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inescapable conclusion that Norwest would have obtained substantial
competitive and fiscal benefits from the SBS customer module had it
and the other modules been successfully implemented.
The SBS system also involved significant economic risk to the
three entities that participated in the development of the project.
The Tower Group reported in 1993 that an estimated $125 million had
been spent at that time by the three participants. Further,
substantial uncertainty existed because of technical risk that
those resources would not be recovered within a reasonable period
of time. In 1993, the Tower Group characterized EDS' efforts as
"venturing into new territory for both itself * * * and its
prospects". In 1994, the Tower Group, in looking back on the
prospect of failure of the SBS system, stated: "The world of
banking is moving faster than EDS and its two development banks
could move SBS into production. This fact is a commentary on the
time and resources required to implement a complex new system in a
large bank environment." A January 1989 internal audit at Norwest
also revealed strong concern about the ability to complete the SBS
project: "In a project of this complexity and magnitude, involving
major new concepts, original database designs and state-of-the-art
technological application, by its very nature will result in
unforeseen problems."
Dr. Davis stated in his initial report that size or complexity
of a project can create technical risk. We agree and find that SBS
falls within that category. The development of the customer-based
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