One of the things businesses tend to not understand is, that if you take the fun out of the activity, you also lose the passion of the people performing the activity, no matter how many times actors at the job fake passion in front of higher ups. If you lose the passion, what you will be left with it mediocre development and shoddy software.
Maybe that's "enough" for the business to survive. But it surely won't be the reason it succeeds. It can still succeed for other factors though, but the business has given up on one path to success, which is making better software than the competition.