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Definition: Co-design is a research and development process and philosophy where professional designers empower, encourage, and guide users to develop product, service, or organization solutions for themselves.
In co-design, the roles of users and designers in design is blurred.
An assumption behind CD is that when design professionals and users create solutions together, the final result will be more appropriate and acceptable to the user.
CD had its roots in user-centered design and participatory design practices and got a boost from Prahalad and Ramaswamy's Co-creation concept of which it is major part.