Although sometimes used interchangeably, the terms data warehousing and online analytical processing (OLAP) apply to different components of systems often referred to as decision support systems or business intelligence systems. Components of these types of systems include databases and applications that provide the tools analysts need to support organizational decision-making.
A data warehouse is a database containing data that usually represents the business history of an organization. This historical data is used for analysis that supports business decisions at many levels, from strategic planning to performance evaluation of a discrete organizational unit. Data in a data warehouse is organized to support analysis rather than to process real-time transactions as in online transaction processing systems (OLTP).
OLAP technology enables data warehouses to be used effectively for online analysis, providing rapid responses to iterative complex analytical queries. OLAP's multidimensional data model and data aggregation techniques organize and summarize large amounts of data so it can be evaluated quickly using online analysis and graphical tools. The answer to a query into historical data often leads to subsequent queries as the analyst searches for answers or explores possibilities. OLAP systems provide the speed and flexibility to support the analyst in real time.
