1. Glossary/

OLAP

Online Analytical Processing

OLAP (Online Analytical Processing) refers to a data processing approach oriented to multidimensional analysis: aggregations, drill-down, time comparisons, slice-and-dice on large volumes of historical data.

OLAP vs OLTP #

FeatureOLAPOLTP
PurposeAnalysis and reportingOperational transactions
Data modelStar schema, denormalized3NF, normalized
Typical queryAggregations over millions of rowsRead/write of a few rows
UsersAnalysts, managementApplications, operators
UpdatesBatch (periodic ETL)Real-time

OLAP operations #

The fundamental OLAP analysis operations are:

  • Drill-down: from aggregated level to detail
  • Drill-up (roll-up): from detail to aggregated level
  • Slice: select a “slice” of data by fixing one dimension (e.g. year 2025 only)
  • Dice: select a sub-cube by specifying multiple dimensions
  • Pivot: rotate analysis dimensions (rows ↔ columns)

Implementations #

  • ROLAP (Relational OLAP): data stays in relational tables, aggregations are computed with SQL queries. This is the approach used in data warehouses with star schemas
  • MOLAP (Multidimensional OLAP): data is pre-aggregated in multidimensional structures (cubes). Faster for queries but requires more space and build time
  • HOLAP (Hybrid): combination of both approaches