Data Warehouse Manager Question:
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What is the difference between OLTP and OLAP?
Answer:
OLTP is the transaction system that collects business data. Whereas OLAP is the reporting and analysis system on that data.
OLTP systems are optimized for INSERT, UPDATE operations and therefore highly normalized. On the other hand, OLAP systems are deliberately denormalized for fast data retrieval through SELECT operations.
In a departmental shop, when we pay the prices at the check-out counter, the sales person at the counter keys-in all the data into a "Point-Of-Sales" machine. That data is transaction data and the related system is a OLTP system.
On the other hand, the manager of the store might want to view a report on out-of-stock materials, so that he can place purchase order for them. Such report will come out from OLAP system.
OLTP systems are optimized for INSERT, UPDATE operations and therefore highly normalized. On the other hand, OLAP systems are deliberately denormalized for fast data retrieval through SELECT operations.
In a departmental shop, when we pay the prices at the check-out counter, the sales person at the counter keys-in all the data into a "Point-Of-Sales" machine. That data is transaction data and the related system is a OLTP system.
On the other hand, the manager of the store might want to view a report on out-of-stock materials, so that he can place purchase order for them. Such report will come out from OLAP system.
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