The engineering design process transforms stakeholder needs into design specifications. This study focuses on the engineering design process for systems of products and services known as product-service systems (PSS) and proposes a novel way to analyze PSS ideas by four characteristics: customer perceived value level, connectivity number, type and degree of connectivity, and configuration type. The process to apply this characterization scheme examines the inter-dependencies within a PSS and between the PSS and its environment and holistically incorporates the interests of customers, end-users, and social and environmental stakeholders early in the development process. This process clarifies design specifications in seven cases across five industries.