There is an old riddle: what happens when an unstoppable cannon ball strikes an immovable post?
The unstoppable cannon ball is a hypothetical construct. It is a cannon ball that, once in motion, stays in motion. (It's ability to defy friction comes from its hypothetical nature.)
The immovable post is also a hypothetical construct. It is a post that, once placed, cannot be moved.
While the riddle is entertaining, a real-world version of it is emerging with software development methodologies. Instead of an unstoppable cannon ball and an immovable post we have the waterfall methodology and the agile methodology. Perhaps the agile method is the equivalent of the cannon ball, as both emphasize motion. It doesn't really matter, though.
What matters is that the two methodologies are incompatible. One can develop software using one methodology, or the other, but one cannot use both. For small shops that have only one project (say a start-up), this is not an issue. Larger shops (any shop with multiple projects) must choose a methodology; you cannot use waterfall for some projects and agile methods for another. (Well, you can, provided that the two sets of projects have no interaction. But that is unlikely.)
The waterfall and the agile methods make two different promises. Waterfall promises a specific deliverable, with a specific set of features, and a specific quality, on a specific date. Agile promises that the product is always shippable (that is, very high quality), and promises to implement the most important features first, but makes no promises about a complete set of features on a specific date.
It is easy to dismiss these differences if we think of these approaches as methods of developing software. It is harder to dismiss them when we realize the truth: waterfall and agile are not methods for building software but philosophies for managing projects.
Managing projects is serious business, and is the core of most IT shops. (Projects can by managed by non-IT shops, too, but I will stick with the IT world.)
One cannot run a business (a successful business) with multiple coordinated projects that use project practices which differ to the extent that waterfall and agile differ. Waterfall, with its "big design up front" and locked-in delivery dates cannot mesh with agile, with its "choose as you go" method for selecting features. The rise of agile methods -- agile project management -- means that companies must choose one or the other. Which one is important, too, and depends on how the managers of the company want to run their company.
This schism has far-reaching effects. It can be felt in the acquisition of other companies, when one merges the management of project teams. It affects the hiring of new employees: are they familiar with the practices of the hiring company? It can even affect joint projects between companies.
I don't claim that one is better than the other. My preference is for agile project management, based on my experience and projects. It may be the right methodology for you. Or waterfall may be the better methodology for you. Managers must evaluate both and consider the benefits and costs.
My advice is to learn about both and make an informed decision.
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