The digitisation of the world has led to a multitude of far-reaching implications that require students to be prepared for the dynamic era of rapid change, complexity, fluidity, and ubiquity in which they will work at the forefront of technology. To succeed in this environment, students must be able to design and implement digital innovations within the broader spectrum of digital transformation. Despite the importance of this area, the literature shows a lack of research on how digital business innovation skills can be effectively taught to students. To address this gap, a design-based research (DBR) study was conducted using a mixed-methods design through three iterations at a South African university. The study aimed to answer the research question of how digital business innovation skills should be taught to South African Information Systems students. The study commenced with an analysis of practical problems experienced by practitioners, industry, students, and researchers and an initial review of pertinent literature. The literature review focused on the impact of digitisation on future skills requirements to inform the pedagogy, content, and technology applicable to the teaching and learning environment. The findings yielded design principles for the design of the learning environment that were tested and refined via three iterations, resulting in nine design principles. The aim was to ensure a future-oriented, industry-informed curriculum design that is relevant to the digital economy.