Capstone
justin philip
Aheeka-MGT599TermPaper-Adobe2.pdf
© December, 2018
______________________________________________________________________________
Graduate Thesis and Capstone
______________________________________________________________________________
A Strategic Analysis of Adobe System Inc.’s
Preferred Competitive Position and Future
Prospects Attractiveness. By
Aheeka
College of Business and Management
United States University
A capstone submitted in partial fulfilment of the requirements for the degree of
Master of Business Administration
Capstone Committee:
Dr. Julio Garibay
Assistant Professor
Capstone Chair
Scholar Citations
Aheeka. (2018). A Strategic Analysis of Adobe System Inc.’s Preferred Competitive Position and
Future Prospects Attractiveness. (Master’s thesis). USU Repository
A Strategic Analysis of Adobe System Inc.’s Preferred Competitive Position and Future Prospects Attractiveness. 2
Executive Summary
This paper is an in-depth analysis of Adobe’s Creative & Design segment, with a
suggestion to create an additional one named Innovations, to determine the five approaches they
can take to improve their current market dominance, increase global presence, meet marketing
objectives, and the recommendation for the long-term approach they should take while pushing
boundaries.
Through a strategic audit, having identified the Strategic Business Unit (SBU) of
Business Solutions, and the Strategic Business Areas (SBAs) of Software-as-a-Service (SaaS),
Product-as-a-Service (PaaS), and Infrastructure-as-a-Service (IaaS), the geographical locations
of the Americas (North and South), Asia Pacific, and Africa & Europe, and the customer
segmentation of creative professionals, schools, universities, and small and medium businesses,
and enterprises, the recommendation of planning an end-of-life plan for Flash, becoming a
leading user and contributor to HTML5 emerges, and expanding their augmented and virtual
reality (AR and VR respectively) products are pursued.
While following the overall recommendation, oversight, budgeting, implementation, and
monitoring are required to ensure that the objectives and goals are still being met, within a set
budget, and when areas for improvement and change arise, are addressed accordingly.
A Strategic Analysis of Adobe System Inc.’s Preferred Competitive Position and Future Prospects Attractiveness. 3
Table of Contents Executive Summary ....................................................................................................................................... 2
A Strategic Analysis of Adobe System Inc.’s Preferred Competitive Position and Future Prospects
Attractiveness ............................................................................................................................................... 5
Company Introduction .............................................................................................................................. 5
Current Situation ................................................................................................................................... 5
Corporate Culture ................................................................................................................................. 6
Corporate Governance .......................................................................................................................... 7
Customers and Product Segment Breakdown ...................................................................................... 9
Business Plan ............................................................................................................................................. 9
External Environments .......................................................................................................................... 9
Internal Environments ........................................................................................................................ 11
PESTLE ................................................................................................................................................. 13
Analysis of Strategic Factors (SWOT Analysis) .................................................................................... 17
Recommendation as a Consultant .......................................................................................................... 18
Strategic Business Units (SBUs) Segmentation ................................................................................... 18
Alternatives and Recommendation .................................................................................................... 19
Alternatives ......................................................................................................................................... 19
Recommendations .............................................................................................................................. 22
Implementation .................................................................................................................................. 24
Financial Planning and Management .................................................................................................. 26
Evaluation and Controls ...................................................................................................................... 28
Conclusion ........................................................................................................................................... 29
References .................................................................................................................................................. 31
Appendix ..................................................................................................................................................... 36
Exhibit A: Future Environmental Needs – Creativity & Design ............................................................... 36
Exhibit B: Future Environmental Needs – Innovations ........................................................................... 37
Exhibit C: Need-Technology Couples – Creativity & Design ................................................................... 38
Exhibit D: Need-Technology Couples – Innovations ............................................................................... 39
Exhibit E: Identification of SBAs – 1 ........................................................................................................ 40
Exhibit F: Identifications of SBAs – 2 ....................................................................................................... 41
Exhibit G: Identification of SBAs – 3 ........................................................................................................ 42
Exhibit H: Identification of SBAs – 4 ........................................................................................................ 43
A Strategic Analysis of Adobe System Inc.’s Preferred Competitive Position and Future Prospects Attractiveness. 4
Exhibit K: Project Budget Template ........................................................................................................ 44
Exhibit L: Adobe Experience Manager Project Best Practices Checklist and Templates ........................ 45
Exhibit M: Change Management Process ............................................................................................... 46
Exhibit N: AR & VR Project Budget .......................................................................................................... 46
Exhibit O: Flash/HTML5 Project Budget .................................................................................................. 50
A Strategic Analysis of Adobe System Inc.’s Preferred Competitive Position and Future Prospects Attractiveness. 5
A Strategic Analysis of Adobe System Inc.’s Preferred Competitive
Position and Future Prospects Attractiveness
Company Introduction
Adobe Systems Inc., commonly referred to as simply Adobe, was founded by John
Warnock and Charles Geschke in Mountain View, California, U.S.A. in 1982 as a way to
programme and sell PostScript (PS) page description language after they left Xerox PARC.
When Apple licensed PS for use in its printers, it led to the explosion of Adobe in the IT
(Information Technology) sector in the Bay Area, U.S.A. and beyond.
Adobe’s mission statement is: “Adobe is changing the world through digital experiences.
We help our customers make, manage, measure and monetise their content across every channel
and screen.” (Adobe, n.d.)
Its vision: “The environment and our combined strengths guide our vision for the future.
We help our customers transform their communications into engaging experiences” (Adobe,
n.d.) and “Adobe revolutionises how the world engages with ideas and information.” (Adobe,
n.d.) And its corporate culture is based on four tenets: Genuine, Exceptional, Innovative, and
Involved.
Current Situation
Today, Adobe is a powerhouse and a household name throughout the world in terms of
its leadership and pioneering efforts in creation of multimedia and creativity software products.
Headquartered in San Jose, California, U.S.A. with around 15,000 employees, they truly deliver
the epitome of digital creativity and analysis.
A Strategic Analysis of Adobe System Inc.’s Preferred Competitive Position and Future Prospects Attractiveness. 6
As they state on their website, “Only Adobe gives everyone — from emerging artists to global
brands — everything they need to design and deliver exceptional digital experiences” (Adobe, n.d.).
Corporate Culture
Adobe has a winning corporate culture as shown when “[i]n 2016, computer software
company, Adobe, was recognised in Fortune Magazine’s ‘100 Best Companies to Work For’, for
the 16th time” (Tilt, n.d.).
Despite the enormity of the organisation, being that it is a multi-national corporation
(MNC), “Adobe has created a sincere and reliable level of care for the people who work for
them. Holiday pay, medical insurance, retirement plans and education reimbursement are all part
of employment within Adobe” (Tilt, n.d.). As they state, they ““are committed to creating
exceptional experiences that delight our employees and staff [and in] working hard and playing
hard – and know the value of a good work-life balance” (Adobe, n.d.).
They even go so far as to provide their staff with a massive platform for innovation and
empower them to “explore new ideas and provide permission to fail. Through the creation of
their award-winning Kickbox program Adobe invests in their employee’s potential [– it]
exemplifies Adobe’s core value of Innovation, providing opportunity for company development
by fostering staff’s creative potential” (Tilt, n.d.).
Ultimately, “[b]eyond generous employee incentives, Adobe invests in their staff and the
community with a great sense of corporate responsibility” (Tilt, n.d.) and that is the biggest core
benefit as centring one’s corporation’s focus on its employees is tantamount to delivering
outstanding products to its customers, but fostering “a positive and hardworking company
culture separates the average from the brilliant” (Tilt, n.d.).
