PurposeThe purpose of this paper is to present design principles for holistic design of online degree programmes (ODPs) in higher education (HE). The study adds to previous research on online programme design by examining how the digital competence and pedagogical strategy of a HE organisation can inform holistic ODP design.Design/methodology/approachThis paper presents a case study placed in the context of a Finnish applied HE organisation. Design-based research (DBR) process is used to create holistic design principles for new ODPs. Theoretical framework for the study is digitally competent organisation (Kampylis et al., 2015) and pedagogical strategy is innovation pedagogy (Kettunen et al., 2013).FindingsDesign principles for pedagogically informed holistic design of ODPs are presented as a three-tiered model comprising organisational, pedagogical and ODP layers. Each layer includes various principles for holistic design to integrate an organisation's pedagogical strategy in a digitally competent context to create quality ODPs.Research limitations/implicationsThe paper presents a case study from a HE organisation in Finland, but results are applicable to a wider global audience.Practical implicationsAs a contribution to practitioners, this paper presents a three-tiered holistic design of ODP in HE organisation, where the design principles are categorised in organisational, pedagogical and ODP design layers. In addition, suggestions to managers, instructional designers and educators are made for the holistic design of ODPs.Social implicationsBuilding the sense of community in ODPs and offering continuous support in pedagogy and technology are valuable for the well-being of the staff, students and the wider society.Originality/valueThe paper draws relationships between holistic design of ODPs, digital competence and pedagogical strategy. The paper provides managerial and operational viewpoints to managers, administrators and educators of HE organisations that plan to create new ODPs with a holistic focus on the educational organisation, its pedagogical strategy and digital competence. Recommendations for further development, possible applications and research of ODP education are made.