Organizations use database technology to store data that they collect, analyze, measure, and monitor as they conduct business. Data that is captured during transactional processes, as organizations sell products and services to their customers, is best structured in an OLTP database.

OLTP and OLAP

Organizations use database technology to store data that they collect, analyze, measure, and monitor as they conduct business. Data that is captured during transactional processes, as organizations sell products and services to their customers, is best structured in an OLTP database. Data that is used to analyze trends, key metrics, summary data, and for data mining is best stored in an OLAP database. Database designers need to understand the differences between OLTP and OLAP data and how to best design and build databases to support OLTP or OLAP requirements.

From the perspective of a Database Designer, identify the differences between Online Transaction Processing (OLTP) and Online Analytical Processing (OLAP) databases. Explain when a company would choose one database over the other and why.

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