A Strategic Analysis of Adobe System Inc.’s Preferred Competitive Position and Future Prospects Attractiveness. 7
Building on that, Adobe recently overhauled its feedback system with its handy Check-in
Toolkit, and it defines “[t]he purpose of Check-in is to make sure employees' expectations are
clear, share feedback, and discuss development needs to enhance their performance. The flow of
Check-in follows three core steps:
“1. Expectations: First, agree what is expected of employees for the year in terms of
deliverables, behavio[u]r and contributions.
“2. Feedback: Next, provide frequent, two-way feedback to see how employees are
progressing against expectations and let managers know if they could be doing something
differently to better support the employee.
“3. Development: Then, when employees know how they are performing, they can plan
actionable goals in terms of learning, career and experience” (Adobe, n.d.).
Ultimately, this innovative organisational movement towards an informal yet as-needed
feedback-centric model change benefited employees as it allowed them to not only be a
lightweight process, but essentially served towards the goal of making helping employees do their
best work instead of distracting them from that objective.
Corporate Governance
Adobe has a Board of Directors who oversee the management of their “business, driving
effective decision making, and performance while serving as advocates for its stockholders to
protect their long-term interests” (Adobe , n.d.). The Board-appointed Chief Executive Officer
(CEO) is chosen in the stockholder’s best interest; the senior management team, called Leaders,
include the CEO and are responsible for managing day-to-day business.
A Strategic Analysis of Adobe System Inc.’s Preferred Competitive Position and Future Prospects Attractiveness. 8
When it comes to their corporate governance documents, the guiding procedures and
practices centre around maintaining the stockholder’s long-term interests, the operating
guidelines and controls regarding the Board’s responsibilities to promote transparency and
ethical business practices. (Adobe, n.d.) By ensuring “clear expectations, communicating
Adobe’s guidelines, management strategy, and decision-making approach” (Adobe, n.d.) to
create high satisfaction and value.
Figure 1.0 below shows Adobe’s Board of Directors, with its co-founders, current CEO,
and one of the leaders sitting on it, alongside those from outside the organisation.
Figure 1.0: Adobe Board of Directors.
Figure 2.0: Adobe Corporate Structure.
At Adobe, the leadership style is focused on challenging individuals by setting goals and
then letting them use their ingenuity to accomplish them; “a lot of energy and resources have
gone into developing this new program[me], which allows employees across the company to get
A Strategic Analysis of Adobe System Inc.’s Preferred Competitive Position and Future Prospects Attractiveness. 9
leadership training how they want it, and when they want it [and it also] offers a rich online
library of leadership materials from videos to guides and toolkits[, providing] virtual training
labs and a Leadership Insight guest speaker series” (Adobe, n.d.).
Customers and Product Segment Breakdown
With the three segments of Digital Media, Digital Marketing, and Publishing, Adobe
caters to marketers, creative professionals and individuals, application developers, and
enterprises. (Robinhood, n.d.) The flagship products in their Digital Media segment are: Creative
Cloud (Photoshop, Illustrator, InDesign, etc.), and Stock; they offer Software-as-a-Solution
(SaaS) as a cloud service. Digital Marketing consists of eight key solutions: Analytics, Target,
Social, Media Optimizer, Experience Manager, Campaign, Audience Manager, and Primetime; it
allows analytics, cross-channel and digital experience management, media optimisation, and
targeting. The third and final segment of Publishing: PostScript and PDF products.
Business Plan
External Environments
Market Overview
On a global scale, Adobe operates in the creative, digital marketing, and cloud- and
subscription-based software technology areas which utilises smartphones, handheld devices, and
desktops, and the internet.
A Strategic Analysis of Adobe System Inc.’s Preferred Competitive Position and Future Prospects Attractiveness. 10
With that said, Adobe needs to look at investing in smartphones and handheld devices, as
well as the internet, because those are growing in usage and with an estimated CAGR of 12% by
2020 – which would allow them to generate greater revenues. (Marketing Teacher, n.d.)
Industry Analysis
Furthermore, because Adobe provides software, which falls in the technology field,
technological advances present for growth and expansion opportunities for Adobe and its
software. With cloud computing becoming the next big thing worldwide, focus and expenditure
of cloud platforms, software, and services are expected to increase by 19.4% CAGR by 2020.
(Marketing Teacher, n.d.) Adobe’s Creative Cloud – its cloud subscription-based software tools
– would help deliver the increase in its revenues and consumer base. With the move towards
cloud technology especially, and Adobe’s recent partnership with Microsoft for its Azure
platform, it’s a step in the right direction; Microsoft announced that it would be using Adobe for
its marketing solution needs.
However, with these positive external factors come negatives ones: Hacking and stealing
of confidential customer information and software code, along with competition from open
source software (Xing, 2013), and foreign exchange fluctuations since Adobe is a global player.
Other external environments that affect Adobe are vulnerability to viruses and malicious
software, and hackers that can breach the security system of the company. The recent hack of its
proprietary software code (Kastrenakes, 2013) raise serious questions regarding the level of
security that Adobe employs. By leaking the source codes, it allows third parties to push out
enhanced or similar Adobe code, make it available in the open source market, and potentially
result in a decline in the brand name of the company.
A Strategic Analysis of Adobe System Inc.’s Preferred Competitive Position and Future Prospects Attractiveness. 11
Adobe also faces a smaller level of competition from other companies, primarily open
source enterprises; for example, GIT is an alternate open source software for Photoshop and
Illustrator. (Darmon and Torre, 2017) Yet, Adobe has no true competitors, in the domestic or
global markets and industry; despite a handful of open source software options that barely rival
the power of Adobe’s tools, any potential competitors were acquired or merged into Adobe,
thereby letting them hold a monopoly while still being innovative and meeting new demands.
(Darmon and Torre, 2017)
Moreover, since Adobe operates globally, they are prone to foreign exchange currency
fluctuations; an estimated amount of 46.9% of its revenue is generated from operations
conducted outside of America – fluctuations can harm the corporation’s financial stability.
(Marketing Teacher, n.d.) While Adobe has a programme that protects its exposure to foreign
currency fluctuations, it is limited in what it covers.
Internal Environments
Now, with the internal environments that Adobe can control, let’s look to their current
strengths and weaknesses. There are areas that Adobe excels in, managing and maintaining their
edge and being a leader in the industry, but they also have a lot of areas that require lots of
improvements and
Adobe has and maintains its monopolistic and competitive advantage in the graphic
design and digital marketing fields through its Creative Cloud Suite and analytics tools. Its
worldwide recognition and plethora of diverse and leading brands. From graphic design for not
only creative professionals but also individuals and schools, to audio and visual editing tools, and
analytics, Adobe has innovated the way individuals and companies use their tools.
A Strategic Analysis of Adobe System Inc.’s Preferred Competitive Position and Future Prospects Attractiveness. 12
Also, with the new subscription-based model, they have increased their annualised
recurring revenue (ARC) by 67%. (Gallagher, 2017) This also demonstrates that teams and
individuals are willing to pay more for good product, establishing that Adobe is worth it – has
distinguished itself from the others. In the fiscal year of 2017, “the annual revenue was $7.3
billion[, a] 25% year-over-year growth” (Adobe News, 2017).
