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Adobe
 Business Models for Interactive Media Project
 MDD 410
 By Joshua Birman
Adobe’s History
Adobe’s History
                                                            Founded in 1982 by Charles Geschkle
                                                            and John Warnock who left Xerox to
             First Adobe Logo                               form a new company that they called
                                                            Adobe.

                                                            Revenue for the company in 1982 was
                                                            $0. Charles and John were the only two
                                                            employees.
Source - http://goodlogo.com/designers/marva-warnock-1343


                                                            By 1984 the company was bringing in
                                                            2.2 million dollars. As of the end of
                                                            2011, Adobe’s revenue was 4.2 billion
                                                            dollars (History of Adobe, ND).
Adobe’s History
                                            Adobe systems went public in 1986
                                            with an open stock price of $11

                                            Adobe has created popular programs
                                            and file types such as PDF, Flash, and
                                            the award winning Photoshop
                                            software(History of Adobe, ND).

                                            Since then, Adobe has expanded to
                                            acquire other companies that assist
                                            Adobe is meeting the global needs of
Source - https://jp.twitter.com/Photoshop
                                            their customers.
Adobe’s
Structure
Adobe’s Structure
                  Company structure
                                                                                  Adobe has a whole team of
                                                                                  executives that lead to a very
                                                                                  successful company.

                                                                                  The CEO of Adobe, Shantanu
                                                                                  Narayen has been CEO since
                                                                                  2007 and has overseen the
                                                                                  acquisition of companies such
                                                                                  as Omniture, Inc.

                                                                                  Before that, Shantanu was
                                                                                  President and COO of Adobe in
                                                                                  which he carried out Adobe’s
                                                                                  day-to day operations
                                                                                  (Shantanu Narayen bio, ND).
Source - http://nexus404.com/2010/04/29/steve-jobs%E2%80%99-flash-concerns-are-
answered-in-full-by-adobe%E2%80%99s-ceo-shantanu-narayen-responds-to-apple-
ceo%E2%80%99s-%E2%80%9Cthoughts-on-flash%E2%80%9D-we-love-a-quarrel-between-
giants/
Adobe’s Structure
      Company structure
                                                                   Adobe’s company
                                                                   structure has 12 primary
                                                                   executives under the CEO,
                                                                   Shantanu Narayen.

                                                                   These executive positions
                                                                   range from the Chief
                                                                   Executive Officer (CFO) to
                                                                   Field Operations
                                                                   executives. For a total of
                                                                   13 positions under these
Source - http://www.theofficialboard.com/org-chart/adobe-systems
                                                                   primary executives.
                                                                   Resulting in a 3 tier
                                                                   structure (Adobe, 2012)
                                                                   .
Adobe’s
Business Model
Adobe’s Business Model
      Business model




                Source - http://news.cnet.com/8301-1001_3-57321480-92/adobes-transition-to-cloud-could-be-tricky/



Adobe’s business model has shifted                                     Product Strategy: Adobe develops leading
recently from focusing only on                                         software programs to empower the individual
software development to add the                                        to produce high quality work in a small amount
Creative Cloud. A unique feature that                                  of time. Adobe increases its market share by
allows users to use all of Adobe’s                                     providing software solutions to companies and
products as long as they stay                                          individual (Business Model Analysis - Adobe
subscribed.                                                            Systems Inc., 2012).
Adobe’s Business Model
      Business model
                                                                     Distribution: Adobe sells its products via its
                                                                     website, as well as through a network of
                                                                     distributors, value added resellers (VARs),
                                                                     system integrators, independent software
                                                                     vendors (ISVs), and original equipment
                                                                     manufacturers (OEMs).

                                                                     Revenue: Adobe’s primary revenue comes
                                                                     from its software licensing and will continue
                                                                     to be so until Creative Cloud has more time
 Source - http://larrythecow.org/universe/archives/2009-11-25.html   to develop in the market (Business Model
                                                                     Analysis - Adobe Systems Inc., 2012).

                                                                     At the end of 2011, Adobe’s revenue was
                                                                     over 4 billion dollars (Adobe Fast Facts,
                                                                     2012).
Adobe’s Marketing
Adobe’s Marketing
                                                                                   Adobe does its primary
                                                                                   marketing and advertising
                                                                                   through the web. They assign
                                                                                   74% of their marketing budget
                                                                                   to be done through the web.
                                                                                   That compares to about 12%
                                                                                   spent by their competitors.

