted and autonomous vehicles, in collaboration
with Toshiba and Thales UK, among others. “The photon
detector delivers sub-nanosecond precision, detecting single
photons from the faintest possible reflections. This technology
enables a far greater detection range for 3D cameras than iscurrently available, enhancing both safety and effectivenesswhen deployed in real-life applications such as vehicle safety,”according to Billy McLaughlin, Managing Director atSivers Photonics.33 Reduced equipment costs, better
performance in terms of operational ease, and sensitivity will
help in broadening their use.

“Within five years, quantum sensors in particular will lead togroundbreaking innovations in fields as diverse as transportation,energy, security, medical technology and seismography.” Dr.
Thierry Debuisschert, Head of applied quantum physics,
Thales Research & Technology.32 Sivers Photonics is39

Figure 19. The next generation of quantum sensors is enabling a number of cross-sector applications

Sensors and Oscillators for GPS-free navigation

Quantum Gravimeters for prospecting or
surveying land or water• Can help find buried or submerged elements suchas pipes, fiber, mines, cavities, or tunnels• Applied in mining, construction, telecom, anddefense sectors• Can also monitor natural disasters and feed into
climate models for insurance and public
sector organizations

Quantum sensors for processcontrol and safety• Can be used in difficult terrains such as mountains,
underwater, underground, space etc. where GPS is
not available• Quantum-enabled radars can detect small,slow-moving, and distant objects• Find application in aerospace, automotive, anddefense• The Australian Army has trialed acryogenic sapphire oscillator
which improved the timing
precision of its radar network by
1000x

Emerging commercial
applications ofquantum sensors• Can detect leakages orspillages during industrial
processes• UK startup QLM trialed a gas
sensor to detect methane emissions• Could potentially replace manual sniffer tests
for about USD 1,500 per unit

Magnetometers for biomedical
imaging• UK Quantum Technology Hubdeveloped optically pumped
magnetometers that allow freemovement of patients underscan and are more accurate• Can enable detailed research into brain conditions
such as dementia and Parkinson’s

Source: Capgemini Research Institute Analysis, “Quantum Sensing for Energy Applications: Review and Perspective,” Scott E.
Crawford, Roman A. Shugayev, et al. 2021. UK Quantum Tech Hub, sensors and timing. Novus Light, “Sivers Photonics to Develop
Quantum-Based, Lidar for Safety Applications,” December 9, 2020. ZdNet, “Quantum technologies are now part of the military’s
future roadmap,” November 1, 2021. QLM website, December 2021.

BULKINESS, ENERGY CONSUMPTION,
AND COST OF QUANTUM SENSORS TO
COME DOWN WITH MINIATURIZATION

and expensive, and consequently rarely found in hospitals.
Bosch developed an apparatus that is only slightly bigger
than a laptop. Bosch expects further miniaturization,
developing a sensor that works at room temperature andcosts a fraction of the price of existing equipment.34

Most quantum sensors on the market are obliged to competeheavily with conventional sensors in terms of cost, size,
and availability. Organizations that might benefit fromquantum sensors but are currently discouraged by theirlarge size or cost constraints should watch this space. Withina decade, many widely available sensors are expected to beminiaturized, with improved functionality.

Meanwhile, organizations that invest in early quantum
sensors need to develop a clear and comprehensive businesscase. For example, to mitigate gas leakages, traditional oil
and gas companies need to account for financial benefits, aswell as non-financial metrics, such as reduced probability ofaccidents, improved overall sustainability, etc.

Bosch, for example, has been working on the miniaturizationof quantum sensors used in neurological diagnostics.
Currently, superconducting magnetometers, which haveto be cooled to minus 269 degrees Celsius, are used for
diagnostics. The scanners are huge, yet cramped for patients,

40

Among other key monitorables is the developmentof enabling technologies, including nano-fabrication
techniques, which help in building miniaturized sensors at
scale. Another is cryogenic technology, which needs to evolve
to make cooling cheaper and more energy-efficient.

Quantum technologies: How to prepare your organization for a quantum advantage nowINTERVIEW WITH NADIA HAIDER,LEAD APPLIED ELECTROMAGNETIC SCIENTIST,QUTECH, A COLLABORATION BETWEEN TECHNICALUNIVERSITY OF DELFT AND TNO, AN APPLIED SCIENTIFICRESEARCH ORGANIZATION IN THE NETHERLANDS
Q. What is the state of quantum sensor technologies today?
A. Unlike quantum computing and quantum internet, quantum sensors are already a mature technology. First generation
quantum sensors are available commercially. One of the interesting example is the SQUID (superconducting quantum
interference device). They can be used as really sensitive magnetic field sensors to unearth minerals, detect mines, submarines,
etc. Similarly, atomic clocks have high technology readiness levels. But we are now pushing for the second generation ofquantum sensors, where we use really exotic quantum properties like entanglement and superposition to go beyond thestandard quantum limit.
The challenge is twofold. One is technology breakthrough to demonstrate the usefulness of quantum sensing, and the otheris to find the right application for them. Adoption has to come from application pull and technology push; we need to find thematch there.

Q. Which real-world applications of quantum sensing have the biggest potential?
A. High-potential applications include military, medical microscopy, and navigation, but it also depends on the level of nuanceneeded. Take navigation; for different navigation platforms, you need different quantum sensors, depending on whether theplatforms are large or small. Aircrafts require very different quantum sensors for navigation than sensors that can help navigate
drones. It also depends on what is the timeline of this technological development. Some second-generation quantum sensors
are very close to being a commercial product. Then others are maybe 10-20 years ahead.

Q. How can developing ecosystems accelerate
the adoption of quantum sensors?
A. I think ecosystem development is the key. That’s also
why we have been making these test facilities for quantum
sensors. The aim is to foster an ecosystem where universities,
research organizations, spin-off companies, and end users
can come together and explore how we can use quantum
sensors. Without a healthy ecosystem it is almost impossible
to push a technology.

“Ecosystem development is
the key to accelerating the
adoption of quantum sensors”

41

05
5-

HOW CAN YOURORGANIZATION PREPARE
FOR THE QUANTUMADVANTAGE?