Jumping off of that, Adobe’s global presence, brand recognition, and its array of tools
lending themselves to the creative field help distinguish it and maintain its dominance in the
field. The constant expansion, new software updates, and the recently assimilation of its Sensei
tool – an artificial intelligent and machine learning method that improves the design and delivery
of digital experiences across the Adobe tools – all are proof of Adobe’s strengths.
Some of the weaknesses, however – areas where Adobe is falling behind –, lie in the
security flaws and security issues in a few of its outdated software, the cost of its software, and
its current debt.
A Strategic Analysis of Adobe System Inc.’s Preferred Competitive Position and Future Prospects Attractiveness. 13
Figure 3.0: Internal and External Environments/Factors.
PESTLE
Having explored the external versus internal environmental factors that affect Adobe, a
PESTLE analysis is required in order to understand factors that affect the organisation’s directive
and objective to continue to maintain its market dominance as well as pursue new avenues as
they arise while keeping in mind the political, economic, social, technological, legal, and
environmental areas of impacts.
Political
Adobe operates in a multitude of countries, growing even more ever since it moved to its
cloud services subscription model, and therefore the significance of political factors’ role in
A Strategic Analysis of Adobe System Inc.’s Preferred Competitive Position and Future Prospects Attractiveness. 14
determining their long-term profitability in a certain country or market. These are the factors that
Adobe will need to closely analyse prior to entering or investing in a certain market:
Political stability and importance of IT sector in the country's economy,
Bureaucracy and interference in the IT industry by government, and the level of
corruption, especially in relation to regulation in the IT sector and/or with regards to
multi-national corporation (MNC),
Legal framework for contract enforcement,
Intellectual Property protection and anti-trust laws,
Pricing regulations and taxation (e.g. tax rates and incentives), trade regulations, and
tariffs,
Favoured trading partners and trading blocks,
Employment and wage legislation (e.g. minimum wage and overtime),
Safety regulations and product labelling, etc.
Economic
With respect to the economic factors, since Adobe operates on a global scale, it needs to
be aware of macroeconomic environment factors such as the inflation, savings, interest, and
foreign exchange rate, as well as the economic cycle which determine the aggregate demand and
supply; the microeconomic factors would encompass competition and competitive advantage of
the firm. Ultimately, Adobe can gauge a country’s economic factors to strategically deduce
whether it should be introduce itself to the new environment:
• Economic system and stability,
• Presence and levels of government intervention,
• Exchange rates and stability of host country currency,
A Strategic Analysis of Adobe System Inc.’s Preferred Competitive Position and Future Prospects Attractiveness. 15
• Efficiency of financial markets, which would lead to the decision on whether Adobe
needs to raise capital,
• Infrastructure quality and comparative advantages,
• Skill level, labour costs, and cost of living and operations,
• Business cycle stage (e.g. prosperity, recession, recovery),
• Economic growth rate, discretionary income, unemployment rate, inflation rate, and
interest rates.
Social
Society and cultural aspects influence an organisation’s culture as commonly held beliefs and
behaviours significantly impact the employees and customers in the market, and eventually the
marketing approach that would be adopted:
Demographics and skill level of the population,
Societal class structure, culture (gender roles, social conventions, etc.), hierarchy, and
power structure,
Education level and education standards,
Leisure interests.
Technological
Given that Adobe operates in the IT sector, a technological analysis of the industry is the
foundation of wat it does, but it needs to go further and understand the speed at which
technology could disrupt its standing in the industry:
Recent technological developments by Adobe Systems Incorporated competitors
Technology's impact on product offering,
Impact on cost structure,
A Strategic Analysis of Adobe System Inc.’s Preferred Competitive Position and Future Prospects Attractiveness. 16
Impact on value chain structure in IT sector,
Rate of technological diffusion.
Legal
Given the legal frameworks and institutions that not only are widely different across regions,
there is also not enough robust enough to protect the intellectual property rights of an
organisation; with that in mind, Adobe needs to continue maintaining its overall competitive
edge and therefore should consider the following legal topics and items when entering a new
market:
Anti-trust law in IT industry and overall in the country,
Discrimination law,
Copyright, patents, and Intellectual Property law,
Consumer protection and e-commerce,
Employment law,
Health and safety law,
Data Protection.
Environmental
As always, firms should carefully and strategically evaluate the environmental standards
that are required to operate in those markets:
Laws regulating environment pollution, recycling, waste management,
Opinions on weather, climate change, and going “green” (e.g. renewable energy, etc.).
A Strategic Analysis of Adobe System Inc.’s Preferred Competitive Position and Future Prospects Attractiveness. 17
Analysis of Strategic Factors (SWOT Analysis)
Having looked at the external and internal environments that Adobe deals with and is
affected by, a SWOT (Strengths, Weakness, Opportunities, and Threat) analysis, seen below in
Figure 2.
Figure 3.0: Adobe SWOT Analysis.
A Strategic Analysis of Adobe System Inc.’s Preferred Competitive Position and Future Prospects Attractiveness. 18
Recommendation as a Consultant
Strategic Business Units (SBUs) Segmentation
The Strategic Business Units that are analysed here, specifically in light of the external
and internal environments as well as PESTLE and SWOT, are the Creativity & Design and
Innovations areas of Adobe.
The Creativity & Design SBU is the area that is focused on Adobe’s Creative Cloud
(Photoshop, InDesign, Illustrator, etc.) and selling that to its target market segments of
photographers, students and teachers, small & medium businesses, enterprises, and schools and
universities.
The Innovations SBU proposed here would be a supplemental SBU that is focused on
expanding the current products that Adobe offers by finding new creative paths and partnerships
to not only expand customer offerings, but also to provide an even more integrated and seamless
platform for all of their tools.
The main areas that they need to focus on, diagrammed out in Exhibit A: Future
Environmental Needs – Creativity & Design and Exhibit B: Future Environmental Needs –
Innovations, are to:
Increase revenue – both short-term and long-term with ACR in mind,
Maintain competitive advantage both globally and in the States, and
Ensure security at all levels – across all their tools and software.
The geographical regions that Adobe needs to focus on are:
Asia Pacific,
North and South America (Americas), and
Africa and Europe.
A Strategic Analysis of Adobe System Inc.’s Preferred Competitive Position and Future Prospects Attractiveness. 19
The customer segments that Adobe will be targeting are:
Students and Teachers, Individuals, and Creative Professionals (STICPs)
Small and Medium Business, Schools and Universities (SMBSUs)
Enterprises
Alternatives and Recommendation
All the above segments of SBUs and the geographical and customer target segments,
outlined in further detail in Exhibit E: Identification of SBAs – 1, Exhibit F: Identifications of
SBAs – 2, Exhibit G: Identification of SBAs – 3, and Exhibit H: Identification of SBAs – 4 are
imperative when it comes to understanding what the alternatives and recommendation for
Adobe to continue grow and remain a major player in its field.
Alternatives
Having analysed the thirty-six (36) SBUs and their geographical and consumer target
segmentations in respective appendices, internal and external environments, and carried out a
SWOT analysis on Adobe, the three proposals for how Adobe can competitively establish its
further dominance in the creative field and gain further ground as a pioneer, shown in Exhibit C:
Need-Technology Couples – Creativity & Design and Exhibit D: Need-Technology Couples –
Innovations, are:
1. Adapting HTML5 and plan for Flash’s end-of-life,
2. Turning to machine learning/Artificial Intelligence (AI), and
3. Adoption of 3D technology.
A Strategic Analysis of Adobe System Inc.’s Preferred Competitive Position and Future Prospects Attractiveness. 20
HTML5 and Flash End-of-Life
Not only must Adobe move towards HTML5 and away from Flash, but be the leaders in
further HTML development. The concerns with Flash are around security, with hackers being
able to use source code to take control of the affected system, including internet browsers.
