OLTP stands for
Online Transaction Processing, OLTP System deals with operational data.
Operational Data is business transaction or activities which happen every day
in the business i.e. In a banking system, you withdraw amount from your bank
account, then withdrawal amount, available balance, account number, transaction
number etc is operational data. In OLTP system, data is frequently inserted,
updated and queried. OLTP system is most optimized to perform DML operation.
OLAP stands for
Online Analytical Processing, OLTP System deals with historical data or
archival data. OLAP systems are highly optimized for read operation. OLAP systems
collects data over a period of time and store it in a very large database
called Data Warehouse. This historical data is used for analysis purpose and to
understand the trend of important KPI i.e. if we collect last 5 years of flight
reservation data, then data can give us much meaningful information such as
trends in reservation, peak reservation time, peak booking hours etc.
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