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Management article
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Reference no. 79206
Authors: Richard L Nolan
Published by: Harvard Business Publishing
Published in: "Harvard Business Review", 1979
Length: 12 pages

Abstract

Policy-making executives can take steps to manage growing data processing resources by analyzing the stages of growth in a company''s DP function in terms of six projected stages of growth. In 1977, half of the nation''s larger companies were found to be in stage three or four. Levels of achievement can be measured against benchmarks, which, in the first stage of analysis, involve assessment of the data processing expenditure curve. Stage two of this analysis involves defining business functions for the organization unit, determining how data processing supports each function, matching the supports given to the system with the benchmarks of development, and finding mismatches between expenditure and need. After developing an effective strategy, the action of the senior management steering committee determines further managerial development.

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Abstract

Policy-making executives can take steps to manage growing data processing resources by analyzing the stages of growth in a company''s DP function in terms of six projected stages of growth. In 1977, half of the nation''s larger companies were found to be in stage three or four. Levels of achievement can be measured against benchmarks, which, in the first stage of analysis, involve assessment of the data processing expenditure curve. Stage two of this analysis involves defining business functions for the organization unit, determining how data processing supports each function, matching the supports given to the system with the benchmarks of development, and finding mismatches between expenditure and need. After developing an effective strategy, the action of the senior management steering committee determines further managerial development.

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