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implementation phase.5) Norwest did not maintain any formal,
documented method of reporting this technical risk.
3. The Eight Sample Internal Use Software Development Activities
During the mid-1980's, Norwest made a concerted effort to
expand its banking and financial services business. Between 1986
and 1991, Norwest's assets grew from approximately $20 billion to
more than $38 billion (and by 1995, Norwest's assets further grew
to over $75 billion). Given the anticipated growth of Norwest's
business that was forecast in 1986,6 Norwest Technical Services was
assigned the task of determining the necessary data processing
support structure and technology to handle this expansion.
The eight sample activities, and the substantiated expenses
incurred by Norwest with respect to each activity for the years in
issue, are as follows:
5 The testing of software for volume or scalability
cannot be completed before the implementation phase because of
the cost required to replicate a full production environment.
6 In 1986, petitioner expected that most States would
liberalize their branch banking restrictions and permit more
interstate banking services.
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