Agile Software Development: Ad Hoc Practices or Sound Principles?

Management and organization theories help explain why agility is needed in software development and how to achieve it. Even though the effectiveness of some specific agile practices is not yet fully established, the agile approach is consistent with the sound principles grounded in management and organization theories discussed here. Our analysis helps understand the validity and applicability of the agile approach. It also highlights some of the challenges faced by agile development. Also, this analysis highlights several opportunities to fine-tune and understand the applicability and relevance of agile methods in different project contexts. Finally, rather than focusing attention on whether there is anything new with agile methods, it's more useful to understand the conditions under which specific agile practices are likely to be effective

Why Use Agility: Dynamic Capabilities Theory

Agility is not a concept unique to software development. Manufacturing industries have long embraced agile manufacturing or the ability to react quickly to continuously changing customer requirements. Dynamic capabilities theory in the strategic management literature captures the concept of agility. Dynamic capabilities are “the firm's ability to integrate, build, and reconfigure internal and external competences to address rapidly changing environments” (“Dynamic Capabilities and Strategic Management,” D.J. Teece, G. Pisano, and A. Shuen, Strategic Management J., vol. 18, no. 7, 1997, pp. 509–533). This theory draws upon research in multiple areas including management of R & D, product and process development, technology transfer, intellectual property, manufacturing, human resources, and organizational learning. It explains how organizations can achieve competitive advantage while operating in rapidly changing environments. This challenge is, in fact, the motivation behind agile methods development as well.