Software development is a complex process that requires a different approach than traditional project management methods. It involves cross-functional, self-managed teams working in short iterations to deliver working software frequently through an agile process. This allows for continuous learning, feedback, and improvement. The key principles of agile development are satisfying customers through early delivery, welcoming changing requirements, frequent working software deliveries, daily collaboration between business and development, self-organizing teams, face-to-face communication, measuring progress through working software, sustainable development, and continuous attention to quality and design.