Information systems management and strategy formulation: the ‘stages of growth’ model revisited

Abstract

Abstract. The original ‘stages of growth’ model, as applied to the field of Information Systems (Gibson & Nolan, 1974), may be viewed as seminal, given the influence it has had on both theory and practice (Nolan, 1984; Sullivan, 1985; Ward, et al., 1990). This is so, despite the model's lack of substantiation based on empirical evidence, the overly simplistic assumptions on which it is based, and the limited focus of the original concept (Benbasat, et al., 1984; King & Kraemer, 1984). Since its first appearance, the model has been refined following many applications (Nolan, 1979, 1984). In addition, others have developed ‘stages of growth’ models of their own. For example, Somogyi & Galliers, (1987a, b)provide a model depicting the move from basic data processing systems to strategic information systems, tracing the early days of commercial applications of computing through to the present day (Ward et al. 1990). Earl (1983, 1986, 1988, 1989) proposes a stages‐model for information systems planning, as does Bhabuta (1988), while Hirschheim, et al. (1988) have developed a more broadly focused model associated with the development of the information‐systems management function. As a result of a review of the above and of a case study research undertaken in Perth, Western Australia, a revised model was developed, which takes account of current thinking and past experience in the application of the various ‘stages of growth’ models (Sutherland & Galliers, 1989). This paper sets out to review some of these models and proceeds to describe the process of developing, testing and applying the revised ‘stages of growth’ model. The model is more broadly focused than the original concept, incorporating strategic, organizational, human resource and management considerations. As a result, it is argued that this model has greater utility than its predecessors.