OLTP (online transaction processing) VS OLAP (online analytical processing) are both types of production databases, however they have some key differences.
In this blog you’ll learn how these two databases differ.
OLTP provides an immediate record of current business activity. It is operational and used for the “here and now” – “real-time”.
To put it another way…
One may encounter OLTP databases in normal daily life. Examples include order entry, retail sales and financial transaction systems.
An ATM for instance is a great example of an OLTP database system.
An OLAP database generates and validates insights from data compiled over time. That historical perspective empowers accurate forecasting.
However, as with all business intelligence, the insights generated with OLAP are only as good as the data pipeline from which they emanate. It is more informational than operational.
Characteristics are listed in the bullets below:
Most people do not typically encounter these types of databases in daily life unless they actively use them in business. For example, inventory lists and databases consisting of historical customer information.
Oracle NetSuite is an example of this type of database.
These two databases do not compete against one another, they’re essentially two sides of the same coin. Two separate databases that work independently of one another.
Having the right OLAP and OLTP database structures can help improve ROI and lead to increased business intelligence.
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