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Great question. That's actually a chapter in my upcoming book — The Next Wave of Technologies: Opportunities in Chaos. Agile methods allow for rapid development and testing of new development efforts, with incremental changes and new functionality introduced throughout the project. Traditional efforts have followed the Waterfall Method and have only produced results in a "big-bang" fashion.
Obviously, much hinges on the type of project under consideration. Smaller projects such as the introduction of social media within organizations lend themselves to an agile approach. Much can be added in an incremental fashion. Other projects, such as the retiring of a legacy system and replacement with a new ERP, may not be as conducive to agile methods.
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