Based on two application-oriented research projects 2012-2014 Modular Cocoon and 2019-2022 Cocoon 2.0, which have been carried out in a Swiss psychiatric hospital, it is presented how a systemic research approach is used to implement a needs-oriented design that can address the needs of different disease patterns, gender and age with individualizable elements. In hospitals, there are numerous stressors for patients. Regardless of different previous experiences, these are perceived differently and also affect individuals on different physical and psychological levels. Accordingly, the question of which design elements in which configuration and design form are suitable for reducing stress and states of arousal individually was investigated. The research process is divided into four phases for each project: 1st phase: Site inspections, observation and measurement of the actual state. 2nd phase: Co-creations and Co-Designs with the relevant stakeholders 3nd phase: Data analysis, derivation of concept ideas and construction of prototype 4th phase: Implementation of prototype and testing In both tests, it has been shown that stress-reducing effects can be presented at different levels in all patients through the individual appropriation possibilities created by the configuration of the parameters wood, light and textile. The prototypes of both research projects have influence on the feeling of security and safety, which is related to well-being. The empirical data clearly show that the design approach of individualization enables patients to self-regulate, i.e. the configurability of the design parameters enables patients to self-regulate their stress.