Quantum computing, a technology once confined to theoretical physics, is rapidly emerging as a potential game-changer for businesses across industries. But what exactly is quantum computing, and how close are we to seeing its practical applications? Gies College of Business professors Vishal Sachdev and Abhijeet Ghoshal hosted a LinkedIn Live discussion about this topic on the heels of Microsoft’s Majorana 1 announcement, which claims to represent a major breakthrough by resolving long-standing challenges in stability, scalability, and error correction.

Unlike traditional computers that process information using bits – representing either a 0 or a 1 – quantum computers leverage qubits. These qubits can exist in a state of "superposition," meaning they can represent both 0 and 1 simultaneously. This probabilistic nature, coupled with the phenomenon of "entanglement," where qubits become linked and their states correlated regardless of distance, unlocks immense computational power. This power promises to solve complex problems currently intractable for classical computers.

While the concept has been around for decades, recent breakthroughs by tech giants like IBM, Google, and Microsoft have ignited a global race. IBM, a pioneer in the field, has been offering quantum chips via the cloud, albeit with a limited number of qubits.

"IBM was actually the first place where the two qubit system was developed. So naturally, IBM is one of the leaders, but there are many startups also who are developing these computers," said Ghoshal (right), an associate professor of business administration and expert in data privacy and quantum computing applications.

However, the path to widespread commercialization is fraught with challenges. One major hurdle is "decoherence," the tendency of qubits to lose their delicate quantum properties, leading to errors. Microsoft is exploring a different technology that promises greater stability and the potential for millions of qubits, a significant leap forward.

The potential applications of quantum computing are vast. Industries like finance, supply chain, pharmaceuticals, and materials science are poised to benefit. From optimizing financial portfolios and logistics to simulating complex molecular interactions and designing new materials, quantum computing offers solutions to problems currently beyond our reach.

"As far as I have seen, finance, supply chain, even information systems – the area I work on – has a lot of these problems which can be formulated as optimization problems, and they can benefit from these algorithms,” Ghoshal said.

However, the technology also presents a significant security risk. Quantum computers have the potential to break existing encryption methods, which rely on the difficulty of factoring large numbers.

“I don’t think there is anything to worry about in the long run because already companies are shifting toward what they call ‘quantum resistant algorithms,’” Ghoshal said. “For example, Google Chrome has shifted to a new quantum resistant algorithm. They're not saying ‘quantum proof.’ They're saying ‘quantum resistant.’ Because there is no way to show that whatever the new algorithm is, cannot ever be broken using quantum.”

In October, the University of Illinois System announced it's Discovery Partners Institute (DPI) will be expanding its focus on quantum computing with the establishment of a new facility, DPI South, at the Illinois Quantum and Microelectronics Park (IQMP). This expansion, alongside its existing downtown Chicago headquarters, aims to position Illinois as a global leader in the evolving tech landscape, supported by the federal CHIPS and Science Act. DPI South will focus on quantum research in collaboration with major global companies, while DPI North will remain in Chicago. The state of Illinois has invested $500 million in DPI, further accelerating its mission to address challenges across sectors like healthcare, manufacturing, and climate science through advanced computing technologies.

For businesses, the question is not if, but when, to prepare for this technological revolution. While widespread commercial applications may still be years away, businesses should begin exploring potential use cases and developing the necessary expertise.

"Of course, when you read some of the press releases from these companies, they are somewhat more optimistic about when this will become commercially available," said Sachdev, a clinical associate professor of business administration and director of Gies Business’ master’s in business analytics degree.

“In my personal opinion, maybe in 10 years from now, there will be some commercial applications possible from quantum computers,” said Ghoshal. “I use something which has 128 qubits, so it's very small, but they are saying that they will improve it to thousands – maybe hundreds of thousands – in next 10 years or so.”

Access to quantum computing resources is becoming increasingly available, with companies like IBM offering cloud-based platforms. However, the real challenge lies in understanding how to translate business problems into quantum algorithms.

"The challenge will not be getting access. The challenge will be getting people who can use the computer," Ghoshal said.

Business schools have a crucial role to play in bridging the gap between quantum scientists and business professionals. Students should focus on developing the ability to identify problems suitable for quantum solutions and to communicate effectively with technical experts. By fostering this interdisciplinary understanding, businesses can prepare for the quantum leap and unlock the transformative potential of this groundbreaking technology.