Distribution utilities that upgrade or implement new asset management applications very soon arrive at a stage where the business value of different system options needs to be assessed and compared One obvious, aspect that must be considered in the respective options is their functional fit, i.e. the degree to which their functionality suits the business needs of the utility. At the same time it is inherently difficult to objectively measure the functional fit of a proposed system solution. One way to evaluate the functional fit is to develop a functional reference model and then compare the functionality of the proposed system, or systems with the reference model. In order for the reference model to be of any value it needs to be based on business requirements rather than existing system functionality and it needs to be complete in the sense that it encompasses all possible functions in the evaluated functional area. This paper desccribes the development of a reference model for asset management applications in the area of electricity distribution and generation. The functional reference model is based on an existing functional breakdown presented in the IEC-61968 standard developed for interapplication integration at electrical utilities. Also incorporated into the model are functions from various vendors of asset management applications. Having merged these sources together, the model has been validated by means of an extensive case study at a large Nordic power company.