It was developed by Richard L. Nolan during the early 1970s, and with the final version of the model published by him in the Harvard Business Review in 1979.
This stage is marked by "hands off" user awareness and an emphasis on functional applications to reduce costs.
The first reason deals with the company reaching a size where the administrative processes cannot be accomplished without computers.
Nolan defined the critical size of the company as the most prevalent reason for computer acquisition.
This introductory software is simple to use and cheap to implement, which provides substantial monetary savings to the company.
Because of this, Stage II is characterised by a managerial need to explain the potential of computer applications to alienated users.
Due to the shortage of qualified individuals, implementing these employees results in high salaries.
[1][2] Stage II Key points: 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.
This shift is an outcome of analysis of how to increase management control and planning in expending data processing operations.
This creates data processing (IT) expenditure growth rates similar to that of Stage II.
Like the proceeding Stage VI, it is marked by the development and maturity of the new concept of data administration.
As time has progressed, Richard Nolan's Stages of Growth Model has revealed some apparent weaknesses.
In his model, Richard Nolan states that the force behind the growth of computing through the stages is technological change.
Last, the stages of growth model assumes straightforward organizational goals that are to be determined through the technological change.