In recently, we designers aimed at discovering new domain of service and product to find the opportunities in order to create users need or demands in their daily life. However, the guidelines are still neglect for us to process design thinking for solution output. In the first part of this paper, the notion of service-embedded product (SeP) will be defined in environment of service-product-integration. And we described approaches for designing interaction of SeP for improving qualities as the background. For this matter, we found the function in designing is not only inferred to the product itself and more in service and needed systematic approach. Thereafter, we proposed a Functional Analysis tool, which adapted from the APTE® in solve complex problems by analyzing values through the functions. For this purpose, a list of keywords related to service-product-integration and designing interaction, was extracted from 432 articles from CiNii during the period between January and May 2008. The result presents and constructs several terms for guideline in describing designing interaction functions, such as Information Tangibility, Gateway Accessibility Network Protocol and Product Affordability, to be used as core concepts to design interactions for SeP. By these results, we intend to develop a design tool for SeP in Service and Product Design (SPD) filed in the future.