After working as a cannabis technician for six years, I thought I understood what cannabis operators needed. The company I worked for was building features and technology that carriers really valued, and I thought we were making a rough cannabis landscape better for them every day. I was wrong.
My journey through the cannabis industry has been an eye-opener. From lab testing software to B2B wholesale e-commerce, point-of-sale systems to seed-to-sale tracking, I've seen this industry from many different angles. But it wasn’t until I stepped into my current role at Monko, a compounding pharmacy, that I truly understood the disconnect between technology solutions and operational realities.
The cannabis technology sector is booming, with startups and established players constantly deploying innovative solutions. I truly believe that these companies are revolutionizing the industry, including during my time there. However, the reality on the ground is very different.
For example, consider clinical laboratory software. When I worked at a company developing these systems, we focused on creating comprehensive databases and complex analyses. We believed we were providing a valuable tool for quality control and compliance. In fact, many operators find these systems too complex and struggle to integrate them into their daily workflow.
The B2B wholesale e-commerce platform I helped develop is another example of misaligned priorities. We built sophisticated features for product highlighting and order management to ensure we were streamlining our supply chain. However, many growers and distributors still prefer direct relationships and simpler ordering methods and find our platform to be an additional hurdle rather than a solution.
Cannabis point-of-sale systems face similar challenges. Technology companies devote resources to developing sophisticated interfaces and advanced inventory management features. However, bidders often report that these systems are counterintuitive and slow down during peak hours when efficiency is most important.
The most obvious disconnect I have witnessed is in seed-to-sale tracking software. These systems are designed to ensure compliance and provide a complete view of the product lifecycle. It often causes more headaches than solutions. Many operators find that data entry and management consumes significant time and resources, taking away from their core business activities.
What is the cause of the disconnection?
Several factors contribute to the gap between technological innovation and operational needs.
1. Lack of experience in the field
Many cannabis technology entrepreneurs come from outside the industry, or some do not have a background as a cannabis operator. They bring valuable technical expertise but often lack first-hand experience in day-to-day cannabis operations.
2. Overemphasis on functionality
In the technology industry, we tend to equate more features with a better product. In the fast-paced cannabis industry, simplicity and reliability are often prioritized over complexity.
3. Regulatory tunnel vision
Cannabis technology often focuses on compliance, sometimes at the expense of ease of use. Compliance is important, but not at the expense of operational efficiency.
4. Not enough user feedback
Despite user testing and feedback loops, many cannabis technology companies struggle to truly understand and incorporate operator needs into their product development cycles.
5. One-size-fits-all approach
The cannabis industry is diverse, and each segment has unique needs. Technology solutions often try to be one-size-fits-all, resulting in products that don't fully meet anyone's specific requirements.
I'm currently on the operator side and see these issues occur every day. Our bidders are struggling with POS systems that don't fit their workflow. Our inventory management is complicated by seed-to-sale software that doesn't take into account the nuances of our business model. Even a seemingly simple task like updating an online menu can become a hassle due to a poorly designed e-commerce platform.
This is not to say that cannabis technology is not valuable or necessary. Technology will play a key role in the growth and maturation of the industry. However, fundamental changes are required in the way these technologies are conceived, developed, and implemented.
Primarily, cannabis technology companies must prioritize real-world operator input throughout the development process. This means going beyond cursory user testing and becoming deeply embedded in the day-to-day operations of dispensaries, growers, and manufacturers.
Second, there should be more emphasis on modularity and customization. Every cannabis business is unique, and technology solutions must be flexible enough to adapt to different operating models.
Simplicity and reliability should be prioritized over feature bloat. In the high-pressure environment of cannabis retail and cultivation, an intuitive and reliable system is far more valuable than one with a myriad of features that are rarely used.
Finally, cannabis technology companies need to focus on interoperability. Cannabis supply chains are complex, and operators often use multiple systems. Technologies that can seamlessly integrate with other platforms offer far more value than a standalone solution.
As the cannabis industry continues to evolve, the role of technology will become increasingly important. However, for this technology to truly serve its purpose, innovation and operational reality will need to align more closely.
My journey from cannabis technology to cannabis business has been a humbling experience. We learned that innovation isn't about cutting-edge technology or flashy features. It's important to deeply understand your users' needs and develop solutions that truly make their lives easier.
For cannabis tech companies, this means going beyond computer screens and into dispensary floors, grow rooms, and manufacturing facilities. It means listening more than talking and being willing to discard grandiose visions in favor of practical solutions.
When it comes to carriers, we need to be more vocal about our needs and collaborate more proactively with technology companies. We should see them not just as vendors, but as partners in improving our operations.
Only then can we create solutions that truly serve the industry and help cannabis businesses succeed in an increasingly competitive landscape.
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