Have you ever seen a swiss knife? It's a multi-tool product with a variety of tools such as a screwdriver, a can opener, a blade, etc. All the tools are comfortably stowed through a pivot mechanism into a small pocket-sized block.
If a swiss knife is made using the incremental development methodology, the product will be released to the client in several phases, each adding up new features to the previous one.
In simple words, when you develop a product few features at a time, it is undergoing incremental development.
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