About strategy and ambitious projects of FPT IS when established Research and Development Center – R&D, new Chief Technology Officer (CTO) of FPT IS R&D, Mr. Phan Thanh Son said this is one of the programs in Smart Solution strategy and new business model of FPT IS.

Mr. Phan Thanh Son was appointed as CTO of FPT IS since April 2017. This new CTO of FPT IS had had more than 20 years working at multinational corporations, having spent 15 years at Cisco Vietnam as CTO and CEO.

At April 1, 2018, Mr. Duong Dung Trieu, President of FPT has signed decision to establish R&D Center. Mr. Phan Thanh Son, CTO of FPT IS, will be the Director of the Center within the next 3 years.

Reporter: As CTO cum Director of R&D Center, with your knowledge about R&D model in the world, what model you will apply to R&D Center of FPT IS?

Mr. Phan Thanh Son: According to Rothwell and other researchers, until early the 90s, R&D model in the world has had five generations. From the year 2000, new researcher such as Federick Marinova defined the definition of R&D 6th generation with the main characteristics including: need to consider from perspectives, more subjects excluding R&D Center, research concurrently many technologies in many fields. In the 6th generation, innovative and creative play bigger role in creating the difference for products. In addition, R&D will be the combination both new technologies and new business model.

Established R&D Center at this time, I desire to acquire experience of previous generations by applying 6th generation in the first place.

Before joint FPT IS, in 15 years worked at Cisco, I had the opportunity to see how leading technology companies in the world including Cisco and the firm’s strategic partners organize R&D and innovate to continue lead in the industry. The story was displayed in “Dealing with Darwin” by Geoffrey A. Moore. Based on this, I and members at FPT IS established innovation engine to receive many input ideas. Through research process to select and apply solutions, products go into the market with higher successful level.

Besides, I have learned the models of Fujitsu Laboratories, IBM, Accenture Innovation Architecture… to find out features that FPT IS can apply in developing R&D Center.

Reporter: What areas does R&D Center of FPT IS focus on?

Mr. Phan Thanh Son: R&D Center focuses on Acquiring the R&D results of technology center of the corporation, subsidiaries of FPT, FPT ISx, partners/institutions/ schools, international technology partners; feedback from customers, partners and users.

Then, develop solutions/ apps those copyrights are owned by FPT/FPT IS, especially digital transformation apps, specifically Cloud, Mobility, Analytics, AI, Blockchain, IoT, Next Generation Security…R&D Center researches problems, demands of giant enterprises, enterprise group (small, medium enterprises and sole proprietorships) and the whole society in the fourth industrial revolution in supporting  digital transformation effectively for enterprises and to meet demands and solve problems of society, nation.

Reporter: The Corporation and its subsidiaries do not maintain separate R&D Centers. So, why does FPT establish the R&D Center?

Mr. Phan Thanh Son: In fact, R&D activities of FPT and its subsidiaries exists at different sizes that officially called R&D Center or organized as a R&D Center. It’s also true at FPT IS, in 25 years, if there had not had R&D activities, FPT IS could have developed solutions, leading products such as FPT e.Hospital, FPT.SmartBank.NextG, iHotel, iBus…However, after 25 years, with 3,000 staffs, solutions and products were provided for many customers in government area, enterprises inside and outside Vietnam, the R&D model that is included in its own of each unit of the Corporation is not effective.

That model does not have resources to research and applies technologies, solutions to meet immediately new demands of the customers in the current market. FPT’s managements realized those demands in the fourth industrial revolution, with the mission is leading in digital transformation, FPT has established the separate R&D Center. It is also one of the programs in Smart Solution strategy and new business model of FPT IS. When there is the combination innovations in both technology and business, the success ability of solutions, products will be higher and more substantial.

Reporter: What role does R&D play in developing “FPT on FPT” model?

Mr. Phan Thanh Son: The solution – developing groups that are performed successfully at FPT and its subsidiaries are the first groups that are included in R&D Center. Base on the market potential, these solutions will be commercialized to provide to different industries.

