Definition. The ability to invent or formulate an idea or concept. The conceptualization phase of a project occurs in the initial design activity when the scope of the project is drafted and a list of the desired design features and requirements is created.e were still in the conceptualization stage of the film and would not begin until we knew exactly what everything would look like. 9 people found this helpful. Being able to think ahead about the CONCEPTUALIZATION of a project will help you to predict if it is worth trying. 11 people found this helpful.