You may have heard about OLTP and OLAP a lot.

OLTP is a transactional system, and OLAP is analytical.

But how do you differentiate them in the real world? Let me tell you.

𝗢𝗟𝗧𝗣 (𝗢𝗻𝗹𝗶𝗻𝗲 𝗧𝗿𝗮𝗻𝘀𝗮𝗰𝘁𝗶𝗼𝗻𝗮𝗹 𝗣𝗿𝗼𝗰𝗲𝘀𝘀𝗶𝗻𝗴): These are the systems that help you turn the wheel, such as receiving orders, responding to complaints. It simply keeps data to keep the company operational.

𝗢𝗟𝗔𝗣 (𝗢𝗻𝗹𝗶𝗻𝗲 𝗔𝗻𝗮𝗹𝘆𝘁𝗶𝗰𝗮𝗹 𝗣𝗿𝗼𝗰𝗲𝘀𝘀𝗶𝗻𝗴): These systems help you watch the wheel. This means to analyze data to make informed data-driven decisions.

Some questions OLAP systems allow answers to –

• What is the best-selling category?
• How many sales compared to last quarter?
• Which user group is churning more?

Data Warehouse is there to answer those analytical needs.

That is the core and practical difference between OLTP and OLAP.

Questions or Opinions? Mention them in the comments!