- 94 -
Mr. Teixeira characterized the nature of Norwest's work as the
automation of processes that previously were performed manually.
In this regard, he claimed that Norwest's work was oriented
primarily toward routine maintenance (correcting problems with
existing applications), enhancement (adding new features to
existing applications), and the implementation (deploying) of those
projects, but it was not research and experimentation.57 Further,
Mr. Teixeira emphasized that Norwest's use of the Software
Development Methodology was designed to limit risk and prevent the
undertaking of any implementation projects with significant
uncertainty.58
56(...continued)
products, and volumes supported within the banking industry at
the time, no significant technical risk existed in the eight
sample activities. He found that after Norwest investigated its
needs and the information available to it, the only risk that
remained related to business and ability to execute; but no
technical risk existed. He also indicated that generally even
where technical risk exists in a bank technology project and
causes its failure, the failure is usually attributable to the
cost of correcting the problem--not the ability to correct it.
Thus, the solution is often the purchase of more expensive
technology.
Further, Mr. Teixeira described Norwest as a conservative
user of technology that generally spent its time attempting to
catch up to the technology already deployed by other U.S. banks.
57 Mr. Teixeira believed that Norwest's expenditures on
maintenance and enhancement projects generally reflected industry
trends.
58 Mr. Teixeira contended that he "[found] no evidence
that technical risk was factored into the [return on investment]
calculation of the projects claimed indicating that the
expectation that it would impact delivery of the project was
minimal."
(continued...)
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