Our research and experience in working with early-moverorganizations in quantum technologies leads us to believethat this is the right moment to prepare for the quantum
advantage – the ability to drive significantly higher
performance that what is possible with the current state-ofthe-art technology. Quantum technologies are at a nascentstage; however, that does not rule out the possibility of
breakthrough advances and sudden acceleration in the paceof development.
Breakthroughs are, by nature, unpredictable andorganizations preparing for a quantum future will be muchbetter placed than those who are not. Here’s how to prepare
your organization to harness quantum advantage as soon as
the right commercial context and technological maturity are
in place (see Figure 20).

Organizations starting on their journey to be quantum-readymay find it difficult to assess their current state and logicalnext steps. At first it is important to assess whether it makes
sense for your business to invest in quantum technologies
before committing to a full blown investment. Being aquantum-ready enterprise is going to be a long journey anda structured approach to it will be helpful. See vignette on“How does the journey to a quantum-ready enterprise look
like?” Quantum technologies will likely co-exist with theclassical technologies in use currently. So it would be prudent
to prepare organizations to work with, for instance, a hybrid
computing approach where quantum computers work intandem with classical ones and not fully replace them.

In a top-down approach, you should start with some of thebiggest challenges or opportunities that senior management
wants you to tackle and then shortlist ones where quantum
computing can make a difference. In a bottom-up approach,
you look at various quantum technologies and see where
possibilities exist to address specific industry problems.”

Joydip Ghosh

Ford Research & Advanced Engineering

42

Quantum technologies: How to prepare your organization for a quantum advantage now

Figure 20. How to prepare your organization to harness a quantum advantage
The road to quantum advantage
Develop along-term
strategy to scale
up your talentand skills baseTranslate the mostpotent use cases tosmall-scale quantum
algorithms that canrun on today’s
hardware, todemonstrate
future value

Identify speciﬁcbusiness
problems where
quantum tech
can make adiﬀerence

Build a small
team of experts

Strike long-term
partnerships withtechnology providers
to overcome
technical obstacles

Source: Capgemini Research Institute analysis.

IDENTIFY SPECIFIC BUSINESSPROBLEMS WHERE QUANTUM TECHCAN MAKE A DIFFERENCE

He adds, “In a bottom-up approach, you look at various quantum
technologies and see where possibilities exist to address specificindustry problems. Speak with relevant stakeholders and selectthe right areas. In the end, you have to maintain a balance
between the two approaches.”

In the initial stages of the journey when identifying problems
and use cases to tackle with quantum technologies, Joydip
Ghosh of Ford Research & Advanced Engineering advisesthat organizations must find a balance between a top-down(business-pull) and bottom-up (technology-push) approach:“In a top-down approach, you should start with some of thebiggest challenges or opportunities that senior management
wants you to tackle and then shortlist ones where quantum
computing can make a difference.”• For quantum computing: A careful assessment isneeded before embarking on a full-fledged explorationof use cases in this field As detailed in previous sections,quantum computing is advantageous for certain, very
specific categories of problems. It is prudent to explore use
cases only if those problems form part of your structuralbusiness challenges. Every sector has specific use cases
where deploying quantum computing has shown someearly positive signs – these can be seen as low-hanging
fruit for the deployment of quantum computing. Seeearlier vignette “Which problems are ripe for a quantum
advantage?”

43

HOW DOES THE JOURNEY TO BECOME A QUANTUM-READY ENTERPRISELOOK LIKE?
Even though quantum technologies have some way to go before yielding their full potential and advantage to organizations
at commercial scale, we believe that organizations can start today and position themselves at the forefront of harnessing thisadvantage as soon as it arrives on scene.

Figure 21. An example of a business’ journey to becoming a quantum-ready enterprise

Keep track of
the evolution of1
technology via
involvement inquantum ecosystem

Consider dedicating
resources to upgrading
your security
infrastructure forpost-quantum security

Periodically assessareas that can be
disrupted by quantum
advantage and be
ready to invest

Go to 2 once you’reready to invest

Not now but planningin the next 1-2 years

Is yourorganizationconsidering Yes
investing inquantumtech?

Inspiration andhypothesis testing

Investment case andnear-term use cases

Establish a quantum
center-of-excellenceEnterprise with small
scale quantum
advantage

Identify problems
that can yield an
2 advantage withquantum tech overclassical methods

Identify corresponding
use cases that canbeneﬁt from aquantum advantage

Dedicate resources toexperiment withquantum tech andeducating stakeholders
about its potential

Infuse selected use
cases in businessprocesses fornear-term value

Yes/Maybe
No
Can your business bepotentially disrupted
3
with advances inquantum tech?
No

Consider dedicating
resources to upgrading
your security
infrastructure forpost-quantum security

Go to 2 if competitive
landscape changes
or disruptive
breakthrough arrives

Scale use cases to
production to
generate sustainablebusiness value
Quantum-readyenterprise

Source: Capgemini Research Institute analysis.

44

Quantum technologies: How to prepare your organization for a quantum advantage now• For quantum communication & security: Organizations
must work on the assumption that quantum attacks are aquestion of “when,” rather than “if”. As we saw in Section
3, methods are available to achieve quantum-safe security
even today. Yet, organizations’ current cybersecurity
landscape involving dozens of cryptographic standards
spread across multiple systems will require a massive
upgrade effort spanning multiple years. It is therefore
prudent to get started with quantum security as soon
as possible.
• For quantum sensing: For organizations in mining,
construction, aerospace & defense, manufacturing, andhealthcare, the second generation of quantum sensors
hold a lot of potential. There are several fundamental
opportunities for sensing things that were not possible
with conventional sensors. Keep track of areas where
sensing modalities failed in the past to solve criticalproblems due to not having enough accuracy or resolution.
Keep abreast with the latest developments in quantum
sensors and understand when quantum sensors could
achieve parity in terms of cost or energy consumption or
bulkiness, for your specific sensor application. Keep in tune
with the vendors of quantum sensors to quickly get accessto the best-in-class sensors.

