Data Mining P
Data Mining P
Key Features:
• Data Type: Historical and aggregated data
• Operations: Read-heavy operations like reporting, data mining, and trend analysis
• Query Complexity: Complex queries involving multiple joins and aggregations
• Response Time: Longer processing time due to heavy calculations
• Data Modification: Less frequent, mostly read operations
• Normalization: Denormalized data (star or snowflake schema) for faster query performance
EXAMPLE
• A business executive wants to analyze last year's sales trends across different regions to make strategic
decisions.
• Data is retrieved from a data warehouse, aggregated, and presented in the form of reports or dashboards.
Advantages of OLAP:
• Helps in keeping consistency and performing calculation on data.
• Can store planning, analysis, and budgeting for business analytics within one platform.
• Efficiently handle large volumes of data, making them suitable for enterprise-level business
applications.
• Assist in applying security restrictions for data protection.
• Provide a multidimensional view of data, which helps in applying operations on data in various ways.
Disadvantages of OLAP:
• Requires professionals to handle the data because of its complex modeling
procedure.
• Expensive to implement and maintain in cases when datasets are large.
• Data analysis occurs only after extraction and transformation, leading to system
delays.
• Not efficient for decision-making, as it is updated on a periodic basis.
OLTP (Online Transaction Processing)
OLTP is designed for real-time transactions and operational database
systems that handle a high volume of simple, fast transactions.
Key Features:
• Data Type: Real-time, transactional data
• Operations: Insert, update, delete, and retrieve operations
• Query Complexity: Simple queries (e.g., CRUD operations)
• Response Time: Very fast, in milliseconds
• Data Modification: Frequent read and write operations
• Normalization: Highly normalized to reduce redundancy and
maintain data integrity
EXAMPLE
• A banking application processes customer transactions such as withdrawals, deposits, and fund transfers.
• When a customer transfers money, the system updates the sender’s and receiver’s account balances instantly.
Advantages of OLTP:
• Helps in keeping consistency and performing calculation on data.
• Can store planning, analysis, and budgeting for business analytics within one platform.
• Efficiently handle large volumes of data, making them suitable for enterprise-level business applications.
• Assist in applying security restrictions for data protection.
• Provide a multidimensional view of data, which helps in applying operations on data in various ways.
Disadvantages of OLTP:
• Requires professionals to handle the data because of its complex modeling procedure.
• Expensive to implement and maintain in cases when datasets are large.
• Data analysis occurs only after extraction and transformation, leading to system delays.
• Not efficient for decision-making, as it is updated on a periodic basis.
•Difference between OLTP vs OLAP
• Conclusion
OLTP (Online Transaction Processing) and OLAP (Online Analytical Processing) serve different
purposes in database management. OLTP systems focus on real-time transaction processing, ensuring fast,
consistent, and reliable operations, making them suitable for applications like banking, e-commerce, and
order management. On the other hand, OLAP systems are designed for complex data analysis, enabling
businesses to extract insights, generate reports, and support decision-making processes.
While OLTP emphasizes speed and efficiency in handling day-to-day transactions, OLAP prioritizes
data aggregation and analytical capabilities to help organizations understand trends and make strategic
decisions. Both systems are essential in modern data management, often working together to provide a
comprehensive approach to handling and analyzing business data.