The Nolan Stage Model

Nolan Stage Model is based on fact that any organisation will move through stages of maturity. The Nolan stage model has identified four stages of information system growth.

Stage 1 Initiation Stage

The first growth stage is known as initiation stage. In this stage, the technology is placed in the organization. A few applications in the organization are computerized. There are only a small number of users. This stage is characterised by minimum planning.

Stage 2

This growth stage is called expansion or contagion stage. During this stage rapid and uncontrolled growth in the number and variety of IT applications takes place. Many users adopt computers in solving their IT-related problems.

Stage 3
This stage is known as formalisation or control stage because in this stage, organisations gain control over the technology's resources by implementing formal control processes and standards. Thus, organisations are able to apply cost-effectiveness criteria. However, controls sometimes become barriers in attaining potential benefits.

Stage 4
Nolan has described this growth stage as maturity or integration stage as by this stage organisations gain sufficient experience and maturity. In this stage, applications are integrated, controls are adjusted. Planning is well-established. That is why this growth stage sometimes is also called the stage of perfection. The shape of the growth curve is S or sigmoid curve.

Graphical Representation

Six Stage Model

Nolan in the year 1979 enhanced his earlier model to six stages.

Growth Model Six Stages

Changes Introduced

In the enhanced model, the first three stages remain the same and the maturity stage of the four-stage model has been sub-divided into three more specific stages which have been renamed as stage 4, stage 5, and stage 6, respectively.

Stage 4 Integration Stage

In this stage, the use of new technology increases rapidly, providing new benefits. Much emphasis is laid on integrating the applications. Controls are lowered.

Stage 5 Data Administration

In this stage, controls are further lowered to encourage development of systems which contribute to strategic advantage of the organization

Stage 6 Maturity Stage

In the enhanced growth model, this stage is termed as the maturity stage. This stage indicates that the application portfolio is complete and matches the objectives of the organization.

Growth Curve Six Stages

In this six stage model, the growth curve takes the shape of a double 'S', which indicates that the investment will rise sharply in the first two stages and would stabilise by the end of the third stage. Again the investments will increase in the fourth stage only to take a steady shape at the last stage of the growth curve, i.e. Maturity stage.

Alternative Model
Nolan also proposed an alternative model without a maturity stage. He suggested that major changes in technology lead to repetition of the stages of growth. In such cases, organisations experience a repeat of the characteristic S-curve.