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

Abstract

The original 'stages of growth' model, as applied to the field of lnformation 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., 7990). 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(Nolan, , 1984. In addition, others have developed 'stages of growth' models of their own. For example, Somogyi & Galliers, (1 987a, b) provide a model depicting the move from basic data processing systems to strategic information systems, tracing fhe early days of commercial applications of computing through to the present day (Ward et al. 7990). Earl (1983, 1986, 1988, 1989) proposes a stages-model for informatiun 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 inPerth, 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.

A conceptual stages-of-growth model for managing a social media business profile

“…Earl (1989) proposed a five-stage model, arguing that organisations would have different learning curves for different ISs. However, Galliers and Sutherland (1991) criticise the model, suggesting that it only places an organisation at a certain stage without actually suggesting how the organisation moves to a more mature stage. Galliers and Sutherland (1991) propose a model that describes the stages through which an organisation evolves with respect to use of information technology (IT) and indicates how organisations can move from the initial stages to an advanced stage of maturity.…”

“…However, Galliers and Sutherland (1991) criticise the model, suggesting that it only places an organisation at a certain stage without actually suggesting how the organisation moves to a more mature stage. Galliers and Sutherland (1991) propose a model that describes the stages through which an organisation evolves with respect to use of information technology (IT) and indicates how organisations can move from the initial stages to an advanced stage of maturity. However, Brugha (1998) disputes this approach and suggests that it is more beneficial to focus on activities rather than outputs, as they are less contextual and because activities provide decision makers with better indicators of what to do at each stage.…”

“…It was further refined as a six-stage model by Nolan (1979). The model emphasises the need for management strategy to be consistent with the organisation's stage with respect to technology (Galliers and Sutherland, 1991). McFarlan and McKenney (1982) proposed a four-stage model, arguing that it is not necessary to work through all elements of all stages, implying it is possible to select which aspects of IS management to move forward on.…”

“…Similar to McFarlan and McKenney (1982), Damsgaard and Scheepers (1999) suggest that progression can be made even though not all elements are strictly in the same phase, and stages can be skipped. Duane and Finnegan (2003) found that Intranets develop organically in early stages, evolve rapidly to become critical for day-to-day operations, extend to integrate the external value chain and, similar to the Galliers and Sutherland (1991) SoG model, finally become institutionalised in the organisation. Watson et al (2001) developed a data warehousing SoG model based on Nolan (1979), asserting that by understanding the stage, management would be better able to plan and would be better positioned to avoid any pitfalls.…”

“…McKay et al (2000) propose a model of e-business implementation called the SoG-e, which integrates Galliers and Sutherland's (1991) SoG model to depict activities based on an organisation's Internet technologies, as well as its traditional IS. The SoG-e presumes a progression of levels as the organisation accumulates knowledge, experience, qualifications, and expertise in e-business.…”