The objective is to demonstrate the co-operative design (co-design) and production development process of a new wooden façade system. Today, architects and designers are seldom involved in the development process when designing new products within the wood building industry. The architect and the actors in the wood value chain are far from understanding their respective standpoints in new product development, thus creating a gap. This gap between actors hinders innovation and can mean that valuable design knowledge and methods are not used that can promote innovation in the wood building industry. In this paper we demonstrate how the development process of the façade system is profoundly influenced and improved by incorporating knowledge of the design process. Product development is becoming more and more complex and therefore more knowledge intense. This was addressed by working in parallel with partners coming from different areas of expertise, resulting in a co-design process considering aesthetic and functional requirements as well as the industrial manufacturing processes, interactively, throughout the entire development process. Using co-design when designing an adaptable facade system has proven to enable assessment of complex requirements, resulting in a sustainable system that can ensure good quality on material, aesthetics, and functions.