Scrum is an agile software development methodology where self-organizing teams work in short development cycles called sprints to build software incrementally. It focuses on collaboration, flexibility, and delivering working software frequently. Key components of Scrum include roles like the product owner and scrum master, a product backlog to track requirements, sprints for incremental development, and daily stand-up meetings. Scrum aims to be flexible and adaptive to changing requirements while maximizing productivity through its empirical process control methods.