Integrated Siting Systems Inc

In the case of Integrated Siting Systems, INC.(ISSI) a relatively new company is faced with a difficult business decision around a new contract. ISSI has created an innovative, integrated, real time vehicle tracking system using GPS technology that is sold to emergency-services providers to improve response time to emergencies by enhancing the dispatching of their mobile vehicles. ISSI has successfully deployed several systems in the Southwestern part of the United States which were successful. ISSI has been contracted to deploy a system for a Midwestern city whose environment would be much more taxing on the system than any of their previous deployments. ISSI is facing a dilemma whether to implement the standard system that has previously been successful or to build a nearly perfect system that will cost 200,000 dollars more and would cut into profitability. An initial estimate based on current system simulations show a 90% probability that the standard system will meet the contract requirements but the estimates were not based on the new city's environment and the cost of failure is potentially very high.

An initial solution to the challenge facing ISSI is to move forward with the $50,000 dollar site test in order to have a much clearer picture into whether or not the standard system will meet the contract requirements.