Incident: State's "Seed-to-Sale" Tracking System Failure Impacts Marijuana Industry

Published Date: 2019-07-24

Postmortem Analysis
Timeline 1. The software failure incident happened last week as per the article [86947]. 2. Published on 2019-07-24 07:00:00+00:00. 3. The incident occurred in July 2019.
System 1. Leaf Data Systems by MJ Freeway [86947]
Responsible Organization 1. The software vendor, MJ Freeway, responsible for the "seed-to-sale" tracking system in Washington's legal cannabis industry, was a key entity causing the software failure incident [86947].
Impacted Organization 1. Marijuana businesses in Washington state, such as Evergreen Herbal, experienced lost revenue and had to furlough workers due to the software glitches with the state's "seed-to-sale" tracking system [Article 86947]. 2. Trace Analytics, a lab in Spokane that tests products for Washington's legal cannabis industry, saw a significant decrease in business, with a 25% drop in revenue, due to the software failure incident [Article 86947].
Software Causes 1. Software glitches with the massive database prevented businesses from transporting their products, costing them hundreds of thousands of dollars in lost sales [86947]. 2. A botched software update by the vendor, MJ Freeway, caused the problems with the state's "seed-to-sale" tracking system [86947]. 3. The software issues were attributed to a recent software release that led to significant challenges for the state's compliance tracking system [86947].
Non-software Causes 1. Lack of revenue-generating sales for businesses, leading to financial losses and furloughing workers [86947] 2. Challenges and problems associated with the software release causing disruptions in the state's traceability program [86947] 3. Persistent issues with the traceability program since the launch of MJ Freeway in Washington in early 2018 [86947]
Impacts 1. Businesses in Washington's legal cannabis industry experienced lost sales amounting to hundreds of thousands of dollars and were forced to furlough workers due to the software glitches with the state's "seed-to-sale" tracking system [86947]. 2. Some companies, like Evergreen Herbal, lost four days of revenue-generating sales directly because of the state software system failure [86947]. 3. The software issues led to a 25% decrease in business for Trace Analytics, a lab in Spokane that tests products for the cannabis industry, potentially putting the company at risk of shutting down if it couldn't rely on investor funds [86947].
Preventions 1. Regular testing and quality assurance procedures before implementing software updates could have potentially prevented the software failure incident [86947]. 2. Implementing a more robust and reliable software tracking system from the beginning could have avoided the persistent issues faced by the state of Washington with the current system [86947]. 3. Conducting thorough vendor evaluations and ensuring that the chosen software vendor has a track record of successful implementations and reliable support could have helped prevent the software failure incident [86947].
Fixes 1. Implementing a system that allows businesses to keep track of their plants or products and report that information, subject to being audited, instead of requiring them to obtain advance permission through a central database before shipping cannabis goods [Article 86947].
References 1. Washington CannaBusiness Association 2. Andy Brassington, Chief Financial Officer of Evergreen Herbal 3. Vicki Christophersen, Executive Director of the Washington CannaBusiness Association 4. State Liquor and Cannabis Board 5. MJ Freeway Chief Operating Officer Ray Thompson 6. Gregory Foster, member of the Liquor and Cannabis Board’s Traceability Advisory Committee and founder of Cannabis Observer 7. Jason Zitzer, Chief Operating Officer of Trace Analytics 8. Brian Smith, agency spokesman for the State Liquor and Cannabis Board 9. MJ Freeway (now Akerna) Chief Operating Officer Ray Thompson [86947]

