In the beginning, there is a Problem.
Customer knows that the Problem exists, but can't tell exactly what the Problem is.
So the Customer goes to to a Programmer and asks him [or her, of course, but let me keep this simple]: "Can you build me a program that does That?"
[Here lies the original sin. Customer never asks: "Can you help me solve the Problem?" Because of that, Programmer is writing a program to do That instead of program that does This.]
Programmer says: "I can," because we programmers, by our nature, want to believe that we can code anything. So the Programmer goes to work and he works and works and although he has no idea what he is working on and how it should be built, he makes the Version One. It is merely a research project, a tool that allows the Programmer to understand the problem (not the Problem, just the problem of coding a program that does That), but the pressure of the modern world forces him to deliver it to the Customer.
Of course, Version One is unusable. After all, it was merely a sandbox where the Programmer tried to understand the problem. So the Customer pretends that he is using it and from time to time orders a small change, just to make the Programmer think that his software is being used.
After some time, Customer starts to think that he should really get something useful for his money, not just the unusable Version One and thus commissions the Programmer to write a new, improved version. Mind you, the Customer still hasn't a faintest clues what the Problem is, and so doesn't the Programmer. Even more, Programmer still has no idea that he has to solve the Problem. His task is to write a program that does That.
Still, something has improved since the day 1 - Programmer's understanding on how to write a program that does That. So he goes and codes much better program, which is built on his previous experiences. And thus the Version Two is born.
Version Two is much better version. It actually works. It doesn't look like a five year old has put it together in one afternoon and it doesn't crash every five minutes. And so, the Customer starts using it. And after some time, he sadly recognizes that the Programmer has indeed written a wonderful software that does That, but that this, alas, doesn't help him solve the Problem at all.
But now the Customer can finally tell the Programmer what the Version Two should do differently. And the Programmer listens and finally says in awe: "You mean that it should do This instead of That?!? Why didn't you say that in first place?"
And thus, the Version Three is born. It is written well. It solves the Problem. The Customer is happy. And the Programmer lives on to fight yet another battle.This I believe.