Summary of the Structure of Nolan's Stages of Growth Model
Nolan's Model
Stages of Growth Model (SGM)
A summary of the structure of Nolan's SGM (Stages of Growth Model), a general theoretical model which describes the IT growth stages that can occur in an organisation.
Overview
Richard L. Nolan developed the theoretical Stages of growth model (SGM) during the 1970s. This is a general model, which describes the role of information technology (IT), and how it grows within an organisation.
A first draft of the model was made in 1973, consisting of only four stages. Two stages were added in 1979 to make it a six-stage model. There were two articles describing the stages, which were first published in the Harvard Business Review.
The structure of the final, six-stage model is depicted in the diagram below:
[pic]
Figure 1: Diagram showing the SGM continuum for growth/maturity
The diagram above shows six stages, and the model suggests that: • Stage 1: Evolution of IT in organisations begins in an initiation stage. • Stage 2: This is followed by expeditious spreading of IT in a contagion stage. • Stage 3: After that, a need for control arises. • Stage 4: Next, integration of diverse technological solutions evolves. • Stage 5: Administration/management of data is necessitated, to allow development without chaotic and increasing IT expenditures. • Stage 6: Finally, in the maturity stage, constant growth will occur.
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Structure of the Model
Stage 1 – Initiation
In this stage, Information Technology is first introduced into the organisation. According to Nolan’s article in 1973, computers were introduced into companies for two reasons: (a) The first reason deals with the company reaching a size where the administrative processes cannot be accomplished without computers. Also, the success of the business justifies large investment in specialized equipment. (b) The second reason deals with computational needs. Nolan defined the critical size of
Stages of Growth Model (SGM)
A summary of the structure of Nolan's SGM (Stages of Growth Model), a general theoretical model which describes the IT growth stages that can occur in an organisation.
Overview
Richard L. Nolan developed the theoretical Stages of growth model (SGM) during the 1970s. This is a general model, which describes the role of information technology (IT), and how it grows within an organisation.
A first draft of the model was made in 1973, consisting of only four stages. Two stages were added in 1979 to make it a six-stage model. There were two articles describing the stages, which were first published in the Harvard Business Review.
The structure of the final, six-stage model is depicted in the diagram below:
[pic]
Figure 1: Diagram showing the SGM continuum for growth/maturity
The diagram above shows six stages, and the model suggests that: • Stage 1: Evolution of IT in organisations begins in an initiation stage. • Stage 2: This is followed by expeditious spreading of IT in a contagion stage. • Stage 3: After that, a need for control arises. • Stage 4: Next, integration of diverse technological solutions evolves. • Stage 5: Administration/management of data is necessitated, to allow development without chaotic and increasing IT expenditures. • Stage 6: Finally, in the maturity stage, constant growth will occur.
| |
Structure of the Model
Stage 1 – Initiation
In this stage, Information Technology is first introduced into the organisation. According to Nolan’s article in 1973, computers were introduced into companies for two reasons: (a) The first reason deals with the company reaching a size where the administrative processes cannot be accomplished without computers. Also, the success of the business justifies large investment in specialized equipment. (b) The second reason deals with computational needs. Nolan defined the critical size of