Software Taxonomy of Faults

Category Option Rationale
Recurring one_organization, multiple_organization (a) The software failure incident having happened again at one_organization: - The article mentions that Washington's issues with the "seed-to-sale" tracking system have been persistent since MJ Freeway launched in Washington in early 2018 [86947]. - It is highlighted that MJ Freeway, the maker of Leaf Data Systems, faced challenges in Washington, and the recent software glitches caused significant problems for marijuana businesses in the state [86947]. (b) The software failure incident having happened again at multiple_organization: - The article provides examples of other states experiencing challenges with similar traceability systems, such as California, Maryland, Pennsylvania, and Nevada, indicating that software issues in the cannabis industry are not unique to Washington [86947].
Phase (Design/Operation) design (a) The software failure incident in Washington's cannabis industry was primarily due to issues with the state's "seed-to-sale" tracking system, specifically related to software glitches with the massive database. These glitches prevented businesses from transporting their products, resulting in lost sales and furloughing workers. The problems were exacerbated by a botched software update by the vendor, MJ Freeway, causing significant disruptions in the traceability program [86947]. (b) The operation of the system was impacted by the software failure incident as businesses were unable to track and transport their products due to the glitches in the database. State regulators had to work with the vendor and third-party software companies to address the problems, even working through the night. The Liquor and Cannabis Board allowed pot businesses to come up with their own workarounds to track data about test results and product shipping, deviating from the usual traceability practices set out in state rules to alleviate the challenges faced by the industry [86947].
Boundary (Internal/External) within_system, outside_system (a) within_system: The software failure incident in Washington's "seed-to-sale" tracking system was primarily caused by software glitches within the massive database, preventing businesses from transporting their products and leading to lost sales and furloughed workers [86947]. The issues were related to a botched software update by the vendor, MJ Freeway, which caused significant disruptions in the traceability program [86947]. The problems were persistent since MJ Freeway launched in Washington in early 2018, indicating ongoing issues within the system itself [86947]. (b) outside_system: The software failure incident in Washington's cannabis industry was exacerbated by external factors such as the challenges faced by the state in realizing its vision of a fully tracked and tested marijuana industry [86947]. While the software glitches were internal to the system, the broader challenges in implementing traceability programs in the cannabis industry across different states also contributed to the difficulties faced by businesses [86947]. Additionally, the merger of MJ Freeway with another company to form Akerna and the company's trading on the Nasdaq market were external events that influenced the situation [86947].
Nature (Human/Non-human) non-human_actions, human_actions (a) The software failure incident in the Washington state's "seed-to-sale" tracking system was primarily due to non-human actions, specifically software glitches with the massive database that prevented businesses from transporting their products. This led to lost sales, furloughing workers, and significant revenue impacts for companies [86947]. (b) Human actions also played a role in addressing the software failure incident. State regulators worked with the software vendor and third-party companies to address the problems, and the state Liquor and Cannabis Board allowed pot businesses to come up with their own workarounds to track data and product shipping, deviating from strict traceability practices set out in state rules [86947].
Dimension (Hardware/Software) software (a) The software failure incident reported in Article 86947 is primarily related to software issues. The article mentions that software glitches with the state's "seed-to-sale" tracking system's massive database prevented businesses from transporting their products, leading to lost sales and worker furloughs. The problems were attributed to a botched software update by the vendor, MJ Freeway, causing significant disruptions in the cannabis industry in Washington [86947]. (b) The software failure incident in the article is specifically attributed to software glitches with the state's tracking system, indicating that the contributing factors originate in the software itself. The issues were related to the software update by the vendor, MJ Freeway, which impacted the functionality of the system and caused disruptions for businesses in the cannabis industry [86947].
Objective (Malicious/Non-malicious) non-malicious (a) The software failure incident reported in the article is non-malicious. The issues with the state's "seed-to-sale" tracking system in Washington were primarily due to software glitches with the massive database, which began preventing businesses from transporting their products. The problems caused significant financial losses for businesses and forced some to furlough workers. State regulators have been working with the software vendor and third-party companies to address the problems, indicating that the failure was not due to malicious intent [86947]. (b) The software failure incident was not attributed to malicious factors introduced by humans with the intent to harm the system. Instead, the issues were related to software glitches and problems with the software update, causing disruptions in the traceability program for the legal cannabis industry in Washington. The focus was on resolving technical issues and improving the system's functionality rather than addressing any intentional harm [86947].
