Transaction Processing vs. Analytical Processing


In successful businesses and organizations, there are online database systems which help the business to know its status. These online database systems divide into online transaction processing (OLTP) and online analytical processing (OLAP). These two are similar in the sense that they monitor and tell the status of the business. However, they have their differences in other factors.

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OLTP covers and deals with the day to day operations of a business or organization. These activities include accounting, registration, purchasing, manufacturing and many others. It mainly dwells on the customers. Therefore, it is used by the people who run the day to day transactions of a business. These include the clerk, the technology professionals as well as clients. On the other hand, OLAP serves the people who apply knowledge in decision making (Röhm 2002). These systems help in the analyzing of data. Therefore, they are vital in decision making. Therefore, it goes to knowledge workers like manager executives and analysts. Unlike OLTP which bases on day to day transactions, OLTP requires long-term information. Therefore, it is historical since it maintains its accuracy over time (Williamowski and Irwin 2011).

OLTP processes operations while OLAP processes information. The processing of information which has been gathered for a long time makes OLAP to be more challenging. It is more complex and detailed compared to OLTP which only deals with small sets of data which are collected on a daily basis. However, it is of considerable importance to a firm since it guides decision making (Prabhu 2004).

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It is clear that both of these two databases are vital for an organization’s success. Any organization that has endorsed the use of technology should adopt both databases. This ensures that the business is running well in the short run as well as in the long run. It makes sure that the decisions made in an organization make a positive impact.