Enable your Business with
SMS Technology
by Melvin Dave P. Vivas
Owner and Senior Consultant
Melvin Dave Information Technology Consulting
Philippines

Introduction
Short Message Service (SMS) is a
communications protocol allowing the
interchange of short text messages between
mobile telephone devices.*
Short Message Service (SMS) Technology
enables sending and receiving of text
messages to and from mobile phones.
*Source: Wikipedia

Introduction
The text can comprise of words or numbers or
an alphanumeric combination. Each short
message is up to 160 characters in length.
SMS text messaging is the most widely used
data application on the planet, with 2.4 billion
active users, or 74% of all mobile phone
subscribers sending and receiving text
messages on their phones*

Introduction
Worldwide, approximately 350 billion text
messages are exchanged per month
SMS text messaging is the most widely used
data application on the planet, with 2.4 billion
active users, or 74% of all mobile phone
subscribers sending and receiving text
messages on their phones*

Why SMS?
SMS can be sent and read anytime*
SMS Messages can be sent to an offline
Mobile Phone*
SMS Messaging is less disturbing while you
can still stay in touch*
*Source http://www.developerhome.com/sms

Why SMS?
SMS is low-cost
SMS is fast
SMS has a wider consumer base
SMS is supported 100% by all GSM mobile
phones
*Source http://www.developerhome.com/sms

Worldwide Mobile Subscribers
By end 2007, Asia Pacific led the worldwide
subscriber base with approximately 1.3 billion
Northern and Western Europe with 0.4 billion
subscribers.
Total subscribers increased from 1.7 billion to
3 billion in a span of for years from 2004-2007.
That’s almost double!

Worldwide Mobile Subscribers

Worldwide Mobile Subscribers
Asia Pacific N&W Europe C&E Europe North America Middle East Africa Latin America

The Future Trend
2007 2008 2009 2010 2011

Features
Short messages
Real-time
Widest-coverage
Guaranteed delivery

Business Applications

SMS Surveys
SMS can be used to implement a survey.
An advantage in implementing an SMS-based
survey is that it encourages effective sampling
considering the wide use of mobile services
particularly the use of SMS technology.

SMS Surveys

Customer and Feedback Service
Reach your customers and have them send
feedback regarding your product or service by
implementing an SMS-based feedback service.
Customers can send comments or concerns
using their mobile phone.

Inventory Management
For simple inventory management, you can
utilize this application.
Update supplies information as soon as
products are delivered or sold just by sending
an SMS text message to your central database.

Intranet Integration
An example where this application can be
useful is integrating it with your Human
Resource(HR) Application.
Your employee, for example, can check his/
her leave credits by sending a text message to
your SMS-based HR application then your
SMS application sends the appropriate
information requested, also, as a text message.
File a medical leave using SMS

Systems Alerts Service
The Systems Alerts Service solution can be
quite useful. For example, system
administrators can use this application to notify
them in case a server goes down or a virus has
infected the network.
If integrated with the corporate e- mail server,
employees can have a text message sent to
them as e-mail notification to their mobile
phone.

Systems Alerts Service

Job Dispatching
Dispatch jobs using SMS. This type of
application can be used to assign new jobs
from local staff to field staff.
An example of this application’s usage is in
product delivery or courier package delivery
where the messenger can update the delivery
status through text messaging. The messenger
can send a message like \"DELIVERY 2222
complete,proceeding to DELIVERY 2223\"

Corporate Sales Information
Not much information can be sent through SMS
Messaging but it can relay sufficient information
needed by your customers such as company
contact numbers, address, and corporate
branches.
It can also relay information such as product
pricing or service rates. An advantage of using this
kind of service compared to web applications is
that users don’t have to use the Internet to access
vital information regarding your company.

Corporate Sales Information

Customer alerts/notifications
Since SMS is a quick way to communicate
with customers, you can also utilize the
technology to send information.
Flight information or status changes
Bills payment reminders
Send updated news about your product
Thank you messages

Two-factor authentication
SMS-delivered two-factor authentication provides
more security for your end users.
It strengthens security by adding an additional
layer besides passwords.
Time-based generation of keys so spoofing is not
that easy.
Cheaper implementation than token devices
Easy provisioning

Reservation/Booking System
Implementing an SMS-based reservation/booking
system is also a possibility.
An example would be reserving seats for a concert
or a movie premiere will be quite convenient if it is
implemented using SMS Text Messaging.
You can also implement this for transportation
booking or reservation

Product delivery tracking
Systems can also be integrated with tracking
devices and alerts can be sent using SMS.