BUILD A SMALL TEAM OF
QUANTUM EXPERTS
Organizations can kick-off use-case evaluation andalgorithm development with a small team with multidisciplinary experience in quantum tech, business analysis,
and partnership building. Ideally, this team must beorganized centrally with a lead researcher reporting tothe organization’s head of R&D or Innovation. When thecommercial adoption of AI was in its early days, our researchfound that organizations with a central AI team drove up to
18% higher customer satisfaction and reduced operational
cost vs. a much lower 12% improvement with no such
central team.35
The team can include quantum physicists, computerscientists, mathematicians, and domain experts(microbiologists in life sciences or quantitative financeexperts in banks, for example) (see Figure 22)

Figure 22. Key roles in a central quantum tech team
Quantum tech expert team – key roles

Partnership experts to collaborate with theecosystem of researchers, academics,
startups, governments, and industry bodies

A lead with deep experience inquantum research who can govern anddirect the teamCentralTeam of Quantum
Experts

Quantum hardware experts who canhelp access quantum technologies
via cloud, networking or sensors

Business analysts and domain
experts to collaborate with teams
across the organization to gather
business requirements

Computer scientists, mathematicians, andquantum physicists who can translatebusiness problems into algorithms

Source: Capgemini Research Institute Analysis.

45

The central quantum team should play a leading role ininfusing quantum technologies within the organization andcollaborate with the external ecosystem as well (see section
on partnerships below). Some of the key actions that theteam can take in the first few months of its conception are:1.

Building C-level awareness and explaining basics in aneasy to understand way

2. Ideating with business teams on the most impactfulproblems that quantum tech can tackle
3. Conducting impact studies to determine how quantum
will affect your field, where the competition stands, andhow you can gain an edge
4. Prioritizing key use cases or initiatives and determine thetarget operating model

TRANSLATE THE MOST POTENT USE
CASES TO SMALL-SCALE QUANTUM
EXPERIMENTS THAT CAN RUN ON
TODAY’S HARDWARE
Quantum computers solve ‘toy’ problems that are
representative of real-world problems but are not directly
scalable to them, yet. Hence, translating real-world problems
to smaller-scale simulations that can be adequately tested on
quantum computers is key. This serves two purposes. First,
it allows researchers to assess whether there is a potential
quantum advantage over and above traditional computersin pursuing a quantum solution. Second, with a PoC,
organizations can gauge the capabilities of their quantum
teams and identify skills gaps that will need to be filled when
the solution is scaled up.
Upon shortlisting a potential use case, organizations areadvised to encourage the involvement of outside experts
to develop solutions. Airbus, for instance, launched aquantum computing challenge in 2019 to call upon quantum

experts globally to find solutions to five specific problems
in aircraft design and in-service optimization using quantum
computing.36 Similarly, BMW identified over fifty businessproblems which could be benefit from quantum technologies
and then launched a hackathon in 2021 to invite solutions
to four specific problems in vehicle configuration, material
deformation, sensor placement, and the automated quality
assessment of vehicles.37
A senior executive in R&D at a leading US-based investmentbank, told us, “Once you have identified use cases that you needto tackle with quantum computing, you need to understand how
to run it on a quantum computer. For that, you need people who
are technical experts, who can translate abstract algorithms
written in a mathematical form into a more programmatic form
suited for quantum computers”
This step is also essential in testing the applicability of yourbusiness problem on quantum machines, since large-scale
solutions are simply not testable due to the limitations of
the hardware. Peter Bordow from Wells Fargo told us,“Running small-scale versions of algorithms, adjusting them tothe limitations of the hardware platform is probably one of thebest ways to test and learn, while dealing with the challenges ofworking with the limitations of today’s quantum hardware.”To overcome this challenge, a senior R&D executive at aleading US investment bank says, “Take a really toy example
and ensure that you understand the math that’s going on and see
if you can simulate the quantum circuit.” He adds, “For example,
running (smaller scale) Monte Carlo simulation by modifying its
algorithms to use fewer qubits and slightly shallower circuits.
You can run many small circuits, take the results from all of them,and put them together. Although we still don’t have goodenough quantum computers to run even the shallow-circuitversion, we were able to run some toy examples of theshallow-circuit algorithm.”
The takeaways and lessons learned from these smaller-scale
experiments can help organizations scale their algorithms as
quantum computers with bigger qubit counts
become available.

Running small-scale versions of algorithms, adjusting them tothe limitations of the hardware platform is probably one of
the best ways to test and learn”

Peter Bordow,

SVP & principal architect for Advanced Technology &Head of Quantum and Emerging Technology R&D
Wells Fargo

46

Quantum technologies: How to prepare your organization for a quantum advantage now

STRIKE UP LONG-TERM PARTNERSHIPSWITH TECHNOLOGY PROVIDERS IN THE
QUANTUM ECOSYSTEM TO OVERCOMETECHNICAL OBSTACLESAs research continues into overcoming the limitations ofquantum computing, large companies are not holding backfrom partnering externally to run experiments. As Peter from

Wells Fargo told us, “We formally announced a partnership with
IBM in 2019. We work with several of our partners directly to get
the latest information on how the hardware is evolving and what
their road maps look like, and fine-tune our strategy around it.”No one business can provide or manage every aspect ofquantum exploration because of the cost, complexity, skills,
and knowledge. It is therefore necessary to look outside theorganization to experts who can help. Building up or being
part of an ecosystem is essential to success.

Figure 23. Most common partnership approaches to exploring quantum technologies

up innovation/research labs with service providers (IT services companies/hardware/33% Set
software companies/system integrators)
with big tech players (such as IBM, Amazon, Microsoft) to implement solutions around
25% Work
quantum technologies

25% Buy stakes in startups on quantum technologies
Source: Capgemini Research Institute Quantum Technologies Survey, N=200 organizations working or planning to work on
quantum technologies.

