SCDM – The “Innovation Playground” Driving FSOFT’s Breakthrough in the 5 GIGAs & World-Class Race
To play big, we must operate systematically. To handle contracts worth hundreds of millions, even billions of dollars, FSOFT cannot rely solely on traditional approaches. The company needs a flexible operational model that optimizes resources, enhances specialization, and is strong enough to mobilize thousands of employees quickly – ready for major battles. This necessity has led to the birth of a new production model – the Supply Chain Delivery Model (SCDM) – which is set to become one of the Production Division’s key initiatives in 2025.
What is SCDM?
The Supply Chain Delivery Model (SCDM) is FSOFT’s new production operation model, designed to fully leverage the strengths of each unit to optimize production costs, increase productivity, and improve project margins. SCDM aims to enable FSOFT to rapidly mobilize a delivery workforce of thousands in a short time, ensuring readiness for large-scale projects worth hundreds of millions or even billions of dollars.
Launched in 2024, SCDM was first piloted in three units: IVS, FHM, and F1. This initial phase serves as a stepping stone for broader adoption across the Production Division in 2025.
Why Does FSOFT Need SCDM?
Beyond being a new operational model, SCDM is a critical component of FSOFT’s growth strategy. Its implementation is essential for several reasons:
Meeting the Demands of Large Contracts
To achieve its 2025 goal of $1.618 billion in revenue and 36% profit growth, along with long-term ambitions, FSOFT must expand project scale and adopt a more specialized structure. High-value “big battles” worth hundreds of millions require a systematic, professional approach with a large, highly skilled production force.
Specialization – The Key to Becoming “Best-in-Class”
FSOFT CEO Phạm Minh Tuấn emphasized:“The era of doing everything is over. That’s why we must transition to the SCDM model—each unit must become ‘Best-in-Class’ in its domain”. SCDM enables units to focus on their core strengths rather than spreading themselves thin, thereby enhancing competitiveness and service quality.
Optimizing Costs, Increasing Productivity
SCDM maximizes resource utilization, reduces operational costs, and boosts workforce productivity. When executed effectively, this model not only benefits employees but also maximizes project profitability.
Laying a Strong Foundation for Long-Term Growth
SCDM is not just a short-term solution for handling large projects – it also serves as a strategic foundation for sustainable growth. It strengthens FSOFT’s ability to manage large-scale programs, positioning the company as a “General Contractor” in global tech projects that involve multiple partners and subcontractors.
How Will SCDM Be Implemented?
For effective execution, SCDM will be supported by KPI systems, financial policies, and transparent processes. Key performance indicators will measure the seamless transfer and reception of work across units while ensuring fair benefits for project personnel. Continuous performance evaluation will drive improvements, keeping the program on track.
At the SCDM Kick-off event on January 14, participating units engaged in discussions to align on specific objectives for 2025. Not only the Production Division but also BA units such as FC, iDO, FSA, and FQC play vital roles in ensuring the program’s overall success.
