Databases & Data Storage
OLAP
Definition
Online Analytical Processing (OLAP) is a category of software that allows users to analyze information from multiple database systems at the same time. It is a technology that enables analysts to quickly and easily examine and manipulate large amounts of data from many perspectives.
Why It Matters
OLAP systems are what power business intelligence. They allow for complex, multi-dimensional analysis of data, helping businesses to discover trends, patterns, and insights that would be impossible to find in a transactional database.
Contextual Example
A business analyst uses an OLAP cube to analyze sales data. They can "slice and dice" the data to view sales by region, by product category, by time period, and by customer demographic, all at the same time.
Common Misunderstandings
- OLAP databases are designed for a small number of users running very complex read queries.
- They are contrasted with OLTP (Online Transaction Processing) systems, which are designed for a large number of users performing small, simple transactions.