Since these are small organizations, they benefit by getting a system implemented for free. An alternative is to develop systems for non-profit organizations. While non-profits are readily available, students end up working with outdated systems. This model seemed more feasible to most participants, but would certainly involve a serious commitment by the faculty. The final model involved industry representative presenting design problems to students.
Students then present their responses to the industry representatives.
The companies treat these presentations like job interviews and hire the student they feel had the best response. Students then spend six months redesigning the system for the company. One problem that can occur is a lack of supervision. Students typically work on their own, so teamwork skills are not developed as part of this type of project. Once again, identifying adequate industrial partners could be a problem for many universities.