Difference between OLTP and OLAP

What is OLTP?

OLTP stands for On-line Transaction Processing involves frequent data updates containing more current data and limited historical data. OLTP represents considerable amount of short on-line transactions (INSERT, UPDATE, DELETE). It includes itemized day to day transaction data that keeps changing on daily basis and widens the customer base by simplifying the individual processes

E.g. Online banking, ATM

What is OLAP?

OLAP stands for On-line Analytical Processing, is a data warehouse repository where the historical data is stored in multi-dimensional schemas. It is characterized by relatively low volume of transactions and Queries are often complex and involve aggregations.  OLAP applications are widely used by Data Mining Techniques. It is a tool that enables the end users to easily access the data to retrieve information for planning, budgeting, forecasting and analysis.

E.g. Monthly Sales chart comparison, Analysing current product in demand


Difference between OLTP and OLAP

Purpose Running the business process. Created for Real time business operations Analysing the data and taking informed business decision
Type of Data Operational data /Transactional or current data Data is integrated, summarized and historical
Source of Data Data is captured during the business process execution OLAP data comes from OLTP databases
Functionality Online database modifying system Online database Query management system
Database Design Tables are normalized De-normalized tables
Query Standardized and Simple queries Complex queries and involves aggregation
Process Processing speed is faster due to daily use of data Depending on the data and complex queries may take time.
Back-Up Complete back-up of data as the data is critical to run the business Back-up is not required on regular basis. Only requires time to time back-up.



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