Norwest Corporation and Subsidiaries - Page 48

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          delivery of faulty code by EDS; others were attributable to poor            
          technical design.                                                           
               Ultimately, the customer module of SBS was successfully                
          developed (although it contained many bugs).  During 1989 and 1990,         
          it was placed into production (the implementation phase) by Norwest         
          in its banks and used for a number of years.13  The deposit module          
          was a technical failure.  The failure was attributed to the deposit         
          module's inability to produce the results sought by the users in            




               13   A test pilot program for the customer module began in             
          Norwest's Duluth, Minnesota, bank in November 1989 and continued            
          through early 1990.  After the pilot proved successful, it was              
          implemented throughout 1990 in Norwest's other banks around the             
          country in what was known as release 1.2.  During 1991, EDS                 
          issued a new upgraded release of SBS which required Norwest to              
          "retrofit" the core functionality and design changes with the               
          customization performed by Norwest in the interim period since              
          the prior release.  The upgraded release required a new round of            
          testing and modifications by Norwest technical staff in                     
          conjunction with EDS.  Many of these changes related to technical           
          problems (such as the source code for the pointer system), and              
          others related to nontechnical cosmetic problems (such as                   
          changing the name of a database field or the way a screen looks             
          to the end user, or modifying reports produced by the software).            
          A statement of work dated Oct. 10, 1992, reported:                          
                    The migration of the Customer system from EDS                     
                    Release 1.2 to Release 1.3.2 was completed                        
                    for all Norwest banks using Customer in June                      
                    of 1992.  Installing Release 1.3.2 involved a                     
                    massive effort of customization, testing and                      
                    converting the existing data bases to the new                     
                    release.  Since the banks have been using                         
                    Customer 1.3.2, problems have been                                
                    identified.                                                       





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