Does your company have a quantum strategy?

Richard St-Pierre, General Director

Mark M.J. Scott, Head of Marketing

DistriQ - Quantum Innovation Zone

According to Gartner, a leading research and consulting firm, the importance of developing a quantum technology plan for businesses cannot be overstated. Just as most organizations were caught off guard by the sudden emergence of artificial intelligence (AI) in the market, companies must learn from this experience and prepare for the inevitable advances in quantum technology. The lessons learned from the rapid evolution of AI highlight the importance of staying ahead and investing in research, development, and strategic planning for quantum computing. Companies need to assess the potential impact of quantum technology on their industry and explore the opportunities it offers to enhance computing power, data analytics, and security. By proactively integrating quantum technology into their long-term strategies, businesses can position themselves to harness its transformative capabilities and gain a competitive advantage in the future.

"Quantum computing is complex and cannot be turned on overnight. Starting early is the safest path to success for CIOs in their quantum journey,” explains Chirag Dekate, VP Analyst at Gartner.

2023 - Moving from Quantum Advantage to Quantum Economic Advantage

The prevailing discourse is focused on quantum advantage, which refers to the ability of quantum computers to solve computational problems faster than classical computers, even if the solutions obtained are not useful or relevant from a practical standpoint.

"A company enjoys a quantum economic advantage when a quantum computer provides a commercially relevant solution, even if it is only moderately faster than a classical computer, or when a quantum computer provides viable solutions that differ from those of a classical computer.” -- Francesco Bova, Avi Goldfarb, Roger Melko - MITSLOAN Management Review, Spring 2023

Quantum advantage aims to prove that quantum systems can outperform classical algorithms in specific domains. Quantum advantage is a stepping stone towards a potential revolution in fields such as cryptography, optimization, drug discovery, and materials science, significantly accelerating calculations and opening new possibilities for solving complex problems.

Quantum economic advantage prioritizes the use of quantum computers to tackle real business challenges rather than solving purely academic problems, highlighting the computational superiority of quantum computing. While solutions derived from quantum economic advantage may differ from classical computing solutions, the additional perspective and insights gained can improve the developed solution. Businesses seek to address complex and strategic challenges that cannot be practically solved by classical computing. They are primarily interested in obtaining a powerful solution, regardless of the underlying technology, be it classical, quantum, or hybrid computing.

Quantum technologies have been developed and deployed in limited use cases, but it has not yet been possible to solve strategic business problems at scale using quantum computing. In this regard, countries around the world are making substantial strategic investments, amounting to billions of dollars, to ensure a lead in the quantum landscape. Does your company have a quantum strategy? Richard St-Pierre, General Director Mark M.J. Scott, Head of Marketing DistriQ - Quantum Innovation Zone 46 2023.7 pioneers of innovation, driven by the transformational possibilities offered by quantum technologies. At the same time, venture capital funding for startup quantum technology companies focusing on commercial solutions is experiencing unprecedented growth.

"In 2022, investors put $2.35 billion into quantum technology start-ups, which include companies specializing in quantum computing, communications, and sensing, in order to gain a share of this value. The total surpassed the record set in 2021 for the highest annual level of investment in quantum technology start-ups. In fact, four of the largest transactions of the 2000s were completed last year. -- McKinsey, April 24, 2023

Nonetheless, McKinsey has identified critical obstacles that hinder the rapid development of quantum solutions for real business problems. The exorbitant cost and limited availability of quantum computers and the sophisticated infrastructure necessary to support commercial research rank high among these challenges. Additionally, establishing the necessary digital infrastructure, including quantum algorithms and hybrid software that leverage both quantum and classical computers, presents significant challenges in terms of time, complexity, and costs. Furthermore, access to quantum talent and the management of associated costs remain significant hurdles, as does fostering collaboration among researchers to accelerate problem-solving capabilities.

Therefore, companies must take immediate action to secure an early position in the race for quantum economic advantage, as the risks of falling behind could have severe repercussions for their organizations. Through DistriQ, businesses around the world can now seize these opportunities.

Not all quantum innovation zones or hubs are created equal.

DistriQ, the quantum innovation zone in Sherbrooke, Quebec (Canada), has recognized the immense strategic potential of quantum technologies. However, they have gone beyond mere recognition and understood that to harness this potential, it is essential to establish a comprehensive framework that encompasses the entire innovation chain, from university ideation to commercial product development. DistriQ has recognized the importance not only of identifying these unique steps but also of establishing a supportive infrastructure to address the key challenges highlighted by McKinsey. In doing so, it provides quantum entrepreneurs with the resources and capabilities they need to develop their solutions more effectively and efficiently. DistriQ's holistic approach ensures that innovation is not only nurtured but also supported at every stage of its evolution, fostering a thriving quantum ecosystem where ideas can flourish and transform into concrete solutions that have real-world impact.