The quantum ecosystem consists of a number of technology
providers who can help with specific areas:• Hardware: Access to quantum computers andinfrastructure, usually via cloud (for instance, IBM and
Google), and sensors• Software: Development of quantum algorithms,
applications, and software platforms• Start-ups: Dealing with niche aspects ofquantum technologies• Consultants and service providers: Access to technical andoperational support from strategy to implementation• Research institutes and Academia: Technical institutes(e.g. Fraunhofer), and Universities (Cambridge UK, Lisbon,

MIT); providing cutting-edge research in both theory andpractice. Like other deep tech, quantum is heavily rooted
in scientific breakthroughs, so there is an inherent need towork with academia.
• Standards bodies: Follow the output of technical bodies
such as NIST in the US and ETSI or IEEE, OpenQKD, etc.
in Europe• Industry associations or consortia: Bring various ecosystem
players together and spur innovation, such as European
Quantum Industry Consortium (QuIC) and QED-C in the
US. QuIC has around 150 members and associate members
from small, medium, and large-scale organizations,research institutes, and venture capital firms.

47

A few ways early movers adopt to get to a usable output
faster:• Use hybrid computing: Break the problem into parts andsolve the one that is computationally more intensive using
a quantum computer. Then, apply traditional computing toarrive at a more satisfactory answer than could be arrived
at using a classical approach.
This principle has given rise to iterative classical algorithms
for solving problems, where a crude guess at the solution is
the input, and a somewhat-improved approximation is theoutput. This output is then used as the guess for the next
iteration, and, with each cycle, the output gets closer andcloser to the true solution.
This approach can be split between a classical and aquantum algorithm, with the optimization step performedby the quantum processor, and a classical control unit
updates parameters in the quantum circuit to try to getcloser to the optimum with each iteration.
• Use digital annealers: A digital annealer is a ‘quantuminspired’ digital technology architecture capable ofperforming precise, parallel, real-time optimization
calculations at speed, and on a scale conventional classicalcomputers cannot.
Joydip Ghosh of Ford told us, “We partnered with NASA’s
Quantum Artificial Intelligence Lab (QuAIL) in the Ames
Research Center. They had one of the quantum annealers from
D-Wave. The use case was about a fleet of diesel trucks andcertain conditions that must be satisfied while the trucks are
en route The complexity of the problem rises exponentiallyonce there are n trucks. It soon becomes an optimization
problem that can be tested out on annealers.”• Develop confidence in quantum output using
validation approaches: It is important to build confidence
in quantum output, especially for problems that cannot
be classically solved. This involves, among other things,
testing the consistency of the solution by using one
quantum computer multiple times or using different
quantum computers. There also exist a number of proventests to validate the output. For problems currently
solvable with classical computing, classical output can beused to validate the quantum output.

48

DEVELOP A LONG-TERM STRATEGYTO SCALE UP YOUR TALENT AND
SKILLS BASE
Quantum technologies are always going to be complex,
requiring multidisciplinary teams to develop successful
products and services. While a quantum physicist will still
be an essential member of the team, so will engineers anddevelopers with backgrounds in optics, electronics, software,
networking, design, mathematics, data science, etc., todevelop complete systems. As problems of greater scope andscale start to be implemented on quantum computers, thesize of teams developing quantum algorithms and looking
after their implementation will need to grow in parallel– creating greater demand for quantum talent. Having aproactive strategy in place to deal with this stage will help.
One way to manage the need for specialist skills is thattoday’s quantum hardware providers are creating abstraction
layers on top of their hardware as the infrastructure foran easy-to-use interface, so that users do not need to bephysicists to start doing meaningful work in the field.
From a people perspective, organizations must also look into:• Upskilling some of their workforce working on data and AI
initiatives with quantum skills, as there is a lot of overlap
between the two fields in terms of necessary skills,
for example, data management and preparation, andalgorithm and model development, among others.
• Reskill users of data and AI applications to work withquantum applications as soon as there are working
proofs-of-concept.
Some of the users and developers of the existing/legacy
technologies may have apprehensions about the transition
to quantum applications. They need to be reassured thatearly applications of quantum will likely have quantum techworking in a ‘hybrid’ setting with existing solutions.

Quantum technologies: How to prepare your organization for a quantum advantage nowWe partnered with NASA’s Quantum Artificial Intelligence
Lab (QuAIL) in the Ames Research Center. They had oneof the quantum annealers from D-Wave. The use case
was about a fleet of diesel trucks and certain conditions
that must be satisfied while the trucks are en route The
complexity of the problem rises exponentially once there aren trucks. It soon becomes an optimization problem that canbe tested out on annealers.”

Joydip Ghosh

Ford Research & Advanced Engineering

49

CONCLUSION
Even though quantum technologies have been in existence
for a few decades, the technology is still in its infancy as
far as commercial applications are concerned; much likethe Internet of the 1980s and computing soon after theinventions of the transistor. That is not to say that mass
adoption is decades away. Far from it – recent breakthroughs
in quantum technologies seek to herald a new era forcomputing and the internet as early as this decade itself.
High-speed calculations, innovative materials and drugs, andultra-secure communications, are much closer to reality
than ever.
Each of the quantum technologies has specific applications
with potential to bring about a paradigm shift, once
prevailing hardware and software challenges are overcome.
This is now only a question of “when” and not “if”. And
leading firms are already organizing teams to harness thepower of this transformative technology. If your industry canbe impacted by quantum tech, waiting till the technology
matures is not an option. It is important to start discovering
use cases now, exploring potential quantum solutions,forming partnerships, and assessing ways to bridge theskills gap.

50

Quantum technologies: How to prepare your organization for a quantum advantage nowAPPENDIX
1. GLOSSARY
Term

Definition

QubitsThe most fundamental unit of quantum information, analogous to “bits” in classicalcomputers.

Quantum entanglement

A quantum-physical phenomenon in which the quantum states of two particles (e.g.,
electrons, photons) are linked together regardless of their physical separation.

Quantum superposition

A property of a quantum system to exist in multiple states until measured. For
instance, a qubit can exhibit two quantum states at the same time.

Available for use

Ready to be deployed in a limited way to at least one commercial application.

Emerging

Several proofs of concept developed, but not ready for commercial deployment.

