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OLTP and OLAP: The two terms look similar but refer to different kinds of systems. Online transaction processing (OLTP) captures, stores, and processes data from transactions in real time. Online analytical processing (OLAP) uses complex queries to analyze aggregated historical data from OLTP systems.

KEY DIFFERENCE between OLTP and OLAP:

  • Online Analytical Processing (OLAP) is a category of software tools that analyze data stored in a database whereas Online transaction processing (OLTP) supports transaction-oriented applications in a 3-tier architecture.
  • OLAP creates a single platform for all type of business analysis needs which includes planning, budgeting, forecasting, and analysis while OLTP is useful to administer day to day transactions of an organization.
  • OLAP is characterized by a large volume of data while OLTP is characterized by large numbers of short online transactions.
  • In OLAP, data warehouse is created uniquely so that it can integrate different data sources for building a consolidated database whereas OLTP uses traditional DBMS.


Benefits of using OLAP services

 

  • OLAP creates a single platform for all type of business analytical needs which includes planning, budgeting, forecasting, and analysis.
  • The main benefit of OLAP is the consistency of information and calculations.
  • Easily apply security restrictions on users and objects to comply with regulations and protect sensitive data.


Benefits of OLTP method

  • It administers daily transactions of an organization.
  • OLTP widens the customer base of an organization by simplifying individual processes

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