This results in a unique quantum innovation zone in the world.

DistriQ stands out for its strategic approach to achieving its goal. The key to the long-term success and growth of DistriQ lies in its focus on developing groundbreaking quantum solutions that directly address real business challenges, rather than on the underlying quantum research and development - this aspect is diligently handled by academia, adding fundamental value to training the next generation of highly skilled individuals. As these successes accumulate, a flourishing community of quantum innovation businesses will emerge, along with an ecosystem of support organizations that will meet the growing demands worldwide. The essential factor in this success is establishing an early strategic position, designed to meet the needs of key stakeholders and promote accelerated growth - a vision that DistriQ has precisely implemented.

What are the components of DistriQ and what is the value proposition that unites them into a singular and strategic quantum force, different from all others on the planet?

Clients - International Companies

The client base of DistriQ consists of global organizations that are eagerly seeking the strategic advantages offered by quantum solutions. In reflecting on the recent disruptions caused by the sudden rise of AI, many of these organizations are still navigating the ripple effects of having been caught off guard. In boardrooms around the world, the looming specter of quantum technologies has brought to light a critical question: how are these organizations preparing for the inherent opportunities and risks of this new quantum landscape?

Given the challenges presented by McKinsey, how are these global organizations overcoming the obstacles related to accessibility, costs, and timelines for establishing a commercial quantum research center? How are they developing the necessary algorithms for quantum and hybrid computing, and how are they finding the rare talent needed to carry out these projects?

DistriQ - Quantum Innovation Zone is on the verge of completing the world's first quantum innovation center focused on businesses, which will open its doors in early autumn 2023. This revolutionary facility spans 50,000 square feet and will be the most comprehensive and extensive quantum innovation center focused on commerce. It will bring together leading experts and new quantum technology start-ups (partners) from around the globe and boasts the best-equipped shared commercial quantum development laboratories. This commercially oriented quantum center is just one of many planned quantum innovation centers in the zone, which aim to support the growing influx of quantum start-ups eager to leverage the infrastructure and collaboration opportunities offered by DistriQ.

These centers are carefully designed to equip client and partner research teams with cutting-edge quantum technologies and digital infrastructure, in a collaborative working environment.

This structure not only accelerates the development of solutions created by quantum start-ups, but also fosters collaborative initiatives and subgroups focused on solving client problems, thereby offering strategic and profitable quantum economic advantages to clients venturing into this journey.

Partners - Quantum Technology Companies

As this article highlights, partners of quantum start-ups are faced with the difficulty of accessing expensive and hard-to-find commercial quantum research infrastructures. The quantum innovation center, equipped with office spaces for teams, effectively addresses these challenges and serves as a solid platform to accelerate the development of innovative technologies through collaboration.

When young companies collaborate to solve their clients’ problems, they cultivate deep relationships that accelerate problem-solving. These partnerships bridge the gap between different startups, enabling the formulation of holistic solutions that more effectively meet client needs. This synergy often leads to new product offerings and reveals unexplored market opportunities, contributing to the ongoing evolution of the technological landscape.

Working directly with clients also provides young companies with a unique perspective. It enables them to shape and accelerate the development of new products based on valuable real-world feedback gathered through technology testing. The iterative process of testing, feedback, and refinement allows for offerings that perfectly meet market needs.

From a financial standpoint, the revenues generated by collaborative projects demonstrate market viability. This can be a key factor in securing investments for start-ups, enabling them to expand their teams and negotiate future venture capital investments with greater leverage.

Finally, brand exposure is another key benefit of collaborating with clients. By engaging in business challenges for Global 500 companies alongside peer partners, quantum start-ups Courtesy of DistriQ enhance the visibility of their brands. This not only helps inspire confidence in their capabilities but also strengthens the perceived viability of their technologies, thereby attracting future clients and investors.

In summary, clients are powerful catalysts for growth in the world of technology start-ups. Through collaboration, real-world testing, revenue generation, and brand exposure, they support and accelerate the innovative journey of these companies, thus shaping the technological landscape of tomorrow.

DistriQ has already filled 80% of the space in its first quantum innovation center, with agreements in place with several cutting-edge quantum start-ups, some of which are international, such as Nord Quantique, PASQAL, Multiverse, 1Qbit, and Qbit Pharmaceuticals, among others. Planning for the next quantum center is already underway.

The partners of DistriQ are already active in Japan.

