To iterate is to repeat a process but do certain elements in a different way hoping a better result will be achieved. Iterations are the main method through which software companies and prototype designers function. If it doesn’t work one way, repeat the process but vary different elements until it does!
For example…
To develop the first remote controlled toothbrush, Nelly and her business partner iteratively developed prototypes of it, fixing range issues in one iteration, then tackling the failed tests with regards to gum proximity in others. Each version added new or improved functionality on top of the old one and the iterative development produced a working, usable prototype of the world’s first remote-controlled toothbrush for Nelly and her partner to commercialise.