Back to the 2020 paper

Module 1: Data Warehousing and Business Analysis

20207m

Compare and contrast data warehouse system and operational database system.

Worked SolutionAI Assisted

Data Warehouse vs Operational Database (OLTP)

Feature Operational DB (OLTP) Data Warehouse (OLAP)
Purpose Day-to-day transaction processing Analysis, decision support
Users Clerks, DBAs, front-line staff Managers, analysts, executives
Data content Current, detailed data Historical, summarized, consolidated data
Data model Normalized (E-R model), application-oriented Denormalized — star/snowflake schema, subject-oriented
Access pattern Short, atomic transactions (read/write/update) Complex queries, mostly read-only, large scans
Operations Insert, update, delete (many small txns) Aggregate, drill-down, roll-up (few large queries)
Design goal High concurrency, fast single-record access Fast aggregation over large volumes
Data volume per query Small Large
Time orientation Reflects current value Reflects data over time (historical snapshots)
Redundancy Minimized (normalization) Encouraged (denormalization for query speed)
Backup/recovery Critical, transaction-consistent Less frequent, can be reloaded from source

Conceptual Diagram

 OLTP Systems                     Data Warehouse
 ┌───────────┐   ETL (Extract,   ┌────────────────┐
 │ Sales DB  │──Transform,Load──▶│                │
 ├───────────┤                   │  Subject-      │
 │ HR DB     │──────────────────▶│  oriented,     │──▶ OLAP / Reports
 ├───────────┤                   │  integrated,   │
 │ Inventory │──────────────────▶│  time-variant, │
 │ DB        │                   │  non-volatile  │
 └───────────┘                   └────────────────┘
   (many small,                    (one large,
   normalized DBs)                  denormalized store)

In short: OLTP is built for doing the business (fast writes, current data), a Data Warehouse is built for understanding the business (fast reads, historical/aggregated data). Bill Inmon defines the DW as subject-oriented, integrated, time-variant, and non-volatile — all properties an OLTP system deliberately does not have.

Similar questions