It’s the right dynamic to support for sure, but it’s the how that’s critically important.
End user organizations that take to developing “mickey mouse” software will create a problem that they eventually come back to IT to fix. Think of all those MS Access databases littered everywhere. It’s easy to write software, it’s not easy to write scalable, enterprise-class software, and when it all goes wrong IT is left to bear the associated workload costs etc.
Therefore your ideal balance is that the OCIO should proactively meet this need – They should identify the correct overall enterprise architecture & platform that empowers users to create the new process systems they need, but from a platform designed to do this on an enterprise-wide scale, so that it is also supportable.