Member-only story

First Principles Thinking: The Key to Driving Innovation

Financely
3 min readJan 13, 2023

--

Photo by Milad Fakurian on Unsplash

In today’s fast-paced world, it’s easy to get caught up in the status quo and simply follow what’s already been done.

However, true innovation comes from thinking differently, breaking down complex problems and building solutions from the ground up. This is where first principles thinking comes in.

What is First Principles Thinking?

First principles thinking is a problem-solving approach that involves breaking down a problem or concept into its most basic building blocks or “first principles.”

Instead of relying on assumptions or what’s been done before, first principles thinking forces you to question everything and start from scratch.

For example, if you were trying to improve the efficiency of a car engine, instead of relying on previous solutions such as improving the fuel, you would break down the problem to its most basic components such as thermodynamics and combustion.

From there, you can start to build new solutions that can improve the engine’s efficiency.

Why is it Important for Driving Innovation?

First principles thinking is important for driving innovation because it forces you to think differently and…

--

--

Financely
Financely

Written by Financely

We're a corporate finance advisory firm that helps clients tap into global capital markets to raise funding. Visit financely-group.com.

No responses yet