Notes:
The design phase lays out the work for the remainder of the project. It produces a reference view of the world that is sharable with other team members and the client.
If it has not already been done, the performance characteristics of the final result need to be determined. This is very important as it drives the design, modeling, and integration of the rest of the project. This step identifies the target platforms, download capabilities, and browser requirements.
Sketch the world. This is very important if working in a team so that all members of the team have a common view of the goal. The sketch can be done in any medium that the designer feel comfortable - pencil & paper, electronic drawings, CAD, etc. The sketch should include major dimensions so that the proper scale can be obtained when modeling. Animations that are complicated or unusual should be storyboarded. The design sketch should be refined as needed.
Lastly, the world components need to be identified so that the following phases can smoothly occur.