There are three lessons here. One is about arbitrary work requirements, which you've made well.
Second is the problems which arise when vertical integration in your company means that one level's customers are another level's competitors. This conflict of interest is liable to drive away customers. (A company my father worked for many years ago had a similar issue: one branch manufactured and sold refrigeration equipments and spare parts. Another branch maintained and repaired refrigeration equipment, so their competition was the manufacturing branch's customers. The maintenance branch was separated into a new company to avoid this problem.)
Third is when you have a large corporation with an innovative product, that innovative product's potential can easily be crippled by being held hostage to vested interests of other parts of the corporation.