CHAPTER Ill Cannabis Industry Segmentation
Cannabis Software Platforms
Business Services
The business services market includes (i) operational consulting, including facility planning, con- struction and security; (ii) financial services, including accounting and payment-processing services; (iii) legal, compliance and other professional advisory services; (iv) temporary and full-time staffing services; (v) real estate services; and (vi) industry events and conferences. These services are typically provided by professional services firms; some of these firms focus solely on the cannabis industry while others serve a broad range of industries.
Business Solutions Opportunities We believe opportunities in this segment include:
Industry-specific Solutions. As the cannabis industry emerges, there will be a significant market opportunity for providers of solutions tailored for the industry. Point-solution providers may be acqui- sition targets if larger companies enter the market in the future.
Integrated Platforms. We believe that integrated “seed-to-sale” solutions will be ideally positioned.
“Big Data” Analytics. We believe that there is an attractive opportunity to develop and license industry datasets. Such datasets should provide strategic advantages to organizations that establish substantial reach early and may also be licensed more broadly to enhance targeting, services, cross-sales and product development.
Business Solutions Challenges Challenges in this segment include:
Development and Deployment Risk. Due to the time and investment required to develop software products and the emerging nature of the cannabis industry, there is a risk that developed applications may not be effective or widely adopted. In addition, certain segments of the cannabis industry are more mature than others; this disparity may present challenges in developing solutions that support cohesive and scalable business models.
Low Barriers to Entry. Numerous sectors of the business services market are becoming increasingly crowded.
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