The RAD (Rapid Application Development) model is an incremental model that develops components or functions in parallel like mini projects with time-boxed development periods. This allows customers to provide early feedback on working prototypes. The RAD model phases include business modeling, data modeling, process modeling, automated application generation, and testing. Advantages are reduced development time and increased reusability through early integration and customer feedback. Disadvantages include a dependence on strong individual skills and only being suitable for modularized systems. The RAD model should be used for modularized systems that can be created within 2-3 months when highly skilled designers and automated tools are available.