Online Analytical Processing (OLAP) –
Online Analytical Processing consists of a type of software tools that are used for data analysis for business decisions. OLAP provides an environment to get insights from the database retrieved from multiple database systems at one time.
Examples – Any type of Data warehouse system is an OLAP system. Uses of OLAP are as follows:
- Spotify analyzed songs by users to come up with the personalized homepage of their songs and playlist.
- Netflix movie recommendation system.
Online transaction processing (OLTP) –
Online transaction processing provides transaction-oriented applications in a 3-tier architecture. OLTP administers day to day transaction of an organization.
Examples – Uses of OLTP are as follows:
- ATM center is an OLTP application.
- OLTP handles the ACID properties during data transaction via the application.
- It’s also used for Online banking, Online airline ticket booking, sending a text message, add a book to the shopping cart.
Comparisons of OLAP vs OLTP –
| OLAP (Online analytical processing) | OLTP (Online transaction processing) |
|---|---|
| Consists of historical data from various Databases. | Consists only operational current data. |
| It is subject oriented. Used for Data Mining, Analytics, Decision making,etc. | It is application oriented. Used for business tasks. |
| The data is used in planning, problem solving and decision making. | The data is used to perform day to day fundamental operations. |
| It reveals a snapshot of present business tasks. | It provides a multi-dimensional view of different business tasks. |
| Large amount of data is stored typically in TB, PB | The size of the data is relatively small as the historical data is archived. For ex MB, GB |
| Relatively slow as the amount of data involved is large. Queries may take hours. | Very Fast as the queries operate on 5% of the data. |
| It only need backup from time to time as compared to OLTP. | Backup and recovery process is maintained religiously |
| This data is generally managed by CEO, MD, GM. | This data is managed by clerks, managers. |
| Only read and rarely write operation. | Both read and write operations. |
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