Consider an example where a bank wants to develop software to automate the banking process for insurance services, personal banking, and home and automobile loans. The bank wants the automation of personal banking system immediately because it will enhance the customer services. You can implement the incremental approach to develop the banking software. In the first increment, you can implement the personal banking feature and deliver it to the customer. In the later increments, you can implement the insurance services, home loans, and automobile loans features of the bank.
The regulation of the incremental representation is that it is applicable only to large and bulky applications. This is because it is hard to break it into small serviceable increments.