Explain OLAP (Online Analytical Processing) with its benefits.

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 • OLAP provides you with a very good view of what is happening, but can not predict what will happen in the future or why it is happening.

• OLAP is a term used to describe the analysis of complex data from the data warehouse.

• OLAP is an advanced data analysis environment that supports decision-making, business modeling, and operations research activities.

• Can easily answer ‘who?’ and ‘what?’ questions, however, able to answer ‘what if?’ and ‘why?’ type questions distinguish OLAP from general-purpose query tools.

• Enables users to gain a deeper understanding and knowledge about various aspects of their corporate data through fast, consistent, interactive access to a wide variety of possible views of the data.

• Allows users to view corporate data in such a way that it is a better model of the true dimensionality of the enterprise.

• OLAP is a category of applications/technology for Collecting, managing, processing, and presenting multidimensional data for analysis and management purposes.

• OLAP is FASMI

- Fast

- Analysis

- Shared

- Multidimensional

- Information



OLAP Benefits

• Increased productivity of end-users.

• Retention of organizational control over the integrity of corporate data.

• Reduced query drag and network traffic on OLTP systems or on the data warehouse.

• Improved potential revenue and profitability.


Strengths of OLAP

• It is a powerful visualization paradigm

• It provides fast, interactive response times

• It is good for analyzing time series

• It can be useful to find some clusters and outliers

• Many vendors offer OLAP tools


OLAP for Decision Support

• Goal of OLAP is to support ad-hoc querying for the business analyst

• Business analysts are familiar with spreadsheets

• Extend spreadsheet analysis model to work with warehouse data

– Large data set

– Semantically enriched to understand business terms (e.g., time, geography)

– Combined with reporting features

• Multidimensional view of data is the foundation of OLAP


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