Norwest Corporation and Subsidiaries - Page 13

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          preexisting banking systems, resulted in a new or improved business         
          component at Norwest.                                                       
               The SBS project went through a process of experimentation.             
          EDS, Bank One, and Norwest personnel met regularly to review and            
          critique the EDS technical development of SBS and recommend changes         
          to the system's design.  Specific concerns were raised, for                 
          example, with respect to the volume capacity of the database                
          system, DB2, which was one of the critical elements of SBS.  In             
          addition, concerns were expressed as to the user architecture and           
          the use of the PACBASE tool. Alternatives were proposed and                 
          discussed for each of these concerns (although apparently not               
          adopted by EDS).  These alternative suggestions, together with Mr.          
          Phillips' claim (to Dr. McDermott) of a 50-percent chance of                
          failure of the SBS project, buttress a finding that there was               
          uncertainty at the outset of the SBS project.  Other issues                 
          concerning functionality, through data modeling, were also                  
          discussed.  These issues and others were tested extensively at              
          Norwest with respect to the customer module over a 3-year period,           
          resulting in the discovery of hundreds of problems, some of which           
          were attributable to poor technical design and others to poor               
          programming of the source code.  This process of developing,                
          reviewing, testing, and analyzing the various approaches proposed           
          by EDS constituted at least 80 percent of the development of the            
          SBS system and satisfies the formal standards of experimentation            
          sought by Congress.                                                         



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