The article addresses the topic of project management in terms of developing innovative web applications. The topic is addressed gradually in a five chapter paper. The general structure and framework used for developing IT projects is displayed and the role played by innovation is depicted. Particular features for IT projects aimed at software development are presented. The main structures used for developing IT projects are enunciated. The necessity for innovation in IT projects is highlighted and the advantages provided by implementing innovation are brought forward. The development cycle of a software based project is formalized. Formalization of the process is made by exemplifying the theoretical concepts on an actual software development project. The article summarizes ideas and practical examples in order to provide a conclusion on the addressed topic. In order to access the full paper please contact the author using the Contact form.