Hi Sugumar,
What is the architecture of your landscape ?
if its a central hub landscape, local alias should be only for Launchpad services.
if its embedded landscape, local should be fine.
If you dont have UI components, how are you planning to run the applications ? Without UI components of the apps, apps wont work as you dont have the frontend part.
You need both frontend and backend (saying fiori is latest is something different as it is only ui library version). Frontend UI and backend odata consists of application design, logic and functions.
For eg : HCM apps : you need UIHR001 (frontend), GBX01HR, GBX01HR5 (backend). (Latest version of hcm app)
MM apps : you need UIX01EAP (Frontend), GBAPP001,002 (backend)
Regards,
Tejas