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USAA Homework Questionnaire

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					                     USAA Case Study Learning Objectives
1. Read “IT Incorporated” in CIO.com at:
http://www.cio.com/article/32260/USAA_I.T._Incorporated
2. Read “IT Business 101” in CIO.com at:
http://www.cio.com/article/32262/USAA_IT_Business_101

Learning Objectives:
  1. Be able to discuss nature and weaknesses of the USAA IT model prior to 1999.
  2. Be able to outline the basic strategy used by USAA (from 1998 through 2002) to
      increase the efficiency and effectiveness of IT operations. There are at least three
      primary key components of solution.
  3. Be prepared to discuss the nature and impact of the business education curriculum
      (listed in the article: “IT Business 101”) as part of the USAA ITCO solution.
  4. Possible test questions:
            a. What was the primary problem being experienced by USAA’s IT
                operations in 1999, how was the magnitude of the problem measured, and
                how did the company fix the problem? (Give at least three major
                components or key principles of solution.)
            b. What would be some of the main benefits to teaching IT people about
                each of the following business skills? (building relationships, negotiating,
                business basics, how to compete, how to treat customers, the company’s
                business model, measuring service)

Homework assignment:

Answer the following questions (typed) and turn in at the beginning of class:

1. What was the nature and weaknesses of the USAA IT model prior to 1999?




2. What was the basic strategy used by USAA (from 1998 through 2002) to increase the
   efficiency and effectiveness of IT operations? There are at least three primary key
   components of solution.
3. In the USAA Case Study, we read that USAA’s IT department, by following the
traditional IT management model, was increasingly draining the profits from USAA
without sufficient return for those expenditures. The solution to this problem was to spin
the IT department off into its own company, called ITCO. This action by USAA faced
several daunting obstacles. List them:

(1)

(2)

(3)

(4)

4. What was the primary contribution of the ITCO CFO to the success of ITCO?




5. What did ITCO (and the CEO of USAA) do to overcome the obstacles you listed
above? (List at least four things that were done.)

(1)

(2)

(3)

(4)

6. Discuss the nature and impact of the business education curriculum (listed in the
article: “IT Business 101”) as part of the USAA ITCO solution? (This is a very
important question.)
            Another way to look at this question is: What would be some of the main
            benefits to teaching IT people about each of the following business skills?
            (building relationships, negotiating, business basics, how to compete, how to
            treat customers, the company’s business model, measuring service)

				
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posted:8/21/2011
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