"The ass is burning, it's burning terribly": how "General Chereshnya" balances between bureaucracy, operational hell and innovations in the Defence Tech market
The Ukrainian military technology market is developing in conditions of a unique paradox: on the one hand, a critical need for ultra-fast innovations for the front, on the other hand, protracted bureaucracy and operational fever. How defense companies survive and scale in such realities was discussed by Daniil Vakhovsky, CEO of General Chereshnya, during his recent speech in Kyiv. He is quoted by a dev.ua correspondent.
The Ukrainian military technology market is developing in conditions of a unique paradox: on the one hand, a critical need for ultra-fast innovations for the front, on the other hand, protracted bureaucracy and operational fever. How defense companies survive and scale in such realities was discussed by Daniil Vakhovsky, CEO of General Chereshnya, during his recent speech in Kyiv. He is quoted by a dev.ua correspondent.
Wachowski began his speech without any pretexts: "The ass is burning, it's burning terribly!" According to him, this best describes the state of affairs in the market, where the needs of the military require instant solutions, but developers are constantly faced with objective limitations.
About bureaucracy and ordering like at McDonald's
Vakhovsky emphasized that delays in processes are not a reproach to the relevant departments, but a specific feature of the system itself:
"There is bureaucracy. This is in no way a criticism of the ministry. It's just how the processes work: codifying the product, determining its tactical and technical characteristics (TTC), needs, and so on. All these projects drag on."
The most difficult stage for the manufacturer begins when the order is finally approved and it "falls" on the company.
“Then it turns out that, for example, you get an order — and it arrives, like at McDonald’s, with a Skype “b-b-b.” It falls, such a “blunder” — I would even say another word, but there are a lot of girls here — and after that, the operational fever begins: components, reconfiguration of lines, and so on. Operationally, it is very difficult, but very interesting,” shares the executive director of the company “General Chereshnya.”
Company life hack: how not to drown in the "stream"
To maintain this pace and not stop the development of new technologies due to production workload, the General Chereshnya company divided teams into two autonomous camps:
The operations team is exclusively engaged in current production and scaling of serial products;
Innovative team — focuses only on creating new technologies and R&D.
“They challenge each other in some ways. And thanks to this, we, on the one hand, scale up, and on the other, achieve certain innovations,” explains Wachowski. Then, all new products are sent for testing to combat brigades: some survive and go into series production, while the company “keeps” some projects.
A Unique Ukrainian Phenomenon: Competition During the Great War
Vakhovsky stressed that the Ukrainian Defense Tech sector is now operating in unique conditions that the world has never seen before. Instead of a single reinforced concrete state order, a vibrant and competitive arms market has emerged in the country.
"We are simultaneously competing with the future: our new products must be more effective than previous developments. We are also competing with other market participants. This is probably a unique example when, in the conditions of such a large-scale war, we have a lively arms market, where there is not one centralized order, but competition that really fuels innovation."
However, the main test for Ukrainian technologies is directly on the front lines.
"We compete, of course, on the battlefield. Where our military is fighting, we compete with our products with what the Russians are putting up against us," Daniil Vakhovsky concluded.