On the horizon

At proof-of-principle stage; requires several technical breakthroughs to advance tothe next stage.

Quantum decoherence

The phenomenon by which quantum particles lose their quantum behavior, forinstance, when exposed to an environment

NISQ or Noisy Intermediate-Scale
Quantum Era

The current state of quantum processors in which the qubits are ‘noisy’ – very
sensitive to environment and lose their quantum state easily. Due to this thequantum processor is impacted by decoherence and requires ‘error correction’ in its
output.

PQC or Post-Quantum Cryptography

NIST defines PQC systems as cryptographic systems that are secure against
both quantum and classical computers, and can interoperate with existing
communications protocols and networks.

QKD or Quantum Key Distribution

A key distribution protocol to generate “quantum” keys that can be used for
secure information exchange over a classical channel with classical cryptography
techniques. The keys are distributed using rules of quantum mechanics where any
act of listening in leaves a detectable sign of snooping.

51

Research methodology
In November–December 2021, we gathered input from 857 organizations asking whether they were working on or planning
to use quantum technologies, and surveyed 200 executives working or planning to work on quantum technologies. We also
supplemented the survey with more than 30 in-depth interviews of practitioners of quantum technology at large organizations,startups, academics working on quantum technology, VCs in the field, as well as communities around quantum technology.

Organizations by sector
Space technologies
DefenseInsurance
5%

Energy and utilities

Automotive

3% 3%
20%

5%
Telecommunications
10%
15%

10%

Banking

Aerospace
15%

15%

ChemicalsLife sciences

Organizations by country
India
Spain
Italy

5%

5%

US
15%

5%

Japan
5%
South Korea

China

5%

15%

10%

15%

10%
Netherlands

10%France52

Germany

Quantum technologies: How to prepare your organization for a quantum advantage nowUKOrganizations by annual revenue (budget for public-sector organizations)

More than $25 billion

26%

28%

46%

$5 billion to $10 billion$10 billion to $25 billion

Executives by role
AI/ML Head or lead/Chief Analytics Oﬃcer
Chief Data Scientist/Chief Data Oﬃcer
Oﬃce of the Chief Digital Oﬃcer (CDO)
Oﬃce of the Chief
Innovation Oﬃcer
Information or network security/
network architects/principal

4%

4% 3%

Information Technology(Oﬃce of the Chief
Information Oﬃcer, CIO)

16%

5%
5%
14%

6%
Innovation leadOﬃce of the Chief
Technology Oﬃcer (CTO)

6%
Oﬃce of the Chief Information
Security Oﬃcer (CISO)

14%

12%
14%

R&D Head/Head of research

Lead engineer orlead scientist
Project director or
specialist (next gen/advanced
technologies)

The study findings reflect the views of the people who responded to our online questionnaire for this research and are aimed atproviding directional guidance. Please refer to the methodology for details of respondents and get in touch with a Capgemini
expert to understand specific implications. The quotes from experts in the report represent their views in a personal capacityand not necessarily views of their current or past employer.

53

List of select interviewees
We extend our special thanks to the organizations, executives, and academics who took part in the in-depth interviews for thisresearch. Following is a list of select interviewees who agreed to be named in the report:

NameAndré König

Managing Partner, Entanglement Capital, quantum technologies VC ﬁrm

Andrew Lord

Senior Manager, Optical Networks and Quantum Research, BT

Bhushan BondeHead of Innovation Development, In-silico R&D, Evotec, a German drug maker(Formerly Head of IT - Early Solutions Innovation Development, UCB, a Belgian
pharma MNC)

Brian Lenahan

Founder & Chair, Quantum Strategy InstituteDavide Venturelli

Associate Director, Universities Space Research Association, working at
NASA Ames Research Center

Diego R. Lopez

Senior Technology Expert, Telefonica

Dr. Erling Riis

Professor, Department of Physics, University of Strathclyde, Scotland

Dr Elham Kasheﬁ

Eric Mely

Professor of Quantum Computing at the School of Informatics, University of
Edinburgh, UK, Director of Research at CNRS, LIP6, Sorbonne University France,
and Co-founder VeriQloud Ltd
IT project director and Quantum community leader, Société Générale

Emanuele Colonnella

Innovation Activation Manager, GeneraliFrank Wilhelm-Mauch

Professor of Physics, Saarland University, Germany

Gopal Karemore

54

Role and Organization

Principal Data Scientist, Denmark-based pharmaceutical ﬁrm

Quantum technologies: How to prepare your organization for a quantum advantage nowJoydip Ghosh

Laurent de Forges de ParnyMarten Teitsma

Matthew R. Versaggi

Quantum Computing Project Lead, Ford Research & Advanced Engineering

Quantum telecom system engineer, Thales Alenia Space
Professor of Applied Quantum Computing, Amsterdam University of Applied
Sciences, Netherlands

Senior Director of AI + Distinguished Engineer - Optum Technology,
UnitedHealth Group

Mischa Vos

Lead, QuantumLab, Strategy & Innovation, Rabobank

Nadia Haider

Lead Applied Electromagnetic Scientist, QuTech

Peter Bordow

SVP & principal architect for Advanced Technology & head of Quantum andEmerging Technology Research & Development, Wells Fargo

Philippe Cordier

Research Program Director – Scientiﬁc Computing, Data Science & AI,
Total Energies

Reena Dayal

Board Chair, Quantum Ecosystems and Technology Council of India

Ross C. Walker

Global Head of Scientiﬁc Computing, GSK (GlaxoSmithKline)

Sebastian Luber

Senior Director Technology & Innovation, Inﬁneon Technologies AG

Sergio Gago

Victoria Lipinska

Managing Director Media Solutions, Moody’s Analytics Group

Quantum Advisor, KPN

55

References
1.

Airbus website, “quantum technologies”, accessed February 2022.

