Project management often involves terms like Agile development, the Waterfall model, and Extreme Programming, each representing distinct approaches to software development. But which of them better matches your project and needs? In this article, we compare Agile software development methodologies with other models, examine how Agile benefits both large and small projects, and look at tools that help your team apply Agile methods effectively.

Exploring the history of Agile software development methodologies

During the 1990s and early 2000s, many software developers became increasingly frustrated with traditional methodologies like the Waterfall model, which dominated the software engineering field. They sought alternative approaches that would reduce the rigid documentation processes and allow quicker adaptation to customer needs and market changes. As developers from different companies started experimenting with new project management techniques, they aimed to be more flexible and responsive.

Once a group of 17 developers gathered in 2001 at a ski resort in Utah. In response to these challenges, they decided to document the principles and techniques they were using, resulting in the Agile Manifesto. This key document laid the groundwork for Agile software development methodologies, emphasizing adaptability, collaboration, and continuous improvement in software projects.

After the Agile Manifesto was documented, the founders initiated several enhancements and formed the Agile Alliance, a non-profit organization that remains active today. This Agile Alliance comprises a community of over 90,000 members who explore, apply, and expand Agile methodologies, principles, and practices. The organization runs conferences and a wealth of informational resources, and maintains a website dedicated to the topic of Agile adoption.

Here's the list of principles included in the Agile Manifesto.

How is Agile project management used nowadays?

Since 2001, the Agile method has been adopted not only in software development but also in other industries.

Today, when people refer to Agile software development methodologies, they are talking about an approach that involves developing software through short iterations. In this process, every 2–3 weeks, parts of the working software are released and presented to the client. This method places a strong emphasis on meeting client requirements and remaining flexible when these requirements change.

Over time, Agile principles have been adopted by many organizations and tailored to their specific needs. As a result, several distinct flows within the Agile approach emerged. They include lean software development, extreme programming, feature-driven development, scaled agile framework, and others. Some large businesses have even developed their own models to fit their unique in-house needs.

Spotify's Agile methodology

One example of this customization is the Spotify Model. Implementing Agile software development methodologies within a large company like Spotify presented challenges. In response, Henrik Kniberg, a coach at Spotify, announced a new model that aligns with a unique organizational structure. Employees involved in software engineering are divided into squads, tribes, chapters, guilds, trios, and alliances.

Squads are cross-functional teams consisting of 6–12 employees; tribes consist of several unified squads; chapters are groups of specialists from a specific field who share best practices within their domain, and so on. Such a division helped Spotify to create self-organized teams that are responsible for their decisions while staying aligned with the company's targets. It also addressed communication challenges, minimized bureaucracy, and helped to solve other in-house issues.

Microsoft's experience with Agile software development methodologies

The Microsoft team is known for developing widely used digital products. Just like all the tech giants, the company encountered challenges like lengthy development cycles and delayed releases. To tackle these issues, they integrated Agile software development methodologies, using a mix of Scrum and Kanban Agile frameworks, along with DevOps practices.

This approach improved product quality and sped up time-to-market by effectively collecting customer feedback. By adopting agile and DevOps, teams became more collaborative and innovative. They are now empowered to experiment and iterate, promoting continuous improvement. One of the achievements of Microsoft's Agile process was the creation of Azure DevOps.

Agile development vs. traditional methodologies: what is better for project management?

There are several existing approaches to project management. All of them have their pros and cons and can be used on projects of different complexity. Some of the approaches presented in the list are considered to be Agile practices. We also created a list that you can scan to obtain the full image more quickly.

Waterfall development methodology

The Waterfall methodology is one of the earliest approaches to software engineering and project management. Its key feature is a linear progression through distinct phases: requirement gathering, design, development, testing, deployment, and maintenance. Each stage must be completed before the next begins, with no overlap. Digital products created with this approach often rely on comprehensive, detailed technical specifications that software developers follow precisely.

The Waterfall software development process is ideal for projects with stable and well-defined requirements unlikely to change. This approach fits regulatory projects, legacy systems, and projects with straightforward, predictable processes such as those in construction and manufacturing.

Pros of the Waterfall development methodology:

• Clear project timelines: The linear structure simplifies planning and scheduling, giving managers a clear view of project timelines and costs associated with the software development process.
• Clarity throughout the development process: Extensive documentation at each phase ensures clarity and consistency, which helps during project handovers and when onboarding new team members.

Cons:

• Inflexibility: Making changes requires stakeholders to revise extensive documentation and navigate bureaucratic processes, hindering agility.
• Late software testing: Testing follows strictly after the development phase. This may lead to significant software testing issues being found late when they are more expensive and time-consuming to address.
• Limited customer involvement: Clients typically engage only at the start (requirements) and end (delivery) of product development, which might result in a final product that doesn't fully meet changing customer needs.

Agile development methodology

Agile development is a methodology where the development process is broken into short periods, typically 2–3 weeks, known as sprints. During each sprint, the development team collaborates with clients to create and assess tangible results. Within this brief timeline, software developers code, test, and release the product to a development or staging environment, allowing clients to interact with it and provide feedback.

This Agile software development process is highly effective, as shown by McKinsey and Co.'s research, where 93% of agile organizations reported better customer satisfaction compared to non-agile teams. Additionally, 73% reported higher employee engagement, and 93% noted improved operational performance.

Agile software development methodologies are particularly effective for commercial projects where requirements evolve based on market conditions and user preferences. Agile approaches are also beneficial for complex projects, as stakeholders remain in close communication with the development team, providing continuous feedback and making necessary adjustments.

Agile software development methodologies are particularly effective for product development projects in startups who create their digital product in a rapidly changing market. The Agile approach supports rapid iterations and enables startups to develop and launch their MVPs quickly. Additionally, iterative development benefits software that requires regular updates based on user feedback. Such projects may include e-commerce platforms that need seasonal updates, and companies modernizing their IT infrastructure and trying to make this transition gradual.

Pros of Agile methodologies:

Flexibility: The iterative nature of Agile allows teams to quickly adapt to changes, integrating new requirements or client feedback without disrupting the whole project.

Early and continuous delivery: Agile teams frequently deliver working software, offering immediate value to clients and identifying bugs early for prompt resolution.

Customer collaboration: Regular collaboration with Agile teams enables clients to develop digital products that align closely with their vision and business needs, minimizing misunderstandings.

Cons of Agile methodologies:

Variable project scope and timelines: The flexibility of Agile development can lead to scope creep if not properly managed, which can potentially affect project timelines and resources.

Limited stakeholder availability: At times, the product owner may be too busy to maintain regular communication with the Agile team after each iteration, which can hinder progress.

Apart from these major development methodologies, there are others that are used in different organizations and project sizes. We'll describe them below.

Lean software development

Lean software development is a methodology that derives from the manufacturing industry and aims to eliminate unnecessary processes in software engineering. Its focus is on increasing efficiency and autonomy. In software development, unnecessary processes or waste includes unfinished code, low-quality components, features that add no user value, and other issues. To work more efficiently and not create waste, teams conduct knowledge-sharing sessions, peer code reviews, and gather customer feedback. Unlike Agile methodologies, which are structured frameworks, lean software development is a mindset that organizations can adapt to suit their specific needs.

Rapid application development (RAD)

Rapid application development emerged as a response to the limitations of the traditional Waterfall model. Developed in the 1980s by Barry Boehm and James Martin at IBM, R application development focuses on extensive prototyping to quickly establish software functionality. These prototypes undergo rigorous user testing that makes sure the product will meet user needs.

Rapid application development emphasizes iterative development and the reuse of existing components to speed up the process and prioritizes development over extensive planning. Unlike Agile practices, which are focused on delivering small, incremental product releases throughout the development cycle, RAD centers on rapid prototyping, allowing flexibility primarily during the early stages of development.

Extreme programming (XP)

Extreme programming is a software development methodology within the Agile framework that focuses on improving software quality and adapting to customer needs. Developed by Kent Beck in the late 1990s, Extreme programming focuses on technical excellence. XP employs various practices like test-driven development, where tests are written before coding, pair programming, where two developers work together at one workstation, and continuous integration of code into a shared repository, and other practices targeted at effective collaboration in the team. Compared to other Agile methodologies, Extreme programming is more a list of technical practices than an overarching process framework.

Dynamic systems development method (DSDM)

Dynamic systems development method is an Agile framework that was established before many other methodologies and provided a structured approach for Rapid application development. Similar to other Agile practices, the Dynamic systems development method aims to deliver business solutions on time and within budget. Its key principles include active user involvement to ensure the solutions meet their needs, iterative development to allow for continuous assessment, and integrated testing throughout the software development lifecycle to maintain quality. Unlike the classic Agile approach, DSDM places a stronger emphasis on governance and documentation, which makes it especially suitable for complex projects requiring detailed oversight.

Feature-driven development (FDD)

Feature-driven development is an Agile methodology that focuses on delivering client-valued features through structured processes. Established in the late 1990s, Feature-driven development aims to provide rapid, iterative development with an emphasis on timely delivery. Core principles of this methodology include starting with a detailed domain model for understanding key business concepts, using iterative and incremental delivery to produce features quickly, and maintaining rigorous tracking and reporting to ensure progress aligns with project goals. Unlike the traditional Agile approach, which often centers around flexible iterations, FDD provides a more structured approach by organizing development around specific features and defined processes which makes it particularly suited for large-scale projects.

Scaled Agile framework (SAFe)

The Scaled Agile framework is an approach designed to extend Agile practices across large enterprises. Developed to integrate Agile, Lean, and product development concepts, Scaled Agile framework focuses on achieving synchronization across multiple teams while maintaining alignment with strategic business objectives. Its principles involve organizing work at multiple levels — team, program, large solution, and portfolio — to ensure scalability.

SAFe's Agile release train coordinates multiple Agile teams to align on common goals and enables synchronized iterations and continuous delivery. Additionally, SAFe ensures that roles and responsibilities are clearly defined for better collaboration and governance. Unlike traditional Agile methodologies that typically target smaller teams, Scaled Agile framework allows implementing Agile at scale, making it particularly well-suited for organizations needing to align extensive development efforts.

Agile software development lifecycle

We have already discovered key Agile principles and compared them to other project management methodologies. Let's explore how the Agile software development lifecycle operates.

Concept

In the concept phase, product stakeholders and their project team establish high-level requirements for the created app. They create a project breakdown to estimate app development costs and duration. During this phase, the team prioritizes features and keeps only those that are technically and economically feasible.

Inception

At this stage of the development process, the Agile team is assembled, and developers set up the project environment. The initial backlog is prepared, and the necessary tools and resources for executing Agile software development are established.

Iterative development

During this phase of the Agile software development process, the tech team creates software pieces in 2–4 week iterations known as sprints. Each iteration involves developing software based on requirements, conducting software testing, deploying components to production, and gathering stakeholder feedback. This adaptive project framework ensures that the software aligns with user needs.

Release

After thorough software testing and addressing any remaining bugs, the developed product is deployed in the production environment or distributed through platforms like Google Play and App Store.

Maintenance

After the release, the software development team provides ongoing support to ensure the software operates effectively. This stage in the development process involves bug fixes, updates, and enhancements based on user feedback. Maintenance is an essential aspect of software engineering, accounting for 1–2% of the entire development budget, and it extends throughout the software's existence until retirement.

Retirement

When the software becomes outdated or needs replacement, it's prepared for retirement. This step of the Agile software development process involves data migration or archiving and notifying users that the system stops working.

Agile team

To establish an effective Agile software development lifecycle, one needs a well-structured Agile team. This team typically consists of a product owner, an Agile coach, and specialists who create the software itself like designers, developers, QA testers, and DevOps engineers. The Agile coach guides the team in following the Agile framework, produces progress reports, and assists in sprint planning. They also manage sprint reviews and gather stakeholder feedback.

In our team, the project manager acts as the Agile coach and serves as the main contact between the Agile team and the product owner. Such a structure is required to establish communication between the product owner and the software development team and make sure the created software matches the vision of the product owner.

Agile ceremonies

Another component of the Agile process is Agile ceremonies, which are meetings held by different members of the project. These include sprint planning sessions to set goals for the upcoming sprint, and daily stand-ups to make sure all team members are aligned with current priorities. At the end of each sprint, the team conducts a sprint review to showcase their completed work and a sprint retrospective that allows them to identify areas for improvement.

The aim of these ceremonies is to maintain transparency with the product owner and make sure all team members clearly understand their tasks for the upcoming sprint, which leads to a collaborative and productive development process.

Can startups and middle-sized businesses benefit from Agile software development methodologies?

We have already explored how large enterprises can implement an Agile framework and the techniques that assist them in adapting the methodology to manage a large workforce. But what about startups and mid-sized businesses? Can they also leverage the benefits of Agile methodology? Our team regularly employs the Agile framework in projects for startups and mid-sized businesses, and we are eager to share our experiences and insights.

Lainappi

Agile software development methodologies are well-suited for designing MVPs, as seen in our work with the Lainappi team. These Finnish entrepreneurs wanted to create a peer-to-peer rental service and needed a quick, cost-effective launch to test market viability. We applied Agile development, outlining key features for the initial app version and organizing the development process into sprints with regular Agile ceremonies to gather feedback and align the team.

As a result of collaboration, our software development team redesigned Lainappi's prototype and used React Native to implement iOS and Android functionality, integrated a payment system, and added a chat feature for rental negotiations. Agile methodology helped us maintain close collaboration with the Lainappi team and deliver the service in three to four months.

Oddscrowd

In 2018, the OddsCrowd team approached us with the concept of creating a community centered around sports betting with valuable resources. They sought our expertise in software development to deliver a web app within a tight 10-week deadline. The team needed to release their app before the Super Bowl. We employed an Agile adaptive project framework to prioritize features for different versions of OddsCrowd, organize the development process into sprints, and maintain clear communication with the client.

