Panos Panay told a TechCrunch Disrupt audience that failure is inevitable and essential for innovation.
He cited Microsoft’s Surface RT as a costly but invaluable learning experience.
The lesson is to harvest takeaways from failures without losing the original vision for the product.
The advice targets both startups and larger teams working on new hardware and software initiatives.
Quick read · 1 min
Amazon devices chief Panos Panay argues that failure isn’t just a setback, it’s a required part of building better products. He cites his Microsoft Surface RT experience as proof that the right lessons can fuel future success. The core idea is simple: admit what went wrong, extract concrete takeaways, and steer the project with a slightly adjusted plan while keeping the original goal in view. For everyday users, that means tech may take a bit longer to launch polished features, but the end results should be more reliable and aligned with what customers actually want. Expect more disciplined experimentation across devices and software as teams bake in those hard-won lessons.
Failure is inevitable in ambitious projects.
Harvest lessons, adjust the plan, keep the vision.
Today’s setback can fuel tomorrow’s better product.
Failure is not something to fear, Panos Panay told a crowd at TechCrunch Disrupt in San Francisco. The Amazon devices chief, who runs Alexa, Leo, and the broader devices group, reminded founders that pushing the boundary often comes with costly missteps. And that, in his view, is part of the path to truly good products.
Panay drew on his long career, including nearly two decades at Microsoft, where he experienced a failure that left a lasting imprint: the Surface RT. He recalled a moment when the project’s wake left a big, painful headline and a near $1 billion write-down. But the point wasn’t the loss. It was what followed: what could be learned, and how the team adjusted course without letting go of the original vision.
“Failure is inevitable, and it’s required if you want to build something meaningful,” Panay said. “You have to be willing to fail, and actually, not just willing, you actually have to go fail.” He stressed that the value lies not in the moment of failure but in harvesting the lessons learned and using them to steer future work.
That mindset is not about a single lucky pivot. Panay described a disciplined approach: admit when something went wrong, extract concrete lessons, and adjust the direction just enough to stay aligned with the overarching goal. It’s a balance between resilience and keeping faith in the original vision for the product.
The takeaway for teams today is simple: push the boundary, but document what went wrong and why those decisions were made. Then, iterate. He framed the process as a series of small vector changes rather than a wholesale reversal. If teams cling to a plan that proves incompatible with reality, the project stalls. If they adapt thoughtfully, progress can accelerate, eventually delivering a product that matches the initial ambition.
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Why this matters to everyday tech users
For consumers, Panay’s message translates into how products arrive on shelves. You may see features advertised that are not quite right at launch, followed by improvements through software updates or hardware revisions. The work behind those updates often spans rounds of testing, failure, and recalibration, the kind of process Panay says should be embraced rather than hidden.
In practice, that means companies may be slower to promise perfection out of the gate, but quicker to correct course once real-world use shows gaps. For buyers, it can mean longer wait times for mature, polished features, yet more reliable long-term performance as teams refine products after launch.
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What exactly did Panay say?
Panay told the audience that failure was not a badge of shame but a learning moment. He cited his time at Microsoft as an example where a big misstep led to critical lessons about software readiness, inventory planning, and retail strategy. The core message: harvest those lessons and adjust the vector of the project, not abandon the vision.
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How this applies to Amazon devices and beyond
As head of Amazon’s devices and Alexa ecosystem, Panay’s stance signals a culture that prioritizes learning from missteps rather than burying them. The idea is to push ambitious hardware and software initiatives while staying grounded in what customers actually need. For startups and teams inside large companies, the prescription is the same: move fast, learn fast, and course-correct with intention.
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What happens next
Founders and product teams should ask themselves: what have we learned from our latest setback, and how can we adjust our next milestone without changing the core goal? Document the decision chain, test the revised approach, and communicate the plan clearly to customers and internal stakeholders. The path from failure to functioning product is rarely a straight line, but Panay argues the direction should stay true to the original vision.
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