Tech Innovation in the Cannabis Industry

Ethan Andersen  |

Photo by JÉSHOOTS & Lode Van de Velde

There's no shortage of innovation in the cannabis industry, and anyone that tells you otherwise hasn't been paying attention. It seems that almost every day, a cannabis entrepreneur is coming out with a new way to consume, a better vaporizer, or a never-before-seen business model designed to succeed in the industry's complex web of regulations. It seems that the space as a whole is changing on a day-to-day basis, and there's no sector of the cannabis industry that's seen more growth and innovation than the technology space, be it in product design, data processing, or Bluetooth integration.

Here's what entrepreneurs in the cannabis space have to say about tech innovation in the industry:

Focus on Consumers' Needs

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Steve Gormley, Founder/CEO of 7th Point LLC:

"When it comes to tech innovations in the cannabis space, entrepreneurs would be best served to focus on consumers' needs as a priority. There's no point in innovating a product that doesn't satisfy a need, at least from a marketing/sales standpoint, so would-be tech innovators should work hand-in-hand with consumers to ensure that the products being developed will serve a definite purpose for a reasonably-sized segment of the population. A great example of this is the development of low-key vape pens that allow users to consume in a discreet, odorless fashion."

Look to Underserved Markets

Richard Huang, CEO of Cloudious9:

"The US cannabis industry has made a lot of headway over the past several years, though it's still less structured than your typical established industry. This serves as a tremendous opportunity for tech innovators in the space who are willing to navigate through the unstructured environment and find market segments that haven't been properly served. As a result, tech innovators interested in disrupting various segments of the cannabis market would do well to pay attention to cutting-edge marketing strategies and find niches in the still-developing market, so as to ensure that a need in the marketplace is being met."

Take Advantage of Feedback and Timing

Serge Chistov, Business Advisor to Honest Marijuana:

"Technology innovation in the cannabis industry is driven by the same factors that drive technology innovation in any industry: the desires and demands of consumers. I believe the cannabis industry continues to be well positioned for innovation due to the nascency of the industry. In a few years, entrepreneurs will look back at this unique moment in history and wish they could go back in time to be a part of it."

Adapt to Changes

Mike Bologna, CEO of Green Lion Partners:

"The cannabis industry is characterized by rapid growth and constant adaption; both of these factors make it suited to foster technical innovation out of necessity to remain compliant to regulations and track and manage cultivation, among many other tasks. Entrepreneurs should be constantly striving to help cannabis companies decrease costs while increasing transparency, as these are the major factors driving the success of many cannabis operations. If these entrepreneurs hesitate or lack courage of action, the industry will quickly move past and continue to innovate."

DISCLOSURE: The views and opinions expressed in this article are those of the authors, and do not necessarily represent the views of equities.com. Readers should not consider statements made by the author as formal recommendations and should consult their financial advisor before making any investment decisions. To read our full disclosure, please go to: http://www.equities.com/disclaimer.

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