                                                                                   Adobe posts betas to its web
                                                                                   site which allows users to get a
                                                                                   glimpse on Adobe’s future
                                                                                   products that can help raise
                                                                                   awareness of the product once
Source - http://www.splashmedia.com/resources/blog/tag/digital-marketing-trends/
                                                                                   it is released (Business Model
                                                                                   Analysis - Adobe Systems Inc.,
                                                                                   2012).
Adobe’s Marketing
                                                                                        Adobe’s beta posts to their web
                                                                                        page also allows for testing and
                                                                                        feedback from Adobe’s users and
                                                                                        the general public. This gives
                                                                                        Adobe a chance to adopt
                                                                                        customers feedback into their
                                                                                        products (Business Model
                                                                                        Analysis - Adobe Systems Inc.,
                                                                                        2012).
Source - http://www.studiolighting.net/lightroom-4-beta-available-for-public-testing/

                                                                                        Adobe stays focused on a
                                                                                        customer driven approach which
                                                                                        pays off for them.
Adobe’s Subscriptions
Adobe’s Subscriptions



                  Source - http://news.cnet.com/8301-1001_3-57321480-92/adobes-transition-to-cloud-could-be-tricky/




Adobe has released a new type of                                    The Creative Cloud is part of a new Adobe
subscription service called the Creative                            business model that allows users to be able to
Cloud. Which runs for about 49 dollars                              use full Adobe products as long as they
a month.                                                            continue to pay the monthly fees (Adobe
                                                                    Creative Cloud, ND).
Adobe’s Support
Adobe’s Support
                                                 Adobe offers great customer support
                                                 for its products and services such as
                                                 phone and chat assistance during
                                                 normal call hours. Customers even
                                                 have the choice to purchase additional
                                                 support packages that can include
                                                 certain levels of help desk assistance,
                                                 updates, remote access, and expert
                                                 consulting (Business Model Analysis -
Source - http://www.telstarhosted.com/support/
                                                 Adobe Systems Inc., 2012).

                                                 Adobe’s support model is effective
                                                 because it helps to recognize the
                                                 consumer’s needs and creates
                                                 solutions to support them.
Adobe’s Globalization
Adobe’s Globalization



                  Source - http://blogs.adobe.com/globalization/en/globalization-myth-series-myth-2-this-product-is-only-for-the-u-s/


Cost variables – Adobe is able to reduce                                             Cultural issues in design – Adobe seems
costs of providing their products globally                                           to have a good need in India because
by thinking of localization from the first                                           print has been on the rise. In 2010 it went
                                                                                     up by 10% - This opens up a market for
stages of development. Adobe itself states                                           Adobe’s InDesign software used in print
that the longer a company waits to localize                                          media (InDesign CS6…. Welcome to
a product, the more expensive it becomes.                                            India!, 2012).
Adobe’s Globalization
                                                        24/7/365 Staffing: Adobe employs a
                                                        staff to resolve issues via phone or
                                                        internet 24/7/365 with special
                                                        purchased plans.

                                                        Adobe is based out of the US;
                                                        therefore their normal staff call hours
                                                        are Monday – Friday 5-7pm PST. By
                                                        keeping their 24/7/365 support to
                                                        specially purchased plans, Adobe is
                                                        able to cut down on the staff needed
Source - http://support-for-adobe.cyberpcexperts.com/   around the clock while still offering
                                                        special support for paying clients
                                                        (Adobe Support For Enterprises, ND).
Adobe’s Security
Adobe’s Security
                                                     Adobe ranks security for its products
Adobe Secure Product Lifecycle (SPLC)                highly. They have devoted quite a bit of
                                                     resources and staff to see to it that their
                                                     products are secure.

                                                     Adobe has a system called Adobe Secure
                                                     Product Lifecycle (SPLC) which composes
                                                     top industry secure software
                                                     development practices, processes and
                                                     tools to protect their customers.

                                                     Using SPLC, Adobe conducts rigorous
                                                     tests and constantly trains their staff to
      Source - http://www.adobe.com/security/splc/
                                                     ensure better protection of sensitive
                                                     information (Adobe Secure Product
                                                     Lifecycle, 2010)
References
1. Adobe. (2012, Dec 17). Retrieved Feb 9, 2013, from The Official Board: http://www.theofficialboard.com/org-chart/adobe-systems

2. Adobe Creative Cloud. (ND). Retrieved Feb 9, 2013, from Adobe: http://www.adobe.com/products/creativecloud.html

3. Adobe Fast Facts. (2012, Oct). Retrieved Feb 9, 2013, from Adobe:
http://www.adobe.com/aboutadobe/pressroom/pdfs/FastFacts_ue_fnl_1023012.pdf

4. Adobe Secure Product Lifecycle. (2010, June). Retrieved Feb 9, 2013, from Adobe:
http://www.adobe.com/security/pdfs/privacysecurity_ds.pdf

