birman joshua mdd410_week4[1]

AdobeBusiness Models for Interactive Media ProjectMDD 410By Joshua Birman

Adobe’s History

Source - http://goodlogo.com/designers/marva-warnock-1343

Founded in 1982 by Charles Geschkle and John Warnock who left Xerox to form a new company that they called Adobe.

Revenue for the company in 1982 was $0. Charles and John were the only two employees.

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

First Adobe Logo

Adobe’s HistoryAdobe 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 their customers.Source - https://jp.twitter.com/Photoshop

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).

Adobe’s Structure

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/

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 primary executives. Resulting in a 3 tier structure (Adobe, 2012).

Adobe’s Structure

Source - http://www.theofficialboard.com/org-chart/adobe-systems

Adobe’s Business Model

Business model

Adobe’s business model has shifted recently from focusing only on software development to add the Creative Cloud. A unique feature that allows users to use all of Adobe’s products as long as they stay subscribed.

Adobe’s Business Model

Product Strategy: Adobe develops leading software programs to empower the individual to produce high quality work in a small amount of time. Adobe increases its market share by providing software solutions to companies and individual (Business Model Analysis - Adobe Systems Inc., 2012).

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

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 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 Business Model

Source - http://larrythecow.org/universe/archives/2009-11-25.html

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 set site which allows users to get a glimpse on Adobe’s future products that can help raise awareness of the product once it is released (Business Model Analysis - Adobe Systems Inc., 2012).

Adobe’s Marketing

Source - http://www.splashmedia.com/resources/blog/tag/digital-marketing-trends/

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). Adobe stays focused on a customer driven approach which pays off for them

Adobe’s Marketing

Source - http://www.studiolighting.net/lightroom-4-beta-available-for-public-testing/

Adobe’s Subscriptions

Adobe has released a new type of subscription service called the Creative Cloud. Which runs for about 49 dollars a month.

Adobe’s Subscriptions

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

The Creative Cloud is part of a new Adobe business model that allows users to be able to use full Adobe products as long as they continue to pay the monthly fees (Adobe Creative Cloud, ND).

Adobe’s Support

Adobe’s Support

Source - http://www.telstarhosted.com/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 - 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

Cultural issues in design – Adobe seems to have a good need in India because print has been on the rise. In 2010 it went up by 10% - This opens up a market for Adobe’s InDesign software used in print media (InDesign CS6…. Welcome to India!, 2012).

Adobe’s Globalization

Cost variables – Adobe is able to reduce costs of providing their products globally by thinking of localization from the first stages of development. Adobe itself states that the longer a company waits to localize a product, the more expensive it becomes.

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

Adobe’s Globalization24/7/365 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 so their normal staff call hours are Monday – Friday 5-7pm PST. So by keeping their 24/7/365 support to specially purchased plans, adobe is able to cut down on the staff needed around the clock while still offering special support for paying clients (Adobe Support For Enterprises, ND).

Source - http://support-for-adobe.cyberpcexperts.com/

Adobe’s Security

Adobe ranks security for its products 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 ensure better protection of sensitive information (Adobe Secure Product Lifecycle, 2010).

Adobe’s Security

Source - http://www.adobe.com/security/splc/

Adobe Secure Product Lifecycle (SPLC)

References1. 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