Manufacturing has long benefited from the use of prototyping in the selection, design, and analysis phases of product development. Creation of scale models and limited-functionality prototypes allows end users to better determine how products will work, far in advance of actual production and delivery. Different designs can be compared and new, untested hypotheses validated. While the financial services industry has developed some limited-scope models, end-to-end business process prototyping is not a comprehensive, industry-wide practice. Historically, barriers to taking up prototyping have been largely related to technology, cost structure, and time limitations. Many of these barriers are now surmountable, allowing prototyping to become a standard practice within the financial services industry. While prototyping has been a long standing discipline in manufacturing, its use within financial services has been limited. It has been used mostly at a tactical level, and is far from being a standard practice for developing broad-reaching financial processes. Given all the benefits that prototyping has provided to manufacturing, it is curious that the financialservices industry has not leveraged it more. Within financial services, prototyping is a tool that can improve overall operational agility and increase the value that financial products provide to end customers. While prototyping has been used somewhat within financial services IT
projects and product marketing, and modeling and simulation have been applied to trading and risk management for many years, the use of prototypes to verify the viability of production processes across all stages of the financial services assembly line has been minimal.

Dynamic Systems Development Method (DSDM) is an agile software development methodology. It is an iterative, incremental approach that is largely based on the Rapid Application Development (RAD) methodology. The method provides a four-phase framework consisting of:

• Feasibility and business study
• Functional model / prototype iteration
• Design and build iteration
• Implementation

Within each phase, DSDM relies on several different activities and techniques based on these principles:

• Projects evolve best through direct and co-located collaboration between the developers and the users.
• Self-managed and empowered teams must have the authority to make time sensitive and critical project-level decisions.
• Design and development is incremental and evolutionary in nature and is largely driven by regular, iterative user feedback.
• Working software deliverables are defined as systems that address the critical, current business needs versus systems that address less critical future needs.
• Frequent and incremental delivery of working software is valued over infrequent delivery of perfectly working software.
• All changes introduced during development must be reversible.
• Continuous integration and quality assurance testing is conducted in-line, throughout the project lifecycle.
• Visibility and transparency is encouraged through regular communication and collaboration amongst all project stakeholders.

DSDM is a framework for delivering business solutions that relies heavily upon prototyping as a core technique.

Thus it can be said that DSDM is better version of prototyping.