What is SCM?

SCM—the Semantic Condensation Methodology™—is FERZ's deterministic approach to compressing large, complex documents into AI-readable, audit-verifiable, and compliance-ready structures.

SCM doesn't just summarize. It rewrites knowledge—preserving structure, metrics, and regulatory meaning while reducing document size by up to 97%. It enables intelligent systems to operate on information at scale without loss of fidelity or traceability.

Formal Definition

SCM is a five-stage methodology for distilling unstructured technical documents into compact, semantically governed artifacts. Each artifact includes:

  • Tier-segmented summaries structured by functional or regulatory logic
  • Preserved structured data, examples, and metrics
  • Tokenized compression (JSON, gzip, Brotli) for rapid LLM ingestion
  • Cryptographic metadata and validation signatures to ensure compliance and audit integrity

SCM transforms semantic chaos into compressed cognition with accountability.

The Five Stages of SCM

Each document processed via SCM goes through a structured pipeline:

Five stages of SCM processing with function descriptions and time estimates
Stage Function Time Estimate
1. Dictionary Creation Builds a versioned token map of domain terms for consistency and compatibility ~0.5–1 hr
2. Summarization Generates dense, tiered summaries per section (e.g., structure, compliance, semantics) ~2–3 hrs
3. Structured Data Extraction Preserves rules, metrics, and examples using light tokenization ~1–1.5 hrs
4. Encoding & Compression Compiles into minified JSON with gzip/Brotli compression and hash signatures ~0.5–0.75 hrs
5. Validation & Certification Runs semantic drift checks, compression testing, metadata generation, and audit logging ~1–1.25 hrs

Total processing time: ~4.5–8.25 hours

Compression ratio: 94–97%

Audit trail integrity: 100% verifiable

Why It Matters

Modern AI systems face a paradox: They need more context—but can't process more text.

And when high-stakes domains like healthcare, law, or finance are involved, summarization isn't enough. You need:

  • Complete structural preservation
  • Interpretability by LLMs
  • Traceable transformation logic
  • Regulatory and legal auditability

SCM is the bridge between document complexity and AI governance.

Audit-Ready by Design

SCM embeds audit and security at every stage of the process, ensuring comprehensive compliance and verifiability.

Signature Hashes

SHA-256 validation for content integrity and tamper-proof verification

Compression Logging

Complete tracking of gzip/Brotli fallback methods with timestamps

Semantic Drift Detection

Cosine similarity analysis with configurable threshold alerts

Coverage Matrix

Validation of structural and content completeness across all dimensions

Version Control

Ensures forward/backward compatibility with versioned dictionaries

Validation Reports

Comprehensive JSON metadata for compliance and legal archiving

Where SCM Is Used

SCM is domain-agnostic but regulation-focused. Key applications include:

Domain-specific use cases for SCM methodology
Domain Use Case
Legal Condensing contracts, case law, or patents with Bluebook citation support
Healthcare Reducing EHR narratives or procedural records with PHI-preserving summaries
Financial Compressing SEC, FINRA, or ESG disclosures with structured risk metadata
Regulatory Preparing audit logs, compliance reports, and internal review artifacts
Secure Comms Encoding sensitive briefings for AI-readable, human-obfuscated delivery
Technical Docs Tokenizing manuals, API specs, and systems architecture for model ingestion

Built for Governance Ecosystems

SCM is natively compatible with the FERZ Governance Stack:

  • LASO(f): SCM-processed content feeds directly into LASO(f)'s tiered rule engine
  • LASO(f)-AG: SCM compresses policy documents into validation-ready structures
  • MRCF: SCM supports reflective prompt chains and decision traceability via semantic tiers

Think of SCM as the ETL layer for deterministic AI—except instead of extracting tables, it extracts governable knowledge.

Outcomes

  • 97% compression with 90%+ semantic retention
  • 100% rule and metric preservation
  • AI-readable and auditor-verifiable
  • Human-incomprehensible for secure transmission
  • Compatible with language models, validators, and regulatory tooling

Proprietary & Protected

SCM is an internally developed, proprietary methodology by FERZ LLC. It is governed by formal validation logic, compression resilience tests, and cryptographic integrity.

Custom implementations and integrations are available by license or consulting engagement.

Contact us to bring SCM into your governance workflow.

SCM Paper Publications: