Differentiate Online Transaction Processing and Online Analytical Processing

Online Transaction Processing (OLTP)

OLTP systems are used for everyday tasks like recording sales, updating customer details, or processing orders. They focus on fast, real-time data processing.

Online Analytical Processing (OLAP)

OLAP systems are used for analyzing large amounts of data to make business decisions. They focus on summarizing and analyzing historical data for insights.

10 Differences Between OLTP and OLAP
FeatureOLTPOLAP
PurposeHandles daily operations (e.g., sales, orders).Analyzes data for decision-making.
Data TypeCurrent, real-time data.Historical, summarized data.
Database SizeSmaller, focused on recent transactions.Larger, stores years of data for analysis.
Query TypeSimple, short queries (e.g., update, insert).Complex, long-running queries.
SpeedFast, for quick transactions.Slower, for deep analysis.
UsersClerks, cashiers, everyday users.Managers, analysts, decision-makers.
FocusData processing and recording.Data analysis and reporting.
ExampleATM transactions, online shopping.Sales trends, business performance reports.
BackupFrequent backups needed.Less frequent backups.
DesignNormalized databases for efficiency.Denormalized databases for easy analysis.
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