The development's process is made of some steps that we do to create our software. The process that was very used in the past and that seems natural is the process named "Waterfall" by comparison with a water fall. In this process we begin by all the analysis, next by all the development, next all the tests, next the demo and the the release. That can be illustrated as : 
One of the big problem with this method is that we see a problem too late, what we do if when we show the application to the end user if this one says that the application doesn't meet his need because we misunderstood what he wanted and this has an impact to the rest of the application, we redo all?
The process by iteration can solve this problem, we split the work into small steps where an iteration is made of the same steps as the "Waterfall" but for a functionality of the application, an use case. We will do a little of analysis, a little of development, a little of test, a little of demo and one release for this use case. In this case if the user explains to us that there is a problem, we correct only this part of the analysis, the rest is analyzed into the next iteration. 
This method has more advantages:
- It is easy to adapt, correct a bad situation
- More regular refactoring of the code
- More regular feed back of the end user
- Show to the end user the advancement of the project
- ...
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