Norwest Corporation and Subsidiaries - Page 121

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               Mr. Teixeira maintained that Norwest did not engage in                 
          research and experimentation because "At all times after the design         
          phase, Norwest was working with just one option--not a set of               
          alternatives."  Mr. Teixeira identified two main attributes of              
          technology research in the banking industry:59 The "primary                 
          deliverable" and the "project approach".  According to Mr.                  
          Teixeira, the primary deliverable in technology research in the             
          banking industry is information which helps make decisions about            
          other information technology projects rather than a production              
          system.  He further stated that the project approach60 in technology        

               58(...continued)                                                       
               Further, through his understanding of the Software                     
          Development Methodology, Mr. Teixeira claimed that most risk                
          would be resolved before the logical design phase (the business             
          requirements phase), which is where only 20 to 30 percent of all            
          expenditures in information technology projects occur in average            
          U.S. banks.  Mr. Teixeira asserted that very little of the work             
          prior to the logical design phase involved research or                      
          experimentation.                                                            
               59   Mr. Teixeira noted that many top U.S. banks fund a                
          technology research entity within their information technology              
          organization for the purpose of "understanding when a technology            
          is sufficiently mature for use within the bank and working with             
          the lines of business to determine where the technology may be              
          deployed effectively".  These research groups account for less              
          than one-half of 1 percent of the total information technology              
          organization's budget, and even less at a bank of Norwest's size.           
          Given these percentages, Mr. Teixeira projected that Norwest's              
          expenditures for research and advanced development were over 50             
          times greater than he would have expected from an entity of its             
          size.                                                                       
               60   The technology research project approach has a pattern            
          of: (1) Posing a question (stating what information the project             
          is trying to determine); (2) performing targeted work (e.g.,                
          model, prototype, or literature review aimed at resolving the               
                                                             (continued...)           



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