Fidelity is the total quality of an experience, including a sense of exclusiveness and aura. Convenience is simply how easy something is to get, which often means a low price and ubiquitousness. A super-fidelity product or service would lose its luster and quality if it's pushed too hard toward convenience. A super-convenient product or service would start to get expensive and exclusive if it moved toward higher fidelity, which would naturally undermine its convenience.

Wayne Gretzky's talent doesn't come from studying everything he's experienced in hockey and making long-term game plans. It comes from constantly taking in all the data that's happening in the moment on the ice, and instantly generating constant predictions based on super-efficient mental models he's built in his head. Technology has to work more like Gretzky.

A CD these days is not all that convenient, and it doesn't bring enough fidelity to make you put up with that inconvenience. So, nobody buys CDs anymore.

If you spot a market where the only choices are at either one end or the other - high fidelity or high convenience - there's probably a big opportunity at the other end. That was the opening for Federal Express, for instance. When it started, there was only one mail service in America - the US Postal Service, which was high convenience. Fred Smith created a high-fidelity mail service.

Chunking is the ability of the brain to learn from data you take in, without having to go back and access or think about all that data every time. As a kid learning how to ride a bike, for instance, you have to think about everything you're doing. You're brain is taking in all that data, and constantly putting it together, seeing patterns, and chunking them together at a higher level. So eventually, when you get on a bike, your brain doesn't have to think about how to ride a bike anymore. You've chunked bike riding.

Every purchasing decision involves a trade-off between what I call fidelity and convenience. Fidelity is the total experience of something - how great the experience is. Convenience is how easy it is to get something. A live concert is a high fidelity way to experience music; an MP3 file is a high convenience way to experience music. Depending on the situation, one or the other is probably pretty appealing. What's not appealing is something that offers neither.

Our brains seem to have the power to do one or the other - record and remember every detail, or chunk it to higher level concepts and forget the details. We can't seem to do both. The fact that you could not fly over a city and remember every detail is not something to worry about.