Why Revenue Scale and Operating Leverage Are Different for Software vs. AI. (Asia Tech Strategy – Podcast 69)


This week’s podcast is about revenue scale and operating leverage in traditional companies vs. software vs. AI. And these things can be really different. Especially software vs. AI.

You can listen to this podcast here or at iTunesGoogle Podcasts and Himalaya.

Here are the three factors I mentioned that interact for operating leverage:

  • Revenue
  • Operating profits
  • Economic value creation (i.e., vs capital)

Here are the books I mentioned:

Related podcasts and articles are:

  • N/A

From the Concept Library, concepts for this article are:

  • Valuation (Question 3): Operating Leverage
  • Valuation (Question 3): Revenue Scale and Growth
  • SMILE Marathon: AI/ ML

From the Company Library, companies for this article are:

  • N/A
This is part of Learning Goals: Level 7, with a focus on:
  • 34: 9 Questions


I write, speak and consult about digital strategy and transformation.

My book Moats and Marathons details how to measure competitive advantage in digital businesses.

I also host Tech Strategy, a podcast and subscription newsletter on the strategies of the best digital companies in the US, China and Asia.

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Note: This content (articles, podcasts, website info) is not investment advice. The information and opinions from me and any guests may be incorrect. The numbers and information may be wrong. The views expressed may no longer be relevant or accurate. Investing is risky. Do your own research.


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