Agile Software Development Methodology: Phases, Types, and Benefits

What is Agile Software Development Methodology?

Agile is a type of software development methodology that adapts iterative processes to deliver software products that meet customer requirements and needs. The process includes teams gathering feedback and using it to improve the software product until it reaches customer desired form.

It works on values that cater to end user or customer needs and expectations, and follows the principles that create and support the work environment that is focused on customer satisfaction by aligning with business objectives, adapting to changing markets and user needs.

What is Agile Manifesto?

Agile manifesto is a document that consists of 4 values and 12 principles. It was produced by 17 developers known as Agile alliance at a ski resort in Snowbird, Utah during the outing held between Feb 11 to 13 2001. This agile manifesto document was produced as an alternative to existing complicated and documentation oriented software development processes.

4 Values of Agile Development

These 4 values of Agile are presented to promote high quality software product creation that meets the end user’s needs and expectations. Here are the 4 Values of Agile Development mentioned in Agile Manifesto:

Individuals and interactions over processes and tools:

This value emphasizes focusing on the individuals developing the software rather than strictly adhering to tools and processes. Agile is about using tools and processes to support the team, not dictate their work. By concentrating on communication and individual contributions, teams can react more effectively to changes and build solutions that truly satisfy the customer, leading to higher quality outcomes.

Working software over comprehensive documentation:

Agile prioritizes delivering functional software while minimizing time spent on exhaustive documentation. The idea is that the primary goal of software development is to produce working code, not just documentation on how it should work. This approach ensures a quicker delivery of high-quality products to customers, with documentation being created as needed, supporting a more iterative development process that responds well to customer needs.

Customer collaboration over contract negotiation:

Instead of focusing solely on contract terms, Agile promotes ongoing collaboration with customers throughout the development process. Continuous engagement ensures that the product evolves according to the customer’s needs, leading to a final product that aligns more closely with their expectations. This approach makes customers happier because Agile teams incorporate feedback, allowing them to adapt without disrupting the schedule.

Responding to change over following a plan:

Agile recognizes that requirements and environments change during development. Instead of sticking to a rigid plan, Agile teams embrace flexibility and adaptability. This allows them to reassess and introduce new features based on fresh market data, ensuring that the software remains relevant and valuable to the customer. Agile development tends to deliver quality software more effectively in a constantly changing environment by focusing on responsiveness.

12 Principles of Agile Development

The principles of Agile Development are created to support a working environment that aligns with business objectives, customer oriented, efficient in adapting evolving user needs and market changes.

Here are the 12 principles of Agile that are mentioned in Agile Manifesto:

Our highest priority is to satisfy the customer through early and continuous delivery of valuable software.

Our highest priority is to help the customer with early and continuous value delivery. By providing software early and often, we satisfy and engage the customer, ensuring that the product remains useful, solves business problems, and stays aligned with customer needs.

Welcome changing requirements, even late in development. Agile processes harness change for the customer’s competitive advantage.

Even late in development, when the team adjusts the software according to new customer requirements, it allows us to adapt quickly to new market demands. This flexibility ensures that the product remains competitive and meets the expectations of both current business and customer landscapes.

Deliver working software frequently, from a couple of weeks to a couple of months, with a preference to the shorter timescale.

When software is delivered frequently, it enables us to receive quick feedback and make necessary adjustments, keeping the product aligned with both business goals and user needs. Shorter cycles reduce the risk of drifting away from market demands.

Business people and developers must work together daily throughout the project.

Daily collaboration between business stakeholders and developers ensures that the project stays aligned with customer needs and business objectives. This ongoing interaction helps in making quick, informed decisions that keep the project on course.

Build projects around motivated individuals. Give them the environment and support they need, and trust them to get the job done.

When the team involves motivated individuals who are provided the necessary environment and trust, it ensures that the end product delivers better productivity and innovation. This directly contributes to the success of the project.

The most efficient and effective method of conveying information to and within a development team is face-to-face conversation.

Face-to-face communication is the most effective way to ensure everyone is on the same page. It helps prevent misunderstandings and keeps the project aligned with its goals by promoting clear and quick exchanges of information.

Working software is the primary measure of progress.

Progress is measured by delivering effective software that meets customer needs. This focus on tangible results aligns well with business-driven goals, ensuring the team continues to serve and satisfy clients.

Agile processes promote sustainable development. The sponsors, developers, and users should be able to maintain a constant pace indefinitely.

