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x100 Scaling in MilTech

x100 Scaling in MilTech

Publication date:

  • 23.06.2026

Publication from:

Oleg Shcherbatenko, Founder and CEO of IT-Enterprise

x100 Scaling in MilTech: Digital Transformation as a Matter of Efficiency and Speed

   

Today, the Ukrainian defense-industrial complex and its powerful drone manufacturing cluster face a mix of basic yet complex tasks: the need to produce dozens of times more while maintaining maximum flexibility and dealing with significantly limited human resources. However, it is difficult to scale what operates in manual mode. Chaos does not scale productively. As developers of IT-Enterprise digital solutions, which have already been deployed at more than 20 defense enterprises across the country, we see three key areas where the digital transformation of processes serves as the only tool for real growth.

 

1. Production Scaling: From Workshops to Ensuring x10 and x100 Growth

 

The frontline needs large batches of products. But to increase production output by dozens or hundreds of times, it is not necessary to build five new workshops. Often, it is enough to bring order to what already exists.

 

The main barrier to growth is the lack of online digital production planning and accounting. When product specifications are kept in Excel, and changes due to the frontline situation are introduced daily, manufacturing begins to drown in defects and downtime. An urgent order cannot be executed promptly if a manager manually checks whether the required material is available in the warehouse and whether the work centers are currently free. Digital transformation begins with a core comprehensive ERP: when the system sees all resources — people, materials, equipment — in real time, 24/7 and automatically reschedules capacity operations to accommodate new product modifications.

 

2. Team: AI Assistants Amid Labor Shortages

 

The lack of professional expertise in the defense sector is something every manufacturer faces. Qualified designers, technologists, and engineers are critically scarce. If we cannot scale the team physically, we must scale its efficiency.

 

The solution lies in automating manual operations. A specialist should not spend 80% of their time transferring data from paper drawings or going through lengthy document approval processes. To address this, we implement an ecosystem of AI agents — essentially a digital team where each agent performs its narrow task. For example, DocAI handles document processing with 99.5% accuracy, while design AI assistants automatically recognize 2D/3D models and immediately design digital manufacturing processes. This enables key specialists to focus on engineering and product improvement rather than process maintenance.

 

3. Capitalization and Business: Transparent Financial Reporting

 

MilTech must become a mature business. To attract large-scale funding — from international partners, investment funds, or major charitable organizations — an enterprise must demonstrate management transparency, cost control, and full traceability of investment utilization.

 

Investors and customers evaluate not only the technological level of a product but also the company’s ability to effectively manage manufacturing, finances, and supply chains. Therefore, accurate cost calculation, material cost control, production asset management, and rapid management reporting become critically important elements of competitiveness.

 

Transparent financial accountability, automatically generated within the ERP system, is the primary proof that an enterprise knows how to manage its resources effectively. Without this, it is impossible to calculate the real capitalization of the business, justify costs to the customer, and secure resources for further development.

 

In Conclusion

 

To implement these three areas, MilTech must follow a clear and sequential algorithm: first, core accounting (ERP) and process optimization, and only then — acceleration via AI. After all, if we have poor-quality data at the input, we will get the same result at the output — a law known worldwide as GIGO (Garbage In, Garbage Out). Only this approach will allow defense enterprises to deliver larger volumes to the frontline, respond rapidly to challenges, and manage production potential in real time.

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Address: 04071, Kyiv, str. Yaroslavska, 58 (Astarta
Organic Business Centre)

Phone:+38 099 266 39 03

E-mail:
hello@itukraine.org.ua

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