My introduction to inductive Bible study occurred in 1996, and came through Precept Ministries. I took the training offered, and taught Precept studies for a few years with a friend, and I also attended many. But Precept did not "invent" inductive Bible study, and you don't have to use Precept materials to practice inductive study methods.
We work through this discovery process using the steps of observation, interpretation, and application. Observation is more than a cursory reading; it means reading over and over again, paying attention to context, setting, people, words, and phrases. Done well, it should be the longest step in the process. Following observation, we interpret. The practice of interpretation is also called hermeneutics, and it has its own set of principles which one must follow. Only after we observe thoroughly and interpret carefully do we move to application; or as my hermeneutics professor preferred to say, implication.