Iteration Three is a stage in the agile development project management cycle, where the project has successfully turned something over twice.
At first, a small set of requirements, development, testing and user feedback make up a full iteration, then a second iteration launches, based on the learnings of the first one. This is typically a shorter timeframe like a month.
Where the first iteration is just there to establish that something can be produced from scratch, the second iteration is where user feedback goes back into the development cycle with the results shown to the customer at the end.
At Iteration Three, the customer has the confidence that their changes can be portioned and delivered in a fixed cycle and the product
is moving in the right direction.
Iteration Three is based on agile development and the Agile manifesto. It values:
Individuals and interactions over processes and tools
Working software over comprehensive documentation
Customer collaboration over contract negotiation
Responding to change over following a plan
Iteration Three is about:
getting a project through the first, (painful) two cycles to a mature agile development stage.
responding to customer demands with working software (results) to establish trust.
SHORT, CYCLIC software development phases.