Discuss about elements that we need to figure out before starting product and service design?

The primary focus of product and service design should be on customer satisfaction. From byers standpoint, most purchasing decisions entail two fundamental considerations: one is cost and the other is quality or performance. But lets take a look at organizations standpoint. Which factors they must be considered? Please mention some of these factors and provide in-depth explanation for one of them. If you have any experience with this topic that would be great to share it with other students.