Business Case Studies & Business Publications

How Adobe Innovated Its Business Model a...

Chatterjee, Sayan

Case

How Adobe Innovated Its Business Model and Blazed the Trail for the Digital Experience Platform

Chatterjee, Sayan

S-0453 | Published July 2, 2024 | 18 pages Case

Collection: Darden School of Business

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Product Details

In 2012, Adobe Systems Incorporated (Adobe) announced that moving forward, its product releases would be available only through the cloud and a subscription model. In 2024, many software companies are pivoting to subscription models for several reasons, including faster time to customer value, seamless onboarding, and flexible pricing. But in 2012, the industry was quite skeptical of this model. This case describes the important decisions that Adobe made between 2012 and 2024. Adobe is now looking at the next step of incorporating artificial intelligence (AI) into its product offerings.

This case shows how the best companies anticipate changes in their industry environment and shape it to their advantage. In the process, they often have to modify their legacy value chain substantially. These changes will almost always lead to a temporary decline in revenues and profits, but if companies take the right approach, they will recover.