First Principles Thinking: The Foundation of Innovation

First principles might sound like an esoteric term used in the sciences and philosophy. So, what exactly are they? and how are they foundational to innovation?

A first principle is a basic assumption that cannot be deduced any further¹. Aristotle relating the idea to knowledge defined it as — “the first basis from which a thing is known”. First principles are foundational because they provide a strong basis for correct reasoning. Without them, our reasoning will be based on faulty assumptions.

Now, first principles thinking, also known as reasoning from first principles, is a way of solving problems by reducing them to their basic elements and building from the ground up. This thinking process has led to some of the revolutionary inventions the world has seen and has been used by some of the world’s greatest minds: like Leonardo Da Vinci, Thomas Edison, Steve Jobs, Bill Gates, Henry Ford, and Elon Musk.

How was it applied?

Leonardo Da Vinci used this process so well that he was able to anticipate many great scientific discoveries ahead of his time. Years before Sir Issac Newton, he proposed the Theory of Gravity, and also a basic form of the Theory of Evolution, later promulgated by Charles Darwin². For thousands of years, bags and wheels existed and no one thought of combining the two — not until Bernard D Sadow, returning from a vacation, saw a worker at the airport rolling a heavy machine using a wheeled skid. By reasoning from first principles he was able to invent the first “Rolling luggage” — a suitcase on wheels³.

Elon Musk utilizes this process so effectively such that the results he achieves are astonishing, constantly delivering innovative solutions in three challenging and competitive industries- Aerospace, Renewable Energy and Transportation. But how does he do it? Here’s a quote about his approach to problem-solving;

“I think it’s important to reason from first principles rather than by analogy. So the normal way we conduct our lives is, we reason by analogy. We are doing this because it’s like something else that was done, or it is like what other people are doing with slight iterations on a theme. And it’s mentally easier to reason by analogy rather than from first principles. First principles is kind of a physics way of looking at the world, and what that really means is, you boil things down to the most fundamental truths and say, “okay, what are we sure is true?” and then reason up from there. That takes a lot more mental energy.” ⁴

When Musk began his entrepreneurial journey in the aerospace industry, he was faced with a major challenge -acquiring a rocket. Rocket costs were astronomically high and purchasing was no option. Looking at the problem from a different perspective, he reduced the rocket to its constituent parts and researched how much he could acquire the individual parts in the commodities market. This led him to the discovery that he could build rockets for cheaper and way more efficiently than the industry offered. As a result, the aerospace company SpaceX was born ⁵.

The application of first principles thinking is not limited to technology or science alone. It can be utilized in any discipline where creative thought is required, to drive effective innovation. In business, for instance, it can be used to analyze existing processes, create more effective business models and better services. In product design, it can be employed to design better products, that are not only intuitive or durable — think about the iPhone, but also cheaper.

In the dynamic world we live, we tend to approach challenges from the basis of established processes. Regular thinking dictates that we approach problems by doing what others have done; reusing existing ideas or methods, and thinking by analogy. While some degree of success has been achieved with these methods, they have proven ineffective and merely delivered solutions with slight improvements over what exists.

In the words of Albert Einstein, “The significant problems we face today cannot be solved at the same level of thinking we were at when we created them”.

First principles thinking offers an alternative and effective approach. It challenges us to think about the challenges we face, the core of the solutions and to ensure the solutions are congruent with basic truths. This way we can unleash our creative genius, innovate and make the world a better place.

How have you applied first principles thinking? what were the results? leave your comments below.

[1]: https://en.wikipedia.org/wiki/First_principle#cite_note-1

[2]: https://thinkers50.com/blog/innovation-leonardo-da-vinci/

[3]: https://www.nytimes.com/2010/10/05/business/05road.html

[4]: https://www.youtube.com/watch?v=L-s_3b5fRd8

[5]: Elon Musk: Tesla, SpaceX and the Quest for a Fantastic Future by Ashlee Vance