2. Aviation Today, “OpenQKD Fuels European Quantum Computing Research, Potential in Aerospace,” December 2, 2019.
3. WSJ, “Airbus CTO Sees Quantum Computing Taking Off in Aerospace Industry,” January 23, 2019.
4. Spacenews, “Airbus Ventures leads Q-Ctrl’s $25 million quantum sensor funding round,” November 30, 2021.
5. Quantum Insider, “JP Morgan Chase Bank research team brings portfolio optimization a step closer in NISQ era,” November 1, 2021.
6. Volkswagen, “Volkswagen takes quantum computing from the lab to the factory,” August 18, 2021.
7.

The Next Platform, “GlaxoSmithKline marks quantum progress with D-Wave,” February 24, 2021.

8. Koreajoongangdaily, “SK Telecom, Kogas to detect gas leaks with quantum technology,” September 15, 2020.
9. SciTechDaily, “China builds the world’s first integrated quantum communication network,” January 6, 2021.
10. Ibid.
11. Financial Times, “Goldman Sachs predicts quantum computing 5 years away from use in markets,” April 2021.
12. Harvard Kennedy School, Belfer Center for Science and International Affairs, “The Great Tech Rivalry: China vs the U.S.,”
December 2021.
13. About us, UK National Quantum Technologies Programme (NQTP) website, accessed February 2022.
14. US Environment Protection Agency (EPA) website, accessed February 2022.
15. Ibid.
16. Statista, “Worldwide spend on IT as a share of revenue, by industry – 2019,” accessed February 2022.
17. The Quantum Insider, “Some of the biggest names in venture capital Are buying into quantum startups – and not just financially,”
November 2021.
18. Scitech Daily, “MIT physicists have discovered new qubits for quantum computers using vibrating atoms,” February 5, 2022.

56

Quantum technologies: How to prepare your organization for a quantum advantage now

19. Honeywell press release, “Quantum milestone: We can now detect and correct quantum errors in real time,” July 20, 2021.
20. Quantinuum, “Demonstrating benefits of quantum upgradable design strategy: System Model H1-2 first to prove 2,048 quantum
volume,” accessed February 2022.
21. Marco Pistoia, “Quantum Machine Learning for Finance,” September 2021.
22. Quantinuum “The data disaster,” accessed February 2022.
23. BT press release, October 1, 2020.
24. Capacity Media, “KPN aims for quantum-secure network across Netherlands on existing fiber,” July 6, 2021.
25. DHS press release, October 4, 2021.
26. Arqit website, “Arqit and Babcock sign collaboration agreement for government and defence market,” August 24, 2021.
27. Tohoku Megabank press release, August 26, 2021.
28. ID Quantique, “IDQ & SK Broadband expand use of QKD to protect critical data in South Korea,” May 25, 2021.
29. OpenQKD, “Current standardization landscape and existing gaps in the area of quantum key distribution,” March 2021.
30. NIST website, “Success story: Chip-scale atomic clock,” accessed February 2022.
31. Fraunhofer IAF Quantum annual report – ATTOCUBE SYSTEMS AG: Enabling technology for quantum sensing and metrology,
2020/2021.
32. Ibid.
33. Novus Light, “Sivers Photonics to Develop Quantum-Based, Lidar for Safety Applications,” December 9, 2020.
34. Bosch, “From quantum physics to technology ‘Invented for life,’” February 2021.
35. Capgemini, “Turning AI into concrete value: the successful implementers’ toolkit,” September 2017.
36. Airbus, “World-leading experts sign on to Airbus Quantum Computing Challenge,” October 2019.
37. BMW, “Quantum Computing: BMW Group launches “Quantum Computing Challenge” in collaboration with AWS to crowd-source
innovation,” July 2021.

57

About the authors
Julian van Velzen
CTIO & Head of Quantum Lab
julian.van.velzen@capgemini.com

Pascal BrierGroup Chief Innovation Officer
pascal.brier@capgemini.com

Julian is the head of the Capgemini quantum lab;a global network of quantum experts, partners
and facilities, focused on three key areas: Sensing,Communication, and Computing. Additionally, Julian
has a special interest in sustainable development,
he is part of the group CTIO community, and he is
the Dutch representative of the European Quantum
Consortium (QuIC).

Pascal Brier is Capgemini’s Group Chief Innovation
Officer and a member of the Group Executive
Committee. Prior to this, Pascal was a memberof the Executive Committee and Executive VicePresident of the Altran group, in charge of Strategy,
Technology & Innovation, based in the Silicon Valley.
Pascal began his career at NCR and ATT and then held
various leadership positions at Microsoft.

Sally Epstein
Head of Strategic Technology, Cambridge
Consultants, part of Capgemini Invent
sally.epstein@capgemini.com

Michiel Boreel
Global CTO, Sogeti
michiel.boreel@sogeti.com

Sally leads Cambridge Consultants’ Strategic
Technology function, tasked with building new teams
and facilities in bleeding edge technology.

58

Michiel is the global CTO of Sogeti and leads theComputing Futures domain within the broader
Capgemini organization. He is also the executive
sponsor of Capgemini’s Quantum Lab. With over
35 years of experience in IT and Consulting, Michielalso leads a think tank named VINT with the goalof inspiring customers to apply new technology inbusiness processes. From the start of the institute in
1994, it has published over 15 books, many of whichhave been translated into English, French, German
and Spanish. Michiel is often invited as a speaker atnational and international events.

Sam Genway
Technology Lead, Hybrid Intelligencesam.genway@capgemini.com

Preeti Yadav
Quantum Lead, Capgemini Engineering, Portugal
preeti.a.yadav@capgemini.com

Sam has a background in theoretical quantum physics
with a PhD in quantum dynamics and thermalization,and postdoctoral research in the simulation of open
quantum systems. He has since spent many years
working with commercial R&D organizations to bringin transformative technologies such as cutting-edge
AI as part of the Hybrid Intelligence unit. He is a core
member of Capgemini’s Quantum Lab team.

Preeti Yadav is a quantum physicist, with a PhD
degree from University of Lisbon in the area of
quantum information and cryptography. She isleading the quantum team at Capgemini Engineering,
Portugal, with focus towards implementationof quantum cryptographic protocols for securecommunication and multiparty computation.

