WHSmith has achieved a 30 per cent improvement in performance by replacing its complex mainframe architecture with an enterprise application integration layer.

The newsagent has to serve almost 1,500 stores in 12 countries around the world and its decision to look at enterprise integration was driven by a need to reduce system complexity - and improve service quality.

'We had an IBM mainframe and everything talked to it, such as data warehouse and finance,' said Iain Winskill, systems programme manager at WHSmith.

'Whatever we brought in, we didn't want to replicate the existing architecture. We wanted a layer that would allow us to plug in applications and reduce the complexity.'

Many of the legacy applications running on WHSmith's existing mainframe architecture, such as the payroll system, EDI (electronic data interchange) and the stock planning system, were inflexible.

A new retail management system, including demand forecasting and merchandising applications, was also required.

The challenge was how to incorporate these old and new applications within the WHSmith infrastructure.

'We had to phase our development and it became clear the integration layer could provide inputs from all these merchandising systems,' said Winskill.

'We were able to create extendibility and scalability. And with the layer, we could deal with all the information together.'

WHSmith looked at integration platforms from three different supplier groups: SeeBeyond, IBM/WebSphere and Tivoli/Microsoft.

Winskill says the IT companies offered similar publishing and subscribing infrastructure.

But at the end of an evaluation period, in which two suppliers were invited to a proof-of-concept test, WHSmith opted to install the SeeBeyond Business Integration Suite.

'Proof of concept allowed companies to demonstrate how quickly they could produce results,' said Winskill.

'We felt integration was SeeBeyond's core business - they've been there before and they've seen the challenges.'

SeeBeyond's eGate Integrator was used to link the new applications with WHSmith's legacy systems.

And the retailer's implementation of its selected integration system proceeded in parallel with the introduction of a new retail merchandising system.

This took place in three phases, said Winskill.

Installing the Retek Demand Forecasting (RDF) merchandising application allowed the retailer to receive and publish data.

Working with the SeeBeyond system also allowed Winskill and his team to see how the integration process worked before moving forward with subsequent stages.

At the end of stage one, Winskill and his colleagues 'modified the structural design'.

The company then went live with its Retek Merchandising System, an application that incorporates three functional areas: business foundation management, merchandise management and merchandise financial tracking.

Stage three involves the ongoing process of the retailer migrating data from its legacy mainframe applications.

It will migrate data warehouse teradata to the business integration platform in October.

'The great thing is you can take manageable chunks and test it before you go live,' said Winskill.

Management consultant Accenture has supervised the three-stage project and developed many of the specialist interfaces, alongside SeeBeyond's consultants.

'We've had a long working relationship with Accenture and we use them as our integrator,' said Winskill.

'Our own staffing level is 40 and we recognise that doing large IT projects is just not possible. Accenture provide advice and bolster our numbers.'

To date, 4,000 man-days have been spent on the implementation - a total that includes the installation of the retailer's Retek merchandising system.

Most of the time has been devoted to uncoupling legacy systems.

However, the business benefits are beginning to become clear.

Workers no longer have to search the mainframe for missing information. SeeBeyond allows users to identify the location of files quickly.

'It sits out of site - but don't under-estimate its flexibility and scalability,' said Winskill. 'It's still early days, but my view is that our response to customers and businesses will increase rapidly.'

Winskill estimates the integration software has improved business processes by almost a third.

Using integration software in the business requires effective teamwork though - particularly when it comes to old data.

'Understanding how your legacy system's components work is fundamental,' said Winskill.

'The reality is that your investment dates back 20 years. You'll have a handful of people that understand it - and you'll be reliant on a few key individuals.'

What's important here, he says, is effective process organisation.

'Make sure they have the time and be prepared for time management.'

Next on the schedule is the completion of stage three and the integration and migration of mainframe data. After that, Winskill aims to shut down the mainframe.

For now, he's prepared to sit back and advise businesses on the best way to use business integration software.

'Every company is different,' said Winskill. 'But you'll need to understand how it impacts your business and how it will change your people. This is your major challenge.'