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THE STAGE HYPOTHESIS OF RICHARD

NOLAN

INTRODUCTION:

Richard L. Nolan developed the theoretical Stages of growth model (SGM) during the
1970s. This is a general model, which describes the role of information technology (IT),
and how it grows within an organisation.

A first draft of the model was made in 1973, consisting of only four stages. Two stages
were added in 1979 to make it a six-stage model. There were two articles describing the
stages, which were first published in the Harvard Business Review. His theory provides
benchmarks for diagnosing a fum's current standing within its progress through the
stages and describes guidelines for managing that growth (to maturity) in a way which
will minimize the occurrence of crisis situations and lost opportunities.

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