Data Product Manager

What is a Data Product Manager? 

A Data Product Manager is a specialized role that lives within an organization’s Product Team structure. They focus on data; be that collecting it, organizing it, or implementing systems to improve how they gather and analyze it. A Data Product Manager will have an eye on anything data-related, making sure it flows smoothly and that it’s used correctly to influence product decisions. 

A Data Product Manager is like a detective in your Product Team, solving data puzzles and piecing it all together so that the information from the data can be effectively used in product development, feature refinement, or any other step in the product life cycle. 

As more specialized roles become increasingly popular in Product Management, such as the Growth Product Manager, it’s no surprise that Data Product Managers are carving out their own niche. The need for this role is a direct response to the sheer volume of data that many companies have access to. As the amount of available data exponentially grows, you increasingly need a dedicated conductor to orchestrate how it’s used.

Businesses of all sizes are now starting to grasp the value of having a Data Product Manager, as these specialists ensure data isn’t just a byproduct of the process but a key driver. Plus, as AI and machine learning depend on vast, well-organized data, companies need professionals like Data Product Managers to oversee the management, structure, and flow of this data. As AI adoption grows, the demand for these roles will continue to rise to ensure data is effectively utilized for building and refining AI models.

How is a Data Product Manager different from a Core Product Manager? 

At first glance, it might seem that a Data PM is just a regular Product Manager with a longer  job title. After all, data is a staple of any PM’s toolkit. We use it pretty much every day to drive decisions, shape our product roadmap, and set KPIs. 

So, aren’t all Product Managers technically Data Product Managers in hiding? 

Not quite. 

Even if you’re a data-driven Product Manager using data to validate every choice, you’re not necessarily a Data Product Manager. The difference lies in your relationship with data. 

For a traditional PM, data is just one of the many tools and responsibilities used to refine the product. For a Data Product Manager, the data is their main focus. For them, the data is the product. 

Here’s what sets them apart: 

• Traditional PMs: The focus is building a product that solves user problems. They’re generalists and navigate the broader scope of what it takes to bring a product to life. 
• Data PMs: These are the specialists, handling the nitty-gritty of things like data governance, data accuracy, and data science. Instead of making the product better, the Data PM is locked in on making the data better, so that it’s as effective as possible for the wider team.

A Data PM isn’t going to replace a core Product Manager, they instead work alongside them, supercharging the data used to drive better product development. As data becomes a bigger beast to tame, businesses need experts who can treat data like a product in its own right. The Data Product Manager role evolved to meet this demand, ensuring every byte of data works toward building smarter, more effective products.

Yes, all Product Managers deal with data, but not all PMs are Data Product Managers. Think of it as the difference between being a waiter at a fancy restaurant and being a sommelier. You’ll know white wine goes with fish and red wine goes with red meat, but a sommelier knows exactly what aromas and tasting notes work best.

Data Product Manager vs Data Analyst

Let’s clear the confusion between the Data Product Manager and another data-focused role you’ll find within a Product Team. Like the Data PM, a Data Analyst will be swimming in numbers and data, but the reasons for getting in the water will be different. 

A Data Analyst is a data explorer. As a key role in Product Operations, they’re in there answering specific questions, extracting insights, and running reports to uncover trends and offer recommendations based on that data. 

A Data Product Manager goes beyond analyzing data and actually manages it. They oversee the systems that collect the data, store the data, and choose the tools that present the findings. They’re more strategic with the data, constantly thinking about how it can be used to improve the Product Management lifecycle and how it can be leveraged to improve the next feature. 

In short, a Data Analyst is about insights, while a Data Product Manager has a focus on the infrastructure. Think of a Data Analyst as someone reporting on the weather and the Data PM being the person who puts together the radar system that predicts it. 

In short, a Data Product Manager is a combination of a Data Analyst and a Product Manager. They’re tackling data-oriented tasks that both these roles would have performed – like organizing usage data to learn what customers want or diving into product data to see where the product can be improved. 

The key difference is that a Data Product Manager goes beyond this and governs this data and manages the processes to make it more efficient. 

Yes, they’re using the data, but what sets this role apart is that they’re working out the structure and ecosystem around the data so that it can be used more efficiently. For them, data is the product that they’re looking to improve. 

Why does a Product Team need a Data Product Manager?

Today, there’s a huge emphasis on data. Most teams want to be data-driven, using the facts and information learned to drive their decision process, not to mention that data is a huge factor in Product-led growth. Companies thrive off data, and it’s become the cornerstone of strategic decisions. Ultimately, these companies need someone to focus on the data and help it reach its full potential. 

But managing data is hard, especially if you have a lot of it and if you’re a core PM who has other responsibilities demanding their attention. 

Data is a huge commitment. A traditional PM may become overwhelmed by all this and struggle to effectively manage this data while also cracking on with their other Product Management tasks. 

Getting a Data Product Manager to focus on this area helps relieve the pressure, while also allowing someone to interact with the data on a deeper level. 

Adding a Data Product Manager reduces the burden of managing data silos, helping to centralize the data for every team. Instead of each department fumbling around with its own datasets, a Data Product Manager can make it more accessible and reliable for all. This means fewer errors and more informed decisions. 

A Data Product Manager doesn’t just manage data – they empower teams to drive product-led growth while staying focused on their core expertise.

What are the key responsibilities of a Data Product Manager? 

A Data Product Manager focuses on the data – but there are many different facets of that. Their days can look pretty different, depending on the responsibilities they need to focus on. 

Here’s a look at some of the key things a Data Product Manager will be doing: 

1. Define data-driven goals

Data Product Managers establish clear, measurable objectives that align with broader business goals. They develop frameworks and processes for tracking various KPIs and OKRs, ensuring that the time spent working with the data is strategically focused.

2. Translate complex data initiatives into actionable plans

Large-scale data projects can be daunting, but Data Product Managers bridge the gap by breaking them into smaller, actionable tasks. It’s kind of like chunking when agile sprint planning. They manage the tasks to make massive initiatives manageable and ensure efficient execution.

3. Build and maintain data infrastructure

Having a strong data foundation is super important. Data Product Managers oversee the design of data pipelines, storage solutions, and platforms that support reliable and high-quality data access across the organization.

4. Promote data literacy and drive adoption

Data is only useful if people understand and use it. Data Product Managers champion data literacy, often finding ways to present data in understandable dashboards, empowering teams to leverage analytics effectively, and fostering a data-driven culture across the organization.

5. Help create and enhance products using data

Data Product Managers analyze data to pinpoint insights to support the design of new products or refine existing ones. This involves everything from your customer feedback strategy to market trends, ensuring products stay competitive and meet user needs.

6. Lead cross-functional collaboration

As facilitators, Data Product Managers align data across Engineering, Design, Marketing, and Product Teams. They ensure everyone is on the same page and that data initiatives integrate seamlessly with overall product strategies.

7. Analyze and interpret data to inform decisions

Data PMs turn raw data into actionable insights by performing analyses, conducting A/B testing, and identifying trends. This insight informs prioritization, feature development, and long-term strategy.

8. Monitor and evaluate data product performance

Once data products are live, Data Product Managers track performance metrics, identify improvement areas, and suggest ways to iterate to ensure the products continually deliver value to the business and its users.

What does a Data Product Manager not do? 

The last thing you want to do as a Data Product Manager is to overstep the line and meddle with other team members’ responsibilities. Of course, it’s always good to have a vision of what others are working on (you don’t want to be in a silo), but it’s important to stick to the responsibilities of your job. 

As a newer role, it can be tough to know what’s in your jurisdiction and what belongs to someone else. To excel as a Data Product Manager, it’s useful to know your responsibilities and what falls outside your scope. 

While specifics depend on the company and team setup, here are some tasks you won’t typically handle:

• Gathering customer feedback through direct interviews.
• Setting the product vision, long-term strategy, or product pricing strategy (instead you find the data that suggests what to do).
• Developing go-to-market plans and executing marketing strategies.
• Providing technical or customer support and training on product features.
• Developing machine learning models or other advanced AI systems.
• Writing software code or managing IT infrastructure and networks.
• Creating detailed user experiences or interface designs.

The majority of these responsibilities will fall to a Product Manager, with a few others being the responsibility of Customer Success, Designers, Developers and AI specialists. 

As an overarching rule of thumb, a Data Product Manager will likely not make any product decisions. Instead, you’re optimizing the data to help facilitate better decisions. You can suggest, but the final choice is often down to other stakeholders.

Instead, you’re making choices about the data such as how it is collected, and how you measure the data. Things like what features to prioritize are something you suggest and collaborate with the Product Manager.

How to become a Data Product Manager? 

