Discovery Research

Discovery F***ups: epic fails, priceless lessons

September 19, 2024 3:20 PM
Power Talk
🇬🇧 English
Bratysława 2

About

Let's talk about "Discovery F***ups" - real stories of product discovery gone wrong (from my previous roles and others). We'll dive into fascinating, sometimes funny, sometimes scary examples from the trenches. But these aren't just fails; they're gold for learning. By looking at these mess-ups, we'll pull out valuable lessons to boost your product discovery game. Expect engaging stories, practical tips, and a fresh take on learning from mistakes in the product world. No sugarcoating, just real talk about real failures and the priceless lessons they teach us.

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From the recording

Talk in brief

In this WaysConf 2024 presentation, Przemek Szustak, Senior Product Manager at Dotdigital, shares valuable product discovery lessons derived from high-profile industry failures and his own entrepreneurial setbacks. Using the analogy of hosting a dinner party, Szustak defines product discovery as the ultimate taste test for product ideas. He breaks down three common discovery pitfalls: market misread, confirmation bias, and tunnel vision, illustrating them with famous case studies like the Segway, New Coke, and Snapchat's 2018 redesign. Szustak then reflects on two personal failures: a lavish 2018 cryptocurrency conference in Amsterdam that failed due to a lack of MVP validation, and a promising 2014 hemp food startup that collapsed because he ignored regulatory feasibility and panicked over a legal fine. Ultimately, Szustak emphasizes that product teams must prioritize iterative problem-solving, actively seek disconfirming evidence, and pivot rather than give up when facing execution hurdles.

Key takeaways

  1. 01

    Validate Demand Before Scaling Production

    Building a high-fidelity final product without testing core assumptions often leads to massive financial losses. Starting with smaller, low-cost MVPs helps gauge actual market interest before investing heavy resources.

    Watch from 16:35
  2. 02

    Actively Seek Disconfirming Evidence

    Confirmation bias leads product teams to only look for data that validates their pre-existing hypotheses. To avoid costly failures like New Coke, teams must deliberately search for feedback that challenges their assumptions.

    Watch from 10:16
  3. 03

    Solve Problems Iteratively, Not Just Solutions

    True agile development focuses on delivering immediate, incremental value to solve a user's problem rather than building a complex solution in stages. This approach ensures that the team reaches the value finish line much faster.

    Watch from 19:42
  4. 04

    Balance Desirability with Regulatory Feasibility

    Even if a product has strong market demand and organic growth, ignoring legal and operational constraints can quickly derail the business. Product discovery must evaluate feasibility alongside user desirability to prevent compliance failures.

    Watch from 23:00
  5. 05

    Pivot Instead of Giving Up Prematurely

    Encountering a setback or a regulatory hurdle does not mean a product idea is entirely dead. Instead of abandoning a validated business model out of panic, teams should pivot their execution strategy to address the specific failure point.

    Watch from 24:53
Read edited transcript highlights

These concise notes were edited from automatic captions and checked against the talk structure. They are not a verbatim transcript.

The Culinary Detective of Product Discovery

Product discovery is highly comparable to throwing a dinner party. You start with prep work by checking your ingredients, make sure your guests will actually like the menu, and taste-test your dishes along the way. Once the meal is served, you observe their reactions, check if they scraped their plates clean, and ask if they want the recipe. In the product world, this means you are acting as a culinary detective, investigating what your users truly crave and ensuring you build the right thing for the right audience rather than just throwing random ideas at the wall.

Watch from 4:08

The Segway and the Pitfall of Market Misread

The Segway's launch in 2001 serves as a classic example of market misread. Despite massive hype and predictions of selling ten thousand units a week, the company only managed to sell twenty-four thousand units over five years. The creators solved a short-distance transportation problem that most people did not actually feel needed fixing, as walking and biking worked perfectly fine. Years later, when Ninebot acquired Segway and launched electric scooters, they sold ten times more units in a single year than Segway did in seventeen years, proving that understanding real user alternatives is critical.

Watch from 8:03

How Confirmation Bias Blinded Coca-Cola

In 1985, Coca-Cola spent millions of dollars conducting over two hundred thousand taste tests to validate their New Coke formula. While the taste tests showed a clear preference for the new flavor, the company fell victim to confirmation bias by focusing solely on this supportive data. They completely overlooked the deep emotional connection consumers had with the original brand. The resulting public backlash was so severe that the company had to admit its mistake and reintroduce the classic formula just seventy-five days later, demonstrating why you must actively search for data that challenges your beliefs.

Watch from 10:16

The High Cost of a Failed Crypto Conference

In 2018, after making money during the cryptocurrency bubble, my co-founder and I quit our jobs to organize a massive international conference in Amsterdam. We rented an incredibly expensive venue, hired a full team, and spent eight months focusing entirely on high-end production value. However, we built the final 'car' instead of starting with a 'skateboard' like local meetups to validate demand. We ended up with only five hundred attendees instead of our target of thirty-five hundred, leaving us with a room full of empty seats. This painful experience taught me that failing fast with an MVP is always better than investing heavily in an unvalidated concept.

Watch from 16:35

Regulatory Blindspots in the Hemp Food Business

During my second year of law school, I launched a hemp food brand called Hemp Foody. I started small, imported products, and repackaged them under my own label, which led to rapid sales growth on the Polish market. However, as a solo founder trying to do everything myself, I ignored regulatory feasibility. I designed marketing materials claiming hemp food had more omega acids than fish, which was factually true but legally prohibited under food advertising regulations. I received a fine from the sanitary authorities, panicked, and shut down the business. This taught me that feasibility must be discovered alongside desirability, and that you cannot do everything alone.

Watch from 21:05
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