The early stages of a development process are critical: they define the potential of an idea and often determine whether a project will succeed or fail. The concept phase, in particular, plays a central role. Despite its importance, it is often underestimated in many companies. Decisions are frequently made spontaneously and without in-depth analysis—based on reasoning like: “It worked before, so we’ll do it that way again.”

This is a risky approach. Engaging intensively and creatively with the topic can often lead to better solutions—more innovative, cost-effective, future-proof, and of higher quality.

A strong way to broaden perspectives and thereby strengthen the concept phase is through collaboration with external experts. Creative specialists help break free from habitual thinking patterns and enable the development of truly novel concepts. Hiring an external engineering firm for creative input can be compared to working with a marketing agency: both bring fresh perspectives and specialized expertise to develop innovative and customized solutions.

Experience shows that unconventional ideas often open up new perspectives on the task at hand. These fresh viewpoints not only support the development of creative solutions but also help prevent mistakes during later implementation stages.

The concept phase is a critical step in the development process. It defines the framework for future decisions and lays the foundation for a successful product. While its boundaries are fluid, it’s best understood as the phase where a fundamental solution is determined. This includes analysing requirements, exploring possible solutions, and selecting the most promising concept based on feasibility, cost, and functionality.

Why the Concept Phase Matters

This phase significantly influences time-to-market, cost, and product features. In competitive and innovation-driven markets, it’s not enough to deliver functionality—products must offer clear added value. Especially in high-cost economies like Germany, success depends on exceptional quality and usefulness rather than low prices.

Early investment in concept development—also known as frontloading—helps avoid costly late-stage changes. Addressing uncertainties early on ensures a leaner, more efficient process.

Key Activities

• Analyze Requirements: Break down product needs into subfunctions.
• Research Technology & IP: Check current solutions and patents.
• Explore the Solution Space: Develop and combine multiple approaches.
• Evaluate & Select Concepts: Choose options that best balance feasibility, cost, and value.
• Experiment & Prototype: Use early tests and demonstrators to validate ideas.
• Encourage Creativity: The best concepts emerge in open, interdisciplinary environments.

Challenges in Internal Development

• Limited Perspective: Internal teams often lack exposure to ideas from other industries.
• Developer Demotivation: Rigid structures and lack of recognition suppress innovation.
• Creativity-Hostile Structures: Traditional project management and aversion to risk hinder breakthroughs.

The Value of External Partners

External specialists offer deep expertise, diverse experience, and fresh perspectives. Their focus on concept work leads to faster and more innovative results. Outsourcing also:

• Boosts capacity without long-term hiring
• Reduces time and cost through efficient processes
• Supports internal teams by freeing them to focus on core tasks

Conclusion

The concept phase sets the direction for successful product development. Done right, it delivers strategic value through clearer goals, smarter decisions, and better outcomes. Collaborating with experienced external partners can supercharge this phase—bringing speed, innovation, and a real competitive edge.