The rise of quantum computing presents a unique challenge for business leaders: how to prepare for a technology that’s both revolutionary and still evolving. For many organizations, particularly in finance, building full in-house quantum computing teams isn’t practical or cost-effective. Through her extensive work in the field, Denise Ruffner has seen firsthand how strategic partnerships offer a smarter path forward. This approach allows companies to explore quantum computing’s potential while managing risks and investments – a crucial balance in today’s rapidly changing technological landscape.
Understanding the Timing Challenge
Quantum computing technology continues to develop, though its widespread implementation timeline remains uncertain. Financial institutions face a critical decision about when to invest in this emerging technology. “Many banks and financial institutions have large research teams dedicated to quantum computing,” explains Denise Ruffner. “But there are also a number of banks and research institutions that feel the industry is in its infancy and they don’t want to make the investment as of yet.”
Rather than building extensive in-house teams, Denise suggests a more measured approach through strategic partnerships. “One strategy when you don’t want to hire a team, is to partner with a provider,” she notes. This approach allows organizations to gain valuable experience while managing their investment and risk.
Security Considerations
One pressing concern driving interest in quantum computing is data security. Denise points out that quantum computing will fundamentally change data encryption methods, as it can potentially break current encryption standards. The National Institute of Standards and Technology has already begun addressing this challenge by establishing new standards for the future.
However, implementing new security measures requires careful consideration. “To change your data security is quite a significant undertaking,” Denise explains. “It’s both expensive, it changes procedures, and it’s something that needs to be thoughtfully planned before implementation.”
Three Key Areas for Strategic Partnerships
Organizations can explore quantum computing through partnerships in several areas:
- Trading Optimization and Risk Profiling: Companies can start with specific projects focused on improving their existing operations.
- Security Implementation: Working with providers offering quantum security products allows organizations to explore new security measures through controlled pilot programs.
- Risk Management Enhancement: Partnerships can help organizations better incorporate risk into their financial models. As Denise explains, “An insurance company might want to better understand potential risks about weather or about any number of topics, and they would like to put those into their algorithms so they can better ensure that their offerings take this into consideration.”
Starting Small with Quantum Initiatives
Denise shares how some financial institutions have successfully begun their quantum computing journey: “A number of financial institutions have started their journey in quantum by assembling a small team inside the company with a physics background, not even hiring new people and getting them trained on quantum. And from there, they’ve done a small engagement with a partner.”
This approach has led to different outcomes. Some companies have proceeded to form dedicated teams, while others have chosen to maintain a watching approach. “It also has happened that a company has said that this technology is too far out and they want to come back when significant technical progress is made and meanwhile this person or group that we’ve established will give us quarterly reports on what’s happening in quantum so we know that if something changes we’re can further engage.”
Building for the Future
The path to quantum computing integration doesn’t need to be rushed. Denise advocates for a measured approach: “Pick a small group of people and have them get some quantum training so that they can be not only internal advocates but externally deal with these partnerships and feel more knowledgeable when questions and issues come up.” She emphasizes that successful implementation often comes through collaboration: “These problems are best solved with the help of a partner who does full-time research into this and has experts on staff. That doesn’t mean the financial institutions’ experts can’t contribute. It means you want to bring in some extra talent to get different perspectives.”
Through strategic partnerships, organizations can begin exploring quantum computing’s potential while managing their risk and investment levels. This balanced approach allows companies to remain competitive while avoiding over extension in an emerging technology space.
To learn more about Denise Ruffner and her approach, check out her LinkedIn profile.
