This paper was presented at The 5th ISPIM Innovation Symposium - Stimulating Innovation: Challenges for Management, Science & Technology – in Seoul, Korea on 9-12 December 2012. The publication is available to ISPIM members at www.ispim.org . 1 The ‘Vertical Innovation Process’: Constructing sustainable business models in practice Henning Sejer Jakobsen Danish Technological Institute, Centre for Technology Partnership, Kongsvangs Alle 29, DK-8000, Aarhus C, Denmark. E-mail: hja@teknologisk.dk * Corresponding author Jacob Brix Aarhus University, School of Business and Social Sciences, Department of Business Communication Fuglesangs Alle 29, DK-8210, Aarhus V, Denmark. E-mail jabk@asb.dk Abstract: Existing business model frameworks are too marketing/customer biased and this bias potentially removes a large potential for new business creation for existing organisations – especially in the public sector, in public- private partnerships and in specialized industries, where the end-user is not the necessarily the same entity as the paying customer. As consequence, we present an operational method for how to create and construct an outline for new business models, which goes beyond the biased marketing perspective. The study hereby presents the Vertical Innovation Process (VIP) framework which moves the innovation management literature further, since new areas of inquiry are introduced to business modelling. Finally, a case study is presented to demonstrate how the VIP framework is utilized in practice to inspire innovation management practices. Keywords: Business model; radical innovation; case study; vertical innovation; management practice; Creative Idea Solution framework 1. Introduction The business model literature is currently emerging as a scientific revolution (Kuhn, 1962) in the academic community, where Porter’s (1985) value chain with a linear perspective on value creation is down-emphasized. This change is occurring because of increasing complexity and agility in the contemporary business world, and therefore new ways of sustainably creating and maintaining businesses are needed if the top management wants its organisation to survive on the long run (Huber, 2011; Sathe, 2003). Cf. Zott, Amit and Massa (2011) the business model literature is in its embryonic state, where only little coherence exists regarding definitions, scopes and areas of application. In addition, because business modelling is an emerging science, only few