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. This is the last stage that Nolan acknowledged in his initial proposal of the stages of growth in 1973. Stage IV Key points: 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 points: 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