Harare- For a modern-day business, operating in an era that is brimming with thousands of “how to” strategies, first principles thinking could be the difference between a million and billion-dollar company. In Zimbabwe, it could be the difference between a dynamic enterprise capable of innovating and surviving the economic terrain and a company that crumbles under the pressure of a failing, ailing economy.

First principles thinking is a problem-solving method used to break down a complex problem or idea into its core components. It is a thought process employed by Elon Musk and other innovators, in which assumptions and conventional wisdom are ignored, and the individual focuses on breaking the problem down to its essential elements. It involves breaking down each assumption one by one, questioning each part and then creating new solutions based on these individual pieces.

Today, the world's largest platforms are undergoing a generational rethink that is yet to trickle down to SME’s. In tech, developers find new ways to continue innovating from the past while responding to changing behaviours and new user requirements. The platforms these developers build are increasingly important and powerful forums on which these tools are distributed, sold, and ultimately the foundation of their success.

The platform is inherently best-designed when it efficiently aggregates user demand by delivering innovation and value that meet the unique needs of businesses and consumers. Like a supermarket, the platform centralizes access to the most popular and niche items, giving businesses an easier way to market and innovate their products.

Prior to 2006, developers needed a six- to seven-figure budget to build the basic infrastructure needed to deploy an app. Amazon Web Services first built a platform that abstracted the need to think deeply about the infrastructure required to host and deploy these applications. This allows developers to focus on what they do best and lowers the barrier to entry for new startups.

Because of a radical shift in the assessment of every scenario, that approach has enabled success for companies like HubSpot or Salesforce. Both focus on core sales and marketing so developers can build industry-specific solutions and these fragmented use cases.

Closer to home, Ecocash-- a revolutionary mobile payment service, has the potential to be a digital technology behemoth by deploying first principles thinking and in turn overhauling a banking crisis. Elon Musk’s first principle states that "the last, and most important step, is to think long-term and not just try to solve immediate problems." This concept is applicable to many aspects of life but is particularly relevant to Ecocash Holdings Zimbabwe in its attempts to be a leader in the financial services industry.

In Zimbabwe's current landscape, many people have difficulty accessing financial services due to the lack of traditional banking infrastructure. Ecocash has pioneered new solutions to this problem, such as its hugely successful mobile money service, allowing customers to transfer money, pay bills, and top up data and airtime with a touch of a button. By incorporating this into its financial service provision, Ecocash has provided convenience, security, and peace of mind to customers. Utilizing a secure, easy-to-use mobile wallet, customers are able to access their funds anytime, anywhere. The service provides a safe and reliable way for customers to transfer money, pay for goods and services, and manage their finances.

For the third quarter ended 30 November 2022, Ecocash Holdings focused on maintaining relevance in the fast-changing economic environment by increasing its value proposition and offering an exceptional product experience and convenience to our customers. This was coupled with a focus on growing the Mobile Money United States Dollar transactions distribution footprint across the country. Consequently, the group realised that the growth had greatly improved customer convenience and physical accessibility to its financial services for United States Dollar transaction volumes.

Further, the group relayed that the reduction of IMTT on domestic money transfer transactions from 4% to 2% effective 1 January 2023 is expected to further accelerate the adoption of United States Dollar digital money transfer services.

First principles thinking is an important part of improving any asset, and with Ecocash, an asset that facilitates payments and money transfers, this is especially true. By utilizing first principles thinking, Ecocash can make sure that any moves it takes to bolster the asset meet the specific needs and wants of the users, and provide a reliable, secure, and efficient service.

The group has a diversified business portfolio consisting of assets in FinTech, InsurTech, On-Demand Services, e-Commerce, Agritech, Healthtech and Edutech.

The Bank registered 56% growth in Mobile Banking Volumes in the 3rd quarter against the same period last year. Interest-earning assets recorded an upward trend buoyed by an aggressive drive to grow the foreign currency loan book, particularly for the corporate sector. In addition, Point of Sale transaction volumes dropped by 27% confirming the increase in United States Dollar cash transactions in the economy.

The short-term insurance business was able to sustain its revenue performance over the 3rd quarter period, compared to the previous year. The business also recorded a lower claims ratio compared to the same period last year.

In its latest trading update, the group maintained its commitment to delivering value to all its stakeholders through leveraging on digital and financial technologies. How does Ecocash holdings do it, effectively? First principles thinking.

Firstly, it is important to consider the needs of the users.

When it comes to utilizing first principles thinking to explore the potential of assets, there are several things to consider. Firstly, one should look at how the asset functions within its current environment and understand the different factors that affect its performance. This can involve studying past trends, analysing current data, and looking at industry-based models. This can then be used to help anticipate future trends or changes that could impact the asset's performance.

From there, one can use first principles thinking to identify and develop potential opportunities, such as introducing new products, expanding into new markets, or creating new business models. This can also involve examining existing processes and creating innovative solutions that better serve the asset's existing customers or target potential new ones. Lastly, it's important to investigate any potential risks associated with these new strategies, as well as any potential ethical or regulatory issues.

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