Issi Summary Case
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What is the overall problem presented in the case?
The problem presented in the case is ISSI will be deploying a new system to an area with geographical features that they have not previously deployed a system in. Deploying the system in this location will present ISSI challenges due to the density and foliage of the urban Midwestern environment. ISSI believes based on its System Design teams analysis that there is a 90% chance that standard system will meet the contracts requirements with the new customer. The risks associated with this problem include: Contract Penalties, a need to pull and replace GPS units with more powerful sensors, a negative mark on the companys reputation, the companys first failure (which according to the brief would be highly visible). It was estimated that if the system did not meet the contracts requirements that the total cost of an in-field replacement would be $400,000.
Based on your understanding/analysis – what is the solution to the problem?
The solution to the problem is to pay the $50,000 additional dollars to send the System Design team to do additional tests in the City which is purchasing the system. This will help mitigate several issues including: Whether the systems current success rate is applicable in this situation, a greater understanding of whether the system will meet the contract requirements in the new city and improve future estimates for cities with a geographical layout similar to the contracting city.
What evidence supports your solution? What evidence invalidates other options?
Supporting Evidence- The System Design Teams assessment that the odds would be 24 to 1 that the standard system would work if it passed the new test making the decision to implement a standard system much more sound.
Supporting Evidence- The System Design Teams report stated that ISSIs assumptions about signal quality and the periodicity of degradation could be very wrong and that errors can be compounding.
Supporting Evidence- Its stated in the case study that this is a highly visible industry and that failure would be highly visible and potentially very damaging to ISSI. Furthermore, ISSI is installing its first system in the United States and the success of the system can possibly lead to new business generation in surrounding cities.
Invalidating Evidence- The initial 90% success estimation was based upon evidence of current environmental parameters which varied from the environmental layout of the new city. This could cause a major over estimation of success.
Invalidating Evidence- The new study is not cost prohibitive. The new study costs only 50,000 dollars and it will not cause a delay in the contract. The study