United Services Automobile Association USAA
Situation USAA is an insurance company and diversified financial services association. In San Antonio, TX, USAA was found in 1922 by 25 Army officers to serve primly members of the military. A big change happened with USAA McDermott joined. ... The cooperation between the business strategy and the information technology enabled USAA to achieve its goals. ... McDermott put the expression “Paperless environment” to capture his vision for the future which was the most important issue for USAA at that time. ... These systems such as Automobile Issue and Maintain System (AIMS) and the Automatic Claims Environment (ACE) allowed USAA to reduce the paper files and then to reduce the total cost. By this strategy, USAA create barriers to potential competitors into the market. According to Pearlson “An organization can differentiate it self by offering products or services that are difficult to displace in the eyes of customer because of feature that appear unique”. USAA created a competitive advantage and improved its productivity. ... USAA enabled to build its informational technology and then integrate it with business strategy objectives. McDermott made the difference When McDermott hired to head USAA in 1969, the company was consisting primarily of clerical staff with limited management team.