Management Information System Critical Essay

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. 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. Two additional stages were added in 1979 to complete his six stage model.


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. 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 size of the company as the most prevalent reason for computer acquisition. Due to the unfamiliarity of personnel with the technology, users tend to take a “hands off” approach to new technology. This introductory software is simple to use and cheap to implement, which provides substantial monetary savings to the company. During this stage, the IT department receives little attention from management and work in a “carefree” atmosphere.

  • Stage I Key points: User awareness is characterized as being “hands off”. IT personnel are “specialized for technological learning”. IT planning and control is not extensive. There is an emphasis on functional applications to reduce costs.
  • Stage II – Contagion Even though the computers are recognized as “change agents” in Stage I, Nolan acknowledged that many users become alienated by computing. Because of this, Stage II is characterized by a managerial need to explain the potential of computer applications to alienated users.

This leads to the adoption of computers in a range of different areas. A problem that arises in Stage II is that project and budgetary controls are not developed. Unavoidably, this leads to a saturation of existing computer capacity and more sophisticated computer systems being obtained. System sophistication requires employing specialized professionals. Due to the shortage of qualified individuals, implementing these employees results in high salaries. The budget for computer organization rises significantly and causes concern for management.

Although the price of Stage II is high, it is evident that planning and control of computer systems is necessary.There is a proliferation of applications. Users are superficially enthusiastic about using data processing. Management control is even more relaxed. There is a rapid growth of budgets. Treatment of the computer by management is primarily as just a machine. Rapid growth of computer use occurs throughout the organization’s functional areas. Computer use is plagued by crisis after crisis.

Stage III is a reaction against excessive and uncontrolled expenditures of time and money spent on computer systems, and the major problem for management is the organization of tasks for control of computer operating costs. In this stage, project management and management report systems are organized, which leads to development of programming, documentation, and operation standards. During Stage III, a shift occurs from management of computers to management of data resources. This shift is an outcome of analysis of how to increase management control and planning in expending data processing operations.

Also, the shift provides flexibility in data processing that is needed in a case of management’s new controls. The major characteristic of Stage III is reconstruction of data processing operation. There is no reduction in computer use. IT division’s importance to the organization is greater. Centralized controls are put in place. Applications are often incompatible or inadequate. There is use of database and communications, often with negative general management reaction. End user frustration is often the outcome.

Stage IV features the adoption of new technology to integrate systems that were previously separate entities. This creates data processing (IT) expenditure growth rates similar to that of Stage II. In the latter half of Stage IV, exclusive reliance on computer controls leads to inefficiencies. The inefficiencies associated with rapid growth may create another wave of problems simultaneously. This is the last stage that Nolan acknowledged in his initial proposal of the stages of growth in 1973. There is rise of control by the users.

A larger data processing budget growth exists. There is greater demand for on-line database facilities. Data processing department now operates like a computer utility. There is formal planning and control within data processing. Users are more accountable for their applications. The use of steering committees, applications financial planning becomes important. Data processing has better management controls and set standards.  Data administration Nolan determined that four stages were not enough to describe the proliferation of IT in an organization and added Stage V in 1979.

Stage V features a new emphasis on managing corporate data rather than IT. Like the proceeding Stage VI, it is marked by the development and maturity of the new concept of data administration.  Data administration is introduced. There is identification of data similarities, its usage, and its meanings within the whole organization. The applications portfolio is integrated into the organization. Data processing department now serves more as an administrator of data resources than of machines.

A key difference is the use of term IT/IS rather than data processing Systems now reflect the real information needs of the organization. Data processing organisation is viewed solely as a data resource function. Data processing now emphasizes data resource strategic planning. Ultimately, users and DP department jointly responsible for the use of data resources within the organization. Manager of IT system takes on the same importance in the organizational hierarchy as say the director of finance or director of HR.

Calculate the price
Make an order in advance and get the best price
Pages (550 words)
*Price with a welcome 15% discount applied.
Pro tip: If you want to save more money and pay the lowest price, you need to set a more extended deadline.
We know how difficult it is to be a student these days. That's why our prices are one of the most affordable on the market, and there are no hidden fees.

Instead, we offer bonuses, discounts, and free services to make your experience outstanding.
How it works
Receive a 100% original paper that will pass Turnitin from a top essay writing service
step 1
Upload your instructions
Fill out the order form and provide paper details. You can even attach screenshots or add additional instructions later. If something is not clear or missing, the writer will contact you for clarification.
Pro service tips
How to get the most out of your experience with MyStudyWriters
One writer throughout the entire course
If you like the writer, you can hire them again. Just copy & paste their ID on the order form ("Preferred Writer's ID" field). This way, your vocabulary will be uniform, and the writer will be aware of your needs.
The same paper from different writers
You can order essay or any other work from two different writers to choose the best one or give another version to a friend. This can be done through the add-on "Same paper from another writer."
Copy of sources used by the writer
Our college essay writers work with ScienceDirect and other databases. They can send you articles or materials used in PDF or through screenshots. Just tick the "Copy of sources" field on the order form.
See why 20k+ students have chosen us as their sole writing assistance provider
Check out the latest reviews and opinions submitted by real customers worldwide and make an informed decision.
Business Studies
Thank you very much for a good job done and a quick turn around time.
Customer 452615, March 31st, 2021
Thank you!
Customer 452545, February 6th, 2021
Leadership Studies
excellent job
Customer 452773, August 3rd, 2023
Thank you for your hard work and help.
Customer 452773, February 13th, 2023
English 101
great summery in terms of the time given. it lacks a bit of clarity but otherwise perfect.
Customer 452747, June 9th, 2021
Business and administrative studies
excellent job! got an A, thank you
Customer 452773, May 24th, 2023
Love this writer!!! Great work
Customer 452597, April 5th, 2021
Business and administrative studies
excellent work
Customer 452773, March 12th, 2023
Human Resources Management (HRM)
excellent job
Customer 452773, June 25th, 2023
Thank you!!! I received my order in record timing.
Customer 452551, February 9th, 2021
Business and administrative studies
great job as always
Customer 452773, February 26th, 2023
Social Work and Human Services
Although it took 2 revisions I am satisfied but I did receive it late because of that.
Customer 452603, March 25th, 2021
Customer reviews in total
Current satisfaction rate
3 pages
Average paper length
Customers referred by a friend
15% OFF your first order
Use a coupon FIRST15 and enjoy expert help with any task at the most affordable price.
Claim my 15% OFF Order in Chat

Sometimes it is hard to do all the work on your own

Let us help you get a good grade on your paper. Get professional help and free up your time for more important courses. Let us handle your;

  • Dissertations and Thesis
  • Essays
  • All Assignments

  • Research papers
  • Terms Papers
  • Online Classes
Live ChatWhatsApp