Our software development team crafted the user interface and developed the brand identity for OddsCrowd. We implemented features such as lists of upcoming events and available bookmakers, graphs of bettor performance, top odds and odds comparison pages, leaderboards, and more. By applying Agile project management, we released the working software within the required timeframe. Our client was pleased with the results and continued to collaborate with us to develop a mobile version of the service.

Hamperapp

Mid-sized businesses can greatly benefit from Agile software development methodologies, as demonstrated by our work with Hamperapp. This Florida-based service offers online laundry and dry cleaning to consumers and enterprises such as hotels and restaurants. Hamperapp needed us to develop an ecosystem of applications: mobile apps for clients and drivers, a web panel for managers, and an admin panel. Our software development team, including developers with diverse expertise, designers, and an Agile coach, employed Agile development to manage this complex project.

Finally, we have successfully designed and developed all four interfaces for Hamperapp and continue to scale them based on the client's needs. The team now collaborates with nearly 80 laundries in their area, serving both individual and enterprise clients. This project highlights how Agile software development methodology can optimize product development for projects where development teams need to work on different applications for different operating systems.

Essential tools for Agile software development

There are several types of tools that help to align your development process with Agile methodology. We have created a list of them, so you could replicate this development methodology in your in-house processes.

Project management tools

Agile software development methodologies depend on tools for project management and team collaboration. Tools like Jira, Trello, and Asana assist software development teams in planning sprints, tracking progress, managing backlogs, and assigning tasks to specialists. These platforms feature interactive boards where tasks can be assigned and visually tracked across different statuses.

Communication tools

In Agile software development, communication tools enable collaboration between software development teams and their stakeholders. These tools, such as Slack, Microsoft Teams, and Zoom, offer chat functionalities, video conferencing, and file-sharing capabilities, enabling real-time collaboration. Communication tools are particularly valuable when the client requiring app development is located remotely or when the team is distributed across different locations. Therefore, buying a subscription for one of these tools might be a must for a software development team.

Continuous integration and deployment tools

CI/CD tools are essential when development teams need to integrate frequent code changes from multiple developers into a shared repository. These integrations are needed to update the app, when developers create new code pieces. These tools play other functions as well. For instance, they are used to implement Agile testing to catch bugs, confirm that new code compiles correctly, streamline the deployment of applications, reduce manual errors, and ensure consistent updates across different environments. Examples of these tools include Jenkins, GitLab CI/CD, CircleCI, and others.

Version control systems

Version control systems are essential for Agile project management as they allow teams to manage and track code changes from multiple developers. These systems maintain a history of changes and enable simultaneous work on different aspects of the software. They help resolve code conflicts and allow rollbacks to previous versions if needed. Examples of version control systems include Git, GitHub, GitLab, and Bitbucket.

Software testing tools

After development teams create and deploy their code, it's essential to test it for bugs and errors. Different testing tools assist with Agile testing. These tools help automate and manage various stages of software testing, ensuring quality and catching bugs early before they become costly. For example, PHP Unit can be used for unit testing, Cypress for functional testing, and Maestro to automate the testing process. There are many other testing tools but all of them are used with the sole purpose of releasing high-quality software.

Design and prototyping tools

Collaborative design tools also support Agile project management. With their help, design teams can create visual elements and prototypes, present them to Agile coaches and stakeholders for feedback, and review each other's work. The resulting designs are then handed off to the software development team to continue the development process. Tools like Figma and Adobe XD are key examples of such applications.

Artificial intelligence

While artificial intelligence (AI) cannot yet independently drive the entire product development process, AI-powered tools can be integrated into specific components of these processes. In the realm of Agile testing, AI can predict which sections of the code are most likely to harbor issues, allowing human testers to concentrate on other important things.

Moreover, popular Agile methodology tools have begun to incorporate AI-powered features to streamline project management. For example, Jira's machine learning capabilities predict potential project delays and recommend adjustments, helping Agile teams maintain their schedules. GitHub's Copilot assists software developers by suggesting code snippets and enhances coding speed and accuracy. Trello's Butler tool automates repetitive tasks such as organizing cards and setting reminders, allowing team members to dedicate more time to critical tasks.

Our team also uses all these types of tools to establish Agile project management. Here's a list of technologies helping us.

Wrapping up

In conclusion, Agile software development methodologies are among the most favored approaches in tech projects today. They offer numerous benefits to both large and small-sized projects, including enhanced collaboration, faster delivery times, and the ability to deliver working software early in the development process. Perhaps most importantly, Agile methodologies empower businesses to swiftly adapt to changing market conditions.

This adaptability is a standout feature, allowing changes to be incorporated after any sprint. The Agile team actively listens to new requirements and adjusts their scope of work accordingly, leading to a more responsive and efficient development process. Unlike traditional methodologies like Waterfall, Agile project management provides the flexibility and speed needed to meet evolving demands, making it a preferred choice for modern software development projects.