A component-orientated approach is commonplace in the automotive industry where the development focus lies on components. However, current challenges in the industry necessitates a mindset change in the development. Shifting the perspective from the components to functions can help with changing requirements, manage increasing complexity, support cross-disciplinary development, and foster innovation. To successfully implement this approach, it is essential to address not only the technical aspects of the solution, but also the human and organizational aspects affecting the process for its long-term success.

This paper investigates the function-oriented development methods of complex mechatronic products. A systematic literature review is conducted to analyse the current state of research. The existing function-oriented development approaches are summarized, the technological, human, and organizational perspectives are analysed, and the research gaps are highlighted. It is concluded that while function-orientation gains significance in industry and academia, and the importance of human and organizational factors are highlighted in the literature, they are not yet widely considered within the current function-oriented approaches.