Nolan's Model

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:

1. Initiation
2. Contagion
3. Control
4. Integration
5. Data administration
6. 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.