Data Warehouse Manager Interview Question:

Explain what is the difference between OLTP and OLAP?

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OLTP is known as online transaction processing and it refers to the class of systems that manages the transaction oriented applications used for the data entry and processing of the transaction whereas, OLAP stands for online analytical processing that defines an approach to give the reply to multi-dimensional analytical queries. It is a part of business intelligence. It allows the modification to be done of the traditional database terms.

OLTP uses the original data source to be taken in the database. It doesn't create any copy or uses any virtual data. OLAP uses many data sources that are taken from many places and gets stored in the database.

OLTP uses the business process snapshots that will handle the recovery process if any that has to be done in future. Whereas, OLAP uses the snapshots of multi-dimensional views of business activities of planning and decision making that is required to be used in the database.

OLTP uses the normalization database that will slow down the system due the size of the database and the normalization also degrades the performance. Whereas, OLAP uses the de-normalized process and uses the large database so the speed also increases and it improves the overall performance of the system as well
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