Traditional MSc dissertations, while academically rigorous, often fail to develop the collaborative skills increasingly demanded by employers. This paper presents a novel alternative: a group-based agile-like project model implemented within a Digital Health MSc programme at a university. Through a mixed-methods evaluation involving quantitative surveys (n=6) and qualitative focus groups with students (n=6), academics (n=3), and industry partners (n=3), we assessed the effectiveness of this innovative approach. Our findings demonstrate consistent improvements in students' self-reported knowledge and confidence across six project phases, with quantitative data showing +0.9 point Likert improvement for knowledge and qualitative data revealing four key themes: managing uncertainty in innovation processes, balancing multidisciplinary learning with specialisation, navigating team dynamics whilst maintaining individual accountability, and optimising workload distribution. Based on these findings, we propose evidence-based recommendations for implementing similar models in engineering education, addressing the inherent tensions between authentic workplace preparation and academic assessment requirements. This approach offers a promising pathway to enhance graduate employability while simultaneously addressing faculty workload challenges in an increasingly resourceconstrained higher education environment.