5. Adobe Support For Enterprises. (ND). Retrieved Feb 9, 2013, from Adobe:
https://www.adobe.com/support/programs/pdfs/Adobe_support_for_enterprises_program_overview_V2.0.pdf

6. Business Model Analysis - Adobe Systems Inc. (2012, Aug 26). Retrieved Feb 9, 2013, from Writeups and Analysis:
http://rityupadh.blogspot.com/2012/08/business-model-analysis-adobe-systems.html#!/2012/08/business-model-analysis-adobe-
systems.html

7. History of Adobe. (ND). Retrieved Feb 9, 2013, from Adobe: http://www.adobe.com/aboutadobe/history/timeline/index.html

8. InDesign CS6…. Welcome to India! (2012, June 5). Retrieved Feb 9, 2013, from ADOBE GLOBALIZATION:
https://blogs.adobe.com/globalization/indesign-cs6-welcome-to-india/

9. Shantanu Narayen bio. (ND). Retrieved Feb 9, 2013, from Adobe: http://www.adobe.com/leaders/shantanu-narayen/bio.html

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Adobe Business Model PowerPoint

  • 1. Adobe Business Models for Interactive Media Project MDD 410 By Joshua Birman
  • 3. Adobe’s History Founded in 1982 by Charles Geschkle and John Warnock who left Xerox to First Adobe Logo form a new company that they called Adobe. Revenue for the company in 1982 was $0. Charles and John were the only two employees. Source - http://goodlogo.com/designers/marva-warnock-1343 By 1984 the company was bringing in 2.2 million dollars. As of the end of 2011, Adobe’s revenue was 4.2 billion dollars (History of Adobe, ND).
  • 4. Adobe’s History Adobe systems went public in 1986 with an open stock price of $11 Adobe has created popular programs and file types such as PDF, Flash, and the award winning Photoshop software(History of Adobe, ND). Since then, Adobe has expanded to acquire other companies that assist Adobe is meeting the global needs of Source - https://jp.twitter.com/Photoshop their customers.
  • 6. Adobe’s Structure Company structure Adobe has a whole team of executives that lead to a very successful company. The CEO of Adobe, Shantanu Narayen has been CEO since 2007 and has overseen the acquisition of companies such as Omniture, Inc. Before that, Shantanu was President and COO of Adobe in which he carried out Adobe’s day-to day operations (Shantanu Narayen bio, ND). Source - http://nexus404.com/2010/04/29/steve-jobs%E2%80%99-flash-concerns-are- answered-in-full-by-adobe%E2%80%99s-ceo-shantanu-narayen-responds-to-apple- ceo%E2%80%99s-%E2%80%9Cthoughts-on-flash%E2%80%9D-we-love-a-quarrel-between- giants/
  • 7. Adobe’s Structure Company structure Adobe’s company structure has 12 primary executives under the CEO, Shantanu Narayen. These executive positions range from the Chief Executive Officer (CFO) to Field Operations executives. For a total of 13 positions under these Source - http://www.theofficialboard.com/org-chart/adobe-systems primary executives. Resulting in a 3 tier structure (Adobe, 2012) .
  • 9. Adobe’s Business Model Business model Source - http://news.cnet.com/8301-1001_3-57321480-92/adobes-transition-to-cloud-could-be-tricky/ Adobe’s business model has shifted Product Strategy: Adobe develops leading recently from focusing only on software programs to empower the individual software development to add the to produce high quality work in a small amount Creative Cloud. A unique feature that of time. Adobe increases its market share by allows users to use all of Adobe’s providing software solutions to companies and products as long as they stay individual (Business Model Analysis - Adobe subscribed. Systems Inc., 2012).
  • 10. Adobe’s Business Model Business model Distribution: Adobe sells its products via its website, as well as through a network of distributors, value added resellers (VARs), system integrators, independent software vendors (ISVs), and original equipment manufacturers (OEMs). Revenue: Adobe’s primary revenue comes from its software licensing and will continue to be so until Creative Cloud has more time Source - http://larrythecow.org/universe/archives/2009-11-25.html to develop in the market (Business Model Analysis - Adobe Systems Inc., 2012). At the end of 2011, Adobe’s revenue was over 4 billion dollars (Adobe Fast Facts, 2012).
  • 12. Adobe’s Marketing Adobe does its primary marketing and advertising through the web. They assign 74% of their marketing budget to be done through the web. That compares to about 12% spent by their competitors. Adobe posts betas to its web site which allows users to get a glimpse on Adobe’s future products that can help raise awareness of the product once Source - http://www.splashmedia.com/resources/blog/tag/digital-marketing-trends/ it is released (Business Model Analysis - Adobe Systems Inc., 2012).
