The paper is aimed at depicting the ISDF software development methodology by emphasizing quality management and software development lifecycle. The ISDF methodology was built especially for innovative software development projects. The ISDF methodology was developed empirically by trial and error in the process of implementing multiple innovative projects. The research process began by analysing key concepts like innovation and software development and by settling the important dilemma of what makes a web application innovative. Innovation in software development is presented from the end-user, project owner and project manager’s point of view. The main components of a software development methodology are identified. Thus a software development methodology should account for people, roles, skills, teams, tools, techniques, processes, activities, standards, quality measuring tools, and team values. Current software development models are presented and briefly analysed. The need for a dedicated innovation oriented software development methodology is emphasized by highlighting shortcomings of current software development methodologies when tackling innovation. The ISDF methodology is presented in the context of developing an actual application. The ALHPA application is used as a case study for emphasizing the characteristics of the ISDF methodology. The development life cycle of the ISDF methodology includes research, planning, prototyping, design, development, testing, setup and maintenance. Artefacts generated by the ISDF methodology are presented. Quality is managed in the ISDF methodology by assessing compliance, usability, reliability, repeatability, availability and security. In order to properly asses each quality component a dedicated indicator is built. A template for interpreting each indicator is provided. Conclusions are formulated and new related research topics are submitted for debate.