A period (from 1 week to 2 months in duration) during which the Agile development team produces an increment of completed software. All system lifecycle phases (requirements, design, code, and test) must be completed during the iteration and then (empirically) demonstrated for the iteration to be accepted as successfully completed. At the beginning of the iteration, the business or the product owner identifies the next (highest priority) chunk of work for the team to complete. The development team then estimates the level of effort and commits to completing a segment of work during the iteration. During the iteration, the team is not expected to change objectives or respond to change requests. However, at the front end of the next iteration the business or product owner is free to identify any new segment of work as the current highest priority.
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