OTLP vs OLAP : Difference between OTLP and OLAP

oltv vs olap

OLTP is expanded as Online Transactional Processing, and OLAP is expanded as Online Analytical Processing. As the name says, OLTP is the process of managing and updating the transactions in the databases, whereas OLAP is the process of retrieving the required data from the database for the purpose of using it for Analytical actions. OLTP is usually simple and involves effortless querying in the system, while OLAP is a complex system with larger volumes of data and hence requires complicated querying.

Online Transactional Processing (OLTP)

A Data Warehouse contains the OLTP system data in de-normalized form typically in a Star or Snowflake schema structure. It stores a subset of the data in the system that is later going to be analyzed. A Data Mart is sometimes used synonymously with Data-Warehouse. Specifically, when it comes to an Enterprise, a DWH (Data-Warehouse) is the encompassing structure, whereas Data Marts then refer to self-contained parts that sum up to the DWH but can as well be managed and analyzed independently and provide a restricted view on a certain area of the enterprise, for example on a certain business process like Purchase, IT, HR etc.

    OLTPSo a couple of examples of the OLTP system are:

    • ATM
    • Banks
    • Malls
    • Booking trains and flights online
    • E-commerce

    Characteristics of OLTP Model:

    • Online connectivity
    • LAN,WAN
    • Availability – Available 24 hours a day
    • Response rate: – Rapid response rate and Load balancing by prioritizing the transactions
    • Cost :– Cost of transactions is less
    • Update facility :– Less lock periods ,Instant updates and Use the full potential of hardware and software

    Online Analytical Processing (OLAP)

    An OLAP system on the other hand refers to carrying out analysis, on historical data transactions that have occurred over time. It is mainly used for read-only querying, and therefore is optimized to serve that purpose. The system should achieve a response time within seconds for any activity, for example: expanding from a product’s sales information to the products categories sales hierarchical information or comparing numbers with previous year’s sales numbers. OLAP systems are used for their heavy read-access on contiguous blocks of data and you need good in-memory and disk performance. Typically they are ideal for SSD (Solid State Drive) based fast storage for high random and sequential reads.




    An E-commerce company would like to compare the figure of its sales for the month of February and March and would also like to see the sales region wise, then state wise, time wise and finally country wise.n order to achieve this, a system should be in place which will insert the data from different OLTP Databases to Data warehouse and apply the ETL process. Then OLAP developers will fetch data from the OLAP system and create different types of reports and charts based on the business requirement. Examples of OLAP software is – SAP BI/BO/BOBJ, Power BI from Microsoft, Tableau, Spotify, SAS, Python and R, Excel, Apache Spark, Splunk, Google Analytics.

    Characteristics of OLAP Model:-

    • Multidimensional analysis
    • Support for complex queries
    • Advanced database support  :– Support large databases, Access different data sources, Access aggregated data and detailed data
    • Easy-to-use End-user interface :– Easy to use graphical interfaces, Familiar interfaces with previous data analysis tools
    • Client-Server Architecture :– Provides flexibility, Can be used on different computers, More machines can be added

    OLAP vs OLTP

    Category for comparison

    OLAP system (Online Analytical Processing)

    OLTP system (Online Transactional Processing)


    To analyze the business: helps in decision-making, forecasting, planning, problem solving

    To run the business: helps in business tasks management

    Data Source

    Historical / archive data

    Operational data

    Data Function

    Multidimensional views of various business activities help planning, decision support

    Running controlled business tasks, presenting an overview of ongoing business processes

    Inserts / Updates

    Periodic long-running batch processes refresh the data

    Short and fast inserts and updates carried out by end users


    Queries of any complexity

    Simple queries

    Transaction speed

    Depends on the amount of data

    Very fast

    Space requirements

    Vast because of aggregation structure

    Relatively small

    OLTP vs OLAP Database design

    Typically denormalized with fewer tables / star and snowflake schemas

    Highly normalized with numerous tables

    Backup and Recovery

    As a substitute for regular backups like in OLTP, some environments can offer to reload the data as a recovery method

    Obligatory. The intelligence is crucial to run the business. Operational data loss can result in serious financial loss and legal liability


    Tables are not normalized

    Tables in the database are normalized in 3NF


    Due to rare modifications, integrity is not affected

    Maintaining data integrity constraint


    Executives, CEO, data scientists

    Programmers, database professionals, clerks


    Customer oriented

    Market oriented

    Advantages and disadvantages of OLAP and OLTP

    The system




    • Single platform for all business analytics needs which is the core pro among advantages of OLAP over OLTP;
    • Information and calculations consistency and accuracy;
    • High security level as it is easy to impose restrictions on users and save important secret data;
    • Provides possibility to operate complex queries.
    • Difficult and long implementation process, which requires IT specialist assistance;
    • High cost;
    • Requires cooperation between departments for efficient work that is not always possible.


    • Solves problem of daily transactions administration;
    • Simplify individual processes and complex tasks;
    • Provides high transactions’ speed.
    • In case of hardware failure all transactions will be affected;
    • Possible complications can be caused as multiple users have an access to the system as well as the capability to modify it.


    OLTP is a system to modify data online whilst OLAP is an online multidimensional data retrieval system, which extracts the data that can help in business to analyze the performance, develop strategies and make decisions. OLTP system is a provider of data for OLAP environment. The systems are functional to different objectives but both of them help deal with a big amount of data. OLAP is up to let you figure out places, time and reasons your clients buy, foresee market tendencies and future requirements thanks to data mining and analysis, whereas OLTP can grant your clients with personalized loyalty programs and provide them with a credible service.

    Hopefully that gives you a good insight of what the difference is between OLTP and OLAP systems.