The most widely applied fusion procedure is the merging of panchromatic SPOT imagery (10 m) with three-color SPOT imagery (20 m) or multispectral LANDSAT TM imagery (30 m). The simplest, most wide-spread and probably most intuitive technique works as follows [Kraus (1990), Albertz (1991)]:
This technique is known to work well for moderate resolution ratios (such as 1:3 for SPOT + LANDSAT TM). The results are still helpful but less reliable for resolution ratios such as 1:20, e.g. for fusion of SPOT color images with panchromatic aerial photography [Ersbøll et al. (1997)].
In Figure 3 the steps involved in simulating the panchromatic and color infrared image and the fusion by HSV transformation are shown as a flow chart.

Figure 3: Fusion by HSV transformation.
It has to be noted, however, that fusion by HSV transformation can be applied only to multispectral imagery consisting of three bands, since the image has to be coded as an RGB image before fusion can take place.