Management Information System

MANAGEMENT INFORMATION SYSTEM NOLAN STAGE HYPOTHESIS The stages-of-growth model is a theoretical model for the growth of information technology (IT) in a business or similar organization. It was developed by Richard L. Nolan during the 1970s, and published by him in the Harvard Business Review.[1] [edit]Development Both articles describing the stages were first published in the Harvard Business Review. The first proposal was made in 1973 and consisted of only four stages.[2] Two additional stages were added in 1979 to complete his six stage model. [1] [edit]Summary Nolan’s model concerns the general approach to IT in business. The model proposes that evolution of IT in organizations begins slowly in Stage I, the "initiation" stage.This stage is marked by "hands off" user awareness and an emphasis on functional applications to reduce costs. Stage I is followed by further growth of IT in the "contagion" stage. In this stage there is a proliferation of applications as well as the potential for more problems to arise. During Stage III a need for "control" arises. Centralized controls are put in place and a shift occurs from management of computers to management of data resources. Next, in Stage IV, "integration" of diverse technological solutions evolves. Management of data allows development without increasing IT expenditures in Stage V. Finally, in Stage VI, "maturity",high control is exercised by using all the information from the previous stages. [3] [edit]Stage I – Initiation In this stage, information technology is first introduced into the organization. According to Nolan’s article in 1973, computers were introduced into companies for two reasons. 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. The second reason deals with computational needs. Nolan defined the critical