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Stage models of digital business development

Stage models are helpful in reviewing how advanced a company is in its use of information 

and communications technology (ICT) resources to support its processes. Stage models have 

traditionally been popular in the analysis of the current application of business information 

systems (BIS) within an organisation. For example, Nolan’s (1979)  six-  stage model referred 

Resource analysis

Review of the 

technological, financial 

and human resources 

of an organisation and 

how they are utilised in 

business processes.

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Part 2  Strategy and applications

to the development of use of information systems within an organisation from initiation 

with simple data processing through to a mature adoption of BIS with controlled, integrated 

systems. (A simple example of a stage model was introduced in Figure 1.13.)

When assessing the current use of ICT within a company or across a market it is instructive 

to analyse the extent to which an organisation has implemented the technological infrastruc-

ture and support structure to achieve digital business. Quelch and Klein (1996) developed a 

 five-  stage model referring to the development of  sell-  side e-commerce. The stages remain 

relevant today. Research (referenced in Chapter 1 and Chapter 4) shows that many compa-

nies still have limited digital business capabilities and are at an early stage in the model. For 

existing companies the stages are: