Each iteration passes through the requirements, design, coding and testing phases. And each subsequent release of the system adds function to the previous release until all designed functionality has been implemented.
The system is put into production when the first increment is delivered. The first increment is often a core product where the basic requirements are addressed, and supplementary features are added in the next increments. Once the core product is analyzed by the client, there is plan development for the next increment.
Characteristics of an Incremental module includes
System development is broken down into many mini development projects
Partial systems are successively built to produce a final total system
Highest priority requirement is tackled first
Once the requirement is developed, requirement for that increment are frozen
When to use Incremental models?
Requirements of the system are clearly understood
When demand for an early release of a product arises
When software engineering team are not very well skilled or trained
When high-risk features and goals are involved
Such methodology is more in use for web application and product based companies