What is meant by the term "Increment" in Scrum?

In Scrum, the term "Increment" refers specifically to the sum of all the Product Backlog items that have been completed during a Sprint. This means that at the end of each Sprint, the Increment represents the work that is done and includes all the functional components that are potentially releasable to stakeholders.

The significance of the Increment lies in its role as a measurable output of the team's efforts, showcasing progress toward the overall product goal. It must meet the defined criteria of "Done," ensuring that the work completed is of high quality and ready for deployment if necessary. This allows teams to review and assess their progress at the end of each Sprint, aligning their work with stakeholder expectations and adjusting future efforts accordingly.

Understanding the Increment is fundamental in Scrum practices, as it embodies the empirical aspect of the framework, relying on transparency, inspection, and adaptation in the iterative process of product development.