Subject matter experts (SME) can either be Workplace SMEs or Academic SMEs. If the domain experts are Workplace SMEs, they will not understand pedagogy. If the domain experts are Academic SMEs, they will understand pedagogy, but may not be in touch with workplace requirements and problems.
SMEs are well-versed with the content to be disseminated – the what of learning, but may not be as knowledgeable with the methodology – the how of learning. This makes the material that they create content-centric as opposed to learner-centric, which is the focus of Instructional Designers.
SMEs are just about catching up with Technology. Integrating ICT with content (again, the how) is yet another challenge they face in designing and delivering effective and engaging learning material.
This framework we use at ID Mentors helps us to collaborate better with SMEs.
Here is a course that Subject Matter Experts can take to make the content they design learner-centric.