They solicit needs from customers, support conversations, etc. and translate those into future development. They combine those needs into major product directions and balance them with an internal compass for where the companyw wants the product to be (i.e., what jobs they want to solve for which users.)
They are technical people with an eye for how something should be built, working closely with designers (visual, UX, etc.)
Excellent companies figure out how to deploy these types of thinkers -- with appropriate mandate -- throughout the organization.
I once worked with a company that had that attitude toward accounting/compliance - so much more work and all because the primary holders were not in agreement, so they kicked the corporate structure can down the road.
Same goes for CS, etc.
I guess the only solution is a holistic approach, but even then sometimes someone will have to bear the brunt of being the area where people will 'will handle it', at some point a CEO will decide that is what is needed and it will be needed, even in a perfect organization.
If they are supposed to be technical, then we hired wrongly.
I can imagine a non-technical person could end up in this role and succeed, but someone with a technical background and some business acumen will have a much higher probability of success.
This is one reason why tech firms win. Their senior management are made of [former] engineers who are much more aligned with the workers around what implementations make sense.
The skill includes working with the stakeholders to develop actionable needs (not just "make our business more efficient"; the obvious place to go from there is, okay, what do we know about where the greatest bottlenecks/inefficiencies are now, if we don't know enough what can we do to learn?).
Also you don't just take needs and come back with a finished feature, you iterate with feedback from the stakeholders. The first iteration might just be a textual description of the feature, to make sure it makes sense to the manager/stakeholder.
It's a skill, and it involves building trust.
But translating needs to features that will succesfully meet those needs is not a skill most managers/stakeholders have either, is exactly why it doesn't work to just get detailed micro-managed implementation directions from managers/stakeholders. (Or customers!).
In the best functioning development organizations I have experienced or seen, nobody should be asking for "X feature", they should be explaining what their actual needs are, what they need to get out of the software and why. And how important it is to them, or even what their "budget" for it is.
And a technical designer (who could be a developer who has some design skills perhaps by experience, or a designer who understands the tech) _designs a solution_.
This requires someone(s) on the "development" side who can do needs/requirements analysis leading design (ie, "UX"). And it requires the stakeholders to trust that the capacity is there, and that it will turn all right if they don't try to micromanage the feature -- not just "all right", it'll be SO MUCH BETTER.
This works so well when the organization staffs itself to make it possible and the people in charge allow it to happen, that it seems kind of insane that so few organizations do so.