Agile processes support sponsors, developers, users, and other stakeholders in a consistent pace to prompt sustainable development. It helps achieve long-term business goals, ensuring stable customer satisfaction without burnout.

Continuous attention to technical excellence and good design enhances agility.

Technical expertise and good design practices help create resilient and flexible software. Attention to detailing creates reliable software that provinces competitive advantage to businesses, helping them seize new opportunities while preventing future issues.

Simplicity–the art of maximizing the amount of work not done–is essential.

When the busy works are eliminated and the team’s focus is shifted for most essential and priority works, the team can work more effectively. It helps deliver faster work to the customer which helps achieve business objectives quicker.

The best architectures, requirements, and designs emerge from self-organizing teams.

When the teams are self-organized, all tasks and projects are swiftly done with better creativity. It also helps foster a culture of innovation and rapid problem-solving, crucial for the success of business.

At regular intervals, the team reflects on how to become more effective, then tunes and adjusts its behavior accordingly.

The culture and practice of constant reflection and adjustment allows continuous improvement for the team. It helps us stay aligned with business goals and adjust with the changing market landscape.

7 Phases of the Agile Software Development life cycle

A typical agile software development lifecycle comprises the phases ideation, Initial Requirement Gathering, Planning, Iteration, Testing, Deployment, and Maintenance which execute sequentially and add incremental value to the product, taking it from concept to the product stage. Below we will see what goes into each of these phases and how they contribute in building the product.

Ideation:

The first phase includes brainstorming and conceptualization of the project. In this phase, the team identifies the core ideas and objectives. It helps set the foundation for what needs to be developed.

Initial Requirement Gathering:

The next step is to collect initial requirements from all the stakeholders. These requirements are kept flexible so any adjustment during the development process can be made smoothly.

Planning:

This phase is one of the most crucial phases where the scope of the core ideas and objectives are defined. A clear goal is set and the tasks needed to achieve them are determined. It helps align the team with the project’s objective.

Iteration:

The actual development of the project shapes in this phase. The team works on coding and builds the software incrementally. The core focus is to deliver functional features by the end of the sprint.

Testing:

In this phase, the software developed by the team is rigorously tested to meet the necessary requirements. The testing also checks the functionality of the developed software. The issues are caught through testing and fixed promptly to maintain quality.

Deployment:

Once the software passes successfully through the testing phase, it is deployed to a production environment. A successful software deployment ensures that the finalized product is ready for use.

Maintenance:

Once the software is deployed and the user experiences it first-hand, the team moves to the maintenance phase. They continuously monitor the software for any issues and roll out necessary updates and patches for improvement. This ongoing phase ensures that the developed software is functional and satisfies the user needs.

Types of Agile Software Development Methodologies

There are various types of agile methodology that software development teams use. Some tend to stick with single agile framework while some may prefer keeping options as per project need whereas few may also adapt hybrid approach, i.e. they use different agile frameworks for different phases in single project as per need.

No matter which agile framework is used all those focus on iterative development, flexibility, and continuous improvement and prioritize collaboration among cross-functional teams, frequent delivery of small, incremental changes, and responsiveness to changing requirements.

9 common types of Agile Software development methodologies are:

Scrum
Kanban
Extreme programming (XP)
Behavior-driven development (BDD)
Lean Software Development
Feature-driven development (FDD)
Adaptive software development (ASD)
Crystal
Dynamic systems development method (DSDM)

1. Scrum

It employs iterative cycles called sprints, typically lasting two to four weeks, to deliver incremental product improvements. A scrum team includes a scrum master, who facilitates processes, a product owner, who prioritizes the backlog, and team members who execute tasks. Daily stand-up meetings, sprint planning, reviews, and retrospectives are vital components of scrum. With these features, scrum offers flexibility and quick adaptability to changing requirements.

2. Kanban

It is based on using visual workflow management to optimize efficiency and limit work in progress (WIP). A Kanban board, with columns representing different stages of the workflow, helps teams visualize tasks and identify bottlenecks. By controlling WIP limits, teams can maintain a steady flow and address issues promptly. Kanban’s flexibility supports continuous delivery, making it suitable for environments with rapidly changing priorities or maintenance tasks.

3. Extreme programming (XP)

Technical excellence and customer satisfaction through practices like pair programming, test-driven development (TDD), and frequent releases are core components of XP. It rests on the idea of collective code ownership and continuous integration for sustaining code quality. In XP, user stories guide development, while constant feedback loops and refactoring efforts make the system adaptable and robust.

