For some time now, the notion that "an algorithm is an algorithm" has been emphasized in digital system design. In approaching such design problems, the question of hardware versus software implementation of the algorithm should be left to the last. In fact, such approaches have not been viable until the advent of the microprocessor, and software design has seemingly gone its own way independently of hardware design. But has it really? It is becoming increasingly clear that structured approaches to the design of digital systems, hardware or software, have evolved in both areas and are virtually identical. It is possible to teach a course on digital system design so that a diverse group can understand and learn from each other's background. It is also possible to have a laboratory wherein realistic projects can be undertaken. In this paper, the digital system design sequence and laboratory facilities at Northwestern University will be discussed. Also, desirable design tools will be postulated.