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Module 1: Data Warehousing and Business Analysis

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Define Data Warehouse and list its key features. What is the difference between OLTP and OLAP systems?

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Data Warehouse — Definition, Key Features & OLTP vs OLAP

Definition

A Data Warehouse is a subject-oriented, integrated, time-variant, and non-volatile collection of data used to support management's decision-making process (Bill Inmon).

Key Features

  1. Subject-oriented — organized around major business subjects (Sales, Customer, Product), not individual applications.
  2. Integrated — data pulled from multiple heterogeneous sources is made consistent (naming conventions, units, encoding).
  3. Time-variant — stores historical data with a time dimension; every record is time-stamped, enabling trend analysis.
  4. Non-volatile — once loaded, data is not updated/deleted by users; it's read-only for analysis, refreshed only via scheduled batch loads.
  5. Summarized/denormalized — data is often pre-aggregated and stored in star/snowflake schemas for fast querying.

OLTP vs OLAP

Feature OLTP OLAP
Purpose Run day-to-day operations Support analysis & decisions
Data Current, detailed Historical, summarized
Schema Normalized (E-R) Denormalized (star/snowflake)
Query type Simple, short transactions Complex, multidimensional queries
Operations Insert/Update/Delete Roll-up, drill-down, slice, dice
Response time Milliseconds Seconds to minutes (large scans)
Users Large number of clerks/staff Fewer analysts/executives
Design goal Concurrency, integrity Query throughput, aggregation speed
     OLTP                              OLAP
┌───────────┐  periodic ETL       ┌───────────────┐
│ Live       │ ───────────────▶  │  Data          │
│ Transaction│                     │  Warehouse     │──▶ Analysis/Reports
│ System     │                     │  (subject-     │
└───────────┘                     │  oriented)     │
                                    └───────────────┘

In short: OLTP powers the business (fast writes, current state), while OLAP powers understanding the business (fast reads, historical trends) — the data warehouse exists specifically to bridge them without letting analytical load slow down live transactions.

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