Most widely used agile methodologies and their benefits in companies

Agile methodologies became popular in the late 1990s and today they are among the favourites of companies and the most innovative projects. Do you want to know what benefits adopting agile methodologies brings to your business and which ones are considered especially productive?

In the 1990s and early 2000s, what became known as agile methodologies began to gain attention, especially in the world of technology and IT, particularly in software and application development. Gradually, more professionals, managers, and corporate strategists began to wonder what agile methodologies were, and they decided to try them out and experience firsthand the advantages of this now-established philosophy of work.

Here we address key aspects of the topic, from what it exactly is to the different types of agile methodologies used today and which are considered the most valued by users.

What are agile methodologies?

It is important to note that ‘Agile’ is a term used to describe a true philosophy of organization and work—a system that aims to provide speed, flexibility, and adaptability to teams and professionals. As mentioned, it was in the late 1990s that a group of IT specialists and technologists began to adopt a very specific way of approaching projects.

What factors defined this so-called ‘agile methodology’? Three key points to understand what agile methodologies are:

• Goal? To develop services/products that meet customer needs in the shortest possible time.
• How? By breaking the work into smaller parts, with a step-by-step process and specific delivery deadlines.
• How to implement them? Agile methodologies promote the creation of multidisciplinary teams that work toward a common goal, following stages and a defined schedule.

Advantages of agile methodologies

Adopting these forms of collaborative work provides companies and organizations with a series of advantages of agile methodologies worth considering:

• Optimisation of material and human resources, making the most of professionals and company capital.
• Faster response times to customer needs, developing the products/services the market requires in record time.
• Improved customer satisfaction, in line with the previous point, as the goal is to be agile without compromising quality.
• Increased internal customer loyalty, meaning employees. This is one of the major advantages of agile methodologies, as employees tend to feel part of something, creating stronger bonds with the company, fostering teamwork, and achieving greater satisfaction when goals are met.
• Greater process control. By structuring product/service development into phases, it becomes easier to monitor each step and detect issues or improvement opportunities during the process.
• Reduced development costs. Closely related to the previous point, as errors or obstacles can be addressed immediately, significantly reducing the risk of project failure.

Types of agile methodologies

When implementing agile approaches, it is important to note that there are several types of agile methodologies, all sharing a common foundation: the ‘Agile Manifesto’. This document was developed by a group of CEOs in the United States in 2001 and outlines the principles that define an agile methodology. It consists of 12 principles grouped into four core values:

1. Individuals and interactions over processes and tools. In other words, collaborative work is prioritised over systems and tools.
2. Working software over excessive documentation. The technology used must be productive, which is key across different types of agile methodologies.
3. Customer collaboration over contract negotiation. Users of the product/service essentially ‘guide’ the development of innovations, with their satisfaction being the top priority.
4. Responding to change over following a fixed plan. The ability to adapt quickly to unexpected changes is essential. Plans must evolve throughout the process, as flexibility is a defining feature of the ‘Agile’ approach.

Most widely used agile methodologies

Once the advantages of agile methodologies became widely known, different ways of working based on the Agile Manifesto emerged. Today, four of them are among the most commonly used due to the excellent results they deliver for professionals and companies.

• Scrum: Especially recommended for small teams. Team members hold daily meetings to stay updated on the progress of different stages—called sprints—and communicate obstacles or changes almost in real time.
• Kanban: Focuses on a highly visual approach. Tasks are displayed in stages with deadlines, and as they are completed, they move across columns until the project is finished. It is particularly useful for identifying potential bottlenecks.
• Extreme Programming (XP): Suitable for highly complex projects with high uncertainty. It prioritises constant adaptation and flexibility, allowing frequent changes while keeping the entire team informed about development progress.
• DSDM: Dynamic Systems Development Method. One of the most comprehensive Agile approaches, covering the full lifecycle of a product/service. It follows structured phases: feasibility study, iterative modelling and prototyping, design, and implementation.
• FDD: Feature-Driven Development. This approach combines best practices from different types of agile methodologies. It focuses heavily on customer behaviour and continuously adjusts cycles based on identified needs.

Agile methodologies are used across many industries. That is why at EAE Barcelona we include them in full academic programmes such as the Master’s in Project Management. One of the fields where Agile is most widely applied is logistics and transport, which is why students of our Master’s in Supply Chain Management & Logistics can also gain in-depth knowledge of this working system.