The Heidelberg-based company SNP Schneider-Neureither & Partner often refers to itself as a "Data Transformation Company." Currently, the company is going through its own transformation. The focus is shifting from the service business more towards software, and there have also been changes in the ownership structure since CEO Jens Amail took office in January of this year.

The clear focus is to lead SNP, founded in 1994 and publicly listed since 2000, toward profitability. "The company has steadily grown in recent years but has not been very profitable," explains Amail. In the first nine months of the fiscal year, the operating cash flow has significantly improved compared to the same period last year: After a loss of 12.9 million euros last year, the loss is much lower at 1.6 million euros.

According to the CEO, better processes in accounts receivable management have contributed to these improvements. The product mix is also shifting, with service revenues accounting for 68% of the total revenue of nearly 150 million euros in the first nine months of 2023, as reported by SNP at the end of October, while software revenues contributed 32%. The margin of the operating result (EBIT) as a percentage of revenue improved from 1.5% to 5.5%. Amail's goal is to increase the margin by 1 to 2 percentage points in the coming years. Furthermore, he aims to increase the share of software business in total revenue in the coming years. "The software business has significantly higher margins than the service business," he explains. His goal is to have a minimum revenue share of at least 50% from software.

SNP is currently experiencing increased demand due to SAP's strategic decision to fully embrace the cloud for innovations. "The journey to the cloud is giving us significant momentum," says Amail. SNP specializes in automated data migration and data management in the SAP environment, both of which are pressing concerns for many companies. SAP customers are currently transitioning to the S/4 Hana platform, especially since SAP currently provides support for predecessor offerings only until the end of 2027. "Currently, about 50% of our total business is related to the S/4 Hana migration. Compared to the previous year, the S/4 Hana business has more than doubled," says Amail.

SNP's management brings a wealth of SAP expertise to the table: Amail worked for SAP for over 14 years, and he held positions for the company in various locations, including London, Shanghai, and California. The CFO of SNP, Andreas Röderer, who joined the company this summer, also spent 14 years at SAP and was a member of the executive management team at SAP Germany. "This network with SAP and its customers is already helpful," says Amail.

Even though the majority of transitions to S/4 Hana are expected to be completed by 2027, Amail is counting on follow-up business and ongoing work beyond this deadline. "There will still be changes in corporate landscapes, such as carve-outs, system consolidations, or the integration of acquired companies," says the manager.

The CEO also sees opportunities in the increasing use of artificial intelligence (AI). "To use AI effectively, companies need a substantial amount of high-quality data," says Amail. SNP has data integration products in its portfolio. Internally, the company also aims to leverage AI, especially to automate and streamline repetitive processes, such as testing procedures.

To continue growing, SNP relies on a partner network. They have collaborations with several dozen companies, including IBM and Accenture. Amail's goal is to build an "ecosystem" where the focus is not only on joint customer projects. "We work together with companies from the partner network on innovations as well; there is still a lot of potential in that," says Amail.

There have been significant internal changes at SNP with its 1,400 employees worldwide in recent months. Heidelberg-based entrepreneur Wolfgang Marguerre, the founder of the pharmaceutical company Octapharma, now holds 63.8% of SNP's shares directly and indirectly following the completion of a public takeover offer. This has reduced the free float to approximately 36%. Marguerre has been a long-term investor in the software company. Until a few months ago, SNP was led under a monistic system, which was strongly aligned with the company's late founder, Andreas Schneider-Neureither, who passed away in November 2020.

In September, on Marguerre's proposal, SNP transitioned to the dualistic leadership system prevalent in Germany, with a management board and supervisory board. CEO Amail welcomes this move, stating, "I feel very comfortable with it." In operational matters, the major shareholder, Marguerre, gives the management a free hand. "For him, it's a financial investment." SNP raised its full-year business outlook at the beginning of October. Order intake is expected to be between 220 million and 240 million euros, compared to the previous target range of 210 million to 230 million euros. Revenue is projected to be at the upper end of the communicated range of 190 million to 200 million euros, and EBIT will be at the upper end of the stated range of 5 million to 10 million euros or slightly above.

After several years of various management changes, the revamped executive team aims to bring stability. "We will standardize processes and workflows more," says Amail. Additionally, there are still markets where SAP software is widely used, but SNP is not strongly present. "We've just opened an office in Brazil, and I see potential in France or the Netherlands," he adds.

Jens Amail has been the CEO of SNP since January 2023. Prior to this role, he worked for SAP from 2008, most recently serving as the Executive Vice President and Chief Operating Officer for the Greater China region. At SAP, he held various positions, including Managing Director for the UK & Ireland region, Head of Cloud Business in EMEA, and Global General Manager for Services Industries. Before joining SAP, the native of Mannheim worked for over ten years at Siemens, including in the United States. Amail holds an MBA in Computer Science and Business Administration as well as a Ph.D. in Economics. He is married and the father of four children.