Explain the stages of the information technology planning hence show features in each stage

Stage I – Initiation
In this stage, information technology is first introduced into the organization. Computers are 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, During this stage, the IT department receives little attention from management and work in a 'carefree' atmosphere.
Key Features in this stage i
- 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
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.
Key Features in this stage
- 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 – Control
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.
Key Features in this stage
- 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 – Integration
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.
Stage IV Key Features
- 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.

Stage V – 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.
Stage V Key Feature:
- 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.

Stage VI – Maturity
In Stage VI, the application portfolio — tasks like orderly entry, general ledger, and material requirements planning — is completed and its structure ?mirrors? the organization and information flows in the company. During this stage, tracking sales growth becomes an
important aspect. On the average, 10% batch and remote job entry, 60% are dedicated to data
base and data communications processing, 5% personal computing, 25% minicomputer processing. Management control systems are used the most in Stage VI (40%). There are three aspects of management control; manufacturing, marketing and financial. Manufacturing control demands forecasting — looking down the road for future needs. Marketing control strictly deals with research. Financial control, forecasts cash requirements for the future. Stage VI
exercises high control, by compiling all of the information from Stages I through V. This
allows the organization to function at high levels of efficiency and effectiveness.
Stage VI Key points:
- Systems now reflect the real information needs of the organization.
- Greater use of data resources to develop competitive and opportunistic applications.
- 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.

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NatalieR answered the question on June 14, 2022 at 13:56