(Winokur, 2011)
With recent data protection acts coming into play around the globe, it is becoming
extremely critical and a significant detractor in Adobe’s otherwise successful growth; this sense
of urgency lends itself to more spotlight being shed on the issue, and following the recent
Facebook lawsuit, and potential Google one, Adobe would be wise to invest the time and
research into resolving this issue of Flash’s security problems, but not forget that an end-of-life
plan is required. (Whitney, 2013)
AI (Artificial Intelligence)
Adobe has just incorporated Adobe Sensei, its AI and machine learning tool that
enhances editing software by providing more customer-focused content. (Adobe Sensei, n.d.)
Which, coupled with the industry-wide effort to incorporate, build, and or adopt robust machine
learning/AI (Artificial Intelligence) analytics into SaaS (Software-as-a-Solution) applications,
Adobe is already heading in the right direction, however, given the immense amount of content
and data that Adobe maintains through its content and component content management systems,
the extent to which AI is utilised, its potential, has not been fully or even begin to be deeply
explored. (Hawn and Ioannou, 2015) Big data analytics comes into play here because of the
content being stored in Adobe’s cloud servers – which run on Microsoft Azure –, so being able
to leverage AI to truly target consumers both directly and indirectly would greatly benefit
Adobe. However, given the recent data protection laws and regulations that have come into play,
A Strategic Analysis of Adobe System Inc.’s Preferred Competitive Position and Future Prospects Attractiveness. 21
it is extremely important that any and all data that is being stored and utilised adhere to such
protocols and requirements so as to be compliant and not liable to lawsuits.
Adobe already has a machine learning software, so they should continue to invest their
R&D time to further enhance and optimise the tool so it is cross-platform, cross-data, cross-
channel compatible.
3D Technology including AR (Augmented Reality) and VR (Virtual Reality)
With 3D printers becoming more commercially available and affordable, Adobe would
also have a great advantage by pioneering 3D technology applications and programmes, and
potentially even hardware such as 3D pens that allow for modelling and prototyping. The
creative aspect alone for 3D technology could easily lead to capturing a larger untapped,
audience – hospitals, banks, start-ups, and individuals who are not already utilising Adobe’s
services.
Today, AR (Augmented Reality) and VR (Virtual Reality), are being used throughout
various industries, and given the creative aspect associated with it, it would be extremely
beneficial and the right direction for Adobe to head in. In the past, Adobe has bought out
companies that were dominating the niche fields, and that approach can be taken here as well
when it comes to AR and VR technology: NEXT /NOW, Groove Jones, hedgehog lab, Master of
Code Global, and Talespin are all the top AR and VR developers in the industry. Adobe can
work with them, buy them out, or absorb ThinkMobiles, AVRspot, and WeAR Studio – to name
a few other developers in the field – to expand their department and expertise. (Clutch, n.d.)
Taking an approach where Adobe keeps on the core team would also lend positively to Adobe’s
brand image; instead of being viewed as simply buying out the competition only to retire their
A Strategic Analysis of Adobe System Inc.’s Preferred Competitive Position and Future Prospects Attractiveness. 22
product, Adobe can help provide the enterprise-level backing for further research and
development (R&D) and innovation in the industry with the help of a market leader. (Rao, 2011)
This would also allow partnerships and sponsorships with other companies, not only in
the IT industry; automobiles for one would be a great place to start as they could leverage
Adobe’s proprietary 3D software and potentially even hardware into not only their creative
departments, but actual car components. Of course, due to the many federal laws, which vary
from country and state in different parts of the world, Adobe would need to ensure that
contractual agreements with partners address these topics – the partner who is leveraging the
Adobe tools could be responsible for compliance. Bharadwaj, A., et al., 2013).
There is significant R&D costs, given that the technology is still developing, and 3D
printers as well as AR and VR headsets as niche a field as they are, have companies investing in
them already, and technological advances are ongoing, so Adobe could easily fall behind, unless
they acquire a company that already is researching these areas and provide them the support
under the Adobe brand.
Recommendations
Flash
The weakest point right now for Adobe is their Flash software and therefore their focus
right now, first and foremost, needs to be on divesting Flash and getting into the HTML5 – the
platform on which web development, rich internet applications, and multimedia content viewing
are being built upon – is the approach to go forward with first and foremost.
With the diverse customer target that Adobe has, and its global market presence, it only
makes sense that they tackle the immediate threat and retire Flash. (Winokur, 2011) By diving
A Strategic Analysis of Adobe System Inc.’s Preferred Competitive Position and Future Prospects Attractiveness. 23
into the HTML5 community, Adobe is able to reach those end users who have now moved away
from Flash, such as Google, Facebook, and Apple – to name a few – as well as allow cross-
platform and legacy-content compatibility. (Winokur, 2011)
Once this has been addressed through HTML5 1,2, HTML5 1,2, and HTML5 1,3), then
Adobe should start investing and looking into the other two alternatives of AI and 3D technology
being incorporated or added to their products.
AR and VR
Taking it one step further, Adobe needs to develop – in order to maintain – its
competitive advantage by branching out into the augmented and virtual realities (AR and VR
respectively) through partnerships with headsets and devices, not only in the IT industry. The
direction that technology and arts are going involve AR and VR. As mentioned earlier,
automobiles for one would be a great place to start as they could leverage Adobe’s proprietary
3D software and potentially even hardware into not only their creative departments, but actual
car components. In the past, Adobe has bought out companies that were dominating the niche
fields, and that approach can be taken here as well when it comes to AR and VR technology to
expand their department and expertise. (Clutch, n.d.) Through this approach, Adobe can keep the
core team would also lend positively to Adobe’s brand image, further maintenance of
competitive advantage having the niche players under their management and organisation.
Moreover, with the enterprise-level backing for further research and development (R&D) and
innovation in the industry with the help of a market leader, Adobe will be able to further their
strong market dominance while providing tools and applications that will be extremely beneficial
to their customers in all markets. (Rao, 2011) While the costs will be significant, the Financial
Planning and Management section outlines There is significant R&D costs, given that the
A Strategic Analysis of Adobe System Inc.’s Preferred Competitive Position and Future Prospects Attractiveness. 24
technology is still developing, and 3D printers as well as AR and VR headsets as niche a field as
they are, have companies investing in them already, and technological advances are ongoing, so
Adobe could easily fall behind, unless they acquire a company that already is researching these
areas and provide them the support under the Adobe brand. They have complete permission to
play in this space and their creative professional audiences are going to be banging on the table
for tools and best practices for how to participate in building experiences.
Implementation
The primary focus for Adobe is implementing an end-of-life plan for Flash and then
becoming a leading contributor in HTML5 (through HTML5 1,2, HTML5 1,2, and HTML5 1,3),
and the approach they should take is twofold over three years, with the Americas as a pilot
programme:
1. Starting with focusing on areas – tools and applications – that still rely on Flash, Adobe
needs to strengthen the existing security levels so that hackers are not able to utilise
source code backdoors to misuse and abuse the data collected.
This would be a one and a half year approach.
2. Next, Adobe will need to ensure that their current Flash team starts focusing on HTML5,
learning its API (Application Programming Interface), platforms, channels, and targets to
strategically position themselves as leaders users, contributors, and leaders to the growth
and enhancement of HTML5.
