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Older people with dementia (OPD) have specific housing and technology-related needs, for which various design principles exist. A model for designing environments and its constituting items for people with dementia that has a firm foundation in neurology may help guide designers in making design choices. The paper aims to discuss these issues.

A general design model is presented consisting of three principles for OPD, namely designing for ageing people; designing for a favourable state and designing for beautiful moments. The neurosciences as a whole give shape to an eminent framework explaining the behaviour of OPD. One of the objectives of this paper is to translate the design principles into design specifications and to show that these specifications can be translated in a design.

Philosophical concepts are introduced which are required to understand design for OPD. Four case studies from Dutch nursing homes are presented that show how the theory of modal aspects of the philosopher Dooyeweerd can be used to map design specifications in a systematic way.

These examples of design solutions illustrate the applicability of the model developed in this article. It emphasises the importance of the environment for supporting the daily life of OPD.

There is a need for a design model for OPD. The environment and technology should initiate positive behaviours and meaningful experiences. In this paper, a general model for the designing of environments for OPD was developed that has a firm foundation in neurology and behavioural sciences. This model consists of six distinct steps and each step can be investigated empirically. In other words, this model may lay the foundation for an evidence-based design.

Sociotechnical systems theory (STS) does not address in full the implications of the team‐context relations, despite its open systems character. There is a need to open STS into a sociotechnical business systems (STBS) theory and practice. We observe three interrelated aspects that are important for STBS. First, the design of the production structure is a traditional STS aspect. Second, the design of the control structure on the team level needs an elaboration compared with STS. The third aspect is the social‐dynamic alignment. We describe the mini‐company concept and argue that this concept is a specification of STBS covering the three aspects. The case of the implementation of mini‐companies in a Dutch manufacturing plant illustrates the strengths of the concept.