It only leaves lower tiered hierarchies worse off and only in the short term. Extracting value that way is never a long-term plan since the needs will either be fulfilled or the extraction will be complete and no more value can be created.
If people don't want to buy a product because it is inferior in some way, the solution isn't to ban superior products but to upgrade those inferior products to be superior again. And inferiority/superiority doesn't just mean quality, it can also mean features and the price-quality balance in itself. At the same time, the rest of the world doesn't "go away" if you construct an island within your borders that nobody is allowed to join, so at best it's going to end up in some sort of useless industrial-cold-war.
> It only leaves lower tiered hierarchies worse off and only in the short term.
This is the refrain of those who do not understand reflexivity, and third-order analysis.
This analysis is correct to the first and even second-order effects, but completely misses the importance of slipstreaming floor expertise / experience into design and engineering iterating, or even holistic support. This kind of economic caste system thinking just as surely shackles the US as the Indian social caste system shackles that nation with enormous untapped potential.
I routinely make LinkedIn friends and actively solicit input from the operations people in all of my client organizations, and this has repaid me many times over. Where others within their very own organizations, much less outside consultants, snub these "lower tiered hierarchies", shedding light upon their experiences and expertise has taught me many valuable lessons about software design, debugging, implementation, and product management, among many other areas.
I learned to do this from reading about the nuts and bolts of how Japanese automakers applied Deming's quality principles. IMHO the buried lede in those stories wasn't all the charts and reports artifacts (similar to the Agile artifacts we use in our industry), but to my mind it was the attitudinal changes that flew in the face of common human hierarchical predispositions. Because it is a massive organizational cultural shift often enmeshed in wider prevailing ethnographic contexts, it is one of the most difficult leadership-led transformations to conduct.
One can get away with the hollowing out effect in the beginning, and if there is sufficient "mass" of value to strip in the industry to mask the effect, it can even be carried out through a couple more product and technology cycles to second-order ramifications as various affiliated supply chains are also stripped out. But once it reaches third-order ramifications often loftily projected as, "while we lead the toiling-for-peanuts offshore masses with our brilliant sales/marketing/product/accounting insights, the supercharged stock bonuses will just roll on in!", it is when reality slaps them in the face and they find out that those same "junior", "lower tiered hierarchies" toss aside the "onshore leadership" to cut out the middlemen to the customers.
After one is never too proud nor too lofty to lead from the front, be happily willing to (if even for a moment) do anything one would ask their direct reports or even their recursive direct reports to do, so to speak "sleep on the factory floor" if need be, a torrent of insights that would normally do not occur during design and engineering stages become available.
If people don't want to buy a product because it is inferior in some way, the solution isn't to ban superior products but to upgrade those inferior products to be superior again. And inferiority/superiority doesn't just mean quality, it can also mean features and the price-quality balance in itself. At the same time, the rest of the world doesn't "go away" if you construct an island within your borders that nobody is allowed to join, so at best it's going to end up in some sort of useless industrial-cold-war.