3. This would overlap with the previous portion and take two years, and continue.
A Strategic Analysis of Adobe System Inc.’s Preferred Competitive Position and Future Prospects Attractiveness. 25
The secondary focus for Adobe is delving into AR and VR (through 3D3 1,2, 3D 1,2, and
3D 1,3, or ARVR4 1,2, ARVR4 1,2, and ARVR4 1,3) and the approach they should take is
twofold over three years, with the Americas as a pilot programme, with a global rollout:
1. AR with a proof-of-concept Microsoft HoloLens app that overlays 3D data visualisations
on products in a store,
2. Build on Soniscape – which allows VR editors to “see sound” in 3D –, Project
Sidewinder – which is aimed at adding realistic depth to VR videos –, making the
experience just like being there, and Project Dali – a VR painting app built in the vein of
Google Tilt Brush –, and
3. 360-degree editing features last year for placing images, text and animated transitions in
Premiere Pro.
AR places 3D images in your surroundings you see through a headset or phone. On the
other hand, VR cuts you off from your visual surroundings to completely immerse you in an app
or film.
Since Adobe is in the software and application field, which falls under the IT industry, it
makes sense for them to follow one of the standard software development lifecycle (SDLC)
flows of a hybrid project that relies on Agile Scrum and the traditional Waterfall methodologies
to approach their twofold need. Adobe should utilise its own Adobe Experience Manager (AEM)
(Adobe Experience Manager, n.d.) to manage projects, as they already have a strong project
management foundation in place that provides a best practices checklist and associated templates
to follow.
Utilising that, they can track the budget, phases of the project, impacts, risks, mitigations,
health scorecard, quality control, and statuses by roles, as shown in Exhibit L: Adobe Experience
A Strategic Analysis of Adobe System Inc.’s Preferred Competitive Position and Future Prospects Attractiveness. 26
Manager Project Best Practices Checklist and Templates
A Strategic Analysis of Adobe System Inc.’s Preferred Competitive Position and Future Prospects Attractiveness. 27
.
Adobe must be sure to use “[t]he S.M.A.R.T. outline—setting goals that are specific,
measurable, attainable, relevant, and timely— [to] carefully define goals effectively, measure
success, and see a positive ROI [sic].” (Adobe Digital Marketing Blogs, n.d.)
Utilising the enterprise project management processes implemented at Adobe, the
approach for implementation should involve planning, research and analysis (such as pain points,
impact, and gap), as well as scoping, requirements gathering, development, testing, deployment,
and maintenance. The standard PMO (Project Management Office) milestones and checkpoints
should be followed and met, but Adobe must also go above and beyond when it comes to
becoming a key (and then leading) contributor) for HTML5. Attending conferences, seminars,
and sessions held by the World Wide Web Consortium (WWWC or W3C) to grasp the current
direction of HTML5, its usages across platforms and channels, and from there, start actively
incorporating it into their systems and contributing to its growth.
The high-level budgeting and financial aspects for implementing the end-of-life of Flash
and delving into HTML5 projects, as well as AR and VR ventures, are covered in Exhibit K:
Project Budget Template.
A Strategic Analysis of Adobe System Inc.’s Preferred Competitive Position and Future Prospects Attractiveness. 28
The proposed project plan is documented in Exhibit L: Adobe Experience Manager
Project Best Practices Checklist and Templates
A Strategic Analysis of Adobe System Inc.’s Preferred Competitive Position and Future Prospects Attractiveness. 29
.
Financial Planning and Management
The financial management of implementing these solutions are as follows, with the
blended resource rate of $100 per hour:
Flash/HTML5 project budget estimates – detailed breakdown available in Exhibit O:
Flash/HTML5 Project Budget
o Total project estimate: $2,765,000.00
A Strategic Analysis of Adobe System Inc.’s Preferred Competitive Position and Future Prospects Attractiveness. 30
o Total resource estimate: $2,615,000.00 (= $2,300,000.00 project team +
$315,000.00 enterprise architecture and infrastructure)
Resource breakdown:
Programme Manager
Project Manager
Lead Business Analyst
Lead Developer
Lead QA Analyst
Developer
QA Analyst
EAI Project Manager
Data Architect
Solution Architect
Platform Security
Security & Threat
Operations
Enterprise Architecture
Integration Services
ETL
Asset Management
Infrastructure Services
Network &
Communications
Service
o Hardware/Software estimate: $150,000.00
o Ongoing support costs: $100,000 per year
o Duration of project: 0.6 years
AR & VR project budget estimates – detailed breakdown available in Exhibit N:
AR & VR Project Budget
o Total project estimate: $7,751,000.00
o Total resource estimate: $7,665,000.00 (=$7,200,000.00 project team +
$465,000.00 enterprise architecture and infrastructure team)
Resource breakdown:
Programme Manager
Project Manager
Lead Business Analyst
Lead Developer
Lead QA Analyst
Developer 1
Developer 2
Developer - Offshore
QA Analyst 1
A Strategic Analysis of Adobe System Inc.’s Preferred Competitive Position and Future Prospects Attractiveness. 31
QA Analyst 2
QA Analyst – Offshore
EAI Project Manager
Data Architect
Solution Architect
Platform Security
Security & Threat
Operations
Enterprise Architecture
Integration Services
ETL
Asset Management
Infrastructure Services
Network &
Communications
Service
o Hardware/Software estimate: $86,000.00
o Ongoing support costs: $200,000 per year
o Duration of project: 1.25 years
Evaluation and Controls
There are two components that need to be evaluated for the implementation:
Project evaluation and controls, and
Post go-live (when Adobe’s customers get the updates in the production
environment)
In those two components, ensuring the following are accounted and adhered to would
lead to the success of this recommendation:
Planning and budgeting of the two-phased approach
Planning and budgeting of the two remaining alternatives
Identifying KPIs (Key Performance Indices)
Identifying, assessing, and mitigating risks
Carrying out the plan but accounting for flexibility and optimisation opportunities
during implementation due to unknown internal and external elements
A Strategic Analysis of Adobe System Inc.’s Preferred Competitive Position and Future Prospects Attractiveness. 32
Financial reporting, ROI, and other related aspects
Customer retention and satisfaction
Industry standards adherence and compliance
Federal and organisational adherence and compliance
Monitoring the plan and KPIs, and generating reports per qualitative and
quantitative metrics
Addressing and resolving issues
Continuous performance and development improvements and optimisations
Adobe can utilise its Marketing Cloud services that allow for analytics for KP tracking to
generate reports and charts that show the progress over the course of the quarters and years.
Conclusion
Ultimately, there are two aspects that Adobe needs to look into: 1) Transitioning of Flash
to HTML5 for all of its products, and 2) Incorporation of AR and VR technology and tools into
their suite of product offerings through their Creativity & Innovations and Innovations strategic
business areas.
With the numerous partnership as well as acquisition and merger opportunities and
capability of expanding current product offerings, Adobe will be able to maintain their market
dominance while increasing profit margins, revenues, capturing market shares through increased
customer subsegments (e.g. automobile and healthcare industry as a part of their Enterprise
target segment), and, most importantly, support the creativity of their customers.
Given Adobe’s focus on the creative and digital space, it is worthwhile to note that they
should be at the forefront of encouraging new technological advances, exerting their dominance
A Strategic Analysis of Adobe System Inc.’s Preferred Competitive Position and Future Prospects Attractiveness. 33
and expertise, while encourage think tanks for creativity expansion, all of which can be achieved
by transitioning to HTML5 (and continuing to help it grow and optimising it) and venturing into
AR & VR technology.