The Data Product Manager role combines regular old Product Management with data science, so to step into the role you need a good base understanding of both. Here’s a look at some of the things you’ll need to tick off to give you the foundations you need to grasp this role. 

1. Gain experience in Product Management

You can’t get a role in Data Product Management without developing a strong understanding of Product Management first. When looking at the Product Management career path, it’s a role that many existing PMs specialize in. 

To help you put together the foundational skills of Product Management, you could study a Product Management course to develop key skills like defining product requirements, creating roadmaps, and managing product lifecycles. 

It’ll also be worth familiarizing yourself with Agile methodologies, as these are commonly used in data-driven companies to build cross-functional solutions.

2. Learn about data governance

As a Data Product Manager, you’ll be responsible for maintaining data quality, security, and privacy. You’ll need a good understanding of data governance to do this properly. Things like how to ensure accurate, secure, and compliant data practices. 

You can begin with books and articles on the topic, followed by online courses. Additionally, hands-on practice organizing and managing data will give you real-world experience that you can take into the role.

3. Build data and technical skills

Bit of a no-brainer, but to effectively manage data products, you need to be comfortable working with data. This may not be the career for you if that’s not the case. 

Focus on developing your technical skills by learning database management, and ETL processes. Proficiency in tools will also help you analyze data, visualize insights, and collaborate with technical teams like Engineers and Designers.

4. Understand the business context

A core aspect of being a Data Product Manager is aligning data products with business goals. Build business acumen by learning about market research, competitive analysis, and customer needs. 

Practical experience is going to be far more valuable here. Immerse yourself in real-world business scenarios and use data to drive value for your organization. Understanding the connection between data and business outcomes will position you as a strategic thinker.

5. Consider internships or entry-level roles

People aren’t going to be handing these jobs out to any old Joe Blow. You need to put the work in to stand out, and that may mean an internship if you’re new to the field.

These roles provide valuable hands-on experience and can help you build a strong portfolio that demonstrates your skills. 

If you can’t find an opportunity right away, take the initiative by working on personal data projects. It won’t hurt your chances.

What skills do you need as a Data Product Manager?

To do well as a Data Product Manager, you need a balanced mix of technical expertise and strong interpersonal skills. Here’s a list of the key skills you should work on if you’re set on the role:

• Technical background: Knowledge in Data Science, Data Engineering, Data Analysis, or Product Management is essential.
• Documentation writing: Ability to document data and product-related information clearly and concisely.
• Communication skills: Like any Product Management role, you’ll need strong verbal and written communication to manage stakeholders and executive teams.
• Data industry knowledge: Understanding of data trends, tools, best practices, and technologies.
• Agile methodologies: Experience in Agile environments and an understanding of Agile practices will serve you well in this role
• Data analytics & visualization: Proficiency in various tools for analyzing and presenting data insights.
• Problem-solving: Strong analytical thinking and the ability to solve complex data-related problems.
• Business acumen: Understanding how data can drive business decisions and product development.

As you advance in your career, soft skills like leadership, interpersonal communication, and consumer analysis become even more important, especially as you lead teams and collaborate across departments. However, mastering both hard and soft skills is going to set you up for a successful career as a Data Product Manager.

The data whisperer

Data dominates many industries. With this backdrop, the role of the Data Product Manager has emerged as a cornerstone of modern Product Management. 

Data Product Managers are those tasked with straightening out the tangled threads of raw data and weaving them into actionable insights, strategic roadmaps, and measurable business outcomes. This role isn’t just about understanding data; it’s about mastering the art of making data work for everyone else. The Data Product Manager ensures every byte is used to its maximum potential.

While traditional Product Managers focus on delivering exceptional user experiences and solving customer pain points, the Data Product Manager is the architect behind the scenes, ensuring the data pipeline is flawless, the insights are robust, and the teams have the tools they need to make informed decisions. 

Their work not only enhances the product but also drives the organization toward smarter, more efficient growth. As businesses increasingly rely on data to maintain their competitive edge, the Data Product Manager will continue to grow in importance, cementing their place as a vital player in the product ecosystem. 

To build a quality product ecosystem, you’ll need a centralized Product Management tool that’s up to the task. With ProdPad, you can easily conduct data research to help optimize and improve your roadmap and prioritization. 

Dig into Customer Feedback Signals to find common trends on what your users want, or track your OKRs and product performance right alongside your roadmap so you can stay focused on solving the right problems. 

Learn more about what ProdPad can do in our interactive, free-to-explore Sandbox environment.