After the Research Phase or the optional Feasibility Phase, the client finalizes the offering's feature set and gives the green light for the offering's design. The developer enters the Planning Phase, followed by the formal Design Phase. During the Planning Phase, resources are lined-up and budgets and schedules are firmed up.

Critical in the Planning Phase are the allocations of key resources, both internal and external. The developer interviews employees to set or confirm the project management structure and vendors to obtain cost and timing details. Consultants and job shops that might be utilized are identified and possibly reserved based on their capabilities, uniqueness, availability and fee structure. Key material sources are reviewed with regard to lead times and quantity and other types of discounts.

Details from this Planning Phase, as well as any client tweaks to the feature set, feed adjustments to the project's budget and schedule. At this point, accurate design and manufacturing milestones can be established, and the client can now more precisely address some of the non-technical aspects of the offering, such as marketing, distribution and training. Meanwhile, the developer moves into the Design Phase, during which period the product or service takes tangible shape.