Effectiveness of IT Governance of Online Businesses with Analytical Hierarchy Process Method

IT governance is indisputably required to ascertain accountability of the use of IT resources when providing additional business values. Therefore, there should be deep comprehension on effectiveness of appropriate IT governance based on business characteristics and strategic alignment of IT and businesses. This research aimed to find out essential entity of representativeness of each domain of IT governance for managers when making decisions to reach strategic alignment of IT and businesses effectively and efficiently. The survey was applied to 118 respondents, including online business managers in Pontianak, West Kalimantan, Indonesia. Analytical Hierarchy Process (AHP) Method was applied to map relative necessities of each domain and element of IT governance. Outcomes indicate that the highest score of effectiveness of strategic decisions applying IT governance of process domain is 3.114. Meanwhile, alternative elements of structures, processes, and relational mechanisms show that the highest score (11.043) noting that CIO should always report to CEO/COO exists. While the score of strategic planning of information system is 4.416, IT leadership has an absolute value.