We'll compare characteristics of Plan Driven and Agile Software Development so that we know where these things came from and what we can expect out of them. What we ultimately came to understand as Plan Driven or Waterfall Software Development originated with the 1979 IEEE paper from Winston Royce "Managing the Development of Large Software Systems.
The idea of Waterfall was that one phase wouldn't begin until the previous was complete. However, if your team moves from coding phase to testing phase then things will have implications back in the development phase (so we found a bug, he'll fix it).
Another very interesting thing the longer the project goes on, the more the design is going to be understood and fleshed out. Therefore, you can never design a system in the beginning and understand it all the way through to its completion. The design of a system will evolve the more we understand the better requirements.
By 2001, the industry was beginning to evolve, a group of industry luminaries who had themselves discovered new and different ways of doing Software Development got together in Utah to talk about there common experiences. Together, they became know as the Agile Alliance. And these people over the course of a weekend produced a document called the Manifesto for Agile Software Development.
In this picture, see the difference between Agile and Waterfall model.
You can read more about Manifesto here: http://agilemanifesto.org/
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