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.
