1. Inception : In the mean while the inception phase, you work out the business part for the project. You also will be creating a rough cost estimate and return on investment. You should also outline the size and scope of the project.

2. Elaboration : At this stage you must go ahead of the project however only vague needs have. So at this stage you require to get a better understanding of the problem. Some of the steps used are:

• What is it you are actually going to create?
• How are you going to create it?
• What technology are you going to execute?
• Analyzing and dealing with need risks, skill risks, technological risks, political risks etc.
• Create a domain model, use case model and a design model. The UML techniques may be used for the model diagrams.

3. Construction : In this part you will be making the system in a series of iterations. Each iteration is a minor project. You will be doing analysis, unit testing, design, coding, system testing, and integration testing for the use cases assigned to each and every iteration. The iterations within the construction phase are iterative and incremental. Each iteration creates on the use cases deployed in the previous iterations. The each iteration will add code rewrite, use of design patterns , refactoring etc.

4. Transition : During this part you will be delivering the finalized code regularly. In the mean while this phase there is no coding to add functionality unless it is essential and small. There will be code optimization, bug fixes etc in that phase. An example of a transition phase is that the time between the final release and the beta release of a product.