From 2018, FPT IS will gather resources to invest in the internal digital transformation that is led by The Technology Department and Technology & Solution Department. The story is not limited in FPT IS only, as well as in subsidiaries. It will benefit both R&D Center and subsidiaries as the role of the center’s customers using potential solutions. If they are the success in internal level, potential solutions will be commercialized to provide to customers in the market.

Reporter: FPT IS also has INF department that performs R&D activities. So, What the resemblances and differences between FPT IS INF and FPT IS R&D?

Mr. Phan Thanh Son: FPT IS INF was the main part in technology soul of FPT IS and success of FPT IS in a long time. However, because of the changes of the market, FPT IS INF was restructured to 3 different departments of FPT IS.

FPT IS INF had focused on research and development. FPT IS R&D will acquire the achievements of FPT IS INF and furthermore it will combine with departments that are divided from FPT IS INF. R&D Center will focus on developing software solutions, specialize solutions (smart city, smart healthcare, smart factory…) and new business model for solutions that are suitable for new situations.

R&D Center will also strict combine with technology departments of FPT, its subsidiaries and partners, schools, institutions, customers in the Center’s R&D activities.

Reporter: The budget that FPT allocates to R&D Center is only 5% of the profit. How FPT IS solve expenditure story?

Mr. Phan Thanh Son: The budgets that leading technology companies allocate to R&D activities are currently at the level about 10% of the revenue. FPT IS R&D will have difficulty. However, in order to adapt to realistic, we will have solutions to improve financial situation during operating process. Using capital effectively will bring short – term and long – term benefit FPT IS as well as FPT, in addition, it will increase credit of FPT IS/FPT to FPT IS R&D, investment will increase.

The policy that shares benefit from products and R&D solutions is the way to access investment of the groups to new projects. The combination between technology departments of FPT and its subsidiaries, institutions/ schools and partners also the indirectly call the capital to R&D Center.

I hope, after 3 years, the investment for R&D Center was not 5% of the profit, it will be N% of the revenue. About, the Technology Department of FPT IS with related departments has developed an R&D project process that encourages innovation, creativity, but also ensure effectivity in management, monitoring R&D project. The processes and environment will create an internal venture investment for entrepreneurship.

Reporter: How will the combination between FPT IS R&D and the other departments of FPT IS?

Mr. Phan Thanh Son: R&D Center will acquire achievements of Technology Department of the Corporation (FTI) and strictly combine with subsidiaries. Management, technology experts of FPT and its subsidiaries will be invited to appraise and share in learning activities of FPT IS R&D. The expert will participate in groups that FTI coordinate to call maximum knowledge and resources of FPT. Therefore, it is necessary the cooperation of CTOs of FPT and its subsidiaries.

Reporter: Chairman of FPT and you are considered as “evangelists” about the industry 4.0 in Vietnam. As President of GPT IS R&D, in your opinion, how does the Center orientate for its products/solutions in the fourth industrial revolution?

Mr. Phan Thanh Son: I am a person that is inspired by the fourth industrial revolution. With my passion for technology and experience, I desire to share my knowledge about researchers to community, enterprises and internal FPT IS/FPT.

Dominance technologies that create transformation in the industry 4.0 including Cloud, Mobility, BigData/Analytics, IoT, AI, BlockChain, Next Generation Security will necessitate in products and solutions of FPT IS R&D; furthermore, it will be applied to solution systems, products of FPT ISx.

R&D Center with NTC Center (a new technology center is also included in FPT IS TSD) will allocate technology experts to support FPT IS in performing new technology with solution system, products of other departments. Some groups of FPT IS R&D will perform some solutions, new trends in the industry 4.0 such as IIoT, Smart Manufacturing, Robot Process Automation, AI, Advanced Analytics, Open Platform, Open Data…

In addition, R&D groups will apply new technologies, models, methods for developing, performing and supporting their solutions such as Agile, parallel engineering, DevOps, micros service… to build pattern model that can be applied for the whole FPT IS in the future. To achieve that, it needs the effortless, investment and support from management of FPT IS/FPT ISx. Although that difficulty, I and key members of FPT IS R&D are excited and determine to accomplish the mission of R&D Center.

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