From: http://en.wikipedia.org/wiki/Agile_software_development
Gerald M. Weinberg: We were  doing incremental development as early as 1957, in Los Angeles, under  the direction of Bernie Dimsdale [at IBM’s ServiceBureau Corporation].  He was a colleague of John von Neumann, so perhaps he learned it there, or  assumed it as totally natural. I do remember Herb Jacobs (primarily,  though we all participated) developing a large simulation for Motorola,  where the technique used was, as far as I can tell, ... All of us, as  far as I can remember, thought waterfalling of a huge project was rather  stupid, or at least ignorant of the realities. I think what the  waterfall description did for us was make us realize that we were doing  something else, something unnamed except for “software development.  quoted in Larman, Craig; Victor R. Basili  (June 2003). "Iterative and Incremental Development: A Brief  History" (pdf). Computer 36 (6): pp 47–56. doi:. http://www2.umassd.edu/SWPI/xp/articles/r6047.pdf.
