Hi Chandan,
Thanks for writing! I think your diagram roughly captures the process -- but I sincerely hope (and expect!) we'll support tighter embedded feedback loops of "collaboration," rather than a waterfall-like process from concept -> prerelease -> release.
It's also important to separate out two fundamental levels at which changes to the specifications can occur:
1. Changes to FHIR itself. Changes to the underlying FHIR specification occur through HL7's FHIR standards development process (where the SMART team is an active participant). The scope here is quite broad (international standard for all kinds of healthcare data exchange), and decisions are far-reaching. For example, we've pushed hard for simplifications to FHIR's representation of JSON, and these changes, once incorporated in the spec, apply to all FHIR implementations.
2. Changes to SMART's "profiles" of FHIR, which could include decisions like which vocabularies to use, and which terms to use to describe particular concepts. We may wind up building some profiles ourselves, or we may be able to outsource this work to other groups currently building profiles. It's still very early days. For now, our focus has been on very high-level profiling decisions that align closely with meaningful use and certification requirements (e.g. focusing on vocabularies like RxNorm, SNOMED CT, and LOINC).
Please let me know if this helps.
Best,
Josh