From Hype to Strategy: Using Extensional Representation Encoding to Evaluate Quantum Computing's Business Value

Quantum computing may transform socio-economic systems, yet firms struggle to evaluate its value because quantum and classical computing follow different computational paradigms. Using a design science approach grounded in exaptation, we show how extensional representation encoding can support evaluation. Drawing on extensional representation theory, we distinguish intensional representations by computational paradigm (classical vs. quantum) and knowledge accessibility (common vs. contextual), develop a two-by-two encoding framework, and find, based on qualitative evidence, that encoding classical, contextual algorithms into extensional representations does the most to reduce the cognitive barriers decision-makers face in evaluation. Because this path requires translating classical instruction sequences into quantum algorithms, we develop and operationalize an extensional encoding artifact for quantum Monte Carlo. We validate the artifact’s encoding accuracy and representation clarity through mathematical proofs and empirical demonstrations. Overall, the study offers actionable guidance for evaluating emerging technologies using extensional representation encoding.