OLTP vs. OLAP

OLTPvs. OLAP : What’s the Difference?

OLAP(Online Analytical Processing)

OLTP(Online Transaction Processing)

 

The main difference is that one uses data to gain valuable insights, while the other is purely operational. 

 

Online analytical processing (OLAP) is a system for performing multi-dimensional analysis at high speeds on large volumes of data. Typically, this data is from a data warehouse, data mart or some other centralized data store. OLAP is ideal for data mining, business intelligence and complex analytical calculations, as well as business reporting functions like financial analysis, budgeting and sales forecasting. ◀ uses data to gain valuable insights

 

Online transactional processing (OLTP) enables the real-time execution of large numbers of database transactions by large numbers of people, typically over the Internet. OLTP systems are behind many of our everyday transactions, from ATMs to in-store purchases to hotel reservations. OLTP can also drive non-financial transactions, including password changes and text messages. ◀ uses data to purely operate

 

OLAP is optimized for conducting complex data analysis for smarter decision-making. OLAP systems are designed for use by data scientists, business analysts and knowledge workers, and they support business intelligence (BI), data mining and other decision support applications.

OLTP, on the other hand, is optimized for processing a massive number of transactions. OLTP systems are designed for use by frontline workers (e.g., cashiers, bank tellers, hotel desk clerks) or for customer self-service applications (e.g., online banking, e-commerce, travel reservations).

 

Most of the time, organizations use both OLAP and OLTP systems. In fact, OLAP systems may be used to analyze data that leads to business process improvements in OLTP systems.

 

 

 

 

Source: https://www.ibm.com/cloud/blog/olap-vs-oltp