Norwest Corporation and Subsidiaries - Page 115

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          Trust TU; Debit Card, Trust Payment, and Money Transfer; and                
          General Ledger and Cyborg Payroll.                                          
               Dr. Davis stated that routine software development must be             
          distinguished from software research efforts.  He contended that            
          software research is characterized by the search for information            
          (as opposed to the production of code),46 the use of test data (as          
          opposed to production data), and the presence of technical risk.            
          By "technical risk", Dr. Davis referred to the development of novel         
          tasks, the use of familiar technology in a new manner,47 or the size        
          or complexity48 of the project.  However, according to Dr. Davis,           
          whether a software project is research cannot be cast in terms of           
          black and white:  the fact that the task has been done before is            


               46   Dr. Davis dismissed Norwest's activities as not                   
          qualified research because Norwest produced operational software            
          and not information about principles.                                       
               47   As an example of this research, Dr. Davis referred to             
          the development of spreadsheets in C language as opposed to the             
          lower level assembly-based language.  At the time this was first            
          done, both the C language and spreadsheets were commonly known              
          and understood, but C had never been used to develop a                      
          spreadsheet.  The use of C reduced the amount of memory spent by            
          the computer in running the spreadsheet program, but it was                 
          unclear until the project was completed that C would also be fast           
          enough to operate on the then-current generation of personal                
          computers.                                                                  
               48   As an example of a large project that constitutes                 
          research, Dr. Davis noted the attempted development of a single,            
          comprehensive reservation system among an airline, a hotel, and a           
          car rental company which spanned three different businesses,                
          their operating divisions, and thousands of sites.  As an example           
          of a complex project that might constitute research, Dr. Davis              
          referred to the efforts of running multiple programs on multiple            
          machines over a network.                                                    



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