The design phase of a product development project will determine 70% to 90% of the product's ultimate development, consumer, and support costs over its lifetime... and, if executed correctly, may well uncover the vast majority of problems that would eventually be encountered with the product should such a review never take place. Also, it's estimated that at least 50% to 70% of cost reduction opportunities exist within the design phase.²

This observation is well-repeated mantra within the product development industries (e.g., hardware, medical, software, industrial), but it is based on research by various companies and institutions, as well (see corroborative comments link below). The consensus, regardless of the exact numbers cited, is that a very large percentage of a product's life cycle costs and market viability is determined in the initial design phases: i.e., the product ideation (design) phase and the product realization (implementation) phase (see figure 3). Exactly how much of this percentage is committed during the initial product design phase is estimated to be at least 75%. Incidentally, the design phase is also where accrued projects costs are smallest (see Figure 1). You get the most 'bang-for-the buck' in the product design and review phase.

Also, the further into a product development project that product requirement changes are 'discovered' or 'demanded', the more the project and market entry is delayed and the higher the project costs become. The reason is that certain phases of the product development project that are already completed may need to be repeated. This 're-spin' activity is, more often than not, caused by "disconnects in the intellectual-capital supply chain"³ ; that is, understanding of the product's design, intent and its business case is not well-understood by those involved in the later phases of the development effort.

For corroborative comments click on: