This document provides an overview of part 2 of a course on specification languages. It discusses model based system design using SystemC. It introduces object oriented techniques for designing hardware systems and provides hands-on experience with SystemC. The material for part 2 includes slides, the SystemC language reference manual, and an exercise on building a functional model of a JPEG encoder/decoder in SystemC. It discusses key aspects of functional modeling in SystemC including modules, ports, processes, channels and the simulation engine.