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[Q-tangled 22] Transformation of modern business driven by Quantum Technologies - Andrey Deev

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[Q-tangled 22] Transformation of modern business driven by Quantum Technologies - Andrey Deev

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Quantum technologies (QT) have recently become one of most rapidly emerging fields of science. The term "quantum technologeis" combines several interrelated areas, such as quantum computing, quantum encryption, quantum sensors, etc. – each of which has already brought noticeable results, ready for further development in the form of business products. Today, telecommunications companies seem to be the most promising base for development of QT-based business. We will talk about how QT solves the problems faced by telecom using classical approaches, what a QT-based product is, what future QT applications will be, how modern business will change with the development of QT and what it will look like in 2030.

Quantum technologies (QT) have recently become one of most rapidly emerging fields of science. The term "quantum technologeis" combines several interrelated areas, such as quantum computing, quantum encryption, quantum sensors, etc. – each of which has already brought noticeable results, ready for further development in the form of business products. Today, telecommunications companies seem to be the most promising base for development of QT-based business. We will talk about how QT solves the problems faced by telecom using classical approaches, what a QT-based product is, what future QT applications will be, how modern business will change with the development of QT and what it will look like in 2030.

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[Q-tangled 22] Transformation of modern business driven by Quantum Technologies - Andrey Deev

