United Services Automobile Association (USAA)

By: John E.P. Morrison and Michael R. Vitale and Joyce J. Elam

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Synopsis: Under the leadership of Robert F. McDermott, USAA has been transformed from a property and casualty insurance company with $200 million in assets in the late 1960s to a $11 billion financial services empire in 1988. The case illustrates the value of having a CEO drive a vision of how computer and communications technologies can be used within an organization. As a result of McDermott's vision and his strong support for information services planning, USAA has one of the most technologically sophisticated operations in the insurance business. Describes a number of new system initiatives that are being put in place and can be used to discuss the challenges faced by USAA to use these initiatives to increase the competitive advantage that its technological base had given them in the past. Also includes a mission statement for the Information Services Division.