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OLAP and OLTP are similar terms that refer to different types of systems. OLTP, which stands for online
transaction processing, conducts real-time transactions in an online database for a business. OLTP systems
automatically update business accounts and other information, allowing for quick and accurate transactions
between customers and employees. While an OLTP system inputs transactional data for a company, an
OLAP system focuses on analyzing complex data sets, such as financial or sales data.
WHAT IS OLTP?
OLTP or Online Transaction Processing is a type of data processing that consists of executing a number of
transactions occurring concurrently—online banking, shopping, order entry, or sending text messages, for
example. These transactions traditionally are referred to as economic or financial transactions, recorded and
secured so that an enterprise can access the information anytime for accounting or reporting purposes.
USES OF OLTP.
The advantages of OLTP are its ability to handle many transaction requests simultaneously (called
concurrency) and the ability to reliably backup and continue if part of the system fails (called atomicity).
It allows its users to perform operations like read, write and delete data quickly.
What value does it provide?
OLAP (Online Analytical Processing) was introduced into the business intelligence (BI) space over 20 years
ago, in a time where computer hardware and software technology weren’t nearly as powerful as they are
today. OLAP introduced a groundbreaking way for business users (typically analysts) to easily perform
multidimensional analysis of large volumes of business data.
Uses for OLAP
Sales reporting
Marketing
Management reporting
Process management
Budgeting
Forecasting
Types of OLAP systems
MOLAP
ROLAP
HOLAP
BENEFITS OF OLAP.
Greater insights: The more sample data a company can analyze, the more it can typically predict future
results.
Reliable data: OLAP is the technology that many business intelligence programs use, and it automatically
calculates its figures and trends, rather than a person calculating these figures manually.
Ad hoc reporting: OLAP technology allows businesses to access data views whenever they need them.
Multidimensional data: Unlike flat or two-dimensional data, such as sales over time, the multiple
dimensions in an OLAP cube show how more aspects of a business affect each other.
Quick access: Rather than compiling data from many sources, programs that use OLAP provide this
information quickly.