vikvish1 ,
A sizable portion of software industry works on software maintenance.This needs you to work in team , have a planned arrchitecture.There are times when you need to understand and complete the leftovers of the programmer who worked previously. This needs a standard pattern which every one can understand.This is where you need an architecture.3 tier is the most popular one but there are couple more like MVC architecture as well.
There is no problem if you do not adopt these architecture and go on coding like what is called a bare-bone programming for your personal applications.But when you return back to your codes after 2-3 years to improve it you may not remember where you had written what.
So better go systematic than random to plan a system.
This forum has a very nice tutorial series by Scott Mitchell for 3 tier architecture at
http://www.asp.net/learn/data-access/?lang=cs