Edmond Owen
Principal Quantum Physicist, Cambridge Consultants
edmund.owen@cambridgeconsultants.com

Gireesh Kumar Neelakantaiah
Director - Quantum GTM and Operations
gireeshkumar.n@capgemini.com

Edmund is a technologist at Cambridge Consultants,
part of Capgemini Invent, with a backgroundin modelling quantum systems and quantumenabled product development. He works closelywith businesses and technologists to identify how
quantum technologies can be used to meet theneeds of the most ambitious clients.

Gireesh is leading first to market stream ofCapgemini Quantum Lab globally, building
propositions and offers based on quantum
technologies helping clients in their quantum journey
and also driving Group Portfolio offers go-to-market.
He has more than 25 years of experience in leading
products, solutions & services business, portfolio
management with go-to-market, Intellectual
Property (IP) business strategy and management,
business/commercial model innovation & pricing.

Quantum technologies: How to prepare your organization for a quantum advantage now

Nadine van Son
Strategy and Innovation Lead Quantum Technology –Financial Services
nadine.van.son@capgemini.com

Kary Bheemaiah
CTIO, Capgemini Invent
kary.bheemaiah@capgemini.com

Nadine is passionate about innovation and newtechnologies. As strategy and innovation lead –financial services for quantum computing she iseager to help clients understand future quantum
applications and get quantum ready.

With global mandate across Capgemini Invent, Kary’s
role is to define and connect the world of emerging
technology to all Invent practices and sectors, definebusiness and sectorial implications, inform go-tomarket implementation plans, and aid in the creationof new client-specific solutions and services.

Prof Moez Draief
Vice President, Global Chief Scientist,
Capgemini Invent
moez.draief@capgemini.com

Jerome Buvat
Global Head of Research and Head of Capgemini
Research Institutejerome.buvat@capgemini.com

Moez is a Global Scientist. He also holds a visiting
Professorhip at the London School of Economics.
He has more than 15 years track record in machinelearning research. He was a Professor of Intelligent
Systems at Imperial College London and Chief
Scientist at Huawei.

Jerome is head of the Capgemini ResearchInstitute. He works closely with industry
leaders and academics to help organizations
understand the nature and impact of digital
disruption.

Amol Khadikar
Program Manager, Capgemini Research Instituteamol.khadikar@capgemini.com

Gaurav Aggarwal
Senior Manager, Capgemini Research Institutegaurav.aggarwal@capgemini.com

Amol is a program manager with the Capgemini
Research Institute. He leads research programson key frontiers such as artificial intelligence,sustainability, and emerging technologies, to help
clients devise and implement data-driven strategies.

Gaurav is a senior manager at the Capgemini
Research Institute. He likes to assess how technology
impacts businesses and understand how they
respond to it. He is eager to learn about emerging
business models, technologies, and trends acrosssectors.

The authors would like to especially thank Subrahmanyam KVJ and Clare Argent for their contribution to this research.
The authors would also like to thank Walid Negm, Nick Clarke, Sudhir Pai, Rodrigo Maia, Francisco José DUARTE, Nicolas
GAUDILLIERE, Iftikhar Ahmed, Ricardo Andre Pinto Faria, Kai Schroeder, Gunnar Menzel, Ashish Bhasin, Randy Potter, Barry
Reese, Christian Metzl, Rachel Hirst, and Matthew Jones for their contribution to this research.

About the Capgemini Research Institute
The Capgemini Research Institute is Capgemini’s in-house think-tank on all things digital. The Institute publishes researchon the impact of digital technologies on large traditional businesses. The team draws on the worldwide network ofCapgemini experts and works closely with academic and technology partners. The Institute has dedicated research
centers in India, Singapore, the UK, and the US. It was recently ranked number one in the world by independent analysts
for the quality of its research.
Visit us at www.capgemini.com/researchinstitute/59

For more information, please contact:
GlobalGlobal & The Netherlands
Julian van Velzen
CTIO and Head of the Quantum Lab, Capgemini
julian.van.velzen@capgemini.com

GlobalPascal Brier
Chief Innovation Officer
pascal.brier@capgemini.com

Global & UK
Edmund Owen
Principal Quantum Physicist; Cambridge Consultants,
Capgemini Groupedmund.owen@capgemini.com

Global & India
Gireesh Kumar Neelakantaiah
Quantum GTM and Operations
gireeshkumar.n@capgemini.com

GlobalMichiel Boreel
Group CTO Sogeti, Capgemini
michiel.boreel@sogeti.com

Global & France
Kary Bheemaiah
CTIO Invent, Capgemini Groupkary.bheemaiah@capgemini.com

Sectors
Life Sciences
Sam Genway
Quantum Tech & R&D; Hybrid Intelligence, Capgemini Groupsam.genway@capgemini.com

Olivier Zitoun
EVP Global Life Sciences Industry Leader, Capgemini
olivier.zitoun@capgemini.com

Financial Services
Nadine van Son
Quantum Strategy & Innovation: Financial Services
nadine.van.son@capgemini.com

60

Sudhir Pai
CTIO Financial Services & Quantum SPOC Financial Services
sudhir.pai@capgemini.com

Quantum technologies: How to prepare your organization for a quantum advantage nowAutomotive
Christian Metzl
Quantum @ Automotive SPOC
christian.metzl@capgemini.com

Jean-Marie Lapeyre
CTIO Automotive, Capgemini Group
jean-marie.lapeyre@capgemini.com

Aerospace
Krisztian Benyo
Quantum SPOC: Aerospace
krisztian.benyo@capgemini.com

Philippe Sottocassa
CTO & Director: AIRBUS-DDMS Transformation programphilippe.sottocasa@capgemini.com

COUNTRIES
Germany
Iftikhar Ahmed
iftikhar.ahmed@capgemini.com
Barry Reese
QML SPOC
barry.reese@capgemini.com

FranceClément Braunerclement.brauner@capgemini.com
Pierre-Olivier VanHeeckHoet
pierre-olivier.vanheeckhoet@capgemini.com

Portugal
Rodrigo Maia
rodrigo.maia@altran.com

US
Christian Metzl
christian.metzl@capgemini.com

UK
Raj Chanianraj.chanian@capgemini.com

The Netherlands
Nadine van Son
nadine.van.son@capgemini.com

61

Capgemini’s Q Lab:
Start preparing yourorganization for a quantum
advantage now
Capgemini is a leading expert in the application of quantum
technologies, helping clients to solve previously intractablebusiness and societal problems and to explore the potentialof three Quantum fields: computing, communications
and sensing.

