Technology infiltrates all aspects of our lives at an ever-increasing rate, with advancements rolling out at a rapid speed. With every version of the iPhone or new efficiency-driving automation, society becomes ever more dependent on these solutions that streamline our lives. The Covid-19 pandemic created space for the emergence and widespread adoption of technology to facilitate life under social distancing restrictions. Zoom went from being a workplace platform to being a platform for education and social interaction. Online grocery delivery evolved from a luxury service to an everyday need stake, and even newer technologies like infrared temperature apps found their niche as core body temperature became the price of entry to many public locations.
Cannabis technology is evolving as the industry matures
The growing adoption of technology solutions in the cannabis industry is not a new trend. Over the past several years, legalization and regulation have become more widespread, forcing the once-illicit industry into rapid evolution and maturation. With entrepreneurs from more mature industries entering the space, there has been an increasing demand for robust technology solutions standards in other industries that are also designed specifically to manage the complexities of cannabis. The importance of cannabis-specific technology was expedited significantly by the state orders that deemed cannabis an essential business during the initial COVID shutdown in the spring of 2020. As dispensaries and their supply chain infrastructures of cultivation, manufacturing, and distribution were allowed to stay open to serve patients, falling under the same state designations as pharmacies, the price to stay in business became dependent on the ability to adhere to strict social distancing regulations. The operations that had already implemented applications to allow for online ordering, delivery capabilities, and cashless payment options were well-positioned to continue to thrive despite the challenges of operating in a pandemic. For other canna-businesses that had not yet embraced these tools, COVID created the need for a fast-turn pivot to quickly adopt technology into their business model.
Cannabis businesses already using technology had an advantage post-COVID-19
As a technology company operating in the cannabis space, MJ Freeway had already observed the success of the early adopters of technology. Sophisticated operators willing to embrace available solutions have been reaping the benefits of time-saving efficiencies, seamless transactions, and smart decisions made on comprehensive business insights and data long before COVID. For these businesses already integrated with technology, COVID gave them a chance to refine their operations and grow their business.
Like many other aspects of daily life, COVID has changed the landscape of the cannabis industry. The advancements in technology that allowed dispensaries to stay solvent during the various stages of lock-down have become the new table stakes for the industry. The operations willing and able to implement these solutions have the advantage, and in many cases, their success is creating rapid consolidation within the industry.
As less sophisticated, single-location operations struggle to pivot their business model and adapt to the new norms of the industry, larger, multi-state operators (MSOs) are purchasing these smaller licenses, and are bringing new enterprise practices to the cannabis space. The leadership of these MSOs know that sophisticated technology solutions are needed to run large-scale, transparent operations, and are looking for solutions to go beyond the standard seed-to-sale solutions while also maintaining compliance. They need a full-scope solution that gives them the integrations necessary to run their business and oversee all aspects of their operations – from sophisticated accounting solutions to contactless ordering, payment, and delivery capabilities. By creating a full ecosystem of technology solutions, successful businesses are not only surviving in this pandemic environment but are continuing to thrive and rapidly grow.
To learn more about how MJ Freeway is helping cannabis operators implement the technology tools they need to stay successful during COVID and beyond, check out our e-book, “Technology and the Cannabis Industry.”
