Nolan's Model

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Nolan’s SGM (Stages of Growth Model)

Nolan's classic (1971) Stages of Growth Model [Also see Gallier (1973).] identifies six stages of growth that organisations could pass through over time, in their use of information processing technology:

Initiation
Contagion
Control
Integration
Data administration
Maturity

These can be described as follows:

Stage 1 - Initiation: The first cautious use of a new technology.

low expenditures for data processing.
small user involvement.
lax management control.
emphasis on functional applications to reduce costs.

Stage 2 - Contagion: The enthusiastic adoption of computers in a range of areas.

proliferation of applications.
users superficially enthusiastic about using DP.
management control even more lax.
rapid growth of budgets.
treatment of the computer by management as just a machine.
rapid growth of computer use throughout the organisation's functional areas.
computer use is plagued by crisis after crisis.

Stage 3 - Control: A reaction against excessive and uncontrolled expenditures of time and money on computer systems.

but no going back on computer use.
DP department is raised higher in the organisation.
centralised controls placed on the systems.
applications often incompatible or inadequate.
use of database and communications, often with negative general management reaction.
end user frustration.

Stage 4 – Integration: Using new technology to integrate systems that were previously disparate.

rise of control by the users.
large DP budget growth.
demand for on-line database facilities.
DP dept. operates like a computer utility.
formal planning and control within DP.
users more accountable for their applications.
use of steering committees, applications financial planning.
DP has better management controls, standards, project management.

Stage 5 – Data Administration: A new emphasis on managing corporate data rather than IT.

identification of data similarities, its usage, and its meanings within the whole organisation.
applications portfolio is integrated into the organisation.
DP department serves more as an administrator of data resources than of machines.
use of term IT/IS rather than DP.

Stage 6 - Maturity: Systems that reflect the real information needs of the organisation.

use of data resources to develop competitive and opportunistic applications.
DP organisation viewed solely as a data resource function.
DP emphasis on data resource strategic planning.
ultimately users and DP department jointly responsible for the use of data resources within the organisation.

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