Intent (Poor/Accidental Decisions) poor_decisions (a) The software failure incident in the article was primarily due to poor decisions made by the software vendor and the state regulators. The issues stemmed from software glitches with the state's "seed-to-sale" tracking system, causing significant disruptions to businesses in the legal cannabis industry [86947]. The decision to implement a botched software update without proper testing led to lost sales, furloughed workers, and overall financial losses for companies. Additionally, the state's contract with the software vendor, MJ Freeway, and the design choices of the traceability program were criticized for causing headaches for regulators and businesses alike. The incident highlighted the consequences of poor decisions in software development and implementation.
Capability (Incompetence/Accidental) development_incompetence (a) The software failure incident in Washington's "seed-to-sale" tracking system was attributed to software glitches with the massive database, which began preventing businesses from transporting their products, leading to lost sales and worker furloughs [86947]. (b) The incident was described as a result of a botched software update that caused problems, prompting the state Liquor and Cannabis Board to allow pot businesses to come up with their own workarounds to track data about test results and product shipping, deviating from the usual traceability practices set out in state rules [86947].
Duration temporary The software failure incident reported in Article 86947 was temporary. The article mentions that software glitches with the massive database last week began preventing businesses from transporting their products, costing them hundreds of thousands of dollars in lost sales and forcing some to furlough workers. State regulators have been working with the vendor to address the problems, and the company worked quickly to remedy the issues. The state Liquor and Cannabis Board also took steps to allow pot businesses to come up with their own workarounds to track data about test results and product shipping, indicating a temporary solution to the software failure incident [86947].
Behaviour crash, omission, value, other (a) crash: The software failure incident in the article can be categorized as a crash. The article mentions that the software glitches with the massive database prevented businesses from transporting their products, leading to lost sales and furloughing workers [86947]. (b) omission: The software failure incident can also be categorized as an omission. Businesses were unable to transport their products due to the software glitches, resulting in lost sales and the need for workarounds to track data about test results and product shipping [86947]. (c) timing: The software failure incident does not seem to be related to timing issues. The focus is more on the system's inability to function properly rather than performing functions at incorrect times [86947]. (d) value: The software failure incident can be linked to a value issue as well. The system was not performing its intended functions correctly, leading to financial losses for businesses and the need for workarounds to track essential data [86947]. (e) byzantine: The software failure incident does not exhibit characteristics of a byzantine failure. The issues mentioned in the article primarily revolve around software glitches, lost sales, and the need for businesses to find alternative ways to manage their operations [86947]. (f) other: The other behavior exhibited by the software failure incident is the inability of the system to maintain transparency and efficiency in the traceability program, causing significant disruptions and financial losses for businesses in the legal cannabis industry [86947].

IoT System Layer

Layer Option Rationale
Perception None None
Communication None None
Application None None

Other Details

Category Option Rationale
Consequence property (d) property: People's material goods, money, or data was impacted due to the software failure The software failure incident in Washington's "seed-to-sale" tracking system caused businesses in the legal cannabis industry to lose hundreds of thousands of dollars in lost sales. For example, Evergreen Herbal, a Seattle company, lost four days of revenue-generating sales directly due to the state software system failure. This loss of revenue was a significant impact on the businesses affected by the software glitches [Article 86947].
Domain sales (a) The failed system was intended to support the cannabis industry in Washington state. The system, known as the "seed-to-sale" tracking system, is part of the state's "traceability" program aimed at promoting transparency in the legal cannabis industry [Article 86947]. (m) The failed system was also mentioned in relation to other states' experiences with similar software challenges in the cannabis industry. For example, California, Maryland, Pennsylvania, and Nevada have all faced issues with their respective track-and-trace systems for regulating the cannabis industry [Article 86947].

Sources

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