NAME- RITIKA GUPTA

ROLL NO. - 71/PGDM

SECTION – 3rd B

ASSIGNMENT OF BAC

OLAP {Online Analytical Processing}

Online analytical processing (OLAP) is a technology that organizes large business
databases and supports complex analysis. It can be used to perform complex analytical
queries without negatively affecting transactional systems.

The databases that a business uses to store all its transactions and records are called OLTP
databases. These databases usually have records that are entered one at a time. Often,
they contain a great deal of information that is valuable to the organization. The databases
that are used for OLTP, however, were not designed for analysis. Therefore, retrieving
answers from these databases is costly in terms of time and effort. OLAP systems were
designed to help extract this business intelligence information from the data in a highly
performant way. This is because OLAP databases are optimized for heavy read, low write
workloads.

EXAMPLE OF OLAP
Any Datawarehouse system is an OLAP system. Uses of OLAP are as follows
• A company might compare their mobile phone sales in September with sales
in October, then compare those results with another location which may be
stored in a sperate database.
• Amazon analyzes purchases by its customers to come up with a personalized
homepage with products which likely interest to their customer.

BENEFITS OF USING OLAP SYSTEM

• OLAP creates a single platform for all type of business analytical needs
which includes planning, budgeting, forecasting, and analysis.
• The main benefit of OLAP is the consistency of information and
calculations.
 • Easily apply security restrictions on users and objects to comply with
regulations and protect sensitive data.

DRAWBACKS OF OLAP SERVICE

• Implementation and maintenance are dependent on IT professional
because the traditional OLAP tools require a complicated modeling
procedure.
• OLAP tools need cooperation between people of various departments to
be effective which might always be not possible.

OLTP {Online Transaction Processing}

OLTP is an operational system that supports transaction-oriented applications in
a 3-tier architecture. It administers the day-to-day transaction of an organization.
OLTP is basically focused on query processing, maintaining data integrity in
multi-access environments as well as effectiveness that is measured by the total
number of transactions per second. The full form of OLTP is Online Transaction
Processing.
The primary objective is data processing and not data analysis.

EXAMPLE OF OLTP
An example of OLTP system is ATM center. Assume that a couple has a joint account
with a bank. One day both simultaneously reach different ATM centers at precisely
the same time and want to withdraw total amount present in their bank account.
However, the person that completes authentication process first will be able to get
money. In this case, OLTP system makes sure that withdrawn amount will be never
more than the amount present in the bank. The key to note here is that OLTP
systems are optimized for transactional superiority instead data analysis.
Other examples of OLTP applications are:
 • Online banking
• Online airline ticket booking
• Sending a text message
• Order entry
• Add a book to shopping cart.

BENEFITS OF OLTP
• It administers daily transactions of an organization.
• OLTP widens the customer base of an organization by simplifying individual
processes.
DRAWBACKS OF OLTP
• If OLTP system faces hardware failures, then online transactions get severely
affected.
• OLTP systems allow multiple users to access and change the same data at the
same time which many times created unprecedented situation.

DIFFERENCE BETWEEN OLTP AND OLAP: -

Parameters OLTP OLAP

It is an online
OLAP is an online
transactional system. It
Process analysis and data
manages database
retrieving process.
modification.
It is characterized by
It is characterized by a
Characteristic large numbers of short
large volume of data.
online transactions.
OLTP is an online OLAP is an online
Functionality database modifying database query
system. management system.
OLTP uses traditional OLAP uses the data
Method
DBMS. warehouse.
 Insert, Update, and
Query Delete information from Mostly select operations
the database.
Tables in OLTP database Tables in OLAP database
Table
are normalized. are not normalized.
Different OLTP databases
OLTP and its transactions
Source become the source of
are the sources of data.
data for OLAP.
OLAP database does not
OLTP database must
get frequently modified.
Data Integrity maintain data integrity
Hence, data integrity is
constraint.
not an issue.
Its response time is in Response time in
Response time
millisecond. seconds to minutes.
The data in the OLTP
The data in OLAP process
Data quality database is always
might not be organized.
detailed and organized.
It helps to control and It helps with planning,
Usefulness run fundamental problem-solving, and
business tasks. decision support.
Allow read/write Only read and rarely
Operation
operations. write.
It is a market orientated It is a customer
Audience
process. orientated process.
Queries in this process
Complex queries
Query Type are standardized and
involving aggregations.
simple.
OLAP only need a backup
Complete backup of the
from time to time.
Back-up data combined with
Backup is not important
incremental backups.
compared to OLTP
DB design is subject
DB design is application
oriented. Example:
oriented. Example:
Database design changes
Design Database design changes
with subjects like sales,
with industry like Retail,
marketing, purchasing,
Airline, Banking, etc.
etc.
 It is used by Data critical
User type users like clerk, DBA &
Data Base professionals.
Designed for real time
Purpose
business operations.
Transaction throughput
Performance metric is the performance
metric
This kind of Database
Number of users users allows thousands
of users.
It helps to Increase user's
Productivity self-service and
productivity
Data Warehouses
historically have been a
Challenge development project
which may prove costly
to build.
It provides fast result for
Process
daily used data.
It is easy to create and
Characteristic
maintain.
OLTP is designed to have
fast response time, low
Style
data redundancy and is
normalized.
THANKYOU
Used by Data knowledge
users like workers,
managers, and CEO.
Designed for analysis of
business measures by
category and attributes.
Query throughput is the
performance metric.
This kind of database
allows only hundreds of
users.
Help to Increase
productivity of the
business analysts.
An OLAP cube is not an
open SQL server data
warehouse. Therefore,
technical knowledge and
experience is essential to
manage the OLAP server.
It ensures that response
to the query is quicker
consistently.
It lets the user create a
view with the help of a
spreadsheet.
A data warehouse is
created uniquely so that
it can integrate different
data sources for building
a consolidated database.