Iterative and Incremental development is any combination of both iterative design or iterative method and incremental build model for software development. The combination is of long standing and has been widely suggested for large development efforts. For example, the 1985 DOD-STD-2167 mentions (in section 4.1.2): "During software development, more than one iteration of the software development cycle may be in progress at the same time." and "This process may be described as an 'evolutionary acquisition' or 'incremental build' approach." The relationship between iterations and increments is determined by the overall software development methodology and software development process.
Iterative development was created as a response to inefficiencies and problems found in the waterfall model.
The basic idea behind this method is to develop a system through repeated cycles (iterative) and in smaller portions at a time (incremental), allowing software developers to take advantage of what was learned during development of earlier parts or versions of the system. Learning comes from both the development and use of the system, where possible key steps in the process start with a simple implementation of a subset of the software requirements and iteratively enhance the evolving versions until the full system is implemented. At each iteration, design modifications are made and new functional capabilities are added.
The procedure itself consists of the initialization step, the iteration step, and the Project Control List. The initialization step creates a base version of the system. The goal for this initial implementation is to create a product to which the user can react. It should offer a sampling of the key aspects of the problem and provide a solution that is simple enough to understand and implement easily. To guide the iteration process, a project control list is created that contains a record of all tasks that need to be performed. It includes such items as new features to be implemented and areas of redesign of the existing solution. The control list is constantly being revised as a result of the analysis phase.
The iteration involves the redesign and implementation of iteration is to be simple, straightforward, and modular, supporting redesign at that stage or as a task added to the project control list. The level of design detail is not dictated by the iterative approach. In a light-weight iterative project the code may represent the major source of documentation of the system; however, in a critical iterative project a formal Software Design Document may be used. The analysis of an iteration is based upon user feedback, and the program analysis facilities available. It involves analysis of the structure, modularity, usability, reliability, efficiency, & achievement of goals. The project control list is modified in light of the analysis results.