Question

Describe the key characteristics of data warehouse and how it differs in content, structure and function from online transaction processing(OLTP). Support your answer with suitable diagrams and examples

Answer 1

• Function: Data warehouse/OLAP is a category of software tools that analyze data stored in a database whereas Online transaction processing (OLTP) supports transaction-oriented applications in a 3-tier architecture.
• Content: Data warehouse/OLAP creates a single platform for all type of business analysis needs which includes planning, budgeting, forecasting, and analysis while OLTP is useful to administer day to day transactions of an organization.
• Content: Data warehouse/OLAP is characterized by a large volume of data while OLTP is characterized by large numbers of short online transactions.
• Structure: In OLAP, data warehouse is created uniquely so that it can integrate different data sources for building a consolidated database whereas OLTP uses traditional DBMS.