"iterative development" is correct and usable in written English.
You can use it when referring to a development process that iteratively improves upon a system or product over time. For example, "The company relied on iterative development to continually refine its software products."
A development team develops software iteratively, and this iterative development dramatically increases feedback versus sequential development, providing closer communication between the product team and the development team.
The system was developed through iterative development cycles inspired by the Plan-Do-Study-Act model.
Storyboards (written templates of the proposed content) were developed through an iterative development cycle.
SemPoD was developed using agile software engineering methodology for rapid and iterative development in close consultation with the users.
The first prototype of MORE has been carefully developed using a solid theoretical and conceptual foundation, and iterative development process.
Iterative development models sit alongside polished presentation pieces, with revealing parallels drawn between projects.
What makes Google unusual is its combination of an engineer's love of scientific method with the web's rapid iterative development.
Google's iterative development approach is very effective for pursuing a long-term goal when the company has a clear idea of its destination.
"Developers are often thought of as the people who just build stuff after the creative part has been done, but that's a very unhealthy way of working," says Blackwell, who describes "tech creep" – the approach and practices of the tech industry such as agile, iterative development and the open sourcing of ideas – becoming more mainstream.
Use it for tracking iterative development and bug fixes, by all means.
This combines an evolving prototypical performance, with iterative development.