Customer Ordering System
It is also possible to develop an ordering
system via SMS.
You can let clients order using SMS and
notify them when their order is already ready
This can be used for dine-in and dine-out
customers
Source: Korean Times
http://www.koreatimes.co.kr/www/news/tech/2007/09/133_10034.html

Customer Ordering System
In Sep 2007, McDonald's
and SK Telecom launched a
new ordering system using
mobile phones and infrared
sensors which let customers
make orders from their table
and sends them a phone
message when the meal is ready.
Source: Korean Times
http://www.koreatimes.co.kr/www/news/tech/2007/09/133_10034.html

Mobile Payments
With a secure GSM network, you can also
implement mobile payments using SMS
It proves to be a convenient way of payment
since you can pay anywhere as long as you
have GSM coverage.
Real-time payment as payment gateways are
integrated with the telcos.

Mobile Payments
Globe GCASH in the Philippines gave
subscribers access to a cashless and cardless
method of facilitating money.
It is used for money remittance, donations,
loan settlement, disbursement of salaries or
commissions, and payment of bills, products
and services.
Globe Telecom and Western Union deliver
mobile money transfers in the Philippines

Mobile Payments
SMART Padala is the first cash remittance
service via text.
It is a faster and cheaper way of remitting cash
from a sender abroad to the celfone of a
beneficiary here in the Philippines

Mobile Marketing
Marketing on a mobile phone has become
increasingly popular ever since the rise of SMS
(Short Message Service) in the early 2000s in
Europe and some parts of Asia when businesses
started to collect mobile phone numbers and send
content.
Over the past few years SMS has become a
legitimate advertising channel in some parts of the
world.

Mobile Marketing
SMS has become the most popular branch of the
Mobile Marketing industry with several 100 million
advertising SMS sent out every month in Europe
alone.
According to a survey conducted by a mobile
marketing provider, approximately 89% of major
brands are planning to market their products
through text and multimedia mobile messaging by
2008

Raffle/Contests/Promotions
Mobile raffles/contests/promotions can also
be used with SMS to enhance product or
services marketing
Create a customer profile database which
may be useful for future marketing activities
and targeted advertising.

Raffle/Contests/Promotions
Prize: $100 Burger King vouchers (x3 winners each week for 4 weeks)
SMS your vote to win the above prize!

Government Service Applications
Confirm tax payments(Philippines)
Government announcements via SMS alerts
e.g. TEXT NFA, Singapore Ministry of
Manpower queue alerts, French Embassy
Updates Citizens in Lebanon by SMS,
Warnings of national emergencies in the U.S.
Pay parking fines(Singapore)
Checking Central Provident Fund(CPF)

Government Service Applications
Crime watch
Announcement of government programs e.g.
save the trees, no-smoking campaigns, etc.
Gather constituents complaints/feedback
Typhoon alerts
Power lines monitoring

How to integrate?

Integration Approaches
Direct interface to the telecommunications
companies e.g. SK Telecom, Nepal Telecom,
Globe Telecom, SingTel etc.
Interface with bulk SMS providers e.g.
Clickatell, Chikka
Deploy a SMS appliance and integrate
applications with it
Use a GSM modem and let in-house
developers integrate existing applications

Direct interface to telcos
Connect to Short Message Service Center
(SMSC) which is managed by telcos
Depending on the telco implementation, it is
required to use SMPP, UCP/EMI, CIMD2
protocols
Advantage is turnaround time of messaging is
fast since the infrastructure is within the telco
space
Disadvantage is SMSC low-level protocols are
harder to interface with and telcos require
volume before giving access

Direct interface to telcos
Logos are owned by the respective telcos

Bulk SMS providers
Connect to bulk SMS providers like Clickatell
Common protocols for integration like HTTP,
XML, SMTP, SOAP, FTP are available
Advantage is more protocols are available for
integration and these common protocols are
easier to work with. Also, it has worldwide
coverage
Disadvantage is that this approach tends to be
more expensive

Bulk SMS providers

Use a GSM modem
A GSM modem can be used to implement a
SMS solution
Advantage of this approach is that it is up-
front cost is cheaper since a GSM modem will
only be purchased
Disadvantage is custom programming to
communicate with the GSM modem is required
which will tend to be more expensive in the
long-run

Use a GSM modem

SMS Appliance
Another approach is to use a SMS appliance
Common protocols like HTTP, Java Messaging
Service(JMS), Database APIs, Web services
can be used to integrate
Advantage is faster time to deploy and is
cheaper in the long run. Protocols are easier to
integrate with. Out-of-the-box solution
Disadvantage is sending SMS is not as fast as
those directly connected to the telcos

SMS Appliance

References
Wikipedia
http://www.portioresearch.com
http://www.developershome.com/sms
http://www.globe.com.ph
http://www.koreatimes.co.kr
http://www.slideshare.net/andre4e/sms-
trends-august-2008-presentation

References
http://www.textrack.com
http://www.textually.org

Thank you!
For questions, you can contact me at
http://www.melvindaveconsulting.com
melvin@melvindaveconsulting.com
+63.915.5378394