In my experience with software development at bigco, it's the lead architect-type person, who has the direct ear of upper management and has already made a decision well in advance of the developers/designers even hearing about the project. This decision will not be communicated in advance, rather people must generate several good ideas that will then be pared down to something close to what the architect originally had in mind, though they will all be moderately unsatisfactory due to the obvious limitations in this process. The result is a product that no one is completely happy with but at the same time no one can completely fault because of the extensive research and consensus that went into its development. This lack of enthusiasm will trickle down through the rest of the project until everyone is just looking for a way to get onto some other, newer project that is still untainted yet will inevitably undertake the same cycle in due course.
If a truly excellent idea should arise from the independent investigation, it will be shelved for a 2.0 product release due to the "perceived risk" or "out of scope requirements".
From the outside, however, this process looks exactly like the diagram in the article.
Pardon my cynicism, I suppose this is why I got fed up with commercial software development...I hear it's not like this everywhere;)