A novel design framework for exploring JPEG2000 encoding system architecture is proposed. In this framework, each procedure of JPEG2000 encoding is selectively implemented among those by software, software accelerated with user-defined instructions, or dedicated hardware, while maintaining the compliance with the requirements and constraints of each terminals and applications, so as to optimize the encoding system organization. Dedicated hardware modules for DWT and entropy coder as well as software acceleration of DWT procedure are devised to be used in the framework. Furthermore, an LSI, which consists of the DWT module and the entropy coder, is fabricated to exemplify the system implementation designed through the use of proposed framework.