4. Behavior-driven development (BDD)

It bridges the gap between business stakeholders and developers by using a common language to describe application behavior. Scenarios written in a Given-When-Then format clarify requirements and drive development, while automated tests derived from these scenarios validate functionality and provide living documentation.

5. Lean Software Development

The way lean is applied in heavy industries, lean software development prioritizes eliminating waste, optimizing processes, and delivering value to the customer efficiently. Originating from lean manufacturing principles, it emphasizes value stream mapping, continuous improvement, and just-in-time production. Practices like minimizing handoffs, empowering teams, and building quality are central to it, which reduces lead times and improves responsiveness to customer demands.

6. Feature-driven development (FDD)

It combines iterative and incremental approaches to deliver tangible, working features every two weeks. A five-phase process—developing an overall model, building a feature list, planning by feature, designing by feature, and building by feature—guides teams. FDD’s focus on domain-driven design, regular builds, and feature-centric progress tracking makes the development align closely with business objectives and user requirements.

7. Adaptive software development (ASD)

Embraces uncertainty and change through iterative cycles of speculation, collaboration, and learning. Projects begin with speculative planning, followed by iterative cycles where teams collaborate closely and adapt based on feedback and discoveries. Emphasis on collaboration and continuous learning allows teams to navigate complex and unpredictable environments effectively.

8. Crystal

Crystal methodologies, such as Crystal Clear (for teams with less than 8 members), Crystal Yellow (for teams with 10 to 20 members) and Crystal Orange (for teams with more than 20 and up to 50 members), adapt based on project size, complexity, and team dynamics. Core values include communication, simplicity, and reflective improvement. A flexible approach allows teams to choose the practices and processes that best suit their context, which is one key reason why Crystal agile development approach helps focus on people and interactions over rigid adherence to specific practices.

9. Dynamic systems development method (DSDM)

It offers an agile framework based on eight principles, including active user involvement, frequent delivery, and fitness for business purposes. Timeboxing and MoSCoW prioritization (Must have, Should have, Could have, Won’t have) are key practices, which ensures that development stays on track and delivers value.

Benefits of Agile Methodology

Following are the benefits of Agile methodology, each of which contributes to a more efficient and responsive development process:

Adaptability: Agile allows teams to quickly adjust to evolving project requirements, keeping the final product aligned with business needs.
Client Collaboration: Involving clients throughout the development process helps the product consistently meet or exceed their expectations.
Quicker Delivery: Agile’s iterative approach delivers functional product increments at regular intervals, speeding up time to market and enabling early value realization.
Enhanced Quality: Continuous integration, testing, and feedback loops in Agile help to identify and resolve issues early, resulting in a higher-quality end product.
Team Cohesion: Agile promotes close communication and collaboration within the development team, driving a unified effort toward shared goals.
Greater Transparency: Regular updates, daily stand-ups, and sprint reviews in Agile provide clear visibility into project progress, keeping stakeholders well-informed.
Proactive Risk Management: Agile’s iterative nature allows teams to identify potential risks early on, enabling timely mitigation strategies that reduce project uncertainties.
Ongoing Improvement: Agile fosters a culture of continuous refinement, encouraging teams to improve their processes and techniques with each iteration.
Higher Satisfaction: Frequent deliveries and the ability to adapt based on feedback help keep customers consistently pleased with the evolving product.
Optimal Resource Allocation: Agile effectively allocates resources based on current project priorities, minimizing waste and maximizing productivity.

Drawbacks of Agile Methodology

Despite being a highly efficient methodology, agile suffers from certain drawbacks. We discuss those below:

Scope Creep: Continuous changes and new requirements can lead to a project expanding beyond its original goals, which can impact timelines and budgets.
Lack of Predictability: Because Agile focuses on iterative development and frequent adjustments, it can be difficult to predict exact timelines and costs, posing challenges for budgeting and scheduling.
Resource Intensive: Agile requires a high level of involvement from all team members, including regular meetings and constant communication, which might lead to team burnout.
Requires Experienced Teams: Teams new to Agile or lacking maturity might struggle with the framework’s demands and principles, leading to ineffective implementations.
Integration Issues: In large-scale projects, integrating iterative components developed by different teams can be complex and may lead to integration issues if not managed carefully.
Client Involvement: Since agile relies on constant client interaction and feedback, if clients are not available or engaged regularly, it can hinder the development process and lead to misaligned expectations.
Management Challenges: Agile’s emphasis on self-organizing teams and iterative progress can pose challenges for traditional management styles.