Advances in digital technologies have allowed firms to pursue digital innovation which involves adopting practices and processes to employ digital technologies to create new and improved products and services. Established firms have had to rethink their current practices and processes on innovation and new product development when pursuing digital innovation. This chapter provides an understanding of the issues involved in digital innovation. It highlights the relationship between innovation, creativity and design and outlines how digital technologies drive innovation and transform the design process. The chapter considers how data drives digital innovation and outlines the challenges involved in driving digital innovation. A framework is presented for understanding enablers of the digital innovation process including adaptable products, product-in-use data analytics, balance open and closed innovation, organisational culture alignment and changing organisational structures.