Online analytical processing (OLAP)

Concept and definition

Online analytical processing (OLAP)

What is Online analytical processing (OLAP)?

Online analytical processing (OLAP) is a data processing technique used to analyse large multidimensional data sets. OLAP is a form of data analytics that focuses on the interactive analysis of data from different perspectives and levels of aggregation.

Unlike online transactional processing (OLTP), which is used to process real-time transactions in a database, OLAP focuses on analysing large amounts of historical data and allows users to perform complex queries and generate reports. OLAP uses multidimensional data cubes to store and analyse data, where each dimension of the cube represents a variable or attribute and each cell contains a measure that can be analysed.

OLAP systems are commonly used in businesses to analyse sales, finance and marketing data, among others, and allow users to perform real-time analysis and make informed decisions based on the data. OLAP is also a useful technique in business intelligence data analysis and can be used in conjunction with machine learning techniques to gain valuable insights from data.

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