Norwest Corporation and Subsidiaries - Page 39

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               J.  Application of the Software Development Methodology                
               The development of software applications does not end with any         
          particular phase of the Software Development Methodology.  The              
          process is often iterative in that unanticipated problems are               
          discovered in one phase that require the developers to return to a          
          prior phase.  For example, during the testing phase, the developers         
          may learn that the software is not sufficiently scalable; that is,          
          that it cannot handle variances in the volume of data to be                 
          processed.  In such a case, the project may be returned to the              
          physical design or development phase to reconsider the technical            
          approach or the source code used and, after modifications, resume           
          the testing phase.  This iterative process continues until either           
          the software is operational to the satisfaction of those involved           
          or the project is abandoned because of either technical or business         
          constraints.                                                                
               Throughout the SDM process, some form of technical risk (the           
          risk that the project will not succeed for technical reasons) is            
          present, even after the software is placed into production.  (The           
          risk of failure exists throughout a project because problems that           
          arise because of volume or scale cannot be resolved until the               












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