Lynnda Speer, Donor, et al. - Page 12

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          be run on the Burroughs computer hardware.  Although Burroughs              
          had a library of standard computer software available to it, no             
          such “off-the-shelf” software could be found that would be                  
          sufficient to meet the needs of HSN.  The agreement provided that           
          Pioneer would own any software developed pursuant to the                    
          agreement.                                                                  
               In designing the National Software, representatives from               
          Burroughs met with Mr. Pfeiffer and representatives from HSN to             
          discuss the operations and needs of HSN so that they could                  
          determine the data structures, the lengths of the various fields,           
          and the reports that would need to be generated.  Although the              
          programming code could not be copied from the Local Software as             
          it was in a different language, the basic descriptions of the               
          system and reports were taken from the Local Software in                    
          designing the National Software, which saved Burroughs a good               
          deal of time during the design stage.  The National Software                
          included the functionality of the Local Software in addition to             
          other functionality to account for differences in the business of           
          HSN from that conducted by HSC.                                             
               Although Burroughs originally believed that it could have              
          the whole system completed by July 1, 1985, it later concluded              
          that the only portion of the National Software that it would have           
          running by July 1, 1985, was the order entry system and the show            
          control system, which included the ability to print daily sales             
          reports, picking slips, and shipping labels.  The inventory                 




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