A system that manages a network of network elements receives a network topology of the network elements, where the network elements include a first type of network elements and a second type of network elements. The system creates a first network function (“NF”) group that corresponds to the first type of network elements, and creates a second NF group that corresponds to the second type of network elements. The system implements a functionality of the first NF group on a physical network function component. The system implements a functionality of the second NF group as a virtual machine (“VM”). The system then forms a composite network function (“CNF”) using the first NF group and the second NF group. The CNF can be centrally managed.