  • 13. Adobe’s Marketing Adobe’s beta posts to their web page also allows for testing and feedback from Adobe’s users and the general public. This gives Adobe a chance to adopt customers feedback into their products (Business Model Analysis - Adobe Systems Inc., 2012). Source - http://www.studiolighting.net/lightroom-4-beta-available-for-public-testing/ Adobe stays focused on a customer driven approach which pays off for them.
  • 15. Adobe’s Subscriptions Source - http://news.cnet.com/8301-1001_3-57321480-92/adobes-transition-to-cloud-could-be-tricky/ Adobe has released a new type of The Creative Cloud is part of a new Adobe subscription service called the Creative business model that allows users to be able to Cloud. Which runs for about 49 dollars use full Adobe products as long as they a month. continue to pay the monthly fees (Adobe Creative Cloud, ND).
  • 17. Adobe’s Support Adobe offers great customer support for its products and services such as phone and chat assistance during normal call hours. Customers even have the choice to purchase additional support packages that can include certain levels of help desk assistance, updates, remote access, and expert consulting (Business Model Analysis - Source - http://www.telstarhosted.com/support/ Adobe Systems Inc., 2012). Adobe’s support model is effective because it helps to recognize the consumer’s needs and creates solutions to support them.
  • 19. Adobe’s Globalization Source - http://blogs.adobe.com/globalization/en/globalization-myth-series-myth-2-this-product-is-only-for-the-u-s/ Cost variables – Adobe is able to reduce Cultural issues in design – Adobe seems costs of providing their products globally to have a good need in India because by thinking of localization from the first print has been on the rise. In 2010 it went up by 10% - This opens up a market for stages of development. Adobe itself states Adobe’s InDesign software used in print that the longer a company waits to localize media (InDesign CS6…. Welcome to a product, the more expensive it becomes. India!, 2012).
  • 20. Adobe’s Globalization 24/7/365 Staffing: Adobe employs a staff to resolve issues via phone or internet 24/7/365 with special purchased plans. Adobe is based out of the US; therefore their normal staff call hours are Monday – Friday 5-7pm PST. By keeping their 24/7/365 support to specially purchased plans, Adobe is able to cut down on the staff needed Source - http://support-for-adobe.cyberpcexperts.com/ around the clock while still offering special support for paying clients (Adobe Support For Enterprises, ND).
  • 22. Adobe’s Security Adobe ranks security for its products Adobe Secure Product Lifecycle (SPLC) highly. They have devoted quite a bit of resources and staff to see to it that their products are secure. Adobe has a system called Adobe Secure Product Lifecycle (SPLC) which composes top industry secure software development practices, processes and tools to protect their customers. Using SPLC, Adobe conducts rigorous tests and constantly trains their staff to Source - http://www.adobe.com/security/splc/ ensure better protection of sensitive information (Adobe Secure Product Lifecycle, 2010)
  • 23. References 1. Adobe. (2012, Dec 17). Retrieved Feb 9, 2013, from The Official Board: http://www.theofficialboard.com/org-chart/adobe-systems 2. Adobe Creative Cloud. (ND). Retrieved Feb 9, 2013, from Adobe: http://www.adobe.com/products/creativecloud.html 3. Adobe Fast Facts. (2012, Oct). Retrieved Feb 9, 2013, from Adobe: http://www.adobe.com/aboutadobe/pressroom/pdfs/FastFacts_ue_fnl_1023012.pdf 4. Adobe Secure Product Lifecycle. (2010, June). Retrieved Feb 9, 2013, from Adobe: http://www.adobe.com/security/pdfs/privacysecurity_ds.pdf 5. Adobe Support For Enterprises. (ND). Retrieved Feb 9, 2013, from Adobe: https://www.adobe.com/support/programs/pdfs/Adobe_support_for_enterprises_program_overview_V2.0.pdf 6. Business Model Analysis - Adobe Systems Inc. (2012, Aug 26). Retrieved Feb 9, 2013, from Writeups and Analysis: http://rityupadh.blogspot.com/2012/08/business-model-analysis-adobe-systems.html#!/2012/08/business-model-analysis-adobe- systems.html 7. History of Adobe. (ND). Retrieved Feb 9, 2013, from Adobe: http://www.adobe.com/aboutadobe/history/timeline/index.html 8. InDesign CS6…. Welcome to India! (2012, June 5). Retrieved Feb 9, 2013, from ADOBE GLOBALIZATION: https://blogs.adobe.com/globalization/indesign-cs6-welcome-to-india/ 9. Shantanu Narayen bio. (ND). Retrieved Feb 9, 2013, from Adobe: http://www.adobe.com/leaders/shantanu-narayen/bio.html