"This definition (of done) specifies the degree of confidence that the work completed is of good quality and is potentially shippable.
For example, when developing software, a bare-minimum definition of done should yield a complete slice of product functionality that is designed, built, integrated, tested, and documented. An aggressive definition of done enables the business to decide each sprint if it wants to ship (or deploy or release) what got built to internal or external customers.
To be clear, “potentially shippable” does not mean that what got built must actually be shipped. Shipping is a business decision, which is frequently influenced by things such as “Do we have enough features or enough of a customer workflow to justify a customer deployment?” or “Can our customers absorb another change given that we just gave them a release two weeks ago?”
Potentially shippable is better thought of as a state of confidence that what got built in the sprint is actually done, meaning that there isn’t materially important undone work (such as important testing or integration and so on) that needs to be completed before we can ship the results from the sprint, if shipping is our business desire."
Well, as I stated before, the phrase "potentially shippable" comes from Ken, and is baked into scrum itself, so we don't actually have to guess what it means... just sayin'.