Re-factoring refers to a process that involves changing or modifying the internal structure of software without affecting its external functionality or behavior. Developers alter the CODE or experiment with it in order to enhance and improve the software's underlying structure. Red-Green refactoring is among the most popular and commonly used refactoring strategies in agile software development.

The refactoring process improves the readability, understandability, and cleanliness of the code. Refactoring on a regular basis makes it easier to expand and maintain code. The purpose of software development is to provide users and stakeholders with commercial value on a constant basis. It is challenging to retain and CONTINUALLY grow business value because technology is continuously changing, and corporate objectives are changing as well.

There are two possible future paths which include continuing to add new capabilities to a pre-existing code base, eventually resulting in an error-prone "throw-away" condition or modifying the system on a regular basis to ensure that it is capable of efficiently delivering not only present but also future business value.

Refactoring, the SECOND option, is preferable. The usable life of an enterprise's software assets can be stretched out as long as necessary with continual refactoring. This means that customers can continue to get a value stream for YEARS AHEAD. Refactors allow for an emergent design to guarantee that the system meets future business requirements.