Based on a literature review, this paper identifies four socio-technical challenges relating to innovation actor’s interactions in digital innovation. Furthermore, the paper explores how these challenges can be addressed. The challenges are investigated in a case study of digital innovation. The study is based on a two year long research and development project where an e-newspaper concept and a demonstrator based on e-paper technology was developed. Based on empirical findings, the paper presents eight activities which address the identified socio-technical challenges with digital innovation. The activities are: 1) support transparent digital ecosystem relationships, 2) facilitate cross-organizational communication, 3) create digital value blueprints, 4) translate heterogeneous knowledge, 5) involve all relevant user groups, 6) identify, design for, and authenticate digital user values, 7) design for multiple contexts of use, and 8) prototype iteratively.