AGILE is a software development philosophy that was designed to solve the problem of software project evolving over the course of the project being planned, designed, built, tested, and finally maintained. Maintaining a fixed project schedule with changing requirements can sink a project, or best case scenario - severely delay the project’s completion. Getting to completion under these circumstances is simply reality for anyone involved in the software business. AGILE is part of a relatively "new wave" of iterative software development philosophies designed to allow businesses to evolve their software while still meeting important milestones and deliverables.
The essence of iterative development (AGILE) is to boil down milestones into tiny pieces. The goal is to create the most basic version of your feature/project as quickly as possible. From there, an iteration has been completed. The next iteration usually involves new features and polish. Rinse and repeat. With a shorter cycle to "launch", changes have less impact as you can already plan for the change in your next iteration.
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