"Fidelity Swap" is a new term coined by Kevin Maney to describe a principle which customers constantly use to make trade-offs between the 'Fidelity' and 'Convenience' of products as well as services. According to Maney, the fidelity concept can be used in "dreaming up new products, positioning brands, planning company strategy, or analyzing competitors." This document ties the Fidelity Swap concept to the concept of the Blue Ocean using the example of Apple's iPhone and iPods. While Maney accepts the existence of trade-offs and says that companies that are successful choose to focus on either fidelity or convenience, W. Chan Kim and Renee Mauborgne - in their presentation of Blue Ocean Strategy and value innovation - advocate the elimination of trade-off. This document integrates the concepts of Fidelity Swap, Blue Ocean (Strategy), and the Long Tail using the visual tools of Blue Ocean Map and Blue Ocean Radar. These tools not only illustrate trade-offs that customers make but also the Blue Ocean Map and Radar can be used to resolve these trade-offs as well as develop Blue Ocean Business Models.

1. FIDELITY SWAP, BLUE OCEAN MAP, AND BLUE OCEAN RADARUsing the Value Quotient for Visualizing and Quantifying Trade-offs Dr. Rod Kingrodkuhnking@sbcglobal.net & http://businessmodels.ning.comhttp://twitter.com/RodKuhnKing

2. BLUE OCEAN MAP & FIDELTY SWAP: Selected Apple Products (Value Quotient = Delight/Pain = Fidelity/Inconvenience = 1/ Degree of Trade-off ) IDEAL VALUE QUOTIENT (Zero Trade-off = Blue Ocean = Highest Fidelity at Zero Inconvenience) ∞ iPhone Fidelity, e.g., Quality; Coolness BLUE OCEAN Cellphone (Portable Computer/Media Player) iPod Nano iPod Touch (+): DELIGHT (-): PAIN (Mass Market & Distribution/Long-tail Customers) Inconvenience, e.g., Cost; Size; Complexity (Exclusive Niche/Short-tail) Copyright 2009. Dr. Rod King. rodkuhnking@sbcglobal.net &http://businessmodels.ning.com & http://twitter.com/RodKuhnKing

3. BLUE OCEAN RADAR & FIDELITY SWAP: Selected Apple Products Ideal Value Quotient (Zero Trade-off = Highest Fidelity at Zero Inconvenience) Core Job: Computing/Media Entertainment/Communication Ideal VQ = ‘Perfect 10’ Look within and across industries as well as in nature for similar or analogous resolution of trade-off iPhone iPod Nano iPod Touch PAIN (-: Inconvenience, e.g., Cost; Size; Complexity) (Mass Market & Distribution) (Exclusive Niche/Short-tail) Value Quotient (VQ) = Benefit/Cost = Revenue/Cost = Fidelity/Inconvenience = Slope of Value Quotient Line Ideal Value Quotient (Blue Ocean) Ideal Final Result of Continuously Eliminating Trade-offs Job To Be Done (JBTD) at No Cost & With No Negative Effect Copyright 2009. Dr. Rod King. rodkuhnking@sbcglobal.net &http://businessmodels.ning.com & http://twitter.com/RodKuhnKing

4. APPENDIX Templates & Additional Information

5. BLUE OCEAN MAP & FIDELTY SWAP: ………………………………………………………. (Value Quotient = Delight/Pain = Fidelity/Inconvenience = 1/ Degree of Trade-off ) IDEAL VALUE QUOTIENT (Zero Trade-off = Blue Ocean = Highest Fidelity at Zero Inconvenience) ∞ Fidelity, e.g., Quality; Coolness BLUE OCEAN (+): DELIGHT (-): PAIN (Mass Market & Distribution/Long-tail Customers) Inconvenience, e.g., Cost; Size; Complexity (Exclusive Niche/Short-tail) Copyright 2009. Dr. Rod King. rodkuhnking@sbcglobal.net &http://businessmodels.ning.com & http://twitter.com/RodKuhnKing

6. BLUE OCEAN RADAR & FIDELITY SWAP: ……………………………………………… Ideal Value Quotient (Zero Trade-off = Highest Fidelity at Zero Inconvenience) Core Job: …………………………….. Ideal VQ = ‘Perfect 10’ Look within and across industries as well as in nature for similar or analogous resolution of trade-off PAIN (-: Inconvenience, e.g., Cost; Size; Complexity) (Mass Market & Distribution) (Exclusive Niche/Short-tail) Value Quotient (VQ) = Benefit/Cost = Revenue/Cost = Fidelity/Inconvenience = Slope of Value Quotient Line Ideal Value Quotient (Blue Ocean) Ideal Final Result of Continuously Eliminating Trade-offs Job To Be Done (JBTD) at No Cost & With No Negative Effect Copyright 2009. Dr. Rod King. rodkuhnking@sbcglobal.net &http://businessmodels.ning.com & http://twitter.com/RodKuhnKing

7. COMPANIES WITH PRODUCTS & SERVICES THAT HAVE A HIGH VALUE QUOTIENT (VQ) Copyright 2009. Dr. Rod King. rodkuhnking@sbcglobal.net &http://businessmodels.ning.com & http://twitter.com/RodKuhnKing

8. WHAT IS THE VALUE QUOTIENT?A Universal Metric of Success, Decision-making, and Trade-offs + - Note Value Quotient = Advantage/Disadvantage = Benefit/Cost = Revenue/Cost = Strength/Weakness = Opportunity/Threat = Reward/Risk = Relevant Content/Noise = Positives/Negatives = Delight/Pain = Good/Bad = Fidelity/Inconvenience Copyright 2009. Dr. Rod King. rodkuhnking@sbcglobal.net &http://businessmodels.ning.com & http://twitter.com/RodKuhnKing

9. WHAT IS “BLUE OCEAN”? Blue Ocean PLANNING Blue Ocean Strategy Blue Ocean Mission Blue Ocean Plan Blue Ocean Project Blue Ocean Vision Blue Ocean Product (Design) Blue Ocean Goal Blue Ocean Service (Design) Blue Ocean Objective Blue Ocean BUSINESS MODEL Copyright 2009. Dr. Rod King. rodkuhnking@sbcglobal.net &http://businessmodels.ning.com & http://twitter.com/RodKuhnKing