Jeff Patton illustrates iterating and incrementing well:
incremental development - we build a piece at a time, having a finished design upfront, expecting no changes.
iterative development - we build something, then evaluate, then make changes to it, i.e., we expect to change it.
however, i don't quite like that both illustrations end up in the exact same Mona Lisa... :)
i just saw a very nice description of a backlog mapping by Energized Work, described by Simon Baker. Lisa Crispin also blogged about it after a visit - The Whole Team Approach in Practice.
what i like about this is the support for starting small, iterate+ increment, while keeping the whole picture of functionality and customer value visible.
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