In today’s industry, functional provision is becoming more and more important, necessitating increased simulation support. In this paper, the objective is to present a modeling and simulation approach for simulation-driven design (SDD) to support function development. The scope of this paper is simulation support for developing hardware equipment used in processing industry. The research is founded on industrial needs identified through two parallel interview-based studies in the Swedish process industry. Both companies explore doing business with functional products rather than hardware, in scenarios where the responsibility for and availability of the functions may remain with the service provider. One as-is and one future (to-be) scenari...