  1. 1. Transformation of modern business driven by Quantum Technologies
  2. 2. andrey deev EDUCATION EXPERIENCE Bachelor and Master of Physics, Quantum Electronics and Quantum Optics, Lomonosov MSU, Moscow Theory of Condensed Matter Stochastic optimization, Graph theory, Machine Learning, Queuing Theory, Physical methods Development of Quantum Technologies business direction Master of Financial Economics, ICEF, Higher School of Economics, Moscow Master of Computer Science - Computational Finance, Union University, Belgrade Researcher, Correlated Quantum Systems, Russian Quantum Center, Skolkovo, Moscow Researcher, Stochastic optimization and AI Lab, Huawei, Moscow Senior Analyst/ Quantum Technology expert, MTS (Mobile TeleSystems), Moscow
  3. 3. Quantum technologies Quantum Computing Quantum Cryptography Quantum metrology Quantum-inspired classical computing Noisy intermediate- scale quantum (NISQ) computers (neutral atoms, trapped ions, superconducting qubits, photonics, quantum dots etc.) Quantum annealing Quantum simulator Quantum machine learning etc. Quantum Key Distribution (QKD) Transmission of quantum signals: optical or atmospheric channels Post-quantum cryptography etc. Quantum-inspired machine learning Quantum-inspired optimization algorithms etc. Quantum clock Quantum gyroscope Quantum gravimeter etc.
  4. 4. Telecommunications as the most promising business to begin QT-driven transformation: relevant problems Network traffic management Load balancing: combinatorial/discrete/continuous optimization with equality type conditions Routing: selecting a path for traffic in/between/across networks that satisfies given conditions Dynamic networks management: traffic management under changing traffic demand, network topology etc. Large scale networks management Security of data transmission Crucial point for customer servic Classical encryption protocols are largely becoming compromised with the development of quantum computing Using atmospheric channels to transmit quantum encrypted data comes along with development of Satellite Internet Access
  5. 5. Telecommunications as the most promising business to begin QT-driven transformation: sustainable business model Top-line MTS growth powered by Telecom and Fintech performance Group revenue increased 8.5% year-over- year to reach RUB 134.4 bn with positive contributions coming from Telecom, Fintech and Media vertical Telecom services were the main driver of top-line growth reflecting high-quality connectivity services and loyalty of MTS client Fintech and Media verticals demonstrated robust performance amid an evolving external environment *Revenue calculated on a standalone basis (includes intragroup revenue). Totals may add up differently due to rounding. **MTS's wholly-owned subsidiary RTC, which handles retail operations including the purchase and sale of handsets and accessories and subscriber enrollment at MTS retail stores. ***Financial results of operating segment «Media» are presented within «Other» category in the Group’s IFRS consolidated financial statements
  6. 6. InTRODUction of QT inTO telecom: quantum cryptography Level of integration Physical integration: Quantum Key Distributor (QKD) Logical integration Major challenges Products Weak and loss-sensitive quantum signals Optical fibers used in telecommunications do not preserve polarization Usage of atmospheric channels requires launching satellites Current QKD testbeds are designed as separated networks avoiding interaction with classical channels Full-duplex channels Non-linear optical effects (four-wave mixing, Rayleigh scattering, etc.) Certification Cryptography-as-a-service Building an interface between classic SDN data forwarding plane and quantum forwarding plane (QFP) Component-based view to interface design Quantum Key Management Secret sharing
  7. 7. InTRODUCTION of QT inTO telecom: quantum computing Building-up competency in Quantum computing Development of QC-based solutions Planned results Partnerships and interaction interfaces with universities, research labs, quantum hardware providers, application developers etc. Creating in-house quantum capabilities: attracting professionals, establishing quantum departments Development of Quantum hardware based on any physical qubits (cold atoms, quantum dots etc.) Development of specific open-source libraries compilers, etc. Development of quantum algorithms Cloud-based solution of telecom-specific problems Experimenting and searching for new use cases for a particular company Involving professionals from other areas: Data Science, AI etc. A sharp rise in quality and speed of solution of ordinary telecom problems Extraordinary use cases, novel products Severe cost reduction Products: Quantum-as-a-service Telecom-owned hard- and software for customers’ cloud-based access
  8. 8. QT-driven transformation of modern business: reasons to transform Logistics Healthcare Chemicals and petroleum Even a 1% performance improvement in last mile delivery could lead to an annual $400 million in savings worldwid Supply chain disruptions cost $184 million per year on average to organizations around the world Today, 1 in 3 shipping containers is moved while empty due to global trade imbalances Quantum computing could enable accelerating diagnoses, personalizing medicine and optimizing pricin Combination of quantum computing and classical modeling will save lives and reduce costs Quantum computing will vastly accelerate the discovery and development of new chemical methods and material Quantum computing may improve the profit margins of chemicals and petroleum businesses by determining optimal combinations of feed-stock routing, refining, and products to market Winner takes all [1] “Last Mile Delivery Market Size is Projected to Reach USD 66,000 Million by 2026 at CAGR 8.9%.” PR Newswire, Valuates Reports press release. December 15, 2020 [2] Placek, Martin. “Cost of supply chain disruptions in selected countries 2021.” Statista. April 12, 2022 1 2
  9. 9. QT-driven transformation of modern business: business model Discovery-driven enterprise Highly uncertain, complex and fast-moving environment Traditional planning and rock- ribbed strategy execution lose relevance The would-be winners will be engaged in the experimental process – the only way to reach winner-takes-all scenario Experimentation takes place across as well as within firms The cost of developing experiment-based prototype grows with prototype advancement, however, the seed costs are relatively modest
  10. 10. QT-driven business by 2030: «quantum ecosystems» By 2030 quantum computing is expected to become a USD15 billion industry Incentives for the emergence of «quantum ecosystems»: QT’s rapid evolution and characteristic learning curve Building internal quantum competencies from the scratch takes time and costs a lot Professionals in QT are difficult to find and attract [1] Mouncer, Ben. “Quantum computing to generate $15bn revenues by 2028, says ABI.” Gigabit. July 24, 2018. Time QT proficiency 1 The ecosystem enables the QT-driven business with: Access to NISQ hardware for experimenting and solving industry-specific tasks now Potential to evolve into fault-tolerant universal quantum computers Involve leading professionals with research focus on the industry-specific problems Right combination of QT providers, quantum developers/coders, academic partners, educational resources etc.
  11. 11. Any questions?

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