[BOOK REVIEW] The Data Warehouse Toolkit by Ralph Kimball/OLAP vs. OLTP

Hang Nguyen
2 min readMar 21, 2022

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OLAP : Opt for analysis and aggregations for decision-making

Online analytical processing (OLAP) is a system for performing multi-dimensional analysis at high speeds on large volumes of data. -IBM

Examples of OLAP can be financial analysis, sales forcasting, budget planning and so on.

The core of OLAP is the OLAP cube, which is executed on the mechanism of row-by-column and adds layers to data dimensions. The main benefit of OLAP is the consistency of information and calculations. The drawback lies in load performance price for these below mentioning capabilities, especially with large data sets.

Since performance aggregations or precalculated summary tables are often created and managed by the OLAP cube engine, cubes then deliver superior query performance because of the precalculations, indexing strategies, and other optimizations

OLAP cube (page 9)

OLTP: Opt for execution, transaction

Online transactional processing (OLTP) enables the real-time execution of large numbers of database transactions by large numbers of people, typically over the Internet. — IBM

Examples of OLTP system can be everyday transactions, ATMs, online shopping, hotel or flight reservation and so on.

For OLTP transactions and responses, every millisecond counts.

OLTP systems use a relational database that can do the following:

- Process a large number of relatively simple transactions — usually insertions, updates and deletions to data.

- Enable multi-user access to the same data, while ensuring data integrity.

- Support very rapid processing, with response times measured in milliseconds.

- Provide indexed data sets for rapid searching, retrieval and querying.

- Be available 24/7/365, with constant incremental backups.

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Hang Nguyen

A Data Engineer with a passion for technology, literature, and philosophy.