Norwest Corporation and Subsidiaries - Page 25

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          processed by the larger trust departments such as at State Street           
          Bank and Bank of New York.                                                  
               We agree with respondent that the Trust TU activities do not           
          constitute qualified research.  None of the activities engaged in           
          by NTS in this project involved anything more than "cookbook"               
          approaches to software development and the basic "skilled practice"         
          of computer programmers.  Indeed, Dr. McDermott admitted as much            
          when he stated that the changes to Trust TU "required the                   
          application of basic principles of software engineering and                 
          testing" and that "This is not cutting-edge science, but it falls           
          exactly within the bounds of computer science as it is taught in            
          textbooks."                                                                 
               Routine software development is characterized by the use of            
          cookbook approaches, as described by Dr. McDermott, in which at the         
          outset the ability to accomplish a task is known because of the             
          presence of skilled practice and known methodologies,63 even though         

               63   We accept petitioner's assertion that standard                    
          methodologies (such as Norwest's SDM) are employed because                  
          researchers find that they are the best way to discover new                 
          information.  These are not the types of methodologies we are               
          concerned with in qualified research; the key is whether the                
          practices and methodologies provide the researchers with the                
          known capabilities (e.g., formulas) for accomplishing the task--            
          and in routine software development, that is often the case.                
               We think Dr. Davis' testimony on this subject is                       
          instructive:                                                                
                    A    One of the things that I think is worth                      
                    distinguishing is the notion of research                          
                    activity from what I'll call the skilled                          
                    practice.                                                         
                                                             (continued...)           



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