Be fundamentally different, not incrementally better | Jag Duggal (Nubank, Facebook, Google, Quantcast)

Differentiation

Jag Duggal, chief product officer at Nubank, emphasizes the company's philosophy of being fundamentally different rather than incrementally better. This approach is key to driving product innovation and customer growth, as it encourages creating unique experiences that compel customers to share with others 1. Jag explains that Nubank's success stems from its strategic decision to build a branchless bank leveraging the smartphone revolution in Latin America, focusing on credit first, which was riskier but ultimately more rewarding 2. He notes, "We're searching for those anchors that are going to be fundamentally different all the time, around which you build some sustaining innovation as well" 1.

   

Category Design

The debate on category design is central to Nubank's strategy, with Jag advocating for creating new categories rather than improving existing ones. He argues that successful companies are typically in the business of being fundamentally different, citing examples like Google and Netflix 1. Jag acknowledges the challenges but believes in the importance of defining new categories to dominate them, even when entering established markets 2. He states, "Concentrating all your bets is the thing the desperate people do. And startups are desperate entities because they're burning cash in almost every instance" 3.

   

Strategic Expansion

Nubank's strategic expansion involves launching new product lines and entering new markets with innovative tactics. Jag describes the company's journey from a Brazilian credit card monoliner to a full-solution Latin American bank, introducing products like lending, investments, and insurance 4. He emphasizes the importance of a coherent strategy, noting that Nubank's approach is not about having an ambitious goal but a clear plan to leverage strengths against core problems 5. "Strategy allows focus and it allows a much more rapid read of whether your focused bets, your concentrated bets are actually working," Jag explains 5.