The primary objective is data analysis and not data processing.
What is OLTP?
Online transaction processing shortly known as OLTP supports transaction-oriented applications in a 3-tier architecture. OLTP administers day to day transaction of an organization. The primary objective is data processing and not data analysis
Example of OLAP
Any Datawarehouse system is an OLAP system. Uses of OLAP are as follows
Example of OLTP system
An example of OLTP system is ATM center. Assume that a couple has a joint account with a bank. One day both simultaneously reach different ATM centers at precisely the same time and want to withdraw total amount present in their bank account. However, the person that completes authentication process first will be able to get money. In this case, OLTP system makes sure that withdrawn amount will be never more than the amount present in the bank. The key to note here is that OLTP systems are optimized for transactional superiority instead data analysis. Other examples of OLTP applications are:
Online banking Online airline ticket booking Sending a text message Order entry Add a book to shopping cart
Difference between OLTP and OLAP
Below is the difference between OLAP and OLTP in Data Warehouse:
Benefits of using OLAP services
OLAP creates a single platform for all types 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.
Drawbacks of OLAP service
Implementation and maintenance are dependent on IT professional because the traditional OLAP tools require a complicated modeling procedure. OLAP tools need cooperation between people of various departments to be effective which might always be not possible.
Drawbacks of OLTP method
If OLTP system faces hardware failures, then online transactions get severely affected. OLTP systems allow multiple users to access and change the same data at the same time which many times created unprecedented situation.
