II: Articulating a Strategic Framework

Analytical processing/online analytical processing

This term was coined by relational database pioneer Dr. E. Codd to describe activities performed on data that are analytical in nature, as distinct from operational or transactional in nature. Analytical processing is also referred to as online analytical processing (OLAP), and operational or transaction processing is also referred to as online transaction processing (OLTP). Contemporary thinking suggests that improvements in computer system efficiency and functionality are achieved by separating analytical processing from transaction processing activities. This is because (1) such systems use different underlying technologies (hardware and software) that are optimized respectively for either transactions or decision support and analysis; (2) software tools to support analysis functions typically evolve faster than those that support transaction processing, so separating such functions allows their users to assimilate changing technology more cost effectively; and (3) data in transaction systems are frequently difficult for end users to work with and are rarely historical, suggesting the desirability of developing different data management approaches for the purposes of management analysis and reporting. A wide variety of software tools have been developed to support analytical processing. Such tools include statistical packages, spreadsheets, report generators, graphical packages, relational databases, and multi-dimensional databases.

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