This report provides a comprehensive analysis of agile and iterative methodologies for software development, exploring their principles, advantages, and disadvantages. It delves into popular methodologies like Scrum, Unified Process (UP), Extreme Programming (XP), and Adaptive Software Development (ASD), highlighting their key features and suitability for different project contexts. The report also examines the implications of User-Centered Design (UCD) and Human-Computer Interaction (HCI) principles on the development of a Customer Relationship Management (CRM) application for Australian Fashion Designs (AFD). It outlines a plan for integrating UCD and HCI principles into the CRM application design, emphasizing the importance of user feedback and iterative development. The report concludes with recommendations for AFD to adopt a hybrid approach combining Scrum and UP methodologies, ensuring flexibility and adaptability in their software development process.