One of the conundrums for Product Managers is that in many ways, their area of expertise is product management of a software application, yet companies increasingly require them to have experience in the industry that uses the software.

There are good arguments for doing it this way, and equally strong ones for having Product Managers whose specialty is not industry-specific, but stems instead from the skills and competence required to be a Product Manager. You can argue that only someone who has worked in, say, a bank can understand what a bank employee needs from their contact management application.

On the other hand, why would you rely on someone to do product management because they have good banking industry experience, which probably translates to experience in three or four different banks, maximum, out of a total of thousands? How does that industry experience improve the likelihood that they can be an effective Product Manager, with all the tasks, skills, and perspective that entails?

It’s a mistake to rely on a person’s industry experience to guide them for years after they have transitioned to the software industry. Plus, their perspective needs to be broader and more comprehensive And those Product Managers who have not worked in the industry, whose are hired because their expertise is in software product management, need to develop a full understanding of the industry they serve.

Use the eight tips below to develop your understanding of the business environment and needs of your customer base, so that you become an industry subject matter expert (SME). Your expertise adds a critical dimension to your product management activity, especially when it comes to product positioning and strategic direction.