Waterfall Process vs. Incremental Process

Return on investment (ROI) (winner: incremental process)

Incremental processes get the nod for return on investment because they start creating value earlier. Imagine software that can be delivered in two releases, where each release provides features that generate $10,000 per month in value. Each release takes 6 months. With waterfall delivery, there will be no value creation until after 12 months – and then it will generate $20,000 per month. With incremental delivery, the first release will generate $10,000 per month from month 6 to month 12, and then it will generate $20,000 per month for the next 12 months. The extra value from incremental delivery is the $60,000 earned from the first release while the second release is being developed.