A Strategic Analysis of Adobe System Inc.’s Preferred Competitive Position and Future Prospects Attractiveness. 34
References
Adobe (n.d.). Adobe Buys Efficient Frontier to Boost Its online Advertising Capabilities.
Retrieved 16th March, 2018 from
https://www.pcworld.com/article/245198/adobe_buys_efficient_frontier_to_boost_its_onlin
e_advertising_capabilities.html.
Adobe (n.d.). Board of Directors. Retrieved 16th March, 2018 from
https://www.adobe.com/about-adobe/leaders/board-directors.html
Adobe (n.d.). Leaders. Retrieved 16th March, 2018 from https://www.adobe.com/about-
adobe/leaders.html
Adobe. (n.d.). ABOUT ADOBE. Retrieved 26th March, 2018 https://www.adobe.com/about-
adobe.html?
Adobe Sensei (n.d.). Adobe Sensei. Retrieved 26th March, 2018 from
https://www.adobe.com/sensei.html
Adobe Digital Marketing Blogs. (n.d.) #KPIs. Retrieved on 22nd April, 2018 from
https://blogs.adobe.com/digitalmarketing/tag/kpis/
Adobe Digital Insights. (n.d.) New Day for TV Advertising: Marketers find ways to reach TV
viewers who skip commercials. The New York Times. Retrieved 26th March, 2018 from
https://paidpost.nytimes.com/adobe/new-day-for-tv-advertising.html
Adobe Experience Manager. (n.d.) The Checklist. Retrieved on 11th April, 2018 from
https://helpx.adobe.com/experience-manager/6-4/managing/using/best-practices-
checklist.html
A Strategic Analysis of Adobe System Inc.’s Preferred Competitive Position and Future Prospects Attractiveness. 35
Adobe News. (December 14, 2017) Adobe Delivers Record Revenue of $2 Billion in Q4.
Retrieved 28th March, 2018 from http://news.adobe.com/press-release/corporate/adobe-
delivers-record-revenue-2-billion-q4
Bharadwaj, A., El Sawy, O. A., Pavlou, P. A., and Venkatraman, N. V. (June 1, 2013). Digital
Business Strategy: Toward a Next Generation of Insights. MIS Quarterly (2013), 37 (2),
471-482. Retrieved 28th March, 2018, from https://ssrn.com/abstract=2742300.
Clutch. (n.d.) Top Virtual Reality & Augmented Reality Developers – Leaders Matrix. Clutch
Co. Retrieved 28th March, 2018, from https://clutch.co/developers/virtual-reality/leaders-
matrix
Cloud Computing – A Market Perspective and Research Directions. I.J. Information Technology
and Computer Science, 2015, 10, 42-53. Published Online September 2015 in MECS. DOI:
10.5815/ijitcs.2015.10.06.
Darmon, E. and Torre, D. (2017). Dual licensing strategy with open source competition.
Managerial and Decision Economics 38:8, 1082-1093.
Dorobantu, S., Kaul, A., and Zelner, B. (2016). Nonmarket strategy research through the lens of
new institutional economics: An integrative review and future directions, Strategic
Management Journal, 38, 1, (114-140).
Dyson, R. (2004). Strategic development and SWOT analysis at the University of Warwick.
European Journal of Operational Analysis. Retrieved 26th March, 2018 from
https://www.sciencedirect.com/science/article/abs/pii/S0377221703000626
Economides N. and Katsamakas E. (2006). Two-sided competition of proprietary vs. open source
technology platforms and the implications for the software industry. Management Sci.
52(7):1057–1071
A Strategic Analysis of Adobe System Inc.’s Preferred Competitive Position and Future Prospects Attractiveness. 36
Fern Fort University. (n.d.) Adobe Systems Incorporated PESTEL & Environment Analysis.
Retrieved on 22nd November, 2018 from http://fernfortuniversity.com/term-
papers/pestel/nyse4/3311-adobe-systems-incorporated.php
Gallagher, D. (June 21, 2017). Adobe Is a Bright Spot in the Cloud: Software company’s
expanding earnings moderates valuation of rapidly rising stock price. The Wall Street
Journal. Retrieved 26th March, 2018 from https://www.wsj.com/articles/adobe-is-a-bright-
spot-in-the-cloud-1498063242
Gupta, P., Seetharam, A., and Raj, J. (October 2013). The usage and adoption of cloud
computing by small and medium businesses. International Journal of Information
Management. Retrieved 26th March, 2018 from
https://www.sciencedirect.com/science/article/pii/S026840121300087X
Hawn, O. and Ioannou, I. (2015). Mind the gap: The interplay between external and internal
actions in the case of corporate social responsibility. Strategic Management Journal.
Retrieved 26th March, 2018 from https://onlinelibrary.wiley.com/doi/full/10.1002/smj.2464
Kastrenakes, J. (October 29, 2013). Adobe hack much worse than reported, hits 38 million
passwords and Photoshop source code. The Verge. Retrieved 16th March, 2018 from
https://www.theverge.com/2013/10/29/5042434/adobe-cyberattack-takes-38-million-
passwords-photoshop-source-code.
Larson, Erik (June 1, 2008). Welcome to Acrobat.com – Work. Together. Anywhere. Adobe
Archive. Retrieved 10th March, 2018 from
https://web.archive.org/web/20080603155243/http:/blogs.adobe.com/acom/2008/06/welcom
e_to_acrobatcom_work_tog_1.html.
A Strategic Analysis of Adobe System Inc.’s Preferred Competitive Position and Future Prospects Attractiveness. 37
Lee, S., Yoo, S., and Kim, D. (March, 2016). When is servitization a profitable competitive
strategy? International Journal of Production Economics. Retrieved 26th March, 2018 from
https://www.sciencedirect.com/science/article/pii/S0925527315005216
Rao, L. (January 18, 2011). Adobe Buys Behavioral Data Management Platform DemDex.
TechCrunch. Retrieved 19th March, 2018 https://techcrunch.com/2011/01/18/adobe-buys-
behavioral-data-management-platform-demdex/.
Marketing Teacher (n.d.) Adobe SWOT Analysis. Retrieved 2nd April, 2018 from
http://www.marketingteacher.com/adobe-swot-analysis/
MBASkool. (n.d.) Adobe SWOT Analysis, USP & Competitors. Retrieved 26th March, 2018
from https://www.mbaskool.com/brandguide/media-and-entertainment/1182-adobe.html
Michael A., Hitt, R., Ireland, D., and Hoskisson, R. Strategic Management Cases:
Competitiveness and Globalization.
https://books.google.com/books?hl=en&lr=&id=qaIKAAAAQBAJ&oi=fnd&pg=PR2&dq=
adobe+systems+inc+competitive+advantage&ots=Emperg-
FGw&sig=DR0WQnbNF9PWzjp3pGGEcK3Ex8A#v=onepage&q&f=false
https://www.sciencedirect.com/science/article/pii/S002463010900051X
Neves, F., Marta, F., Correia, A., and Neto, M. (October 25, 2011). The adoption of cloud
computing by SMEs: identifying and coping with external factors. Repositorio universidade
de Nova. Retrieved 26th March, 2018 from https://run.unl.pt/handle/10362/6166
Teece, D. (November 18, 2009). Business Models, Business Strategy and Innovation. Long
Range Planning. Retrieved 26th March, 2018 from
https://www.sciencedirect.com/science/article/abs/pii/S002463010900051X
A Strategic Analysis of Adobe System Inc.’s Preferred Competitive Position and Future Prospects Attractiveness. 38
Tilt, M. (n.d.) Insights into Adobe’s Award Winning Company Culture. Retrieved 12th
November, 2018 from https://inside.6q.io/adobes-award-winning-company-culture/
Wawro, Thaddeus (2000). Charles Geschke & John Warnock: the fathers of desktop publishing.
