preview

Usaa Case Study

Better Essays

Question: Is USAA a typical insurance company? List all supporting reasons.

No, USAA is not a typical insurance company:
- It specifically targets current and retired military officers and their dependents for a variety of insurance, asset management, and quality of life programs. Most insurance companies do not carry a full package of financial products.
- Their strategy was about customer service rather than profit or revenue. The growth was built on creating new products for the existing target market.
- The homogeneous, well-educated, and relatively affluent target segment is easy to market to since the core message of trust can be used across the board as the customers have a common life experience and background.
- Retired …show more content…

This communication process had a rocky start. Built originally on a time-expense model, partnerships between divisions were strained due to conflicts over time and resource allocations. The company ultimately placed the head of P&C as the new leader of IS. This helped create a user orientation within IS and established good relationships with other divisions.
The user focus not only drove consolidation efforts, it redefined how customers were thought of. USAA began to think of customers in terms of life events, or event oriented service, matching products with the needs of consumers at specific points in their lives. Using this information, representatives can pinpoint additional products customers need, adding potential sales opportunities for new lines.
Question: The fact that McDermott provided visioning and leadership for the use of IT within USAA is clear from the case. Why is this so important?
Vision and leadership for the use of IT is very important as it drives the company ahead. McDermott provided this for USAA using a variety of tools such as the ISD Business Plan, support groups, and the Vision 2000 initiative.
The ISD Business plan serves as a framework to discuss basic philosophies, strategies, principles, goals, and key result areas. It helps in assessing the current system environment as well as solidifies commitment and future

Get Access