Where is domain experience important and how does one gain the knowledge
As a product manager, one of the most frequently asked questions I get from aspiring PMs in my coaching sessions is, “Do I need domain experience to be successful?”
The answer, like many things in product management, is nuanced. While domain expertise can certainly be advantageous, it’s not always a strict requirement.
When I say domain, I mean a good understanding of the industry, competition, customer jobs and pain points, technology and regulatory trends.
The Case for Domain Expertise
For highly specialized domains like biotech, healthcare, networking, and semiconductors, domain skills are indispensable. These fields have unique technical intricacies, regulatory landscapes, and industry-specific nuances that can be challenging to navigate without firsthand experience. A product manager with a deep understanding of these domains can more effectively:
Identify market opportunities: They can spot trends and gaps in the market that others might miss.
Develop product roadmaps: They can prioritize features and functionalities based on their knowledge of customer needs and industry best practices.
Collaborate with engineering teams: They can communicate technical requirements clearly and effectively.
Make informed decisions: They can weigh the pros and cons of different options based on their understanding of the domain.
If you want to be a PM in any of these specialized fields, then you absolutely need to have prior experience in some capacity. If you have no experience, then you will need to spent substantial time learning it.
For example, my background is Enterprise B2B SAAS. And it would be impossible for me to do product for a semiconductor or a bio tech company. I simply have no training or experience.
Could I be a PM in fin tech or health care? Possibly, but I will really need to learn the industry and customer and will need time.
By the way, even within your domain there can be certain sub domains. I have deep experience in CRM in general, but there are many specialized sub domains within these. For example, SEO which I had no experience in and had to learn from scratch in one of my roles.
When Domain Experience Is Not Essential
While domain experience is crucial in some cases, it’s not always a deal-breaker. In less specialized domains, a product manager with strong general PM skills can often learn the domain on the job. In these situations, a PM with a growth mindset and a willingness to learn can quickly become proficient in the domain.
The Importance of PM Skills
Regardless of domain experience, strong product management skills are essential for success. These skills include:
Market analysis: The ability to understand customer needs and market trends.
Product strategy: The ability to develop and execute a product vision.
Cross-functional collaboration: The ability to work effectively with teams across different departments.
Data-driven decision-making: The ability to use data to inform product decisions.
Communication: The ability to effectively communicate with stakeholders at all levels.
A Note on Domain Expertise in Emerging Fields
In some cases, the domain itself might be so new or innovative that there are no experienced professionals available. In these situations, a product manager with experience in similar domains or with a strong track record of learning new domains can be a valuable asset.
As of this writing, Generative AI is booming and there is a general lack of skills.
Domains Where Experience is Often Required
These are a few industries where having domain knowledge is essential and required.
Healthcare: Understanding medical terminology, regulations, and patient privacy laws is crucial.
Fintech: Knowledge of financial markets, regulations, and risk management is essential.
Biotech: Understanding biology, chemistry, medical devices and clinical trials is necessary.
Aerospace: Knowledge of engineering principles, materials science, and aviation regulations is required.
Semiconductors: Understanding microelectronics, fabrication processes, and supply chain management is essential.
Automotive: Knowledge of vehicle design, engineering, and safety regulations is required.
Telecommunications: Understanding network infrastructure, protocols, and regulatory compliance is essential.
Cybersecurity: Knowledge of network security, threat intelligence, and compliance standards is required.
Artificial Intelligence: Understanding machine learning, data science, and ethical considerations is essential.
Legal: Knowledge of legal principles, regulations, and court procedures is required.
Domains Where Experience is Not Always Necessary
These are a few domains where knowledge can be acquired and learnt. These domains are large and there might be pockets where you lack knowledge but because they are adjacent it might be easier to acquire the relevant knowledge.
E-commerce: While experience can be helpful, a strong understanding of marketing, customer experience, and logistics can be sufficient.
Social media: Experience can be beneficial, but a strong understanding of user behavior, content creation, and community management is more important.
Education technology: While experience in education can be helpful, a strong understanding of technology,pedagogy, and learning science is more important.
Gaming: While experience in gaming can be beneficial, a strong understanding of game design, development,and player psychology is more important.
Consumer electronics: While experience in electronics can be helpful, a strong understanding of consumer trends, product design, and marketing is more important.
Software development: While experience can be helpful, a strong understanding of programming languages,software engineering principles, and problem-solving is more important.
Marketing: While experience can be beneficial, a strong understanding of marketing principles, branding, and data analysis is more important.
Human resources: While experience can be helpful, a strong understanding of labor laws, recruitment strategies,and employee relations is more important.
Customer service: While experience can be beneficial, a strong understanding of customer needs,communication skills, and problem-solving is more important.
Project management: While experience can be helpful, a strong understanding of project planning, scheduling,and risk management is more important.
Learning a new Domain
If you already have experience in a domain, then it is easier for you. But what if you are brand new to the domain. How do you learn a new domain?
To gain a deep understanding of an industry, it’s essential to delve into its competitive landscape, understand customer needs and behaviors, and analyze the underlying economic factors. By studying the industry’s key players, their strategies, and market share, you can identify opportunities and potential challenges. Additionally, understanding customer preferences, pain points, and purchasing behaviors is crucial for developing products that resonate with the target market. Analyzing economic trends, market cycles, and regulatory frameworks can provide valuable insights into the industry’s potential growth, risks, and opportunities.
Here is an interesting article by Steve Blank on how to learn a new industry.
Conclusion
While domain experience can be a significant advantage for product managers, it’s not always a strict requirement. The most important factors are a strong foundation in product management skills and a willingness to learn and adapt. By combining these elements with domain expertise, product managers can position themselves for success in a wide range of industries.
If you don’t have domain experience, then it’s not the end of the world. But if you don’t have PM skills then it’s a huge challenge to be an effective PM.