Radicals and visionaries. Entrepreneur Press. p. 143-144. ISBN 1891984136.
Welch, C. (November 7, 2013). Over 150 million breached records from Adobe hack have
surfaced online. The Verge. Retrieved 16th March, 2018 from
https://www.theverge.com/2013/11/7/5078560/over-150-million-breached-records-from-
adobe-hack-surface-online.
Whitney, L. (October 29, 2013). Adobe hack attack affected 38 million accounts.
News.cnet.com. Retrieved 16th March, 2018 from https://www.cnet.com/news/adobe-hack-
attack-affected-38-million-accounts/.
Winokur, D. (November 9, 2011). Flash to Focus on PC Browsing and Mobile Apps; Adobe to
More Aggressively Contribute to HTML5 (Adobe Featured Blogs). Retrieved 26th March,
2018 from https://blogs.adobe.com/conversations/2011/11/flash-focus.html
Xing, M. (2013). Competition between Free Open Source, Commercial Open Source and
Proprietary Software. Journal of Communications 8:10, 665-671.
Yip, George. (2002). Total Global Strategy II. Prentice Hall; 2nd Edition. ISBN-13: 978-
0130179173. Chapter 11: Conducting a Global Strategy Analysis. Pages 253-271 and
Appendix: Pages 272-275.
A Strategic Analysis of Adobe System Inc.’s Preferred Competitive Position and Future Prospects Attractiveness. 39
Appendix
Exhibit A: Future Environmental Needs – Creativity & Design
Name of The
Firm:
Adobe________________________________
SBU: Creativity & Design______________________
(1)
Number
(2)
Description of the Need
(3)
Label
1
2
3
To increase revenue
To maintain competitive advantage
To ensure security at all levels
R
CA
S
R – Revenue
CA – Competitive Advantage
S – Security
A Strategic Analysis of Adobe System Inc.’s Preferred Competitive Position and Future Prospects Attractiveness. 40
Exhibit B: Future Environmental Needs – Innovations
Name of The
Firm:
Adobe________________________________
SBU: Innovations (I)______________________
(1)
Number
(2)
Description of the Need
(3)
Label
1
2
3
To increase revenue
To maintain competitive advantage
To expand brand partnership
R
CA
BP
R – Revenue
CA – Competitive Advantage
S – Security
A Strategic Analysis of Adobe System Inc.’s Preferred Competitive Position and Future Prospects Attractiveness. 41
Exhibit C: Need-Technology Couples – Creativity & Design
Name of The Firm:
Adobe_________________________________
Number and
Label:
Creativity &
Design_(CD)__________________
(1)
Need-Technology
Number
(2)
Description of the Technologies
(3)
Need-Technology
Label
1
2
3
Move towards HTML5
Machine Learning/AI (Artificial Intelligence)
Analytics through SaaS (Software-as-a-
Solution)
3D technology including AR and VR
HTML5
AI
3D
HTML5 – Hypertext Markup Language 5
AI – Artificial Intelligence
3D – 3 Dimensional Technology, Augmented Reality, Virtual Reality
A Strategic Analysis of Adobe System Inc.’s Preferred Competitive Position and Future Prospects Attractiveness. 42
Exhibit D: Need-Technology Couples – Innovations
Name of The Firm:
Adobe_________________________________
Number and
Label:
Innovations (I)__________________
(1)
Need-Technology
Number
(2)
Description of the Technologies
(3)
Need-Technology
Label
1
3D technology including AR and VR
ARVR
ARVR – 3-Dimensional Technology, Augmented Reality, Virtual Reality
A Strategic Analysis of Adobe System Inc.’s Preferred Competitive Position and Future Prospects Attractiveness. 43
Exhibit E: Identification of SBAs – 1
Need-
Technology
Geographic
Location
Customer
Types
SBA Name
& Number
Customer
Types
SBA Name
& Number
HTML5 – Hypertext Markup Language 5
STICPs – Students, Teachers, Individuals, Creative Professionals
SMBSUs – Small and Medium Businesses, Schools and Universities
Enterprises – Enterprises (corporations)
HTML5 1
Americas Asia Pacific
Africa &
Europe
HTML5
1,2
HTML5
1,1
HTML5
1,3
HTML5
1,8
HTML5
1,7
HTML5
1,9
HTML5
1,5
HTML5
1,4
HTML5
1,6
STICPs SMBSUs Enterpri se
STICPs SMBSUs Enterpri se
STICPs
SMBSUs
Enterpri
se
A Strategic Analysis of Adobe System Inc.’s Preferred Competitive Position and Future Prospects Attractiveness. 44
Exhibit F: Identifications of SBAs – 2
Need-
Technology
Geographic
Location
Customer
Types
SBA Name
& Number
Customer
Types
SBA Name
& Number
AI – Artificial Intelligence
STICPs – Students, Teachers, Individuals, Creative Professionals
SMBSUs – Small and Medium Businesses, Schools and Universities
Enterprises – Enterprises (corporations)
AI 2
Americas Asia Pacific Africa &
Europe
AI 2,2 AI 2,1 AI 2,3 AI 2,8 AI 2,7 AI 2,9
AI 2,5
AI 2,4 AI 2,6
STICPs SMBSUs Enterpri se
STICPs SMBSUs Enterpri se
STICPs
SMBSUs
Enterpri
se
A Strategic Analysis of Adobe System Inc.’s Preferred Competitive Position and Future Prospects Attractiveness. 45
Exhibit G: Identification of SBAs – 3
Need-
Technology
Geographic
Location
Customer
Types
SBA Name
& Number
Customer
Types
s
SBA Name
& Number
3D – 3 Dimensional Technology, Augmented Reality, Virtual Reality
STICPs – Students, Teachers, Individuals, Creative Professionals
SMBSUs – Small and Medium Businesses, Schools and Universities
Enterprises – Enterprises (corporations)
3D 3
Americas Asia Pacific Africa &
Europe
3D 3,2 3D 3,1 3D 3,3 3D 3,8 3D 3,7 3D 3,9
3D 3,5 3D 3,4 3D 3,6
STICPs SMBSUs Enterpri se
STICPs SMBSUs Enterpri
se
STICPs SMBSUs Enterpri se
A Strategic Analysis of Adobe System Inc.’s Preferred Competitive Position and Future Prospects Attractiveness. 46
Exhibit H: Identification of SBAs – 4
Need-
Technology
Geographic
Location
Customer