We believe that now is the time for forward-looking
businesses to recognize the practical applications of quantum
and invest in creating their quantum advantage.
Our Quantum Lab is a global network of quantum experts,
partners and specialist research facilities, in the UK, Portugal
and India, running research programs and developing
capabilities aimed at the advancement of quantum
technologies.

Capgemini’s Quantum Lab’s approach is to:• Partner with our clients in targeted quantum research toidentify priority use cases, showcase quantum applications,and carry out early exploration, experimentationand incubation

Although much of the potential of quantum is still to berealized, we expect benefits of the Quantum Advantage will
include:• Support clients on their quantum journey, developing aroadmap for timely and calibrated investments to achieve
industry leadership• Tackle business problems previously unimaginable,and process complex data with incredible speed
through carefully designed quantum algorithms andcomputing power• Accelerate their quantum readiness internally throughbuilding capabilities and preparing for the future• Transform sensing, detection and imaging – fromautonomous transport to brain imaging – through superior
accuracy in critical measurements• Advance cybersecurity to new levels unobtainable withtraditional techniques - greater communication security ina post quantum world.

• Help them develop business-driven propositions that
address their needs, ensuring that quantum solutions canbe integrated seamlessly into their processes• Provide access to an ever-growing ecosystem of specialist
partners bringing IP, expertise and skills.

CAPGEMINI QUANTUM LAB CLIENT SERVICES
Capgemini supports organizations along the various stages of a quantum journey:

Plan:

Discover:

Explore:Industrialize:

from building awareness ofthe potential of quantum
technologies, to framing
a roadmap

identify use cases with real
future business value
and prioritizebuild proofs of concept andexamine the scalability of
the approach in a business
context

define the next steps tofuture quantum value– people, process andtechnology.

62

Quantum technologies: How to prepare your organization for a quantum advantage nowCapgemini’s Quantum Lab provides the following services:

Quantum Technology consulting• Consultancy and advisory, strategy and roadmap
development, business case preparation, CoE setup• Quantum Discover Assessment: Identify, prioritize anddefine use cases relevant to the industry and organization

Quantum Computing• Solution areas: Optimization, Simulation and Quantum
Machine Learning• Use case exploration, definition and implementation• PoCs, demos, solutions, algorithm design, exploration forbusiness applications• A key member of the IBM Quantum Hub, providing accessto IBM’s quantum computing systems and professional
services for end-to-end implementation• Core engineering services for the development of
quantum hardware, equipment and related devices

Quantum Communication & security• PQC assessment and migration• QKD, Communication assessment andprotocols implementation

Quantum Sensing• Prototype/develop new sensors, including
software capabilities• Develop new sensing applications

SELECTED CLIENT PROJECTS ANDENGAGEMENTS• Financial Services: Portfolio optimization algorithms
The client wanted to understand how it could optimize
its portfolio using quantum algorithms. We identified
use cases and translated business logic in mathematicalformula with different levels of difficulty. Using cleaned
data, we used a quantum simulator to verify that the usecase is possible and to benchmark solutions.
• Public Sector: Quantum Machine Learning (QML) for
IT security
A Federal Office for Information Security has
commissioned a study to identify the threats and potential
of QML and to use the findings to shape digitization
actively and securely in the country. It is examining thevulnerability of QML methods and their applications to
new forms of cyberattack.
• Aerospace: Quantum algorithms for structural
analysis research
The client wanted to leverage the power of quantum
to create a more efficient wingbox, by simulating more
precisely the behavior of air around an airplane. Startingwith two specific parts of the problem of wingbox
optimization process, we replaced them with quantum
algorithms for better exploration of the parameter spaceand more wingbox designs than currently classicallypossible.
• Automotive: Quantum ML for automating
quality assessment
The client wanted to optimize and automate its quality
assessment of manufactured parts via image recognition
and an automated feature extraction system, capable ofclassifying and localizing defects. We created an algorithm
that maps classical data into a more dense quantum
tensor that can be input to a classical Convolutional Neural
Networks (CNN). The algorithm allows us to use near-term
quantum technologies in a current business use case. As
a result we expect to be able to get better results using
fewer inputs with our hybrid QCNN compared to a fullyclassical CNN.

• Life Sciences: In silico experiments via quantum
simulation for drug discovery
The client wanted to leverage quantum simulation
to pre-filter candidate molecules at the start of the
drug discovery process. Work included analysis of past
molecules and processes to gather data, developmentof a hybrid model of classical ML algorithms andquantum simulations, and a range of models to predictthe properties of new molecules. Using these models,
the solution could better predict the properties of newmolecules and allow rapid filtering of candidate molecules.

63

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How energy transition is driving
new models in energy and utilities

Data Mastery:
How data-powered organizations
outperform their competitors

Next Destination: Software How
automotive OEMs can harness
the potential of software-driven
transformation

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Creating diverse and inclusive tech
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Revolution: State of 5G and edge inindustrial operations

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manufacturers

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How artificial intelligence canpower your climate action strategy

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64

Quantum technologies: How to prepare your organization for a quantum advantage now

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About Capgemini
Capgemini is a global leader in partnering with companies to transform and manage
their business by harnessing the power of technology. The Group is guided everyday
by its purpose of unleashing human energy through technology for an inclusive
and sustainable future. It is a responsible and diverse organization of 325,000 teammembers in more than 50 countries. With its strong 55-year heritage and deep industry
expertise, Capgemini is trusted by its clients to address the entire breadth of theirbusiness needs, from strategy and design to operations, fuelled by the fast evolving
and innovative world of cloud, data, AI, connectivity, software, digital engineering andplatforms. The Group reported in 2021 global revenues of €18 billion.

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