OVERVIEW

• INTRODUCTION TO DATABASE
• INTRODUCTION TO DATA WAREHOUSE
• DIFFERENCE BETWEEN DATABASE AND DATA WAREHOUSE
• WHAT IS OLAP?
• WHAT IS OLTP?
• DIFFERENCE BETWEEN OLTP AND OLAP
• ADVANTAGES AND DISADVANTAGES OF OLAP
• ADVANTAGES AND DISADVANTAGES OF OLTP
 Database
• Database System is used in traditional way of storing and retrieving data.
• The major task of database system is to perform query processing.
• These systems are generally referred as online transaction processing
system.
• These systems are used day to day operations of any organization.
 Data warehouse
• A data warehouse is a system that
aggregates data from different sources
into a single, central, consistent data store
to support data analysis, data mining,
artificial intelligence (AI), and machine
learning.
• A data warehouse system enables an
organization to run powerful analytics on
huge volumes (terabytes and petabytes)
of historical data in ways that a
standard database cannot.
  Generally speaking, data warehouses
have a three-tier architecture, which
consists of a:
• Bottom tier: The bottom tier consists
of a data warehouse server which
collects, cleanses, and transforms data
from multiple data sources through a
Architecture process known as Extract, Transform,
of Data and Load (ETL).
• Middle tier: The middle tier consists of
Warehouse an OLAP (i.e. online analytical
processing) server which enables fast
query speeds.
• Top tier: The top tier is represented by
some kind of front-end user interface or
reporting tool, which enables end users
to conduct ad-hoc data analysis on
their business data.
Database System Data Warehouse

It supports operational processes. It supports analysis and performance reporting.

Capture and maintain the data. Explore the data.

Current data. Multiple years of history.
Data is balanced within the scope of this one Data must be integrated and balanced from
system. multiple system.

Data is updated when transaction occurs. Data is updated on scheduled processes.

100 MB to GB. 100 GB to TB.

ER based. Star/Snowflake.
Application oriented. Subject oriented.
Primitive and highly detailed. Summarized and consolidated.
WHAT IS OLAP?

• Online analytical processing (OLAP) is a system for performing multi-dimensional

analysis at high speeds on large volumes of data.
• Typically, this data is from a data warehouse, data mart or some other centralized
data store.
• OLAP is ideal for data mining, business intelligence and complex analytical
calculations, as well as business reporting functions like financial analysis, budgeting
and sales forecasting.
• The primary objective is data analysis and not data processing.
 ▪ There are 3 main types of OLAP servers are as
Types of OLAP following:
1.Relational OLAP (ROLAP) – Star Schema based
2.Multidimensional OLAP (MOLAP) – Cube based
3.Hybrid OLAP (HOLAP) – HOLAP is a combination of
ROLAP and MOLAP.
The core of most OLAP databases is the OLAP cube, which allows you to quickly query,
report on and analyze multidimensional data.
The OLAP cube extends the row-by-column format of a traditional relational database
schema and adds layers for other data dimensions.
WHAT IS OLTP?

• Online transactional processing (OLTP) enables the real-time execution of large

numbers of database transactions by large numbers of people, typically over the
Internet.
• OLTP systems are behind many of our everyday transactions, from ATMs to in-store
purchases to hotel reservations. OLTP can also drive non-financial transactions,
including password changes and text messages.
• Many organizations use OLTP systems to provide data for OLAP. In other words, a
combination of both OLTP and OLAP are essential in our data-driven world.
• The primary objective is data processing and not data analysis
• Because the type of data stored in a database is different to a data warehouse,
it makes sense that the type of information a database can provide differs
from the information that a data warehouse can provide.

• Think about your parents going to your school and asking your teachers and
the principal the same questions:

1. How is my child doing in class?

2. Will my child succeed at this school?

• If your parents asked your teacher question 1, they would probably get a
response that is along the lines of,

• “Oh, Ramesh is doing very well in class at the moment. You should be proud of him."

• If your parents asked the principal question 1, they would probably respond
with,

• "Who?"

• If we think of the teacher as the database and the principal as the data
warehouse, the teacher gets to see Ramesh everyday. They teach and interact
with Ramesh everyday and so they would have the most up-to-date
information about Ramesh at school.

• On the other hand, if your parents asked the teacher question 2, the teacher
won't have enough data to tell your parents straight away.

• If your parents asked the principal question 2, the principal will say straight
away:

• "Our school has experienced a 95% passing rate over the last 5 years so I can extremely
confident that your child will also succeed at our school."

• The principal (or data warehouse) aggregates all data necessary from
students, teachers, and classes (the databases) over time to make big, bold
claims (analytical statements) like that.
 OLTP system (Online
OLAP system (Online
Category for comparison Transactional
Analytical Processing)
Processing)

To analyze the business:

To run the business: helps
helps in decision-making,
Purpose in business tasks
forecasting, planning,
management
problem solving

Data Source Historical / archive data Operational data

Multidimensional views of Running controlled

various business activities business tasks, presenting
Data Function
help planning, decision an overview of ongoing
support business processes

Periodic long-running Short and fast inserts and

Inserts / Updates batch processes refresh updates carried out by
the data end users

Queries Queries of any complexity Simple queries

Depends on the amount

Transaction speed Very fast
of data
Vast because of
Space requirements Relatively small
aggregation structure
 OLTP system (Online
Category for OLAP system (Online
Transactional
comparison Analytical Processing)
Processing)
Typically denormalized
OLTP vs OLAP Highly normalized with
with fewer tables / star
Database design numerous tables
and snowflake schemas
Obligatory. The
As a substitute for
intelligence is crucial to
regular backups like in
run the business.
OLTP, some
Backup and Recovery Operational data loss
environments can offer
can result in serious
to reload the data as a
financial loss and legal
recovery method
liability
Tables are not Tables in the database
Normalization
normalized are normalized in 3NF
Due to rare
Maintaining data
Integrity modifications, integrity
integrity constraint
is not affected
Executives, CEO, data Programmers, database
Users
scientists professionals, clerks
Audience Customer oriented Market oriented
Advantages of using OLAP services
• OLAP creates a single platform for all types of business analytical needs which includes planning, budgeting,
forecasting, and analysis.

• The main benefit of OLAP is the consistency of information and calculations.

• Easily apply security restrictions on users and objects to comply with regulations and protect sensitive data.

Disadvantages of OLAP service

• Implementation and maintenance are dependent on IT professional because the traditional OLAP tools require a
complicated modeling procedure.

• OLAP tools need cooperation between people of various departments to be effective which might always be not
possible.
Advantages of OLTP method

• It administers daily transactions of an organization.

• OLTP widens the customer base of an organization by simplifying individual processes.

Disadvantages of OLTP method

• If OLTP system faces hardware failures, then online transactions get severely affected.
• OLTP systems allow multiple users to access and change the same data at the same time which many times
created unprecedented situation.

Both, OLAP and OLTP have their unique capabilities and it is not about choosing which one is better. In
any organisation, a combination of both OLTP and OLAP is essential in our data-driven world.