Types
SBA Name
& Number
Customer
Types
SBA Name
& Number
ARVR – 3-Dimensional Technology, Augmented Reality, Virtual Reality
STICPs – Students, Teachers, Individuals, Creative Professionals
SMBSUs – Small and Medium Businesses, Schools and Universities
Enterprises – Enterprises (corporations)
ARVR 1
Americas Asia Pacific
Africa &
Europe
ARVR
4,2
ARBR
4,1
ARVR
4,3
ARVR
4,8
ARVR
4,7
ARVR
4,9
ARVR
4,5
ARVR
4,4
ARVR
4,6
STICPs SMBSUs Enterpri se
STICPs SMBSUs Enterpri se
STICPs
SMBSUs
Enterpri
se
A Strategic Analysis of Adobe System Inc.’s Preferred Competitive Position and Future Prospects Attractiveness. 47
Exhibit K: Project Budget Template
© December, 2018
Exhibit L: Adobe Experience Manager Project Best Practices Checklist and Templates
A Strategic Analysis of Adobe System Inc.’s Preferred Competitive Position and Future Prospects Attractiveness. 49
Exhibit M: Change Management Process
Exhibit N: AR & VR Project Budget
ADOBE: AR & VR
PROJECT BUDGET
CURRENT
BUDGET:
RESOURCES
LABOR
MATE
RIALS
FIXED
COST
BUDG
ET
ACT
UAL
UNDER
/OVER
TASK HRS
RA
TE UNITS
$/U
NIT
Internal
Application
Resources
Programme
Manager 5,000
$
10
0.0
0
$
500,00
0.00
$
(500,00
0.00)
A Strategic Analysis of Adobe System Inc.’s Preferred Competitive Position and Future Prospects Attractiveness. 50
Project
Manager 7,000
$
10
0.0
0
$
700,00
0.00
$
(700,00
0.00)
Lead Business
Analyst 11,000
$
10
0.0
0
$
1,100,
000.00
$
(1,100,
000.00)
Lead
Developer 3,500
$
10
0.0
0
$
350,00
0.00
$
(350,00
0.00)
Lead QA
Analyst 3,500
$
10
0.0
0
$
350,00
0.00
$
(350,00
0.00)
Developer 8,000
$
10
0.0
0
$
800,00
0.00
$
(800,00
0.00)
Developer 7,000
$
10
0.0
0
$
700,00
0.00
$
(700,00
0.00)
Developer -
Offshore 4,000
$
10
0.0
0
$
400,00
0.00
$
(400,00
0.00)
QA Analyst 11,000
$
10
0.0
0
$
1,100,
000.00
$
(1,100,
000.00)
QA Analyst 8,000
$
10
0.0
0
$
800,00
0.00
$
(800,00
0.00)
QA Analyst -
Offshore 4,000
$
10
0.0
0
$
400,00
0.00
$
(400,00
0.00)
A Strategic Analysis of Adobe System Inc.’s Preferred Competitive Position and Future Prospects Attractiveness. 51
$
7,200,
000.00
$
-
Enterprise
Architecture &
Infrastructure
Resources
EAI Project
Manager 1,000
$
10
0.0
0
$
100,00
0.00
$
(100,00
0.00)
Data Architect 450
$
10
0.0
0
$
45,000
.00
$
(45,000
.00)
Solution
Architect 500
$
10
0.0
0
$
50,000
.00
$
(50,000
.00)
Platform
Security 550
$
10
0.0
0
$
55,000
.00
$
(55,000
.00)
Security &
Threat
Operations
750
$
10
0.0
0
$
75,000
.00
$
(75,000
.00)
Enterprise
Architecture 500
$
10
0.0
0
$
50,000
.00
$
(50,000
.00)
Integration
Services 250
$
10
0.0
0
$
25,000
.00
$
(25,000
.00)
ETL 150
$
10
0.0
0
$
15,000
.00
$
(15,000
.00)
Asset
Management 150
$
10
0.0
0
$
15,000
.00
$
(15,000
.00)
A Strategic Analysis of Adobe System Inc.’s Preferred Competitive Position and Future Prospects Attractiveness. 52
Infrastructure
Services 150
$
10
0.0
0
$
15,000
.00
$
(15,000
.00)
Network &
Communications
Services
200
$
10
0.0
0
$
20,000
.00
$
(20,000
.00)
$
465,00
0.00
$
-
Hardware/Soft
ware
Azure cloud
services
$
300,0
00.00
$
300,00
0.00
$
(300,00
0.00)
Headsets $
50.00
$
750.
00
$
37,500
.00
$
(37,500
.00)
Handheld
devices
$
25.00
$
1,00
0.00
$
25,000
.00
$
(25,000
.00)
Laptops $
10.00
$
1,20
0.00
$
12,000
.00
$
(12,000
.00)
AR
applications
$
3.00
$
1,00
0.00
$
3,000.
00
$
(3,000.
00)
VR
applications
$
3.00
$
1,00
0.00
$
3,000.
00
$
(3,000.
00)
Miscellaneous $
10.00
$
8,00
0.00
$
80,000
.00
$
(80,000
.00)
$
-
$
-
$
86,000
.00
$
-
TOTAL
$
7,751,
000.00
$
-
A Strategic Analysis of Adobe System Inc.’s Preferred Competitive Position and Future Prospects Attractiveness. 53
Exhibit O: Flash/HTML5 Project Budget
ADOBE:
FLASH/HTML5
PROJECT BUDGET
BUDGET
ESTIMATE
LABOR
MAT
ERIA
LS
FIXED
COST
BUDG
ET
AC
TUA
L
UNDE
R/OVE
R
TASK HRS
RA
TE
UNIT
S
$/U
NIT
Internal
Application
Resources
Programme
Manager 1,000
$
10
0.0
0
$
100,0
00.00
$
(100,0
00.00)
Project
Manager 3,000
$
10
0.0
0
$
300,0
00.00
$
(300,0
00.00)
Lead Business
Analyst 4,500
$
10
0.0
0
$
450,0
00.00
$
(450,0
00.00)
Lead Developer 3,000
$
10
0.0
0
$
300,0
00.00
Lead QA
Analyst 3,000
$
10
0.0
0
$
300,0
00.00
$
(300,0
00.00)
Developer 3,500
$
10
0.0
0
$
350,0
00.00
A Strategic Analysis of Adobe System Inc.’s Preferred Competitive Position and Future Prospects Attractiveness. 54
QA Analyst 5,000
$
10
0.0
0
$
500,0
00.00
$
(500,0
00.00)
$
2,300,
000.0
0
$
-
Enterprise
Architecture &
Infrastructure
Resources
EAI Project
Manager 400
$
10
0.0
0
$
40,00
0.00
$
(40,00
0.00)
Data Architect 300
$
10
0.0
0
$
30,00
0.00
$
(30,00
0.00)
Solution
Architect 300
$
10
0.0
0
$
30,00
0.00
$
(30,00
0.00)
Platform
Security 450
$
10
0.0
0
$
45,00
0.00
$
(45,00
0.00)
Security &
Threat Operations 450
$
10
0.0
0
$
45,00
0.00
Enterprise
Architecture 150
$
10
0.0
0
$
15,00
0.00
Integration
Services 150
$
10
0.0
0
$
15,00
0.00
ETL 150
$
10
$
15,00
0.00
A Strategic Analysis of Adobe System Inc.’s Preferred Competitive Position and Future Prospects Attractiveness. 55
0.0
0
Asset
Management 150
$
10
0.0
0
$
15,00
0.00
Infrastructure
Services 500
$
10
0.0
0
$
50,00
0.00
Network &
Communications
Services
150
$
10
0.0
0
$
15,00
0.00
$
(15,00
0.00)
$
315,0
00.00
$
-
Hardware/Softw
are
Azure cloud
services
$150,
000.0
0
$
150,0
00.00
$
(150,0
00.00)
Handheld
devices
$
50.00
$
1,0
00.
00
$
50,00
0.00
$
(50,00
0.00)
Laptops $
10.00
$
1,2
00.
00
$
12,00
0.00
$
(12,00
0.00)
Miscellaneous
$
88,00
0.00
$
88,00
0.00
$
(88,00
0.00)
$
150,0
00.00
$
-
TOTAL
$
2,765,
000.0
0
$
-