"Fujitsu's strategic investment in 1QBit provides significant resources to accelerate its R&D efforts and promote the applications of quantum computing across various sectors. Additionally, 1QBit has benefited from strategic partnerships with NTT's Basic Research Lab, a renowned pioneer in quantum research, and its new initiative PHI Lab. These collaborations have leveraged collective expertise to advance quantum computing, AI methods, algorithms, and hardware devices, thus opening new frontiers in advanced computing". --Dominic Marchand, Director of 1QBit Sherbrooke.

"Our partnership with Presidio Ventures, from Sumitomo Corporation, illustrates the potential of partnerships with quantum companies in the area to foster business proof development in order to potentially pursue quantum economic advantage. --Philippe St-Jean, CEO and Co-founder of Nord Quantique.

A World-Class Quantum Ecosystem

DistriQ embodies the vision of a sustainable and progressive quantum ecosystem. It is not a single organization, but a collective of diverse entities aimed at making an indelible impact on the future of the planet through the power of quantum technology. The key elements of this diverse ecosystem are academic excellence, cutting-edge R&D infrastructure, rich talent pools, and a blend of private and public funding sources.

"The research team at the Quantum Institute and the University of Sherbrooke, the faculty, the academic community, and the dedicated staff represent over 300 people who support the development of quantum technologies," said Vincent Aimez, Vice-Rector of Development and Partnerships at the University of Sherbrooke.

• At the heart of this ecosystem is the Quantum Institute of the University of Sherbrooke, a global beacon for quantum talent. Leveraging strong international collaborations and concerted efforts in quantum materials, information, and engineering, this unique research center is perfectly poised to meet the demands of the digital age. Researchers at the affiliated 3IT are rallying powerful forces around the fabrication of superconducting devices - focusing on key areas that promise substantial impacts: robotics, sustainable energy, health, digital transformation, and society.

• PINQ2 - Québec's Digital and Quantum Innovation Platform, is a non-profit organization created by the University of Sherbrooke and the Québec Ministry of Economy, Innovation and Energy in 2020. Its mission is to support organizations in accelerating their digital transformation, enhancing collaboration, and simplifying technology transfers between industries and research, in addition to training the talents of tomorrow. The PINQ² platform is based on conventional, hybrid, and quantum digital solutions, and is accessible to all Québec companies as well as all academic networks and College Centers for Technology Transfer (CCTT). - DistriQ actively encourages investment for quantum innovators. It provides crucial support at the early stage, attracting investments from various sources and allowing local investment partners to leverage their influence. The Quantum Studio notably offers pre-seed funding and support structure for quantum entrepreneurs. Quantonation Ventures, which manages over 100 million euros, and Investissement Québec, which is committed to catalyzing economic development in Québec, further bolster the ecosystem.

• Beyond the quantum domain, the ecosystem encompasses an impressive innovation chain in research and development. The C2MI is one such example: it serves as a crucial link between applied research and the swift commercialization of microelectronic components. The C2MI helps both small and large companies bring their concepts to fruition, thus narrowing the gap between academic research and industrial production.

"Investissement Québec International can support Japanese companies looking to establish foreign direct investment in the area" Akira Yamaguchi, Director Japan, Foreign Direct Investment, Investissement Québec International.

Don’t wait for your competitor to gain an advanced position of quantum economic advantage...

In today's rapidly evolving technology landscape, the urgency for business leaders to implement a quantum plan cannot be overstated. DistriQ is setting a new standard for quantum ecosystems, providing a conducive environment for organizations seeking to solve pressing business challenges and for quantum start-ups looking to establish themselves to accelerate their innovation.

Furthermore, Chénier La Salle, General Delegate of Québec in Tokyo and his team can assist you, as well as any Japanese organization, in creating partnerships and business opportunities with stakeholders from Québec.

About the Authors

Richard St-Pierre - Richard has held multiple board seats and CxO positions for over thirty years, during which he has been at the forefront of technology transformations. Richard was recognized as one of the top 10 innovators of 2017 by U.S. magazine BizBash. Recently, he led the creation of C2 by gathering cohorts of influential minds, resulting in an annual economic impact of over $700 million. During the COVID pandemic, Richard served as a strategic advisor to the Québec Ministry of Health.

Mark M.J. Scott - Mark has successfully developed marketing strategies in the technology industry. Early in his career, he created strategies and communication materials for the Canadian Space Agency (Microgravity Sciences and RADARSAT) and Rolls-Royce Aerospace. He has led marketing strategies that facilitated the growth of three successful technology companies: Zero Knowledge Systems, a pioneer in B2B SaaS (acquired by AppDirect), OptoSecurity, a security technology for defense and civilian aviation (acquired by a division of Toyota Corp.); TrueContext, a low-code application platform for B2B SaaS, where he quickly ramped up sales from $500,000 to over $30 million.

Source: https://www.joi.or.jp/wp-content/uploads/2023/07/Mag_202307_14_spotQuebec.pdf