There is no other way except by Factory Recovery, and that only applies to laptops or factory-built desktops, you run factory recovery from the hard drive.
The ISO from Microsoft is so you can make a bootable DVD or pen drive from it.
You have to boot from one or the other to install Windows.
Even if you only need to perform a repair install to an existing installation, you still have to use a DVD or pen drive (though there's no need to boot from it for a repair).