Question

Online transaction processing (OLTP) and online analytical processing (OLAP) are similar MIS strategies used to help with business decision making. What is the primary difference between OLTP and OLAP?

Answer 1

OLTP ( On-line Transaction Processing )

As the name suggests, this system is designed for handling transactions on web applications.

Examples include Banking system.

OLAP ( On-line Analytical Processing )

As per the name, this system is developed for analyzing and reporting functions for web applications.

These systems form a part of data warehousing.

Examples include data mining for Banking system.

OLTP databases undergo ETL operations to form a part of OLAP system. Data from several OLTP database are extracted as per the requirements, transformed ( formatted and cleaned ) to fit the OLAP requirements, and loaded into the OLAP system.

Similarities

• Both OLTP and OLAP are designed for online processing and support web based applications.

• In both systems, processing is done on large scale owing to their online presence.

Differences

• OLTP is designed to handle daily operation. OLAP is designed for decision support.

• OLTP supports data update and data insert operations. OLAP supports data analysis.

• OLTP supports insert, update and delete operations only. OLAP supports data extraction to support decision making process.

• Transactions form the source of data. Several OLTPs form the source of data.

• In OLTP, transactions are shorter in nature. In OLAP, transactions are longer.

• In OLTP, processing time is shorter. In OLAP, processing time is longer.

• Data modification queries are simpler. Data analysis queries are complex in nature.

• OLTP are normalized up to third normal form. OLAP are not normalized.

• Data in OLTP system are frequently modified. Data in OLAP systems are not frequently modified.

• OLTP should maintain data integrity. Data integrity in OLAP is unaffected.

• OLTP stores only current data. OLAP stores historical data.

• OLAP systems must have periodic back up. OLTP back up is achieved by reloading the databases.

The major differences are discussed above to clarify the functioning of both the systems.