The development of complex product-service combinations challenges the existing practices for engineering knowledge management. The objective of the paper is to highlight how such practices need to change to meet the engineers’ demand for knowledge when developing “functions” instead of merely hardware. It further proposes Knowledge Enabled Engineering (KEE) as an umbrella term that collects engineering knowledge management methods and tools inspired by the second wave of knowledge management, and that are aimed to meet needs of today’s modern knowledge workers in engineering organizations. The current state of readiness of these approaches is eventually described together with results from verification and validation activities.