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    Glossary
    Table of Content

    On-line Analytical Processing (OLAP) is a category of software technology that authorizes managers, analysts, and executives to gain in-depth insights by accessing a wide variety of data generated from raw sources quickly to reflect the real dimensions of the organization as per the client’s understanding.

    Business information is subjected to multidimensional analysis using OLAP, which also offers complex estimations, trend analysis, and advanced data modeling. The vital framework for intelligent solutions, which includes business performance management, planning, budgeting, forecasting, analysis, simulation models, knowledge discovery, financial documentation, and data warehouse reporting, is being quickly improved. OLAP enables ad-hoc analysis of records in various aspects, giving end-users the knowledge and understanding they need for informed decision-making.

    OLAP applications are considered for a variety of organizational functions:

    Finance and Accounting:

  • Budgeting
  • Analysis of financial performance analysis
  • Costing based on activity
  • Financial modeling

    • Sales and Marketing:

  • Sales Analysis and Forecasting
  • Market research analysis
  • Promotion analysis
  • Market and customer segmentation
  • Customer analysis

    • Production:

  • Production planning
  • Defect analysis

    • There are two primary uses for OLAP cubes. First, a data model that is more intuitive to business users than a tabular model must be made available to them. This model is referred to as Dimensional Model. The second goal is to provide quick query responses, which are quite challenging to achieve with tabular models.

  • Data restructuring into a snowflake/star schema
  • A limited number of dimensions in a single OLAP cube
  • Impossible to access transactional data in the OLAP cube
  • Tedious process for modifications/updates required in OLAP

    • Vendors offer a variety of OLAP products that can be grouped into three categories: multidimensional OLAP (MOLAP), hybrid OLAP (HOLAP), and relational OLAP (ROLAP). Here is a breakdown of the differences between them.