Existing innovation research widely assumes physical, in-person exchange. This in-person exchange cannot be guaranteed during a global pandemic like COVID-19, where people must work remotely, and are limited to virtual collaboration. Through this research, we aimed to provide the first approach to virtual innovation, which we call Xtreme Design. It has two advantages over traditional innovation methods: teams can innovate in a virtual remote work environment, and it is fast and cost-efficient. Based on an exploratory action research with three companies conducted between March 2020 and April 2021, we present the model and its elements, as well as a set of practices designed to combine innovation methods with remote delivery. For practitioners, the paper provides evidence and insights about the use of Xtreme Design to support the implementation of virtual innovation processes.