A Little Bit of History Repeating Itself—Nolan’s Stages Theory and the Modern IS Auditor

One of the key aspects of an information systems (IS) audit is ascertaining the maturity of the technologies in use within an organisation or department. In reality, some areas of the business’s use of IT are more mature than others, and this is particularly true of companies that have undergone recent mergers or acquisitions. The Stages of Growth Model for IT systems was developed by Richard L. Nolan in the 1970s. Though modified over time and subject to criticism in some quarters, it is still used to discuss the growth of IT within an organisation and is used by many companies and consultants to categorise the evolution of what was originally known as data processing departments. In this article, the six (originally four) stages are discussed, along with their direct relevance to the IS auditor. Nolan’s theory can provide a useful framework for an audit engagement, especially for the less-experienced auditor who may not have had extensive exposure to a wide range of IT organisational systems.