Today’s business and IT systems have strongly focused on effective communication. The communication based on poor foundation might create huge communication problems for the system designer and user. These communication problems have a severe impact on the efficiency of information system and most importantly when it comes to the building of a new information system through co design process. For any business organization, IT plays a huge role these days. Although this is not given much emphasis sometimes, it is important to understand that the use of IT in business cannot be taken for granted because it is viewed as part of business organization these days. The business needs to continuously make investments in their IT systems. This will not only help the organization, but the industry as a whole. Effective communication is extremely important for business and IT systems now-a-days. With the help of this particular thesis, the importance of effective communication would have been reflected accordingly. The purpose of this research is therefore to analyze the communication problem between the designer and user during co-design mainly in the field of business and information technology and to create an understanding for how it is possible to create a better communication between the different parties in system development through co-design. Research can also be classified on the basis of the structure of the problem to be solved into exploratory, descriptive and casual research. The research can be regarded as exploratory research because large amounts of data can be gathered from the past researches and literature. Exploratory research explores the parameters of the problems in order to identify what should be measured and how best to undertake a study. In this research the qualitative data is gathered through detailed interviews and literature review. This helps in better understanding through words. Data is generated through the method of triangulation. The results will be presented using detailed analysis of data gathered from interviews and the analysis of theoretical part. It is a very challenging task to meet the changing needs of the business world. Designing effective information technology for this purpose is also very challenging. The co-design of business and IT systems has a lot of benefits for the organizations. The information technology is basically used to support business and its functions. Therefore it is extremely important that the information technology is aligned with the business processes. It should be considered as a part of the business and should not be designed independently. Effective Communication is important for managers in the companies in order to perform the fundamental management functions, i.e., Planning, Leading, Organizing, and Controlling. Communication facilitates managers to execute their jobs as well as responsibilities. Communication provides a foundation for planning. All the vital information should be communicated to the managers who consecutively should communicate the plans in order to apply them. Organizing also needs efficient communication with others regarding their job task. Hence, we can say that “effective communication is a basic element of successful business”. In other words, communication works as blood of organization. Strong literature review as well as strong capabilities towards research methodology and analytical part will certainly enhances the productivity of this thesis and will furnish good understandings among the readers. / Program: Masterutbildning i Informatik