First principles analysis

First principles analysis refers to a method of problem-solving or understanding that involves breaking down a complex issue into its most fundamental components. Instead of relying on assumptions, analogies, or established rules, first principles thinking strips away everything down to the core facts or truths and then builds up from there.

The goal of first principles analysis is to understand the basic elements of a problem and reason from the ground up, allowing for creative and original solutions. It's a way of thinking that challenges assumptions and focuses on the underlying truths rather than conventional wisdom.

Steps in first principles analysis:

  1. Identify the problem – What are you trying to understand or solve?
  2. Break it down – Decompose the problem into its most basic elements or facts, removing any preconceived notions or assumptions.
  3. Rebuild the solution – Once you've identified the core components, reconstruct the problem, combining the basic truths in a new way to generate fresh ideas or solutions.

Elon Musk is often associated with using first principles thinking to innovate, especially when discussing how he approached building rockets at SpaceX, where he challenged assumptions about cost and design in the aerospace industry.

In summary, first principles analysis is all about starting from scratch and thinking deeply about the foundations of a problem.