Online Transaction Processing (OLTP) Vs Online Analytical Processing (OLAP)

Category: SAP BO BI Posted:Mar 14, 2016 By: Ashley Morrison


Online-Transaction-Processing-OLTP-Vs-Online-Analytical-Processing-OLAPThis article briefly tells you about the difference between OLTP and OLAP in SAP BO BI 4.2.

Before we understand the difference between OLTP and OLAP, let us see a brief introduction to OLTP and OLAP.

Online Transaction Processing (OLTP)

In Business Object Analysis, Online Transaction Processing deals with operational which is involved in the operation in the particular system. Here, the data are periodically updated and queried, as a result quick response is expected. The database tables are optimised for write operations as there is large number of update queries in OLTP.

For example:

Depositing amount in a banking system is an best example. The account number, depositing amount, available amount, Transaction number, balance amount is the operational data elements. This type of data is usually of local relevance and includes queries including individual tuple. These queries are called as Point Queries.

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Online Analytical Processing

In BO Analysis, OLAP deals with Historical data, which are archived over a long period of time.

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The data will be collected and stored it in a large database called Data warehouse. These storages are highly optimized for READ operations. The transactional data is extracted from multiple OLTP Sources, pre-processed to make it compatible with the data warehouse format.

For example:

If we collect last 10 years of data about train reservation in IRCTC. This data gives us important information such as the trends in reservation, peak time of travel and in which class people will travel (in normal coach, AC coach or Sleeper coacher).

Now let us see the differences between OLAP and OLTP.


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  • Online Analytical Processing (OLAP) is a classification of software tools that examine data stored in a database while Online exchange handling (OLTP) underpins transaction-oriented applications in a 3-level architecture. 
  • OLAP makes a solitary platform for all kinds of business analysis needs which includes planning, budgeting, forecasting, and analysis while OLTP is useful to administer the day to day transactions of an organization.
  • OLAP is described by an enormous volume of data while OLTP is portrayed by huge quantities of short online transactions. 
  • In OLAP, the data warehouse is made extraordinarily with the goal that it can coordinate various data sources for building a combined database while OLTP utilizes conventional DBMS.

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