Concepts
In the realm of software product development, organizations often seek to leverage efficient and effective investment models that minimize risk while accelerating productivity and value delivery. One such strategy is the Iterative and Incremental Investment Model. Understanding this model can significantly contribute to increasing your knowledge in preparation for the Certified Scrum Professional-Product Owner (CSP-PO) exam.
Iterative and Incremental Investment Model Explained
The iterative and incremental investment model is a methodology used in product development that combines elements from both the iterative design and incremental build models. This model breaks the overall product development process into smaller, more manageable sections (increments) that are completed in cycles (iterations).
In the iterative phase, certain parts of the system are designed, built, and then tested. After evaluation, these parts are redesigned and retested in consequent iterations until the they meet the required standard – hence the name iterative, which means repeating. Meanwhile, the incremental phase involves stacking newly developed segments of the system on top of each other until the final complete product is created – thus the term incremental.
| Traditional model | Iterative and Incremental model |
|---|---|
| One large scope | Scope broken down into manageable chunks |
| High upfront cost | Cost is distributed over iterations |
| Late feedback and adjustment | Frequent feedback and adjustments |
| High risk and uncertainty | Risks and uncertainty reduced |
Why an Iterative and Incremental Investment Model?
There are several reasons why the iterative and incremental investment model is preferred for product development:
- Flexibility: The model is scalable and allows for changes in direction based on customer feedback or changes in the market.
- Reduced Time to Market: With every successful iteration, a potentially releasable increment of the product is delivered, minimising delays in product release.
- Decreased Risk: Unlike traditional models that commit significant resources upfront, the iterative and incremental model allows the product to be developed and tested in smaller parts, reducing the overall risk.
- Increased Value Delivery: The incremental nature of the strategy helps deliver features of high value early in the product lifecycle, ensuring continued stakeholder satisfaction.
For example, consider the development of a navigation app, like Google Maps. In an iterative and incremental investment model, developers first plan a basic version of the app that offers core functionality – point-to-point navigation (iteration 1). Once tested and implemented, the next iteration could involve adding more features such as real-time traffic updates. In subsequent iterations, more features like, ‘explore nearby’, public transport routes, etc., could be added incrementally.
Preparation for the CSP-PO exam requires a comprehensive understanding of different strategies for handling product investment. The iterative and incremental investment model is a key concept for product owners. As a CSP-PO, not only will you be expected to have an understanding of the methodology but also its practical applications in managing product development.
Answer the Questions in Comment Section
True or False: The iterative and incremental investment model refers to the continuous cycle of releasing working versions of the product to the customers.
- Answer: True
Explanation: The model does entail releasing small working parts of the product to customers frequently, thereby getting feedback and improving further.
Which of the following best describes an incremental investment model?
- A. Focusing on improving the product quality.
- B. Releasing working versions of the product gradually.
- C. Implementing changes after the product is completed.
Answer: B. Releasing working versions of the product gradually.
Explanation: An incremental investment model focuses on releasing parts of the product to customers gradually while getting feedback and making improvements.
Multiple Select: Which of the following are virtues of iterative and incremental development (IID)?
- A. Reduces risk
- B. Allows for customer feedback
- C. Delays product release
Answer: A. Reduces risk, B. Allows for customer feedback
Explanation: IID not only reduces risks by allowing small portions of the project to be tested separately, but it also allows for receiving direct customer feedback.
In an iterative investment model, the product development is_________.
- A. Linear
- B. Cyclical
- C. Random
Answer: B. Cyclical
Explanation: The iterative model means the development process is a cycle, which is repeated until the final product is achieved.
True or False: In iterative and incremental development models, deliverables are completed in one cycle.
- Answer: False
Explanation: In iterative and incremental development, work is divided into smaller parts and solved incrementally in several iterations.
How does the iterative model reduce the cost of product development?
- A. By eliminating the need for changes
- B. By preventing errors early in the development
- C. By skipping the testing phase
Answer: B. By preventing errors early in the development
Explanation: Early detection and resolution of errors means less time and resources spent on large scale changes in later stages.
True or False: In the incremental model, all requirements are well understood in advance and will remain stable.
- Answer: False
Explanation: The incremental model assumes that all requirements may not be known upfront and may evolve or can be detailed on a just-in-time basis. It allows changes based on customer feedback.
Multiple Select: In the iterative and incremental model, which of the following stages is/are repeated for each iteration?
- A. Testing
- B. Designing
- C. Deployment
Answer: A. Testing, B. Designing
Explanation: In the iterative and incremental development process, both designing and testing stages are repeated for each iteration.
The most part of product development budget should be divided between which two stages according to the iterative and incremental development model?
- A. Designing and testing
- B. Coding and marketing
- C. Production and distribution
Answer: A. Designing and testing
Explanation: The most resources in iterative and incremental development models are typically allocated to designing and testing, as these stages are repeated in each iteration.
True or False: The iterative and incremental development model is particularly useful when requirements are uncertain or likely to change.
- Answer: True
Explanation: Since this model allows changes to be made after each iteration based on feedback, it is ideal for situations where requirements are not clear upfront or are likely to evolve over time.
Multiple Select: Which of the following are key benefits of the iterative and incremental development model?
- A. Increased control over the project
- B. Adaptability to changes
- C. Faster market reach
Answer: A. Increased control over the project, B. Adaptability to changes, C. Faster market reach
Explanation: The model provides greater control, allows quick adaptation to changes, and facilitates faster time-to-market due to early and continuous delivery of smaller increments of the product.
True or False: Incremental development means that sections of the system are developed and delivered to the customer separately, while iterative development means the system is developed and delivered to the customer all at once.
- Answer: False
Explanation: The definitions are reversed. Incremental development involves developing parts of the system separately while iterative development means revisiting sections of the system repeatedly until the final product is achieved.
Great post on the iterative and incremental investment model for product development! It really helps break down the concepts for CSP-PO.
Can someone explain how incremental investment aligns with the Agile principles?
Thank you for the detailed explanation!
In my experience, this approach significantly reduces project risk and makes it easier to pivot when necessary.
I found it hard to implement this model in a large-scale project. Any tips?
This blog post has made my CSP-PO prep much easier. Thanks!
Very insightful!
I’m confused about the difference between iterative and incremental. Can someone clarify?